Indigenous Peoples Issues - Mining and the Environment: From Ore to Metal - page 673

Ideally, a mining project with
the potential to continue for a
generation or more, should be
integrated so that the community
views it as their own, regardless
of whether there is any fi nancial
ownership by the community.

trained so that, over time, most of the jobs can be i lled by local people. Equally importantly,
such projects enable local communities to develop the capacity to supply goods and serv-
ices to the project.
Ideally, a mining project with the potential to continue for a generation or more, should be
integrated so that the community views it as their own, regardless of whether there is any i nan-
cial ownership by the community. Such identii cation can be invaluable in reinforcing shared
interests and, in particular, in providing political support to the company, if required. Local
support is particularly important in the event of a mine accident or environmental incident.

Codes of Conduct

A mining company operating near an indigenous community should be prepared, if
requested by the community, to implement a code of conduct for its non-indigenous work-
force. The elements of such a code depend on the concerns of the community and include
such matters as:
●

Restricting access to community settlements;

●

Prohibiting or restricting access to sacred sites, and

●

Bans or restrictions on the possession or sale of alcohol and other drugs.

Involvement in Operations

Mining companies have i ve options available for involving indigenous communities in
their operations:
Equity Partners - where communities own a share of the operations and benei t from
operations, with dividends in proportion to that share;
Benei ciaries - where communities receive an agreed benei t from operations calculated
by means of a formula which typically includes production throughput, market price, and
price escalators;
Joint Venturers - where communities joint venture with the mining company or contrac-
tors to participate in operations and receive payment for their partnership in proportion to
their joint venture contribution;
Contractors - where indigenous businesses contract to provide services for mine opera-
tions and receive payment for services rendered; and
Employees - where Indigenous Peoples are employed by the mine to participate in operations.

Various combinations are common. For example, a community may be a benei ciary and
also provide employees. Financial arrangements between companies and Indigenous
Peoples in Australia have evolved from simple royalty type arrangements to more complex
arrangements as described in Case 16.2 .

Capacity Building

Many indigenous societies lack the negotiating skills, coni dence or experience to negotiate
with a company on equal terms or to capitalize on opportunities that mining will bring.
In some such cases governments, NGOs or churches may assist. In Australia, the Land
Councils provide such assistance. Where assistance is required but not available, it is in the
company's interest to provide arm's length assistance or, better yet, to assist the community