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71.
Corporations must, however, exercise due diligence to mitigate power imbalances
and avoid outcomes that are not compliant with human rights standards, and States must act
to protect against such power imbalances and ensure the adequacy of any agreements.
Because of the significant disparities in power, negotiating capacity and access to
information that typically exist between corporations and indigenous peoples, the protective
role of the State is especially important in this context. This duty to protect includes
providing for appropriate grievance mechanisms.
4.
Towards new models of development for resource extraction
72.
The above analysis suggests that extractive industries can legitimately operate
within or near indigenous territories if specific measures of State protection and corporate
respect for indigenous peoples’ rights are taken. The Special Rapporteur is aware, however,
that across the globe indigenous peoples are continuing to resist extractive industry
operations that may affect them. In many cases, they tend even to resist entering into
consultations over proposed extractive and other natural resource development activity for
fear of being forced down a path of acceptance of extractive activities that from the outset
they do not want near them. In instances in which such resistance persists, it will be
problematic for extractive industries to operate, even if only because of the practical
consequences that derive from a lack of social licence.
73.
The resistance of indigenous peoples to extractive industries is understandable,
given the multiple human rights violations and instances of environmental devastation that
indigenous peoples have suffered because of extractive operations, as discussed by the
Special Rapporteur in his report to the Council in 2011. On top of this history of wrongs at
the hands of extractive industries are the continuing lack of effective State laws, regulations
and administrative practices to recognize and protect indigenous peoples’ rights, and the
lack of demonstrated corporate responsibility to respect those rights as a matter of course
(see paras. 57-61). Initial steps towards enhancing the possibilities of extractive industries
in or near indigenous territories involve addressing these deficiencies.
74.
In the view of the Special Rapporteur, however, a more fundamental problem
persists: the model of natural resource extraction that is being promoted by corporations
and States for the development and extraction of natural resources within indigenous
habitats. It is a model in which the initial plans for exploration and extraction of natural
resources are developed by the corporation, with perhaps some involvement by the State,
but with little or no involvement of the affected indigenous community or people. The
corporation controls the extractive operation and takes the resources and profits from it,
with the State gaining royalties or taxes, and indigenous peoples at best being offered
benefits in the form of jobs or community development projects that typically pale in
economic value in comparison to the profits gained by the corporation. It is a model of
colonial overtones, in which indigenous peoples see their territories again encroached upon
by outsiders who control aspects of their habitats and take from them, even when done with
the promise of corporate social responsibility.
75.
The Special Rapporteur believes that new and different models and business
practices for natural resource extraction need to be examined, models that are more
conducive to indigenous peoples’ self-determination and their right to pursue their own
priorities of development. Such models could include genuine partnership arrangements
between indigenous peoples and corporations, in which the indigenous part has a significant
or even controlling share in the ownership and management of the partnership, or models in
which indigenous peoples develop their own extractive business enterprises.
76.
The Special Rapporteur is aware that, in several places, indigenous peoples have in
fact developed such partnership arrangements or their own extractive operations. On the
other hand, some indigenous peoples may under no circumstances want to see natural
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