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MowanjumPastoral

BusinessPlanforILCgrantandWESTPACICASfinance
TradingEnterpriseforFatteningofWeanersVersion4

August2012

Preparedfor
Mowanjum Aboriginal Corporation
by
RichardSmith,Ph.D.
(richard.c.g.smith@gmail.com,0893843308)

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DisclaimerandMethodology
ThisbusinessplanusesmaterialfromtheWinyuduwaBusinessPlanV1
prepared in 2007 by BlueBone Solutions for the Winyuduwa Pastoral
Company(subleasee)fortheMowanjumAboriginalCorporation(leasor).
This plan now focuses solely on cattle production, lessons learned since
2007andtheneedforaviablebusinessmodel.
A Gross Margin methodology is used for financial analysis to account for
incomeanddirectcostsassociatedwiththepastoralenterprise,excluding
thefixedcostsalreadycoveredbyMAC.
ThisplanwasreviewedbyILC,13thJune2012(ILC,2012)and28
th
June
2012followedbymyvisittoMowanjumsPastoralleasewithJasonRuss,
thenmeetingswithBrianLord,PLC,AndrewDenniss,WestpacandSteve
Austin,CEOMACfromJuly515
th
2012andagainbyILCon25
th
July2012.
The author, a volunteer, has worked with the Mowanjum Community for
the past 5 years as a member of the Boab Network (Boab, 2012). He has
developed the Mowanjum Community Resource Centre (CRC, 2012) to
provide computer and internet literacy and training in vegetable/fruit
treegrowing.HecontinuestoassistwithadministrationoftheCRC.
TheauthorhasbeenaFarmManagementConsultant,UniversityLecturer,
CSIROResearchLeaderandManagerofSatelliteRemoteSensingServices,
Landgate where his staff developed the mapping of burnt area from
satelliteusedinCarbonCapturefromSavannahburning.
My son Matthew Smith, another member of the Boab Network (Boab,
2012)hascontributedhisexpertisetothisbusinessplan.
InformationusedintheBusinessPlanwaskindlyprovidedby:
RussellShaw,WADepartmentofAgricultureandFood
JasonRuss(RussContractingPtyLtd)ManagerofMowanjumPastoral
Steve Austin, CEO Mowanjum Aboriginal Corporation, who made
available all the financial details included in the ILC application for a
capitalgrant
Stephen Sharpe (Version 1), Kira Meadus, Richard Brake, Len Boladeras
andIainLoganathan(Version2),ILCPerthOffice(V3,V4,V5)
AndrewDenniss,WestpacBusinessBankingManager,Broome
BrianLloyd,PastoralLandsBoard,Broome
MrJohnStyants,WADepartmentofIndigenousAffairs
PaulMorgan,BetterlinkGrouponupdatingtheMowanjumStrategicPlan
andManagementAudittodealwithsuccessionplanning
PeterMerin,MLCSCorporatePtyLtd,onMowanjumEnterprisesPtyLtd

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TABLEOFCONTENTS
1.ExecutiveSummary...............................................................................................................5
1 Background.............................................................................................................................8
1.1 Mowanjum...........................................................................................................................8
1.2 PropertyLocation.........................................................................................................10
1.3 PastoralAssessment....................................................................................................11
1.4 Cultural Considerations.............................................................................................16
1.5 Current LandUses........................................................................................................16
2 Proposal.................................................................................................................................17
2.1 MissionStatement,VisionandObjectives..........................................................17
2.2 SourcesofIncome.........................................................................................................17
2.3 PastoralInfrastructure...............................................................................................18
2.4 CapitalWorksPlan.......................................................................................................20
2.5 SourcesofFunding.......................................................................................................21
2.6 Stakeholders....................................................................................................................22
2.7 BusinessStructure &Management...................................................................25
3 SWOT Analysis...................................................................................................................27
4 Competitive Analysis......................................................................................................30
4.1 Competitors...................................................................................................................30
4.2 CompetitiveAdvantages.........................................................................................30
5 FinancialAnalysis..............................................................................................................31
5.1 Parameters.......................................................................................................................31
5.2 HerdDevelopment20122016............................................................................32
5.3 CattlePurchasesandSales........................................................................................32
5.4 GrossMarginAnalysis.................................................................................................33
5.5 WestpacOverdraftAnalysis.....................................................................................34
5.6 Assumptions....................................................................................................................35
6 ProjectedImpactofProposalonMACsFinancialPosition.............................36
6.1 DiscussionofFinancialAnalysis.............................................................................38
7 References.............................................................................................................................39
AppendixA DraftContractManagementAgreement...........................................40

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TABLEOFFIGURES
Figure1:TAFEtraineesclearingregrowth,dozerclearingPindan..............................9
Figure2:WatertroughwithgatesoftrapyardatRussbore,July2012....................9
Figure3:JasonRusswithnewfencebuiltin2011fromILCfunding.......................12
Figure4:DiagramofplannedILCTruckingYards(JasonRuss,2012)....................12
Figure5:MowanjumStation.......................................................................................................15
Figure6:Cattleonagistmentandwarningnotice,July2012.......................................18
Figure7:RussBoreawaitingSolarpumptogetwaterintoTank..............................19
Figure8:RussContractingfullservicecontractbusinessandbullbuggy..........24
Figure9:LivestockTruckandstockcampwithfueltrailer..........................................24
Figure10:Saddleryanddozer...................................................................................................24
Figure11:Weldingtrailerforbuildingyards......................................................................24
Figure12:MowanjumCoprorateStructure.........................................................................26

TABLEOFTABLES
Table1:SocialBenefits&Measures...........................................................................................5
Table2:MowanjumPastoralFinancialSummaryofWeanerFattening..................6
Table3:KnowsleyAgricultureArea........................................................................................11
Table4:MACownedHousingBlocksinDerby...................................................................11
Table5:2012/13InvestmentBudget.....................................................................................20
Table6:2013/14InvestmentBudget.....................................................................................21
Table7:TrainingPlan....................................................................................................................26
Table8:ModelParameters..........................................................................................................31
Table9:CattleUnits........................................................................................................................31
Table10:HerdDevelopmentforWeanerFatteningEnterprise.................................32
Table11:CattlePurchasesandSalesincludingfreightcost.........................................32
Table12:GrossMarginAnalysisofWeanerFatteningEnterprise............................33
Table13:WestpacOverdraftProjection................................................................................34
Table14:MACProjectedIncome20122015(w/MowanjumPastoral).................36
Table15:MACProjectedExpenditure20122015(w/MowanjumPastoral).......37
Table16:MACProjectedSurplus/Deficit20122015(w/MowanjumPastoral).37

