Sandfire shares tumble after apologising for disturbance of indigenous artefact scatters
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More news: Shares in Sandfire Resources lowered at the start of trading on the ASX after the copper miner apologised for the disturbance of indigenous artefact scatters at its WA-based DeGrussa operations in 2017 and 2018.
Shares were down 4.3% to $8.99 by 10:40am AEST, having added nearly 50% over the past 12 months.
Sandfire apologises for disturbance of Indigenous artefact scatters
The news: Copper miner Sandfire Resources has apologised for the "unacceptable" and "entirely avoidable" disturbance of Indigenous artefact scatters at its DeGrussa operations in 2017 and 2018.
The context: An investigation undertaken at the request of Sandfire by law firm Gilbert + Tobin found that the disturbances occurred "in error due to ignorance and process failings within Sandfire" that included a failure to appreciate the potential importance of the scatters.
The description of the scatters is not public information and is the subject of confidentiality restrictions, according to the report, but they hold importance to the the Yugunga-Nya people, traditional owners of land within the eastern Murchison region of Western Australia where the DeGrussa mine is located.
The investigation determined that Sandfire was not historically organised in a way that would ensure such disturbances could not occur. The findings confirmed a failing of Sandfire's then executive management to clearly define line accountability for heritage, ensure appropriately experienced personnel were in place to manage heritage deeper within the organisation, and that the necessary systems and processes were operating effectively.
The investigation found that "persons who might reasonably be considered as holding that responsibility had stated that they were not responsible".
The investigation also considered the time taken to escalate the matter within the organisation once it was identified, and determined there was a "broad failure" to understand that Sandfire's ESG obligations exceeded "legislative compliance". It acknowledged this changed once current CEO Brendan Harris was first informed of the disturbances, however.
Sandfire said it "recognises the magnitude of these findings" and has committed to an extensive program of work designed to ensure the protection of cultural heritage across all of its operations. Sandfire said it was working with the Yugunga-Nya people to ensure the company delivered on the commitments embedded within a new framework agreement, which included cultural awareness training for Sandfire's board, executive leadership team and Australian employees.
A review of the broader Monty and DeGrussa mining leases is also being finalised by Sandfire to support the pending independent archaeological assessment of other previously identified scatter sites or heritage locations.
What they said: Sandfire chair John Richards said: "We are deeply sorry for the disturbance of artefact scatters at DeGrussa and for the distress this has caused the Yugunga-Nya. The investigation highlights the systematic failures in Sandfire's management systems and a lack of appreciation of Aboriginal heritage at the time this unacceptable damage occurred".
The source: ASX announcement
