The Trust Funds
Argyle Diamond Mine makes payments to Gelganyem Trust twice annually for the benefit of Traditional Owners. The payments are determined by the clauses of the ILUA and dependent upon Argyle Diamond Mine's financial performance over the previous six months. The payments are calculated at a predetermined percentage of net earnings before interest, tax expenses, depreciation and amortisation (EBITDA) that are published in Rio Tinto's financial statements. The payments will continue until 6 months after the production at the mine ceases.
The payments made to Gelganyem Trust by Argyle are split between the Sustainability Fund (86%) and the Miriwoong and Gija Partnership Fund (14%) up until June 2009. Thereafter all funds received from Argyle will be paid into the Sustainability Fund.
During the negotiation process funds were allocated for Law and Culture, and Education and Training. Once Gelganyem was established, separate funds were set up to administer these funds.
Gelganyem trustees manage four funds and part of the implementation process was the formulation of the rules for the following funds, whilst still complying with the requirements of the ILUA:
- Sustainability Fund,
- Law and Culture Fund,
- Miriwoong and Gija Partnership Fund, and
- Education and Training Fund.