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1.ExecutiveSummary
TheMowanjumAboriginalCorporation(MAC)holdsapastoralleaseover55,000
hectares of good quality grazing land situated just outside Derby in the
Kimberley.Thisleasehasbeenunderutilizedforthelast40years.
Indigenous communities with viable cattle enterprises progress better, both
socially and economically, than those without (Shaw, 2012). The 2015
Governmentpastoralleasereviewmakesthisdevelopmentamatterofurgency.
This Plan reestablishes a profitable cattle enterprise which will retain
indigenous control of the lease as well as provide training, and employment to
helpbreakthecycleofwelfare,alcoholdependenceandculturalalienation.
ThisdevelopmentwillprovideemploymentthroughRussContractingPtyLtd,of
1Manager,4casualstaff,and10TAFEtraineesperyear.Withcloseproximityto
Derby, the trainee program will offer a variety of TAFE courses and CDEP
employmenttoenabletheMowanjumcommunitytoengagewiththeirlandand
chooselongterm,employmentbasedlifestyles.
SocialBenefits Measures
Employment 1FullTimeManager(RussContractingPtyLtd)
2CasualpositionswiththeContractor
and2moreCasualswithCDEP
Training
withCDEPandotherfunding
63TrainingParticipants
20CertificateIIinruraloperations
8BusinessAdministration
25AutomotiveServicing&Drivinglicenses
10GovernanceTraining
Indigenousheldland 55,000hectares
IncreasedIncomeGeneration 3Indigenousownedbusinesses:
MowanjumPastoral
RussContractingPtyLtd,and
MowanjumDrivingAcademy
LandManagementEvents 13total:
2NewPaddocksestablished
5Waterpoints
5Trapyards
1Truckingyard
1,500headweanerfatteningenterprise
Eventuallyabreedingherd
Table1:SocialBenefits&Measures
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For every trainee who gains employment, the net capital cost will be $5,000,
generating savings of over $500,000 in reduced welfare expenses and resultant
improvements in communal well being. The basis of this social dividend from
employment and training opportunities for the Mowanjum Community in the
firsttwoyearsareshowninTable1.
Integral to this Plan is MACs contract with Russ Contracting Pty Ltd to run the
cattle enterprise. The indigenous principal, Mr Jason Russ, has over 20 years of
experienceinthepastoralindustry,businessmanagementandTAFEtraining.
Mowanjum Pastoral will focus initially on trading to fatten weaners for the live
export trade in Broome 180km away. It will capitalise on its strategic location
closetoDerby,accesstoallweatherroadsanditsgoodfloodplainsoils.MAChas
a highly competent CEO, expert management by Russ Contracting Pty Ltd and
support of the Kimberley Indigenous Management Support Services of the
DepartmentofAgricultureandFoodWA.
Financially,thePlanbeginswithacapitalinvestmentof$567,750in201214for
fencing, bores, trap yards and trucking yard from the Indigenous Land
Corporation(ILC).ThisILCgrantenablesa$500,000WestpacICASoverdraftfor
purchase and fattening of over 1,000 weaners each wet season. This cycle of
buying weaners September to November and selling them fattened April to
OctoberwillbringtheICASoverdrafttozerobytheendofthe2015dryseason.
ThepredictedfinancialoutcomesofthePlanarepresentedinTable2.
2012/13 2013/14 2014/15 2015/16 2016/17
GrossProfitCattle
227,420 238,350 249,280 225,290 236,220
CumulativeGrossProfit
227,420 465,770 715,050 940,340 1,176,560
Directcosts(w/interest)
239,656 265,664 144,390 156,423 168,455
GrossMargin
(12,236) (27,314) 104,890 68,868 67,765
CumulativeGrossMargin
(12,236) (39,550) 65,340 134,208 201,973
Table2:MowanjumPastoralFinancialSummaryofWeanerFattening
MACs diversified set of businesses will insulate it from the variable business
cycles of individual businesses. Its corporate structure (Figure 12) will further
minimiserisks.ThereforeMAChasthefinancialresourcesanddiversificationto
withstandshorttermdownturnsinthelivecattleexportmarketandtodiversify
furtherinthefuturetoincludeaselfsustainingcattlebreedingherd.
In summary, with the necessary investment, Mowanjum Pastoral will become a
profitable business and training venture within MACs portfolio of businesses
producingsignificantsocialandeconomicbenefitstotheMowanjumCommunity
if:
High quality pastoral management is used by contracting Russ
Contracting Pty Ltd (Jason Russ) to manage the weaner fattening
enterprisewithresponsibilityforlivestockcostsatarateof$110/head;
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MAC provides overall financial control through CEO, Steve Austin and
FinanceOfficerNardiaGerrard;
Infrastructure spending of $567,750 in the first two years results in two
newpaddockswithwater,troughsandtrapyardsforlowcostmustering
and a set of trucking/drafting yards enabling a trading weaner fattening
enterprise of 1,000 expanding to 1,500 to be run with a $500,000
WESTPACICASoverdraftreducingtozerowithin3years;
As ILC funding will not be available till the end of 2012 dry season, but
infrastructureisneededbeforethen,someflexibilitybyILCandWestpac
inuseoftheirfundsforeithercapitalimprovementorcattlepurchasesis
requiredtoenabletheproposedPlantobeachievedwithinthe$500,000
WESTPACoverdraftlimit;
Once in profit, Mowanjum Pastoral has the choice to transition from a
tradingenterprisebasedonweanerfatteningtoamixofabreedingherd
andfatteningtoprovidediversitywithintheliveexportcattleindustry;
TAFE training is provided to improve the skills of staff members and
providesalowcostsourceoflabour;
All trainees gain Driving Licenses through driving lessons from the
MowanjumDrivingAcademy,anessentialelementoffutureemployment;
Early cash flow is generated from agistment, sale of unmanaged cattle,
andpurchaseofweanersforfatteningoverthewetandearlydryseason;
and
MowanjumspositionaladvantagenearDerbyprovides:
o Ability to get stock to the live export market in Broome 180km
awayinoptimumcondition.
o Sourceofneighbouringstockforfattening
o AccesstoTAFEtraineesforlowcostlabour
o Access to the Management and pastoral skills of Jason Russ who
residesinDerbywithin15minutesofMowanjumspastorallease.
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1 Background
1.1 Mowanjum
TheMowanjumCommunitywasestablishedasaworkingpastoralstationinthe
mid 1950s. This was a natural way to respond to the needs of an Aboriginal
community displaced from country. The community has suffered significant
dislocationsimilartootherAboriginalcommunitiesinremoteareas.
TheaimofrevivingMowanjumsPastoralleaseasaworkingstationis:
Thetrainingofyoungermembersofthecommunityinasignificantarea
oflandmanagementandbusinessopportunitythroughreestablishinga
longandsuccessfultraditionoftheirEldersinthepastoralindustry.
ToensurethattheCommunitydoesnotlosetheirpastoralleaseand
thereforesufferyetanothersignificantdisruptiontoitsfuturewith
undesirablesocialimplications(welfaredependance,alcoholand
suicide).
Toofferaviablewaytoeconomicselfmanagementatalowcostto
GovernmentinsupportofAboriginalaspirationsofsovereignty,
managementoflandintheircareandeconomicindependence.
Most MAC members reside in the Mowanjum Community. The community is
composed of the Ngarinyin, Worora and Wunambul clans who have no
traditional ties to the Mowanjums pastoral lease, but have family ties that
extend north and east. Over 100 young people in the Community will benefit
over the first 10 years from enhanced training and employment opportunities
providedbydevelopmentofMowanjumsPastorallease.
Mowanjum community is on Reserve R1326/1434 vested with the Aboriginal
LandsTrust.Therearecurrentlybetween290350peoplelivingfulltimeinthe
Mowanjum community. The actual figure changes according to the season (e.g.,
mustertime,festiveseason,ceremonialperiods).
MAC was registered with the Office of Registrar of Aboriginal Corporations
(ORAC)in1981undertheAboriginalandTorresStraitIslanderAct2006(CATSI
Act). MAC is made up of members of family groups which live and work in the
Mowanjum community. MAC has an operating governing structure. All
governanceandfinancialdetailsofMACareinternetaccessible(ORAC,2012).
Mowanjum Aboriginal Corporation (MAC) controls various tracts of land,
including pastoral lease, unencumbered freehold land, crown land grazing
licenceandreserve.Themajorityofthesevarioustractshavebeenamalgamated
into the one pastoral lease. Cattle were run by local indigenous people on
Mowanjumpropertyfromthe1960suntiltheearly1980swhenthemissionera
ended and social problems developed associated with unregulated access to
alcohol, passive welfare and government policy failures. The Mowanjum
communityisdeterminedtoreversethistrend.
Reestablishment of Mowanjum Pastoral as a commercially viable enterprise of
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MACiscentraltoMowanjumsstrategicplantoovercomeitssocialproblemsby
becoming an economically selfsustaining community. MACs aspiration for
MowanjumPastoralistobuildthebusinesstoprovidetrainingandemployment
as well as community development and cultural opportunities for the people of
Mowanjum.
Mowanjum Pastoral forms part of a portfolio of MAC businesses which include
DerbyWorkforce,MowanjumDrivingAcademy,andtheKingSoundGraveljoint
venture. Other businesses such as fuel distribution and a Caravan Park with
Service Station on Mowanjums road frontage on the DerbyBroome road are
beinginvestigatedwithassistanceoftheIndigenousBusinessAssociation.

Figure1:TAFEtraineesclearingregrowth,dozerclearingPindan
MACused$174,756fromILCfromAugust2011tosuccessfullycompletecapital
worksonMowanjumspastoralleasewithTAFEtrainees(Figure1andFigure2).
This money came from an existing grant from ILC to Winyudwa Aboriginal
CorporationwhohadasubleasewithMAC.Winyudwawerenotabletoperform
to the expectations of ILC, MAC and PLB, and therefore MAC cancelled the
sublease and directly fulfilled the obligations to ILC. This Plan completes the
initialvision.
Figure2:WatertroughwithgatesoftrapyardatRussbore,July2012

1.1.1 PropertySize
Mowanjum Pastorals 55,000ha compares with a typical pastoral lease of
320,000ha(DAFWA,2009).ThusprofitabilityofMowanjumPastoraldependson
MAC:
Developing its fences, bores, trap yards, a trucking yard, roads and
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firebreakstomaximisecarryingcapacity(ILCgrant).
Achieving a low operating cost/head by using specialist contracting
(RussContractingPtyLtd)exploitingeconomiesofscale.
Minimising overhead costs using its existing capital, administrative,
managementandworkshopresources(MAC).
Exploitingits strategiclocation near to Derby to maximise cattletrading
andtrainingopportunities(WestpacICASoverdraft).
Focusingontradingandfatteningofweanersfortheliveexporttradeout
of Broome only 180km away on an all weather road (MAC, Russ
ContractingandWestpacoverdraft).
Eventuallydiversificationtoincludeaselfsustainingbreedingherd.The
possibility of diversification depends on early profitability the trading
enterpriseandexpandingthenumberofpaddocks.
The economic viability of this strategy has been verified by modelling and
financialanalysis(section5).ThediversityofMACsincomesources(Section6),
based on an expanding portfolio of businesses, which gives Mowanjum the
ability to withstand a downturn in the live cattle export industry. Employing
RussContractingprovidestheexpertiseandtheeconomiesofsubcontracting.
1.2 PropertyLocation
Mowanjum Pastoral Lease 3114/1008 is located about 10 kilometres south of
Derby, along the main Derby road. As shown in Figure 1, the property is in the
Shire of DerbyWest Kimberley, within the West Kimberley Land Conservation
District.ItneighboursaretheMeda,YeedaandDebesastations,theDerbytown
reserveandDerbyRAAFfacility.

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Figure1:MowanjumStationLocation
Mowanjum property incorporates the pastoral lease, which occupies
approximately55,000hectares.
Grazing Lease 295/109 runs on both sides of the DerbyBroome road in the
northern end of the pastoral lease (see Map). There are blocks ranging in size
from 5090ha designated in 1925 as the Knowsley Agricultural Area. Freehold
LandintheKnowsleyAgriculturalAreawithlotnumbersandareasareshownin
Table3:KnowsleyAgricultureArea.
Lot Area(hectares)
3 34.88
12 60.29
13 46.82
93 81.13
94 81.23
98 81.13
99 80.52
146 154.96
Total:620.96
Table3:KnowsleyAgricultureArea
The above areas offer economic opportunities on the Highway for a Caravan
Park and/or Service Station which MAC is currently exploring with Indigenous
Business Australia. In addition MAC is negotiating a Fuel Delivery joint venture
partnershipfortheDerbyarea.
MACalsohastwofreeholdhousingblockswithhousesinthetownshipofDerby
thatprovidesvaluablecollateralforborrowingfromWestpac.
Lot Plan Area(m
2
)

Address
11771177 215280 819 CnrHolmanandWodehouseSt
46 7953 1012 WattSt
Table4:MACownedHousingBlocksinDerby
1.3 PastoralAssessment
1.3.1 Infrastructure
The pastoral lease had little infrastructure remaining following the closure of
pastoralactivitiesbytheUnitingChurchpriortothehandoverofthelandtothe
Mowanjum Aboriginal Corporation. At that time, the Uniting Church sold off all
stock. Previous to this sale Mowanjum Station was developing as a successful
pastoralenterprise(MowanjumCommunity,2007).
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WhileapreviousILCgrantin2011improvedinfrastructure(seeFigure3),but
notsufficientrequiredtoachieveaprofitablecarryingcapacity(seeFigure4).

