Non-legislative acts done after the commencement of the NTA on 1 January 1994 which affect native title (such as grants of freehold titles, mining and petroleum titles and other Crown tenures) must comply with the future act provisions of the NTA. These provisions provide certain procedural rights to native title holders and registered native title claimants.
Depending upon the nature of the interest to be granted, the procedural rights accorded to native title holders and registered claimants will range from a right to receive notice or an opportunity to comment, through to a right to negotiate with the prospective grantee.
Titles or interests which are granted in compliance with the future act provisions are valid. They will affect native title in the manner set out in the NTA. Mining interests do not usually extinguish native title rather they usually prevail over native title rights for the duration of the grant.
Titles or interests which are not granted in compliance with the future act provisions of the NTA may be invalid.
Importantly, if it can be demonstrated that native title has already been extinguished in relation to the land, the NTA will have no operation.
Under the future act regime of the NTA, there are a number of compliance pathways available to proponents seeking to undertake ‘future acts’, including the negotiation of an ILUA.
ILUAs
An ILUA is a key compliance pathway as the types of ‘future acts’ to which an ILUA can apply are unlimited in scope and, unless the act is the surrender of native title, the non-extinguishment principle can apply to each ‘future act’. Being an agreement based option, an ILUA requires negotiation and authorisation by the native title party. It is common for ILUAs to be accompanied by a confidential ancillary agreement, which contains the commercial terms agreed between the parties, including with respect to compensation for the ‘future acts’ and other non-native title matters, such as protection of Aboriginal cultural heritage, environmental management and ongoing engagement between the proponent and native title party.