The $1.5 billion Clermont open cut mine will replace production from Blair Athol and is on track to be completed in 2010 with a forecast production of 12 million tonnes per annum of thermal coal.

Launched this month, the fund will benefit the indigenous communities situated adjacent to both Blair Athol and Clermont.

“The fund will support projects and opportunities that have positive, constructive and real outcomes for the local Aboriginal community," said Blair Athol Mine general manager of operations Andrew Cole.

Rio Tinto’s fund will consider applications for assistance that can benefit the indigenous communities over the long term.

“Our mines will work with the communities to identify what they see is important for their future, and then consider programs that will enable them to build capacity," Cole said.