A/HRC/21/47 generally required by international human rights law when restrictions on human rights are permissible.5 66. Consultation procedures regarding proposed extractive operations are channels through which indigenous peoples can actively contribute to the prior assessment of all potential impacts of the proposed activity, including whether and to what extent their substantive human rights and interests may be affected. In addition, consultation procedures are crucial to the search for less harmful alternatives or in the definition of mitigation measures. Consultations should also be, ideally, mechanisms by which indigenous peoples can ensure that they are able to set their own priorities and strategies for development and advance the enjoyment of their human rights. 67. For them to serve as true avenues for dialogue and negotiation, consultation procedures should tackle existing power imbalances by establishing mechanisms for sharing information and adequate negotiation capacity on the indigenous peoples’ side. Playing a genuine protective role, States should facilitate such mechanisms, which may require the involvement of State actors other than those directly involved in the project or the inclusion of external advisers. In fulfilling their responsibility to respect the rights of the indigenous communities, private companies that are the proponents of extractive projects should, on their part, defer to indigenous decision-making processes without attempting to influence or manipulate the consultation process. Only if these conditions are met can any agreement with indigenous peoples be considered to be the result of genuinely free and informed consultations. 68. If consent is obtained, it should be upon equitable and fair agreed-upon terms, including terms for compensation, mitigation measures and benefit-sharing in proportion to the impact on the affected indigenous party’s rights. In addition, terms for a long-term sustainable relationship should be established with the corporation or other enterprise that is the operator of the extractive project. This implies new business models involving genuine partnerships, in keeping with indigenous peoples’ right to set their own priorities for development (see paras. 72-76). 69. The duty to consult is one that rests with the State in accordance with its protective role. For its part, a business enterprise that seeks to operate extractive industries affecting indigenous peoples has the independent responsibility to ensure that adequate consultation procedures have been undertaken and indigenous consent obtained for impacts on indigenous rights under equitable terms, to the extent required by international standards. 70. The Special Rapporteur has observed that in many instances corporations approach and seek to negotiate directly with indigenous peoples about proposed extractive activities that may affect them. Such initiatives in principle are not incompatible with international human rights standards, and indigenous peoples are free, by virtue of their right to selfdetermination, to enter into negotiations directly with companies if they so wish. Direct negotiations between companies and indigenous peoples may be the most efficient and desirable way of arriving at agreed-upon arrangements for the extraction of natural resources within or near indigenous territories that are fully respectful of indigenous peoples’ rights, and they may provide indigenous peoples with opportunities to pursue their own development priorities. 5 Ibid., paras. 127-129 (regarding permissible restrictions on the right to property). See also article 18 (3) of the International Covenant on Civil and Political Rights, which permits limitations on the right to religion only as necessary to protect public safety, order, health, or morals or the fundamental rights and freedoms of others. 17