Fortescue Metals Group Ltd/FMG North Pilbara Pty Ltd/Western Australia/Johnson Taylor and Others on behalf of Njamal

In the matter of Fortescue Metals Group Ltd and others against Western Australia and others, the court was asked to make a determination regarding the extent of the duty to negotiate in good faith under section 31(2) of the Native Title Act 1993 (Cth). The dispute centred around whether the grantee parties, including Fortescue Metals Group Ltd, had fulfilled their obligation to negotiate in good faith with the Njamal native title claimants concerning the future acts related to mining leases. The case was heard in the Federal Court of Australia.

The central legal issues that the court had to resolve included the interpretation of section 31(2) of the Native Title Act, particularly the scope of the obligation to negotiate in good faith, and whether the grantee parties had indeed negotiated in good faith with the native title holders. The court was also tasked with determining whether there was a conflict of duty that affected the grantee parties' ability to negotiate in good faith.

The court found that the grantee parties had fulfilled their obligation to negotiate in good faith, despite the presence of a potential conflict of duty. The court emphasised that the negotiation process must be assessed on a case-by-case basis and held that the grantee parties had made genuine efforts to reach an agreement with the native title claimants. The court's decision confirmed that the grantee parties had not breached their duty under section 31(2) of the Native Title Act.

The Federal Court of Australia determined that the grantee parties had negotiated in good faith and did not breach their obligations under section 31(2) of the Native Title Act. Consequently, the court dismissed the application for a determination in relation to the mining leases.