ESG Reshaping Mining Firms' Policy on Indigenous Peoples

Many mining industry operations and development projects affect indigenous peoples' traditional territories, making it vital that mining companies establish and maintain trust throughout the mining life cycle. 

Over time, the mining industry has evolved its approach to engaging with indigenous communities, implementing strategies that go beyond basic consultation to foster genuine partnerships and long-term sustainable development.

Respecting indigenous rights and interests is fundamental to this new approach, with mining companies increasingly acknowledging indigenous peoples' connection to traditional lands, and working to protect cultural heritage sites. 

This shift reflects growing awareness of international standards, such as the United Nations Declaration on the Rights of Indigenous Peoples. This establishes a framework for minimum standards that protect the dignity, well-being and survival of Indigenous peoples, including the right to self-determination.

A key principle here is obtaining free, prior, and informed consent (FPIC) from affected indigenous communities before proceeding with mining projects. This process involves providing full information about proposed activities and potential impacts, allowing sufficient time for internal discussions, and respecting the community's right to give or withhold consent

Rio Tinto, one of the world's largest mining companies, has committed to reviewing all agreements with Traditional Owners in Australia's Pilbara region, following the destruction of ancient rock shelters at Juukan Gorge in 2020. 

The incident highlighted the importance of ongoing consent and engagement throughout a project's lifecycle, principles that are set out by the International Council on Mining and Metals (ICMM) in ‘its Indigenous Peoples and Mining: Good Practice’ guide. The ICMM is an industry association that promotes sustainable mining practices, and its guide helps member companies improve their engagement with indigenous peoples by offering guidance on respecting indigenous rights, carrying out due diligence and obtaining consent for new projects.

This guidance provides a range of practical tools and case studies around engagement and Indigenous participation, managing impacts, agreements and dealing with grievances.

Incorporating indigenous knowledge into project design

Mining firms are also recognising the value of incorporating indigenous knowledge into project design and implementation, as this can inform environmental management practices and help identify culturally significant areas to be protected.

Major global miner BHP has established a $50 million indigenous Development Fund in Australia to support indigenous-led programmes in areas such as education, employment, and business development.

And Canadian miner, Teck Resources, collaborated with indigenous groups to integrate traditional knowledge into its reclamation planning for the Cardinal River coal mine in Alberta, which ceased production in 2020. This approach helped identify culturally important plant species for revegetation efforts.

“At Teck, we are committed to responsibly producing the critical minerals the world needs to create a low-carbon future,” said Jonathan Price, President & CEO of Teck.. He adds that, among other things, Teck’s approach to responsible mining is “underpinned by a long-term sustainability strategy that sets out goals in the areas of indigenous peoples, climate change, circularity and biodiversity”.  

Long-term development and post-mining sustainability

Forward-thinking companies are looking beyond the life of the mine to consider long-term community development goals and post-closure sustainability. 

This involves working with indigenous partners to build local capacity, diversify economies, and plan for a positive legacy after mining operations cease.

Successful engagement strategies seek to align mining activities with local community priorities. This can involve supporting education and training initiatives, investing in community infrastructure, or partnering on economic development projects that reflect indigenous aspirations.

Early planning and regular communication

Industry leaders emphasise the importance of agreeing on engagement processes early in project planning. This allows for meaningful participation of indigenous communities in decision-making from the outset. Regular, transparent communication throughout the project lifecycle is crucial for addressing practical issues and maintaining trust.

Many mining companies also now provide cross-cultural awareness training to employees and contractors working with indigenous communities. This helps foster understanding and respect for cultural differences. 

Firms are also implementing strict codes of conduct and taking disciplinary action when breaches occur to demonstrate their commitment to respectful relationships.

Challenges and ongoing improvements

While progress has been made, challenges remain in implementing these best practices consistently across the industry. Some indigenous groups continue to express concerns about inadequate consultation or uneven distribution of benefits from mining projects.

As the mining industry continues to evolve its approach, ongoing dialogue and collaboration with indigenous communities will be essential to refine best practices and build lasting partnerships based on mutual respect and shared benefits.
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