Figure3:JasonRusswithnewfencebuiltin2011fromILCfunding

Figure4:DiagramofplannedILCTruckingYards(JasonRuss,2012)
1.3.2 StockingHistory
There are no historical stock return records for Mowanjum Station, and
therefore stocking history is unknown. There have been limited pastoral
LoadingRamp
DraftingGate
Draftingrace
LaneWayfromPaddocks
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managementactivitiesonthepropertysincethe early 1980s (around the time
when the community moved from the Old Mowanjum site,neartheairport).
1.3.3 CurrentStockSituation
The cattle on Mowanjum station are limited and have not been managed for
many years. The property is home to about 200 Brahman with some Shorthorn
stock; the majority are unbranded. These will be progressively sold off as the
weanerfatteningenterpriseisbuilt.
1.3.4 Climate
Mowanjums climate is similar to Derby with an average rainfall of
approximately 800mm. The usual growing season for pasture is between
DecemberandMay.
1.3.5 SoilandPastures
The main soil types are Pindan sands, marine plains and sand dunes, with a
roughlyeven mixofthethree.Mostpotentialcattleproductionisfrompastures
growingonthemarineplains,howeverallareasaresuitedforgrazing.
1.3.6 CarryingCapacity
Under current land and pasture conditions, the estimated carrying capacity of
the property by DAFWA is 2,000 Large Cattle Units with potential to expand to
2,400 cattle units when fully improved (Jeffery, 2007). To realise this carrying
capacityrequiresinvestmentinfirebreaks,accessroads,fencing,water,troughs,
trapyardsforlowcostmusteringandasetoftruckingyards.
1.3.7 Hydrology
There are numerous creeks and tributaries. The river and creek systems only
flow after significant rainfall. There are also numerous natural lakes and
springsontheproperty.Thequalityandquantityofwaterwaysontheproperty
aredependentonthe seasonal conditions and surrounding landuses.
In addition to natural surface water, there are numerous bores on the property
whichhaveproventobeveryreliablewatersourcesinbothqualityandquantity
forpreviouspastoralenterprises.
Thespecificgroundwaterresourcesofthepropertyandtheregioningeneralare
unknown. Derby Township acquires its water from shallow aquifers that
underliethearea,thereforeitisanticipatedthatadequategroundwaterexiststo
support the development of irrigated pasture for fattening in the dry season to
maximise prices for fattened stock and a fodder supplier through hay
production.
1.3.8 Weeds
Identifiedweedsonthepropertyare ParkinsoniaandRubberBush,whichhave
been classified for control. This is an environmental management issue and
therefore,anoperationalmanagementconsideration.
1.3.9 FeralAnimals
CatsarethemainferalanimalonMowanjumstation.Therearenodonkeys,pigs
orotherferalanimalsontheproperty.
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1.3.10 CattleBreeds
Markets in Southeast Asia prefer Bos indicus cattle, or those with better than
50%contentofBrahman,DroughtmasterorSantaGertrudis.Asarulethemore
dominant the traits of these breeds in a beast, the more highly it will be
favoured by exporters. Shorthorn (Bos tuarus) are periodically discounted
$0.20/kgbelowtheequivalentBosindicusprice(DAFWA,2009).

19
th
July2012
MrEddieBear
A/gChair
MowanjumAboriginalCorporation
POBox3
DERBYWA6728

DearEddie
MOWANJUM PASTORAL LEASE

On 5 J uly, whilst in the area, I took the opportunity to look over the improvements on
Mowanjum Station with the Manager, J ason Russ.

I was pleased to both hear of and see the progress being made on the station,
particularly in relation to the new bore and associated trapyards, the new fencing that
has been erected, the maintenance of existing fencing and the removal of old fencing.
I was also pleased to see the involvement of some of the Mowanjum Community in
doing this work.

Such activity is heartening, given the previous poor history of lease management on
Mowanjum. I trust such progress can be maintained in a consistent manner in the
coming years as 2015 and lease renewal approaches.


Yours sincerely


Brian Lloyd
Pastoral Liaison Officer, WA Pastoral Lands Board
CopyofletterfromBrianLloydfollowinghisinspectionoftheMowanjumPastoral
Leaseon5
th
July2012

GibbRiverRoad
CurtinAirForceBase
Derby
Figure5:MowanjumStation
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1.4 Cultural Considerations
Ngarinyin,WororaandWunambulhaveahistoric and culturalassociationtocountryderived
following their movement from their traditional lands and their settlement at Mowanjum in
the early 1960s. Mowanjum continues to shape and enrich their language, law and custom,
food, art, spirituality and identity. The Pastoral lease is not on the historic lands of the
Ngarinyin,WororaandWunambul,buttheNgarinyinandWunambulretainhistoriclinkswith
thepastoralindustrywheremanyworkedsuccessfullyinyearsgoneby.
Activities and cultural practices undertaken include Junba (Traditional
ceremonies/corroborees), rejuvenation of language, spiritual practices and traditional
(ecological)knowledge through information sharing, oral histories and education (including
children, parents and Elders), and fishing, hunting and gathering of plants and animals,
providing food, medicine and spiritual/cultural sustenance. There are no registered sacred
sites on Mowanjum lands, howeverthe Mowanjum community members use the lands for
cultural business including womens andmensculturalbusiness,educationandlearningfor
theyoungpeopleandforhuntingandgathering.
The cattle currently running on the property are an unmanaged socialcultural resource.
While providing clear economic benefits through the direct sale of stock, the pastoral
enterprise will also provide employment and training for community members with
management by MAC. Approximately 50 head are used as a food source by the community
memberseveryyear.MACwillberesponsiblefornegotiatingtheallocation of fresh meat for
ceremonies and other special occasions with senior people ensuring that it is distributed
equitably.Cattleareoftenusedforceremonialpurposes,usuallyduringYuwinji (wet season)
with beef being supplemented by other bush meats, including fish, kangaroo, emu, wild
pig,bushturkeyandgoanna.
1.5 Current LandUses
The land and natural resources of the property are used for a variety of cultural, social and
economicpurposes,whichincludehunting,fishing, camping,gatheringbush tuckerandbush
medicines, collecting woods and stones for tool making/artefact making, travelling,
conducting ceremonies and teaching the younger generation language, place names and
stories. The Mowanjum lands have not been used for any commercial purpose to foster
indigenousemployment sincetheclosureoftheoldMowanjumcommunityapproximately30
years ago. This closure and failure to continue with development of Mowanjums pastoral
leaseforculturallyappropriateemploymentandtrainingisassociatedwiththedeterioration
in the economic, social, cultural and health of the Community. The national press recently
documented the relationship between lack of employment opportunities and the increasing
rateofsuicidesamongyoungpeople(Skelton,2012).
The purpose of the present plan with ILC and Westpac support is to reverse this trend at
minimalcosttotheGovernment.
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2 Proposal
2.1 MissionStatement,VisionandObjectives
MissionStatement
Within 5 years, build a commercially viable pastoral business that will provide
employmentandtrainingopportunitiesforindigenouspeople,usingappropriateland
management practices to look after the country for future generations and cultural
renewal.
Members of the Mowanjum community aspire to selfdetermination, selfsufficiency, and
financialindependence.MACsvisionisapastoralbusinessthatwillprovideemploymentand
training for young people of the Mowanjum community to prepare them for work in the
pastoralindustry.
Further, MAC will ensure that business operations work handinhand with appropriate land
managementpracticestopreservethelandforfuturegenerations.
Mainlyworkingonhorseback,ManagerJasonRussaimstotrainhisteamonhowtolookafter
their horses andthe cattleandbe able to show that Aboriginalpeople canwork andmanage
theirlandeffectivelyandresponsibly.
2.2 SourcesofIncome
Theimmediatesourcesofpotentialincomearethepurchaseandsaleoffattenedweanercattle
andrentalfromagistment.
Longer term, other sources of income include a breeding herd, plus hay and seed production
on the marine plains. Further potential paddock development to the north east between
CurtinAirforcebaseandGibbRiverroadtoincreasecarryingcapacity.
2.2.1 SaleofCattle
Toachieveprofitabilityquickly,thefocusofMowanjumPastoralwillbepurchaseofweaners
forfatteningfortheliveexporttradeoutofBroomewhichisonly180kmaway.Thisrequires
twomorepaddocks,wateringpoints,trapyardsandasetoftruckingyardsformanagementof
1,500headofcattle.
Given the types of pasture growing at Mowanjum, attempting to fatten cattle on the current
pastures without significant supplementary feeding during the dry season would be very
difficult.Thereforetheobjectiveistotimethebuyingofsteerweanerstomaximiseuseofthe
wetseasongrowthandmarketingofanimalsbeforebetweenAprilandOctoberdependingon
theirweightandstateofthemarket.
To improve the potential income from sales of fattened cattle, improvements in pasture
combined with additional paddocks and watering points is planned. These will increase the
carrying capacity, such that the herd can be expanded towards 2,000 breeders and fattening
extendedfurtherintothedryseason.
2.2.2 Agistment
Twohundredcattlearealreadyonagistment,seeFigure6.Itisestimatedthatupto600head
ofcattleperyearcouldbecarriedunderagistmentarrangementsinthefirstyear,generating
approximately $1 per head per week. Mowanjums convenient access to the sealed Derby to
MowanjumPastoralBusinessPlan CommercialinConfidence
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Broomeroadmakessucharrangementsappealingtopotentialcustomers.
AgistmentprovidesshorttermcashflowwhileMowanjumbuildstwofullyservicedpaddocks
with an ILC grant and Westpac overdraft facility to maximize short term profitability,
employmentandtrainingopportunities.
Figure6:Cattleonagistmentandwarningnotice,July2012
2.3 PastoralInfrastructure
To enable increased stock of high quality to be carried, existing infrastructure needs to be
improved, additional construction undertaken, and improved fire management and animal
husbandrypracticesputinplace.
Thecurrent200headofcattlewillbesoldoffwhenconditionsarerighttomakewayforthe
newherdofexportpreferredBosindicuscattle.
Apart from recent minor improvements to the infrastructure, the majority of fencing and
yards on the property have not been maintained for many years. It is a priority for the
property to get artificial watering points in working order, repair and replace fencing, and
maintain the homestead yards and thus enable the cattle enterprise to expand from the
currentfourpaddockstoseven.
2.3.1 PreviousILCInvestment
MACinvested$174,756tocompletecapitalworksonMowanjumpastoralleasesin2011from
anexistinggrantbetweenILCandWINYUDUWAAboriginalCorporationwhohadasublease
arrangementwithMAC.MACcancelledthesubleaseagreementduetononperformanceand
completed the work itself through a contracted with Jason Russ in 2011, who completed
successfullythefollowingworkwithTraineesfromTAFE:
Bluebushpaddockfence&NobbysPaddockfence
Reinstatementofboresin3paddocks
AnewTrapYard
Anewbore
Newfirebreaks.
2.3.2 Fencing
Boundaryfencingisnowingoodconditionduetothe2011ILCgrant.Alargeamountof
fencingonthepropertystillhastobeerectedtocreatetwonewpaddocksanda
trucking/draftingyardbeforethefatteningweanerherdcanberun.
2.3.3 WateringPoints
There are a number of bores and dams on the property, which arein variablecondition.The
operatingwaterpointsareRingoDam,BendDam,BluebushDamandFiveMileMill. Most of
MowanjumPastoralBusinessPlan CommercialinConfidence
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the station relies on natural sources of water, which are of a seasonal nature. More
bores, tanks and infrastructure are to be installed with the proposed ILC grant as shown in
Figure7:RussBoreawaitingSolarpumptogetwaterintoTankthatsuppliesthetrough(Fig
6).
Figure7:RussBoreawaitingSolarpumptogetwaterintoTank
2.3.4 Stockyards
ThereisonesmallyardonthepropertyattheOldMowanjumsite.Tosupportdevelopmentof
thebusiness,newstockyardsatFiveMilefordraftingandtruckingontheallweatherDerby
Broome highway are proposed with the ILC grant and Westpac ICAS overdraft facility which
providediscountedinterestrates.
2.3.5 PastureImprovements
Weed eradication activities must be carried out on an ongoing basis, involving treating the
plants after the wet season, before they get a chance to set seed again, by means of manual
removalandspraying.Theremovedplantswillbeburnedincontrolledareas.Suckergrowth
alongfencelinesisremovedbyhand.

