Traditional owner – industry partnerships: building and retaining a social licence to operate

Throughout Australia, agreement-making processes and associated community-benefit outcomes have become a cornerstone of the resources industry’s social licence to operate (SLO). While First Nations engagement has historically been the onshore sector’s domain, proponents of domestic offshore projects are increasingly collaborating with relevant First Nations groups and representative bodies to shape and implement Environmental, Social and Governance initiatives. Beneficial outcomes for First Nations arising from industry engagement processes derive primarily from legally mandated negotiation rights under the Native Title Act 1993 (Cth) (NTA), the Aboriginal Land Rights (Northern Territory) Act 1976 (Cth) (ALRA), and applicable State or Territory legislation. The year 2026 marks the 50th anniversary of the ALRA and 33rd anniversary of the NTA. Despite these and other legislation designed to improve outcomes for First Nations, the Closing the Gap 2023 Annual Report shows that most agreed targets remain unmet. Even with substantial funding through industry agreements and other sources, national progress in improving outcomes for First Nations remains limited. This paper examines opportunities for industry and First Nations to collaborate in the development of culturally respectful frameworks that facilitate First Nations participation as equity partners in major projects. Drawing on consultations convened by the Top End Aboriginal Coastal Alliance Inc and comparative analysis of Canada’s Indigenous Loan Guarantee Program, we outline a practical, risk-managed pathway from consultation and compensation to co-ownership, co-governance, and co-benefit with the objective to improve socio-economic outcomes for First Nations, strengthen SLO for proponents and deliver wider public value.