The 300 million indigenous people of the world include the First Nations, Inuit and Métis in Canada, Native Americans (United States) and indigenous people of Latin America, the Sami of northern Europe, the Aborigines of Australia and the Maori of New Zealand.

Recently, several factors have caused the international mining sector to work more closely with indigenous people to benefit all parties. Consider:
• There has been spectacular growth in acceptance of the Equator Principles, a financial industry benchmark for determining, assessing and managing social and environmental risk in project financing (see below).
• The development of the United Nations Global Compact, a global voluntary initiative to increase businesses’ commitment to human rights, labor standards, the environment and anti-corruption.
• The adoption of the Declaration on the Rights of Indigenous Peoples by the U.N. General Assembly in September 2007, protecting the rights of indigenous peoples.
• Internet-savvy Non-Governmental Organizations (NGOs) are able to mount quick global campaigns (e.g. YouTube) to call to account companies they view as unethical in areas such as their perceived treatment of indigenous people.
• Financial markets increasingly reward companies that are seen to act responsibly with regards to the environment and local populations, and punish those that do not.

Mining companies need to demonstrate respect for indigenous peoples’ historic resources, which can include
commissioning professional archaeologists to carry out investigations, such as this one in northern Canada.
(Image courtesy of Golder Associates).
 

These include a connection to the land and the environment. In many cases, indigenous people derive much of their food, shelter and clothing directly from that land. Any change to the landscape— such as mine dewatering that lowers the water table—impacts them.

Legal land title may be complex with indigenous people. In some parts of the world, indigenous people must delineate their traditional territories, interests and values; while in others such as Australia, it is the resource companies that must negotiate settlements with traditional owners.

For many indigenous people the main concern may be good governance and enforcement of laws protecting the environment and human rights.

Demonstrations of respect, patience and cultural sensitivity are a big thing for many indigenous people, who may have a deep-rooted historical lack of trust. In part, this need is seen in the expectation that they will be consulted, and their needs heeded, in plans that affect them.

Other common elements are economic marginalization, which can lead to increased poverty, alcohol, drug abuse and domestic violence. Indigenous community leaders may be concerned that mining will cause an influx of outside people, bringing with them prostitution, HIV/AIDS and illegal drugs. Mining companies must show their willingness to prevent problems from developing and work with the community to monitor and manage impacts.

Building All-Round Solutions
Working with indigenous people involves developing a relationship policy that builds a “social license to operate” from the community. Every stage of project development presents different opportunities. It may be best to begin with a Memorandum of Understanding during exploration and advance to an Impact Benefit Agreement during advanced exploration and design; and actual partnership and contract agreements in construction, operation, closure and post-closure.

Successful long-term relationships are built on informing, consulting, involving, collaborating and empowering local people, possibly including:
• Supporting traditional use studies and archaeological studies in consideration of Indigenous People’s rights and traditional use;
• Transparent reporting of how indigenous people are provided with relevant information; and
• Documentation of how indigenous community interests are accommodated within decision making processes, such as focus groups, workshops, consensus building, participatory and delegated decision-making.

Resource roads can form access routes into wilderness areas for predators, including
poachers, which can be harmful to populations of animals which indigenous people consider
important for cultural reasons as well as for food. Mining companies must manage
their impacts in this area carefully. (Image courtesy of Golder Associates)
 

This means that if the company is to retain the goodwill of the local population, it must develop sustainable economic prospects for them including options for replacement land of equal or better value.

In doing this, it is important to understand the differences in peoples’ sense of individuality and of commonality. In Latin American indigenous communities, it is important to take into account the community, not only the needs of the leaders or government authorities.

It helps to have a sound methodology for assessing the community’s needs, strengths and opportunities and for developing plans to meet those needs. One such method, developed in Peru, helps plan social development, in which people from the communities take part. It is based on the community’s resources and capabilities, and emphasizes what is possible and sustainable.

The need for consultation can also be seen in northern Sweden, where high commodity prices have encouraged the re-opening of old mines. Some of these mines are located in the traditional lands of the indigenous Sami, who depend on their herds of reindeer for their livelihood. Before any mine can be opened, the Swedish government requires a full assessment of its impacts on soil, water, air, wildlife and reindeer herding.

For one proposed mine re-opening, this has involved a social impact assessment that included consulting two Sami villages about how traditional reindeer husbandry might be affected, and about economic opportunities that could be provided for Sami people.

Economic Participation and Partnership
Collaboration through economic participation can be one of the biggest factors in building good relations between indigenous people and the mining sector.

This can be through working directly for the mine, or indirect employment. As with many other members of the workforce, indigenous people may need skills training, but needs may go further, to “job-readiness” training. In addition, employment terms may have to be flexible to cultural values, possibly including allowance for traditional ceremonies and seasonal hunting, fishing or harvesting.

However, if engagement processes are successful, indigenous people can be an answer to the skills shortages that plague much of the global mining sector—particularly, difficulty in getting employees to relocate to what are, to them, remote and distant places. For indigenous people living in the area, mining-related employment gives a welcome chance to earn a living and build skills that may be transferable to other industries, so they may continue to live in their communities following mine closure.

In Latin America, mining jobs are often very popular, but not everyone has access to a job with a mine. So, while one project cannot be the solution to unemployment for the whole area, it can be the ignition point for developing new capacities people can use in other industries.

In Canada, it is becoming common for indigenous people to be involved in support services including environmental remediation and monitoring of mining projects, as well as in becoming owners. This can be done through joint ventures and cooperation agreements with independent companies owned and operated by First Nation organizations.

One mining company in western Canada developed its indigenous partnership by providing funding and training for the indigenous group to become an active partner, and to help maximize employment and ownership opportunities. They fully empowered their First Nation partner by giving them a veto on project development. The CEO stated that developing the partnership took a leap of faith from both sides, but it meant they could fast-track the permitting and construction process, and thus capitalize on favorable market conditions.

The ultimate benefit to developing effective partnerships with indigenous people is that members of the community are more likely to be satisfied that socio-economic benefits will be realized and that work is done with due respect to the land and the environment.

When developing partnerships with indigenous people it is important to remember that even with the best technical guidance and technical studies, adequate consultation and accommodation is about relationships, reconciliation and the balancing of interests. It is not about technicalities. In order for meaningful depth to be achieved, skilled efforts at accommodation need to be combined with creativity and flexibility on the part of mining proponents and their indigenous partners.

Maria Julia Ubillus (mubillus@golder.com.pe) is an associate in the Lima office of Golder Associates Peru S.A. Marke Wong (mwong@golder.com) serves as the National Mining Sector coordinator for Golder Associates Ltd. in Vancouver, Canada.