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2.4 CapitalWorks
Infrastructure investment on Mowanjum Pastoral in fencing, bores, yards, roads and
firebreaks and weaners to fatten, needed to bring the pastoral enterprise to profitability
within 3 years is shown in Table 5: 2012/13 Investment Budget. First stage of the trucking
yards are completed in 2012 to enable the first batch of weaners to be purchased from
September2012.
Funding is sourced from ILC as a $567,750 grant and from MAC with the assistance of a
$500,000WestpacICASoverdraftfacilityforCapitalandWeaners.

2012/13 Westpac ILC


1 Firebreaks $22,000 Machinery
2 ClearingMangoPaddock $16,500 Machinery
3 NewPaddockPindan $39,000 Materials&
Labour
$91,000 Materials&
Dozer
4 NewBore,Tank,Trough,Solar(PindanBore) $58,000 Materials
5 NewTrapYardPindan $13,750 Mat.&Lab.
6 NewTrapYardatRussBore(BlueBushPd) $13,750 Mat.&Lab. Materials
7 Solar,TankandTroughsat5mileYards $4,400 Dozer $34,500 Materials
8 Stage1NewTruckingYards $48,400 Materials,
Dozer&
Labour
$39,000 Materials
9 BoreRoadsPindanPaddock $12,000 Dozer
10 NewTankatMango Materials
11 PurchaseSteerWeaners $100,000 Cattle
Totals $157,800 $334,500
Table5:2012/13InvestmentBudget
NOTEforILC,WESTPACandMAC:
ILCfundingisformaterialstoconstructfencing,bores,troughs,trapyardsandtrucking
yards.Howevertobegintheweanerfatteningenterprisein2012someessentialcapitalwork
needstobecompletedduringthecurrentdryseason.HoweverILCfundingwillnotbe
availableuntilNovember2012.ThereforeMACwillneedtofundessentialcapitalitems
($100,000)fromWESTPACfundstobeoffsetlaterbyILCfunding$100,000oftheWeaner
purchase(Seeitem11inTable5:2012/13InvestmentBudget).
TohandlethenewweanerfatteningherdthefundswillusedforthenewPindanpaddock
(item3)withwatersupply(Item4)andthefirststageofthetruckingyards(Item8)with
watersupply(Item7)willbecompleted.
ThisarrangementistoavoidtheriskofMACbreachingits$500,000overdraftlimitagreement
withWESTPAC.

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In 2013/14 the proposed Capital works with ILC funding can occur normally during the dry
seasonandallweanerpurchasesmadebyMACusingtheWestpacICASoverdraftfacility(item
10 in Table 6: 2013/14 Investment Budget). Already nine TAFE trainees are enrolled and
working on Mowanjum Pastoral. Included in the ICL works plan is to begin construction of a
shed for TAFE trainees at the Trucking Yards which in time will be used for instruction. This
ILCfundingwillbesupplementedfromothersourcesastheybecomeavailable.

2013/14 Westpac ILC


1 NewCurtinPaddock $39,000 Labour $91,000 Materials&
Dozer
2 NewBore,Tank,TroughCurtinPaddock $58,000 Materials
3 NewTrapYardsCurtinPaddock $13,750 Labour $13,750 Materials
4 NewBoreRoadsCurtinPaddock $14,500 Dozer
5 Stage2NewTruckingYards $52,750 Mat&Lab. Materials
6 Clearingforfirebreaks $13,500 Dozer
7 BigDam5miledam $10,000 Dozer
8 TrapYardsRussBoreCurtinPaddock $13,750 Labour $13,750 Materials
9 TAFETrainingCentreat5mileYards $18,500 Materials
Totals $277,050 $233,250
Table6:2013/14InvestmentBudget
In2013/14thetruckingyardswillbecompletedandCurtinpaddockwithinfrastructurewill
be completed for running an expanded Weaner Herd, to complement the paddocks on the
MarinePlainbeingusedforAgistmentofcattlefromMtBarnett.
The priority is to establish the fattening program to create cash flow to fund ongoing
improvementsthatwillenhancecapacitytodelivertrainingandincreasethenumberofcattle
thatcanbecarried.
2.4.1 FencingSpecifications
Mowanjum is close to the coast and salt content in rain is corrosive. Therefore galvanised
material will be used according the specifications set by Main Roads WA. The Specifications
forthefencingare:
2.5mmheavybarbedgalvanisedwire
1.65cmgalvanisedpickets
100mmgalvanisedpostandrailsforends.
7mspacingofpicketswith3strandsofwire.
Distancesforfencingandfirebreaks:
PindanPaddock,26kmfencing52kmoffirebreaks
CurtinPaddock,26kmfencingwith52kmoffirebreaks
BorePaddock,150kmoffirebreaks
2.5 SourcesofFunding
2.5.1 IndigenousLandCorporation
Total funding of $567,750 for the above dry season infrastructure development is being
sought from ILC in 2012 and 2013. Delay in funding being available till November 2012 will
MowanjumPastoralBusinessPlan CommercialinConfidence
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requireflexibilityonsomecapitalfundingbeingmadeavailableforcattlepurchase.
2.5.2 MowanjumAboriginalCorporation
MAC will contribute $500,000 towards cattle purchases and fattening operation through a
Westpac ICAS overdraft. MAC will also contribute its present plant, equipment, workshop,
workforce, administration and accounting and the cost of insurances, Derby Shire rates and
Pastoral Lands Board rent and asset replacement (about $200,000 per year (Table 16, page
37)) as part of maintaining the integrity of its Land resources for the longer term welfare of
the Community. MAC will also use other cash reserves from other enterprises (Store, Gravel
andInterest)tostaywithintheWESTPACoverdraftlimit.
2.5.3 WestpacIndigenousCapitalInvestmentScheme
MACs contribution for establishing the Weaner fattening enterprise will come from an
overdraftfacilitythroughtheWestpacIndigenousCapitalinvestmentscheme.Thisfacilityhas
beenagreedonprinciplebyWESTPACManagement(Denniss,2012,privatecommunication).
2.5.4 DerbyWorkforce(abusinessofMAC)
DWFwillcontributesafetyclothingandequipmentfortheindigenousworkers,plusavehicle
andfuelfortraineestogettotheworksites.DWFwillalsoprovidelunches.
2.5.5 MowanjumDrivingAcademy(abusinessofMAC)
MDA will provide access to its two dual control cars for driving lessons for licensed
instructors.AdriverslicenseitessentiallymandatoryinorderforTraineestobeemployable.
2.5.6 MowanjumCommunityResourceCentre(abusinessofMAC)
WithfundingfromRDLsRoyaltiesforRegions,MowanjumCRCprovidesaccesstocomputers
with free access to Government Web Sites for Mowanjum Pastoral Trainees to undertake
theoreticaldrivertraining.Accesswillalsobeprovidedtocomputersandinternettofacilitate
worktowardsTAFECertificateIIinBusinessAdministrationandRuralOperations.
ForCertificateIIRuralOperations,anewmodulecouldbeintroducedonuseofnearrealtime
satellite data for assessing stock carrying capacity (Vegetation Watch, 2012) and for
prescribed burning for fire management (FireWatch, 2012), with training sourced from
SatelliteRemoteSensingServices,Landgate.
Thenewmodulecouldprovidethebasisforfutureexplorationoftheuseofsavannahburning
for gaining Carbon Credits (See http://www.ilc.gov.au/site/page.cfm?u=298). This potential
exists at Mowanjum and on other lands belonging to the Mowanjum people on the Mitchell
Plateau.
2.5.7 KingSoundGravel(ajointventurewithMAC)
KingSoundGravelprovidesanancillarysourceofincometoensureMACsfinancialviabilityin
theeventofadownturninthecattleexportmarket.
2.6 Stakeholders
2.6.1 MowanjumAboriginalCorporation(MAC)
MAC was officially incorporated under the provision of the Association Act 1976, and was
officially granted its Certificate of Incorporation and Rules of Association in 1981 (MOW,
June2006).Itnowoperatesunder the AboriginalandTorresStraitIslander Act2006(CATSI
Act).
MowanjumPastoralBusinessPlan CommercialinConfidence
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MAC controls various tracts of land, including a pastoral lease, unencumbered freehold land,
crown land grazing licence and reserve. One of MACs aims is to support the development of
community members through providing opportunities of mainstream employment and the
supportof incomegeneratingprojects.
2.6.2 WADepartmentofAgricultureandFoodWA(DAFWA)
DAFWA assists the State's Agriculture be sustainable and profitable, with a clear focus on
exportled growth. Kimberley Indigenous Management Support Service (KIMMS) is an
initiativefundedbyDAFWAandILC.Theywillprovideupdatedmapsofthelease.
2.6.3 IndigenousLandCorporation(ILC)
ILC is an Australian Government authority that assists Indigenous Australians acquire land
and manage Indigenousheld land in a sustainable way to provide cultural, social,
economicand/orenvironmentalbenefitsforthemselvesandfuturegenerations.
2.6.4 IndigenousCapitalAssistanceScheme(ICAS)Westpac
ICAS is a partnership with the Department of Education, Employment and Workplace
Relations to offer eligible indigenous businesses financial and advisory support. The scheme
providesbusinessadvisoryandmentoringservicestoassistinthedevelopmentofabusiness.
ICASprovidesfinancefrom$20,000to$500,000withinterestratesreducedfromtheofficial
rateby6%units,4.5%unitsand2.5%unitsforthefirstthreeyears.
MAC has freehold assets with an estimated value of over $5 million to secure Westpac ICAS
finance(Denniss,2012).
2.6.5 TechnicalandFurtherEducation(TAFE)
TAFEinDerbywillprovidetrainingcoursesandcertification.
2.6.6 EmamaNguduAboriginalCorporation(ENAC)
ENACinDerbyisatrainingandCDEPprovider.
2.6.7 PastoralLandsBoard
ThePLBestablishesgrazingleaserequirementsofCrownLandandwillbeenactingthe2015
review(BrianLloyd,2012,privatecommunicationandlettertoMAConpage14).
2.6.8 RussContractingPtyLtd
RussContractingPtyLtdwillbecontractedtorunthecattleenterprisecoveringalloperating
costsatacostof$110perheadcomparedwith$120perheadforlargestandaloneKimberley
Pastoral Leases (DAFWA, 2009). Jason Russ has a significant mustering and maintenance
contractwithChristmasCreekwith14,000headofcattleandhasbeenapproachedtoprovide
musteringforMtBarnett.ForthesecontractsJasonRussemploysMowanjumTraineesaspart
ofhiscontractteam.
Existing equipment of Russ Contracting is shown in Figure 8, Figure 9, Figure 10 and Figure
11.
MowanjumPastoralBusinessPlan CommercialinConfidence
Page24of43

