The Deed of Compensation was negotiated between the Hope Vale Aboriginal Council and Cape Flattery Silica Mines prior to the decision in Mabo v Queensland (1992). Cape Flattery Silica Mines held silica and sand mining leases under the Mineral Resources Act 1989 (Qld) on land that was held under a Deed of Grant in Trust (DOGIT) for the Hopevale Community.
The Deed of Compensation resulted from the need to renew the existing leases and to allow for the expansion of silica mining. The Deed comprised two agreements which provided for employment, cultural heritage protection, environmental protection, payment of royalties to the community and the establishment of a Coordination Committee between the Company and the Community. Under the agreement there is no particular recognition of the traditional owners, and benefits under the agreements are for all community members represented by the Hopevale Aboriginal Council.