Figure8:RussContractingfullservicecontractbusinessandbullbuggy

Figure9:LivestockTruckandstockcampwithfueltrailer

Figure10:Saddleryandtackleforhorsesanddozer

Figure11:Weldingtrailerforbuildingyards

MowanjumPastoralBusinessPlan CommercialinConfidence
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2.6.9 DepartmentofCorrectiveServicesWA
AnMOUisbeingnegotiatedbySteveAustin,CEOtoprovidetrainingservicestothenew
DerbyPrisonwhowillalsobeasourceofTAFEtrainees.
2.7 BusinessStructure &Management
Mowanjum Pastoral will be run as a business enterprise of MAC under the direction of CEO
Steve Austin and the Mowanjum Council. Trusts are being investigated to isolate each from
thecollapseofanyoneenterprise.
ManagementwillbecontractedtoRussContractingPtyLtd,forafeeof$110/headperyearof
livestock purchased for weaner fattening by Mowanjum Pastoral. Contract will include all
livestock operating costs. All administrative services will be provided by MAC who already
pay the insurance, Derby Shire rates and Pastoral Board rent and asset replacement
associatedwiththepastorallease.
2.7.1 FutureAdministrativeStructureandSuccessionPlan
Mowanjum Pastoral increases MACs business enterprises and number of government grants
andtrainingbeingundertakenrequiresanAdministrativeOfficerforefficientmanagementof
alltheseenterprises,grantsandcommunityServices(Morgan,2012).
Theadministrativestructurerecommendedis:
1. Board
2. CEOBusinessManager(SteveAustin)
3. SeniorAdministrativeOfficer(newposition)
4. SeniorFinancialOfficer(NardiaGerrard)
5. JuniorFinancialOfficer(newposition)foroffsitebusinessenterprises
Thesepositionsandotheradministrativecostswouldbefundedbya10%administrativelevy
onallgrants,businessenterprisesandcommunityservices.
2.7.2 CorporateStructure
TheproposedcorporatestructureincorporatingMowanjumPastoralisdepictedinFigure12:
MowanjumCoprorateStructurewasrecommendedbyPeterMarininarecentreviewofMACs
business activities (Marin, 2012) for establishing a joint venture for fuel distribution. The
proposed structure minimises the financial risk of any one enterprise compromising MACs
financial viability. For Mowanjum Pastoral this would minimise the risk of MACs Directors
compromising its financial viability. The later is achieved by putting MAC at arms length
throughaseparate(PtyLtd)governancestructureandappointmentofindependentDirectors
with a commercial focus. Ultimately, MAC is the parent organisation but within the structure
profits can be retained within Mowanjum Pastoral for further development of the pastoral
enterpriseordistributedtoitsshareholderwhichisMowanjumEnterprises.
ThisstructureisofparticularrelevancetotheWAGovernments2015PastoralLeasereview
where one of the criteria will be the soundness and stability of the Governance structure to
ensurecompliancewiththetermsofthelease(BrianLloyd,2012PersonalCommunication).
PLBs preference is for a sublease, but such an arrangement could compromise MACs
objective of providing employment and training. Therefore the proposed corporate structure
shouldmeettheobjectivesofPLBandMAC.

MowanjumPastoralBusinessPlan CommercialinConfidence
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Figure12:MowanjumCoprorateStructure
2.7.3 Training
PerTable7:TrainingPlan,MowanjumPastoralwilltrainitsemployeesandensuretrainingis
providedonanongoingbasis,tomaintainahighlevelofjobperformanceandemployability.
Table7:TrainingPlan
Course/CertificateName Trainingprovider NumberofParticipants
Yr1 Yr2 Yr3 Total
CertificateIIinRuralOperations
TAFE 10 10 10 30
GovernanceTraining OIC 5 5 10
BusinessAdministration ENAC 4 4 5 13
AutomotiveServicing ENAC 5 6 7 18
DriversLicense Mowanjum Driving
Academy
7 7 6 20
Total 31 32 28 91
MowanjumAboriginalCorporation
(PublicBenevolentInstitution)
MowanjumEnterprisesPtyLtd
(Trustee)
MowanjumEnterprises
CharitableTrust
MowanjumPastoralCompanyPty
Ltd
CommunityLevel
Alreadyinplace
EnterpriseLevel
Currentlybeingimplemented
BusinessLevel
Tobeimplemented
MowanjumPastoralBusinessPlan CommercialinConfidence
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3 SWOT Analysis
3.1.1 Strengths
High nutrition value in native grass on Mowanjum to be further improved with
introduced grass and legumes. Sowing to occur with a seeder attached to the dozer
used to clear fence lines and expose bare soil. Gazing stock then distribute the seed
throughoutviatheirdung.
High quality stock water and potable water. To be further improved with buffel grass
andlegumes.
Nosurfacewater,meaningthatmusteringcostsarecutby60%70%,asthecattleself
musterintotrappedareas(Yards)aroundwaterpoints.
Thepropertycaneasilybeaccessedthroughouttheyear(onhorsebackduringthewet
season), meaning that cattle can be mustered early in the year, when they are at their
best value. Other Kimberley stations cannot muster and sell cattle until much later in
theyear,whenthecattleloseweightandthereforevalue.
Close proximity to Mowanjum Community, which allows staff to arrive at work daily,
ratherthanhavetocampontheproperty.
Steve Austin, CEO, has good business experience in the trucking industry and with
managingotherAboriginalCorporations.
RussContractingPtyLtdhasamusteringandmaintenancecontractof10weeksper
yearwithChristmasCreekwhichruns14,000headonover200,000ha.UsingRuss
Contracting,ChristmasCreeksaveragelivestockcostis$70/head.Thiscompareswith
$120/headforafullyservicedstandalonepastoralleaseintheKimberley(DAFWA,
2009).
Mowanjumcommunitymembersarehighlymotivatedtobeinvolvedinthebusiness,
evidencedbythenumberofpeoplewhoengagedwiththeTAFEtrainingtocomplete
theworkfortheIDLgrantin2011andtheninewhoareengagedinthecurrentwork
(Figure3).
3.1.2 Weaknessesand Mitigations
Lackofcapitalforinfrastructureandcattletorealizeproductivepotential.
o GrantfromILCandfinancefromWestpacICAS.
Mowanjum property is relatively small which will restrict business growth due to
limitedcarryingcapacity,butitsstrategicpositionpermitsmoreefficientoperations.
o ContractingandMACsotherbusinessesminimisefixedcosts.
Profitabilityofgrazingsystemsaresensitivetostockingrate
o Investment in more paddocks, bores, trap yards and pasture improvements to
maximizecarryingcapacity.
Lease will be run directly by MAC to minimize overhead costs, to capitalize on its
freehold assets to access seasonal finance and to provide diversification to minimise
risk.
MowanjumPastoralBusinessPlan CommercialinConfidence
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Lack of Management expertise contract the running of trading cattle enterprise to
RussContractingPtyLtdprincipleJasonRuss.
3.1.3 Opportunities
To provide meaningful work for Mowanjum people and training and skills to become
employableinKimberleyindustry.
Through intensive grazing provide a service to other stations that require their cattle
tobefattenedbeforesale.
ToattractfundingfortrainingRuralTraineeships
Become Derby regional TAFE training centre for indigenous people to enter into full
timeemploymentinthepastoralindustry.
Develop a new administrative structure for MAC with a Senior Administrative Officer
andbasisforfuturesuccession.
Includeintheexistingprimaryandsecondaryeducationcurriculumtheeffectiveuseof
land incorporating a Historic centre for the involvement of Aboriginal people in the
Kimberleypastoralindustry
3.1.4 ThreatsandMitigations
Lowcattlepricesduetomarketfluctuations
o Sales projections use average cattle prices over the past few years, to
demonstratefinancialviabilityeveninanunfavourablemarket
o Weightgainsofcattlearemodelledasbelowaverage.
o The market will be monitored to ensure planning is in place to counter low
prices.
PoliticsandjealousyamongMowanjumgroups
o Maintain a professional approach; employ workers from outside Mowanjum if
necessary.
Mowanjumpeoplethinkingtheyownthestation,sotrespassforkillerswheneverthey
like
o CommunicatewithMowanjumCounciltoensuretheagreementishonouredby
the community members, enforce trespassing policy, and provide the agreed
numberofkillersperyear.
Vandalismthroughcuttingfencesandlightingfires
o AgainworkwiththeMowanjumCouncilasabove.
o Develop community activities for young people such as the Community
ResourceCentreandsportsactivitiestoreinforcepositivevaluesandrespectfor
propertybelongingtoothers.
Levelofcommitmenttotrainingdisplayedbyemployees
o Talktothemtofindoutwhatproblemstheremaybe,makethetrainingfunand
interestingtoensurehighlevelofparticipation.
ContractingLivestockManagement
MowanjumPastoralBusinessPlan CommercialinConfidence
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Success of Russ Contracting Pty Ltd demonstrates Jasons competence in cattle,
business and Aboriginal management, and commitment to development of
MowanjumsleaseintoaprofitablecattleandIndigenoustrainingenterprise.
Jason Russ is an Indigenous pastoralist contractorkeen to pass on his extensive skills
in a collaborative relationship with Mowanjum and TAFE. His pastoral contracting
business provides a unique opportunity for Aboriginal people to learn his skills. He is
alreadyassourceofcontactandemployerforfutureemploymentoftrainees.
Proximity to Derby makes Mowanjum Pastoral an attractive working proposition for
JasonRusscomparedtolargermoreremotepastoralleases.
JasonRuss(8thJuly,2012)hasquoted$110perheadperyearforrunningMowanjum
Pastoral.
o Thecontractwouldcoveralllivestockcostsincludingtags,licks,vet,trucking,
casuallabour,superannuation,maintenanceandmustering
o MACwouldberesponsibleforcostsofadministration,insurance,rates,lease,
interestsonloansandreplacementofcapitalassets
Benefits of a longterm SubContract business model for Management of Mowanjum
Pastoralare:
o Providesstabilityandguardsagainstparochialismandchannellingofresources
ininappropriatewaysbytheCommunity.
o GoespartwaytowardsmeetingthePastoralLandsBoardspreferredsub
leasingbusinessmodel.TheisContractmodelisasteptowardsasubleasethat
shouldmeetthePastoralBoardsLeasereviewrequirementofasustainable
businessmodel.
o Reducesthelivestockcost/headto$110/head(whenfullystocked)whichis
lessthanthetypical$120/headforalargestandalonestation(DAFWA,2009).
o Incentiveascontractorsincomeriseswithnumberofstockfattened
This contractual business model conforms with the central importance of Aboriginal land
development and control, essential for providing a sustainable economic base for Aboriginal
economicindependenceasanalternativetopassivewelfare(GaryFolley,2011).

The weaner trading model assumes weaners are purchased at $295 landed and are sold for
$507aftertransportcostsgivinganetreturnperfattenedweanerof$212.Ofthismarginthe
Contractorreceives$110fortherunningcostsandMACreceives$100tocoverinterestonthe
WESTPACoverdraftandotherfixedcosts.Theresultisaprofitabletradingventureandlonger
termoutcome.

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4 Competitive Analysis
4.1 Competitors
CompetitionwillcomemainlyfromlocalKimberleystations,primarilysupplyingcattleforthe
liveexportmarketinBroome.
Thesesamestationsarealsoasourceofincomefromsaleofagistment,unbrandedstock,
leaseofyardsandsourceofstocktopurchasetofatten.
4.2 CompetitiveAdvantages
High productivity of coastal flood plains, suitable for successful cattle production and
fattening own stock and stock from neighbouring properties. Suitable for pasture
improvement with legumes and more productive species using grazing cattle as seed
distributors.
Highqualityofundergroundwater,ensuringongoingsupplyoffreshwater.
Water accessibility (10 below the surface) the depth of the water allows for
very cost effective methods of accessing water. Also the possibility of developing
irrigatedpastureforfatteninginthedryseasonandforforageandseedproduction.
There is no permanent surface water on Mowanjum, which means that cattle will
naturally come in to drink from available water points (bores) that will be fenced
(cattle traps). Therefore, the cattle will muster themselves, resulting in easier
managementandreducedmusteringcosts.
The property has the ability to move cattle quickly off the property, which makes
room for other, younger cows, and therefore increases the turn off rate on the
propertyandthelevelofsales,whilemaintainingthecarryingcapacityovertheyear.
Thecattlespeakconditionisinthewetseason,andmostotherpropertiesareunableto
transportthemoffthepropertyinthewet,missingthehighpricesoftheearlymarket.
ThemajorityofcattlesoldoutoftheKimberleyregionarenotsoldinprimecondition,
due to wet season access problems. Mowanjum landscape and access to the Derby
highway and flood plain soils means that it can muster from March and sell cattle in
primecondition,achievingsignificantlyhigherincomeandturnoverofstock.
CloseproximitytotheDerbyhighway,highwaterqualityandfeedavailabilitypresent
an opportunity to develop intensive grazing to allow Mowanjum to increase numbers
by almost 50% within a short period of time. Providing a service to other
properties that require their stock to be fattened is a lucrative option for
Mowanjum. It can then decide whether to purchase the stock and finish them off
(fattenthembeforeshipping)orsellagistment.

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5 FinancialAnalysis
5.1 Parameters
Parameters are based, on Cattle Invest (DAFWA, 2009), ILCs Analyses using the DYNAMA
MultiyearHerdmodel(Brake,2012)andILCsownrunningcosts(ILC,2012).
Themodellingassumesthat:
ILC Board Meeting in October 2012 approves the $567,250 according to the plan
(Section2.2)andnotifiesWESTPAC.
WESTPAC on receipt of ILC Board advice makes available to MAC the $500,000 ICAS
overdraftfacilitytoenableessentialCapitalImprovementinthe2012DrySeason;
ILCfundingbecomesavailableinNovember2012.
ModelParameter Value
WeanerSteerscost/head $265
Freightincost/head $30
Freightoutcost/head $18
WeanerssoldApriltoOctoberat300kgfor$1.75/kg $525
Survivalrate(deathrateof10%peryear) 90%
Numberofunmanagedcattlesoldperyear 60
UnmanagedCattle(Cleanskinsfromneighbouringproperty) 200
Killerscomefromunmanagedcattle 50
Weanerspurchased2012/13 1000
Weanerspurchased2013/14 1100
Weanerspurchased2014/15 1200
Weanerspurchased2015/16 1300
Weanerspurchased2016/17 1400
AgistedStock2012/13 600
AgistedStock20132/14 500
AgistedStock2014/15 400
AgistedStock2015/16 300
AgistedStock2016/17 200
Contractcostperheadforlivestockpurchased $110
Table8:ModelParameters
Type CattleUnits
CowsandBulls 1.00
Calves 0.34
HeiferandSteers 0.80
Table9:CattleUnits
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5.2 HerdDevelopment20122016
2012/13 2013/14 2014/15 2015/16 2016/17
Numbers Dry Wet Dry Wet Dry Wet Dry Wet Dry Wet
UnmanagedCattle
200 140 126 66 59 0
Weanersboughttofatten
1000 900 1100 990 1200 1080 1300 1170 1400 1260
AgistedCattle
600 600 500 500 400 400 300 300 200 200
TotalCattleNumbers
1800 1640 1726 1556 1659 1480 1600 1470 1600 1460
EquivalentCattleUnits
1600 1460 1506 1358 1419 1264 1340 1236 1320 1208
Table10:HerdDevelopmentforWeanerFatteningEnterprise
5.3 CattlePurchasesandSales
2012/13 2013/14 2014/15 2015/16 2016/17
Purchasesplusfreightin
Weanersforfattening
295,000 324,500 354,000 383,500 413,000
Total
295,000 324,500 354,000 383,500 413,000
Salesplusfreightout
Agistment
31,200 26,000 20,800 15,600 10,400
UnmanagedCattle
34,920 34,920 34,920
FattenedWeaners
456,300 501,930 547,560 593,190 638,820
Total
522,420 562,850 603,280 608,790 649,220
GrossProfit
227,420 238,350 249,280 225,290 236,220
CumulativeProfit/Loss
227,420 465,770 715,050 940,340 1,176,560
Table11:CattlePurchasesandSalesincludingfreightcost
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5.4 GrossMarginAnalysis

2012/13 2013/14 2014/15 2015/16 2016/17


GrossProfit
227,420 238,350 249,280 225,290 236,220
Directcostsofrunningcattle
CapitalDevelopment(WESTPAC) 157,800 119,250
Contractor'sfee(8monthsin2012/13) 73,333 121,000 132,000 143,000 154,000
Interestonoverdraft 8,523 25,414 12,390 13,423 14,455
Totaldirectcosts 239,656 265,664 144,390 156,423 168,455
GrossMargin (12,236) (27,314) 104,890 68,868 67,765
CumulativeGrossMargin (12,236) (39,550) 65,340 134,208 201,973
Table12:GrossMarginAnalysisofWeanerFatteningEnterprise
NotesonTable12:GrossMarginAnalysis:
Cattle will be sold between April and October each year depending on weight and market conditions. The overdraft will be
determinedbythepurchaseandrunningcostsofweanersinoneyearandthesaleofweanersinthefollowingyear.
ILC funding of $100,000 of cattle in 2012, is necessitated by the need to keep the Westpac overdraft within its limit. This is
because Westpac ICAS funds for vital capital improvements necessary before the weaner fattening herd can brought onto the
leasein2012.
Interestratescalculatedon50%ofpeakoverdraftabove.

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5.5 WestpacOverdraftAnalysis
AssumingILCBoardapprovalAugust2012,capitaldevelopmentwillbegininSeptember2012andweanerpurchaseinOctober2012.
2012/13
OctMar
2013
AprSept
2013/14
OctMar
2014
AprSept
2014/15
OctMar
2015
AprSept
2015/16
OctMar
2016
AprSept
2016/17
OctMar
2017
AprSept
PurchaseofWeaners (195,000) (324,500) (354,000) (383,500) (413,000)
SaleofWeaners 456,300 501,930 547,560 593,190 638,820
OtherCattleIncome 66,120 60,920 55,720 15,600 10,400
GrossProfitCattle (128,880) 456,300 (263,580) 501,930 (298,280) 547,560 (367,900) 593,190 (402,600) 638,820
LessCosts
InlieuofILCCattle
purchase
(100,000)
ContractFee (27,500) (45,833) (40,333) (80,667) (44,000) (88,000) (47,667) (95,333) (51,333) (102,667)
CapitalWorks (78,900) (78,900) (59,625) (59,625)
Interest (8,523) (25,414) (12,390) (13,423) (14,455)
TotalCosts (214,923) (124,733) (125,372) (140,292) (56,390) (88,000) (61,089) (95,333) (65,788) (102,667)
GrossMargin (343,803) 331,567 (388,952) 361,638 (354,670) 459,560 (428,989) 497,857 (468,388) 536,153
PeakOverdraft (343,803) (12,236) (401,188) (39,550) (394,220) 65,340 (363,649) 134,208 (334,181) 201,973
Table13:WestpacOverdraftProjection
The conclusions from Table 13: Westpac Overdraft is that the Westpac overdraft goes to zero at end of 2015 when the third set of
weanersissold.AftertheICASdiscountends,interestiscalculatedat7%fora6monthperiod.

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5.6 Assumptions
Compared with a 320,000ha commercial standalone Kimberley Pastoral Lease
(DAFWA, 2009) where operating costs are $120 per head and on ILC properties costs
are$128/head.Acostof$110isachievedherefora55,000haleasethrougheconomies
of scale from contacting herd management to Russ Contracting Pty Ltd and MAC
covering Landholding costs in its present budget (Table 7.2) from revenue generated
from training, sale of gravel, interest on surplus funds and administration charges on
Governmentgrants.
The weaner trading model assumes weaners are purchased at $295 landed and are
sold for $507 after transport giving a net return per fattened weaner of $212. Of this
margin the Contractor receives $110 for the running costs and MAC receives $100 to
cover interest on the WESTPAC overdraft and other fixed costs. The result is a
profitabletradingventureandlongertermoutcome.
ILC provides the long term Capital investment for the fixed assets needed to bring
Mowanjum Pastoral to full productive and commercial capacity for employment and
trainingcommunitymembersinpastoralmanagementandassociatedskills.
Cumulative Gain/Loss is an estimate of the Westpac ICAS overdraft facility needed by
MACforcostsnotcoveredfromotherrevenuesources.
Staff Manager full time with 4 casual workers and up to 10 employed as trainees.
Othersemployedattimesofmusteringetc.
NegativeGrossMargincoveredbyWestpacICASoverdraftfacilitywithinterestratesat
2%,4.5%and6.5%inthe3rdand7%insubsequentyears.
RussContractingPtyLtdquoteis$110/headwhichwillcoveralllivestockcosts(Tags,
Vet, Licks, Pregnancy Testing, labour, superannuation, provision of vehicles and
machinery)neededtoruntheherd.
Contractbusinessmodel:
o Providesstabilityandguardsagainstparochialismandchannellingofresources
intoinappropriatewaysbytheCommunity.
o GoespartwaytowardsmeetingthePastoralLandsBoardspreferredsub
leasingbusinessmodelforthePastoralLeasereviewin2015.
o Achievesalivestockcost/hdof$110/headwhichcompareswiththe$120/head
assumedbyDAFWA(2009)andthe$128/headrecordedbyILCfor2010/11
(ILC,2012).
o Materiallyaffectsthepredictedeconomicoutcomebyprovidingcontrolover
futurecostsbysharingtheriskswiththecontractor.
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6 ProjectedImpactofProposalonMACsFinancialPosition
While the positive impacts on the Mowanjum Community through skill development,
employment and pride of ownership are clear, the Mowanjum Pastoral proposal must not
negativelyimpactMACfromafinancialperspective.Converselywithin5yearsitmustprovide
aprofittofundstoexpandthebusinessandforothercommunitydevelopmentactivities.
ThefollowinganalysisshowsthattheproposalposesminimalrisktoMACsongoingviability.
Indeed, Mowanjum Pastoral provides diversification of MACs income sources away from
solelygovernmentsourcesandbeginsapathtoaselfsustainingfuture.
All figures related to Mowanjum Pastoral are adapted from MACs ILC application (April
2012).
Table 14 shows the consolidated income of MAC including Mowanjum Pastoral, Table 15
shows the consolidated expenses of MAC including Mowanjum Pastoral and Table 16 the
consolidatedsurplus/deficit.

IncomeSources 2012/13 2013/14 2014/15


FaHCSIA 175,433 177,187 178,958
HomeandCommunityCare 169,887 171,586 188,744
DepartmentofHealth 98,220 108,042 118,846
EmamaNguda 65,000 65,000 65,000
DeptRegionalDevelopmentand
Lands(CRC)
100,000 100,000 100,000
DepartmentofHousinggrants 51,305 53,870 56,563
MAC'sCommunityBuildingTeam 790,610 802,840 842,982
DerbyWorkForce 100,000
MowanjumCommunityStore 533,416 560,086 588,091
Elect/Utilities/RentCommunity
Contrib.
614,514 645,239 677,501
WorkshopSales 20,000 21,000 22,000
BankInterest 26,000 26,000 26,000
SalesFromGravelPit 30,000 30,000 30,000
MowanjumPastoralIncome
CattleSales,agistment 522,420 562,850 603,280
ILCgrant
334,500 233,250
TOTALINCOME
$3,531,305 $3,556,950 $3,597,965
Table14:MACProjectedIncome20122015(w/MowanjumPastoral)

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Expenses 2012/13 2013/14 2014/15


Landholdingcosts
Rates 25,000 30,000 45,000
Insurance 44,000 49,000 65,000
ReplacementofAssets 100,000 110,000 120,000
PastoralLandsBoardlease 10,000 12,000 15,000
TotalLandholdingcosts 179,000 201,000 245,000
Operatingcosts
Superannuation 100,000 120,550 130,990
W/Comp 6,800 7,500 9,500
M/Vehicle 14,000 14,500 25,000
Rego 5,200 5,800 9,000
Power/Water 241,000 265,000 290,000
Wagesex.Project 1,800,000 1,850,000 2,150,000
TotalOperationcosts 2,167,000 2,263,350 2,614,490
Projectcosts
CattlePurchases($100,000fromILC)
$295,000 $324,500 $354,000
DirectCosts
$239,656 $265,664 $144,390
Capital(WESTPAC)
$157,800 $119,250
ILCgrant($100,000usedforcattle)
$234,500 $233,250
Totalprojectcosts
$926,956 $942,664 $498,390
TOTALEXPENSES
$3,272,956 $3,407,014 $3,357,880
Table15:MACProjectedExpenditure20122015(w/MowanjumPastoral)

Surplus/Deficit 2012/13 2013/14 2014/15


TotalIncome $3,531,305 $3,556,950 $3,597,965
TotalExpenses $3,272,956 $3,407,014 $3,357,880
Surplus $258,349 $149,936 $240,085
Table16:MACProjectedSurplus/Deficit20122015(w/MowanjumPastoral)

These figures are based on those presented in the original ILC application by Steve Austin,
adjusted for inflation. Surplus funds are the carryover amount of Government grants which
are invested to earn interest. These funds are not available for investment in Mowanjum
Pastoral.
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6.1 DiscussionofFinancialAnalysis
Mowanjumslivestockoperatingcostof$110perheadcompareswitha$120perLSU
commercial standalone Kimberley Pastoral Property of 300,000 ha (DAFWA, 2009)
and the $128/head for ILC herds (ILC, 2012). The lower costs of Mowanjum Pastoral
results from economies of scale through subcontracting to Russ Contracting Pty Ltd,
running a weaner fattening enterprise and MAC covering the fixed costs as part of its
LandHoldingcosts(Section7.2).
MACsLandholdingcostsarefundedfromincomederivedfrominterest,saleofgravel,
anadministrativechargeagainstallgrants,thestore,ArtsCentreandthecommunities
chuckinlevy(AmenitiesLevy).
The assumption of $525/head selling price for fattened cattle compares with
$587/head used by DAFWA in their 2009 investment analysis for a much larger
Kimberley property without the strategic advantages of Mowanjums location,
intensive quality management, good river flat pastures and ability to sell stock before
endofMarch.StocktobebasedonBosIndicusrequiredfortheSoutheastAsianmarket.
At least $1.0 million of investment in infrastructure and cattle is needed to bring
Mowanjum Pastorals stock carrying capacity to the level needed for profitability,
trainingandtodeliverasocialdividend.
Early establishment of cash flow by building stocking rate of the cattle herd is vital to
achievingprofitabilityinyear3andmeetingWestpacsoverdraftcriteria.
If the proposed investments are made in 2012/13 and 2013/14, Mowanjum Pastoral
canbreakevenby2014andbeinprofitin2015withanestimatedreturnofover10%
perannumonthe$1.0minvestment
From an indigenous perspective the $567,750 investment by ILC represents $5,000
per Indigenous person trained to employment ready status resulting in a potential
savingtoGovernmentofover$500,000inwelfarepaymentsalonea100:1return.
The Westpac ICAS overdraft is secured against MACs freehold assets in Derby.
WESTPAChascompletedvaluationsandsecurityisadequatefortheoverdraftfacility.
Good management and tight financial control are essential to achieving the proposed
outcomes. A 6 month rolling budget review by the CEO and Manager to coincide with
thewetanddryseasonsisrecommended.
Mowanjum Pastoral by becoming a profitable investment creates the expertise and
financial capacity to expand into other businesses using its strategic position on the
DerbyBroome Highway for a Caravan Park and Service Station. Also with close
proximity to the new Derby Prison, Mowanjum is well placed to provide Driver
TrainingandlicensingthroughtheirDrivingAcademyandothertrainingservices.
MAC is currently negotiating a Joint Venture Fuel distribution Business with Liberty
Fuels and the Dambinamgari Aboriginal Corporation to further enhance its financial
position.
MowanjumPastoralBusinessPlan CommercialinConfidence
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7 References
Boab,2012.OntheBoabNetworkvolunteerorganisation:
http://www.boabnetwork.org
CRC,2012.OntheMowanjumCommunityResourceCentre:
http://www.mowanjum.crc.net.au/
DAFWA, 2009. Cattle Invest: A business case for investment in the Northern Western
Australianpastoralcattleindustry.
http://agfood.agric.wa.gov.au/LinkClick.aspx?fileticket=64eptfsdxaY%3D&tabid=109
Denniss, A, (2012). Westpac Business Banking Manager: Commercial and Agribusiness WA.
ValuationofMACsfreeholdproperties.MeetinginDerby,12
th
July2012.
FolleyG.,2011,paperpresentedatMelbourneInternationalArtsFestival,quotationpage21
ClareLand,PoliticsofSolidaritywithIndigenousStruggle(Ph.D.thesis,DeaconUniversity)
Jeffery, 2007. Michael Jeffery, Beef Research Officer Northern Rangelands, Department of
Agriculture and Food (DAF) Western Australia, Kimberley beef industry profile, Derby WA.
ReferencedfromWinyuduwaBusinessPlanV1,BluestoneSolutions.
Marin,P.2012,RecommendedMowanjumCorporateStructure.MLCSCorporatePty.Ltd.
Morgan, 2012. P. Morgan, Mowanjum Aboriginal Corporation Strategic Plan 201222.
Betterlink Group: Business Consultancy and Training Services. Suite 17, 133 Kewdale Road,
KewdaleWA6105.
Mowanjum Community, 2007. Mowanjum Station Draft Property Plan, Mowanjum Derby,
WA. Referenced from Winyuduwa Business Plan V1. With assistance from Kimberley
IndigenousManagementSupportService(KIMSS),aninitiativefundedbyDAFWAandILC.
Mowanjum Aboriginal Corporation, 2012. Application for 2012 Land Management Property
basedProjects.MowanjumsapplicationfromSteveAustin,MACCEO.April2012.
ORAC, 2012, Mowanjum Aboriginal Corporations Governance and Financial records at the
OfficeoftheRegistrarofAboriginalCorporations:
http://www.orac.gov.au/document.aspx?concernID=100090
ILC,2012.Actions/OutcomesMowanjumFieldWorkshop,Wednesday13
th
June2012.From
SteveAustin,MACCEOviaKiraMeadus,ILC.
ILC,AnnualReport2010/11Table15BusinessPerformance2010/2011,Page91
Shaw, 2012. Private communications from Russell Shaw, WA Department of Agriculture and
Food.
VegetationWatch,2012:
http://www.landgate.wa.gov.au/corporate.nsf/web/Vegetation+Watch
FireWatch,2012:
http://firewatch.landgate.wa.gov.au
Skelton,R.2012:SydneyMorningHeraldandWesternAustralianarticles,April2012.
MowanjumPastoralBusinessPlan CommercialinConfidence
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AppendixA DraftContractManagementAgreement
ThefollowingisadraftagreementbetweenMACandRussContractingPtyLtdtomanagethe
livestock operations of Mowanjum Pastoral. The insurance component was signed on March
12, 2012 to underline the commitment of the parties to further consultation and legal advice
tofinalisethisagreementiftheproposedfundingbecomesavailable.

BETWEEN:MrJasonRuss(THEMANAGER),POBox1129,Derby6728
AND:MowanjumAboriginalCorporation(MAC),GibbRiverRoad,DerbyWA
2. NATUREOFAGREEMENT
TheMowanjumAboriginalCorporationagreestocontractTheManageratarateof$110peranimalperyearfor
eachanimalpurchasedandthenfattenedaspartofMACsherd.Theseratesaretocoveralllivestockcosts(tags,
vet, licks, vaccination, pregnancy testing, labour, superannuation, provision of vehicles, horses, tackle and
machinery)fromthetimethecattlearedeliveredtotheleasetothetimetheyarefinallyremoved.
When MAC herd is established and projections of purchases and sales each year are worked out as per the
Mowanjum Pastoral business plan there will be a 5% bonus paid to the manager for the amount that the Gross
Profit (Sale price minus Purchase Cost inc. Transportation costs) of the Cattle Trading Account exceeds the
projectionssetoutinTable11oftheMowanjumPastoralbusinessplan.
The Manager will comply at all times with the directions of the CEO, Mowanjum Aboriginal Corporation and
Pastoral Lands Board as provided by the board its agents, either in Range Condition Reports or any other
correspondencepertainingtorangelandmanagementandthemanagementandwelfareofstock.
ThisagreementdoesnotallowtheManagertootherwisesubleaseanyportionofthispastorallease.
TheagreementdoesnotallowtheMowanjumAboriginalCorporationtofurthersubleaseoragistanyportionof
theMowanjumpastoralleasewithoutwrittenapprovaloftheManager.
The agreement does not allow the Manager to construct or have constructed any dwelling on the lease without
thewrittenapprovaloftheMowanjumAboriginalCorporationandthePastoralLandsBoard.
The Manager shall apply through the Mowanjum Aboriginal Corporation to receive and spend grants of money
for the purpose of developing the infrastructure of the Mowanjum pastoral lease from the Government of the
Commonwealth or of the State or other sources. Mowanjum Aboriginal Corporation will be the owner of all
cattle.TheManagermayrunhisownhorsesonthepastoralleaseforthepurposesofmanagingthelivestock.
The Manager will not carry out any activities that are contrary to the Rules and Objects as described in the
MowanjumAboriginalCorporationsConstitution.
WhereandwhenapplicabletheManagerwillworkwiththeMowanjumAboriginalCorporationworkprograms,
specifically the Community Development Employment Program, to provide work and training options for the
membersoftheMowanjumAboriginalCorporationandtheMowanjumAboriginalCorporation.
All rates, taxes and pastoral lease fees associated with the Mowanjum Pastoral lease are to be the sole
responsibilityoftheMowanjumAboriginalCorporation.
3. FINANCIALANDADMINISTRATIVEMANAGEMENT
All financial management, accounting and auditing services will be done by the Mowanjum Aboriginal
Corporations.
MowanjumAboriginalCorporationwillmaintaintheBankAccountandprovidenecessarysecurityforanybank
loanssecuredfortheoperationofMowanjumPastoral.
Mowanjum Aboriginal Corporation will be the sole applicant for all accounts, grants and loans required for the
operationofMowanjumPastoral.
3. INFRASTRUCTUREDEVELOPMENT
TheManageragreestobuildorreinstateatleastfive(5)paddocksequippedwithadequatewaterpointswithin
MowanjumPastoralBusinessPlan CommercialinConfidence
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thefirstfive(5)yearsofthisagreement.
One(1)paddocktobecompletedbyDecember2012willbeakillerpaddockstockedwiththoseanimalsunfitfor
transport and sale and to be for the purpose of providing meat to the members of the Mowanjum Aboriginal
Community.
AllpaddocksaretobebuiltwithadvicefromtheDepartmentofAgriculture&FoodWAastoBest
PracticeGuidelinesinrelationtopaddocksize,placementandwateravailability.
Furtherinfrastructuredevelopmentistobedeterminedatthereviewperiodattheendofthefirstfive(5)years
ofthisagreement.
ThemaintenanceofallinfrastructureisthesoleresponsibilityoftheManager.
4. HERDMANAGEMENT
The Manager will cover the costs of vehicles, licks, dozer, grader, tags, vaccination, fuel, wages, mustering,
trucking,mobilephoneandtimemanagingtheherd.MACberesponsibleforreplacementofcapitalassets.
The Manager will be responsible for all purchasing and sale of stock and exceeding the performance targets set
outintheBusinessPlanVersion3(2012).
All stock will be managed to best practice as determined by the Department of Agriculture & Food WA and/or
relevantindustrybodies.
At the commencement of this agreement all weaned unmarked stock on the lease shall be deemed to the
possession of the Mowanjum Aboriginal Corporation. and only those stock with the Mowanjum Aboriginal
CorporationsbrandshallbelongtotheMowanjumAboriginalCorporation.
The Manager holds the right to agist stock on any part of the Mowanjum Pastoral Lease. The numbers to be
agisted will be at the discretion of the Manager taking into account the rated Carrying Capacity, number of
Mowanjums own stock on hand, seasonal outlook, in compliance with PBL Statutory and Regulatory
requirementsandinaccordancewithDAFWAsBestManagementPracticeGuidelines.
TheManagershallapplytheMowanjumAboriginalCorporationbrandonallstockontheleaseotherthanagisted
stockorbrandedstockfromneighboringleases.
Total stock numbers are not to exceed the carrying capacity as determined by the Pastoral Lands Board or the
DepartmentofAgriculture&FoodWA.
AcopyofWaybillsistobeavailabletotheMowanjumAboriginalCorporationattheirAnnualGeneralMeetingor
onreasonablerequestbytheMowanjumAboriginalCorporationoritsofficers.
Any cattle taken as killers or otherwise stolen from the Mowanjum Aboriginal Corporation s herd or animals
undertheManagerscarebyanyonewillbereporteddirectlytothelocalpoliceandoffenderswillbeprosecuted.
If any cattle are taken as killers or otherwise stolen from the Mowanjum Aboriginal Corporation s herd or
animals under the Managers care and it is proven that a person or persons from the Mowanjum Aboriginal
Communityareresponsible,theperson(s)shallmakefullrestitutionatmarketvalueoftheanimaltaken.
The Manager shall make available a small herd comprising those animals unfit for transport and sale to supply
meattothemembersoftheMowanjumAboriginalCommunityatthenominalpriceof$50perhead.
Nokillers shall be taken without the consent of the Manager or hisagents. All vaccinations ofstock shall be the
responsibilityoftheManager.
5. PLANTANDEQUIPMENT
TheMowanjumAboriginalCorporationagreestotheuseoftheplantandequipmentoftheMowanjumAboriginal
CorporationasrequiredandagreedtobyMowanjumAboriginalCorporationCouncil.
The Manager agrees to keep all plant and equipment of the Mowanjum Aboriginal Corporation used in the
ManagerspastoraloperationsonMowanjumpastoralleaseingoodworkingorderandcondition.
No plant and equipment owned by the Mowanjum Aboriginal Corporation shall be used by the Manager on any
otherpastoralleasewithoutthewrittenagreementofMowanjumAboriginalCorporationcouncil.
TheManageragreestotheuseofhisownequipmentandvehiclesontheMowanjumPastoralLeaseaspartofthis
agreement.
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6. MUSTERING
AllmusteringandassociatedcostsshallbetheresponsibilityoftheManagerusingthetrapyards.
The Mowanjum Aboriginal Community is to respect that access to parts of the lease may be restricted during
mustering.
RussContractingPtyLtdshallwhereverpossibleprovideemploymentandtrainingoptionsforthepeopleofthe
MowanjumandMowanjumAboriginalCorporationswhenevermusteringanddoingotherwork.
N.L.I.S.tagsshallbesuppliedbytheManager.
7. ACCESS
The Mowanjum Aboriginal Community is to respect that access to parts of the lease may be restricted during
musteringandformanagementpurposesasdirectedbytheManager.
The Manager is to provide reasonable access for cultural purposes and fishing and take this access into
considerationinpaddockdesign.
The Mowanjum Aboriginal Community is to respect that the Manager will be initiating a fencing program and
thatsometrackswillnolongerbeavailablefollowingtheestablishmentofnewpaddocksandfencelines.
The Mowanjum Aboriginal Community is to respect all infrastructure established by the Sub lessee and not
damageorotherwiseinterferewiththeinfrastructureinanyway.
The Mowanjum Aboriginal Community is to respect the convention of leaving paddock gates as they are found
andtonotcloseopengates;orleaveopengatesthatarekeptclosed.
TheManagerhastherighttorequestanymemberofthepublicortheMowanjumAboriginalCommunitytoleave
any paddock forany reason deemedappropriate by the Manager.Failure tocomply with theManagers request
toleavemayresultinachargeofTrespass.
8. BURNING
All controlled burning will be under the direction of the Manager who will be responsible for maintaining
adequatefirebreaks.
The Manager shall be responsible for obtaining permits from the Bush Fire Board for any fires or back burning
requiredontheland.
Any person enjoying access to the Mowanjum pastoral lease and who lights a fire without a permit will be
reportedtothepoliceandprosecuted.
9. REPORTING
TheManageristoprovideawrittenmanagementandprogressreporttotheMowanjumAboriginalCorporations
annualgeneralmeetingandtoprovidefurtheradviceasrequestedfromtimetotimeeitherverballyorinashort
writtenreporttotheMowanjumAboriginalCorporationcouncil.
The Manager will provide in a timely manner all information needed by Mowanjum Aboriginal Corporation to
completetheannualStockReturnasrequiredbythePastoralLandsBoard.
10. DISPUTES
Any dispute between Mowanjum Aboriginal Corporation and the Manager arising out of the terms of this
Agreementshallbereferredtoanindependentarbitratoragreedtobybothparties.
SucharbitratorshallhaveallthepowerconferreduponarbitratorsbyalllawsofW.A.Thepartiesagreetoabide
bythedeterminationofsucharbitratorinanysuchdispute.
11. TERMINATIONOFAGREEMENT
IftheManagerfailstoobserveandperforminapropermanneranyoftheobligationsunderthisAgreementand
doesnotmakegoodsuchfailureswithinatimeprescribedbyanindependentarbitrator;or
Withoutthepriorapprovalinwriting,suspendoperationsforanyperiod,orperiodsinaggregateexceedingtwo
weeks. Notwithstanding any other provision in this Agreement, either party shall be at liberty to terminate this
Agreementbygivingnotlessthanonemonthspriornotice,inwriting,totheotherparty.
TerminationofthisAgreementpursuanttothisclauseshallbewithoutprejudicetoanyclaimbytheeitherparty
againsttheotherpartyarisingoutofthisAgreement.
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12. WORKERSCOMPENSATION
Mowanjum Aboriginal Corporation shall insure and keep insured his employees under the provision of the
WorkersCompensationlegislationofWesternAustralia.
Mowanjum Aboriginal Corporation shall be solely responsible to meet all payments, costs and expenses arising
out of any claims and proceedings for death or injury of, or to, the Mowanjum Aboriginal Corporation , their
officers, servants, sub contractors, invitees and licensees which may be sustained in the performance of
operations.
13. LIABILITY/PUBLICRISK
MowanjumAboriginalCorporationshallbesolelyliableforandtokeeptheManagerinsuredagainstallactions,
proceedingsclaimsanddemandsofanynatureorkindthatarisesoutof,orareinanywayincidentaltothe