FIRST PEOPLES WORLDWIDE
CORPORATE MONITOR
JANUARY 2013
Grassroots Indigenous Rights Movement Goes Global
Over the past month, more than 130 protests took place throughout the world calling for global
recognition of Indigenous Peoples’ rights. The Idle No More movement began in Canada in
opposition to the Jobs and Growth Act, a law passed on December 5 that, according to First
Nations leaders, gives the Canadian government greater control over land management policies,
and drastically lowers the threshold of consent needed from First Nations to develop their lands.
The movement quickly globalized and broadened to call for the global recognition of Indigenous
treaty rights, the revitalization of Indigenous cultures, and an end to all legislation imposed
without meaningful consultation. The movement coincides with a high-profile hunger strike by
Theresa Spence, Chief of the Attawapiskat First Nation. Spence, who declared a state of
emergency last year due to extreme poverty on her reservation, vowed to consume only liquids
until Canadian Prime Minister Stephen Harper agreed to meet with First Nations leaders. The
Harper government was initially slow to respond, but eventually agreed to meet with Spence due
to growing concerns about her health. A meeting was scheduled for January 11, but Spence
chose not to attend because a representative of the British Crown (to whom First Nations treaties
are also binding) was not present, and announced a continuation of her hunger strike.
Although Idle No More primarily addresses the Canadian government's failure to uphold its
treaty obligations, companies operating on or near First Nations territory will be held
accountable to their rights as well, and the need for community engagement is greater than ever.
The movement’s emphasis on people is essential for companies to remember when engaging
with Indigenous communities. Too often, companies limit their consultation process to select
leaders that approve projects without the consent or knowledge of the majority of stakeholders,
creating enormous potential for problems down the road. Idle No More sends a clear message
that development cannot occur on First Nations territories without full respect and
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acknowledgement of their treaty rights.
The only way companies can achieve this is by
obtaining Free, Prior and Informed Consent (FPIC) through an inclusive process involving all
stakeholders, for any projects that may affect First Nations and other Indigenous Peoples around
the world.
Sources: Huffington Post, Indian Country Today, Calgary Herald, NPR, The Media Cooperative
The Complexities of Indigenous Identity - Mongolia
On November 10, civil society groups released a report outlining their concerns with the
Environmental and Social Impact Assessment of Rio Tinto’s (LON:RIO) Oyu Tolgoi Mine in
the South Gobi region of Mongolia. The report states that the mine is being constructed without
Free, Prior, and Informed Consent (FPIC) from affected Indigenous herders. This violates both
Rio Tinto policy and Performance Standard 7 of the International Finance Corporation (IFC), the
private sector lending arm of the World Bank, which is financing the mine with US$900 million
in loans and US$1 billion in political risk insurance.
On December 17, Rio Tinto released a response stating that the identification of the herders as
Indigenous is inconsistent with the IFC’s definition of Indigenous Peoples, because they do not
self-identify as linguistically or ethnically distinct from mainstream Mongolians. 99 percent of
the region’s population identifies as Mongol, which is the ethnicity of 85 percent of Mongolians,
and the World Directory of Minorities and Indigenous Peoples does not list any Indigenous
Peoples in the region. The company stated that FPIC is only a valid concept if the affected
communities are recognized as Indigenous. Therefore, Performance Standard 7 of the IFC does
not apply to the Oyu Tolgoi Mine.
Determining whether communities are Indigenous can be a complex process. The herders are
not an ethnic minority in Mongolia, but due to their physical and cultural attachment to their
land, they should be treated with the same considerations given to other Indigenous populations.
Rio Tinto has acknowledged this and claims to have “engaged, consulted, and asked for feedback
from various stakeholder groups at the national and local levels since work started.”
Sources: Rio Tinto, Bank Information Center
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The Complexities of Indigenous Identity – Malaysia
A regional court in Malaysia ruled that 2,000 hectares of disputed land is subject to the authority
of a Semelai community because they are its earliest inhabitants, and ordered the Malaysian
government’s Federal Land Consolidation and Rehabilitation Authority to cease development
projects on the land due to community opposition. This does not guarantee the community’s
authority over their land, as regional and lower court rulings recognizing Indigenous Peoples’
land rights can be overturned by higher courts.
Regardless, the court’s decision, which was based on early Semelai writings and other historical
evidence, is a model for companies to follow when determining whether communities are
Indigenous. Rather than relying on definitions and identifications of Indigenous Peoples within
international bodies and instruments, companies can conduct historical research of communities
affected by their operations, and apply their Indigenous Peoples’ policies to those with the
earliest claims to the land.
Sources: The Star, Amazon Watch
Examples of Good Practice - Shell
In December 2012, Royal Dutch Shell (LSE:RDS) ended plans to drill for coal-bed methane gas
in the Klappan region of northwest British Columbia. Shell’s plans were opposed by First
Nations that refer to the region as their Sacred Headwaters, as it is the shared basin of three
salmon-rich rivers. The Tahltan Central Council, which governs the communities in the region,
stated “we want to acknowledge Shell for its decision to respect the wishes of our Nation
by giving up its plans
to develop coal-bed methane in the Klappan.
It is a place of
tremendous cultural, spiritual, historic and social importance – our people do not want to see it
developed.” A spokesperson for Shell said the company was pleased to find “common ground”
with the Tahltan, and that it will pursue better opportunities in northeast British Columbia, where
better infrastructure for gas extraction already exists.
Following Shell’s decision, the British Columbian government announced a ban on future oil and
gas development in the region. The Klappan remains unprotected from extractive projects by the
mining industry, with Fortune Minerals Limited (TSE:FT) and Imperial Metals Corporation
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(TSE:III) moving forward with anthracite, gold, and copper mines in the region.
The
communities are likely to continue to resist these activities.
Sources: The Star
The Importance of Good Compensation
In December 2012, the Kenya Electricity Generating Company announced plans to spend nearly
US$7 million on the planned resettlement of an Olkaria Maasai community to make way for the
construction of the Olkaria VI Power Station.
The funds, which far exceeded the initial
resettlement budget of $1US million, will be used to build 164 housing units, three churches, a
school, a social hall, a cattle dip, two fishing ponds, a water supply network, and roads on a
resettlement site spanning 687 hectares. The community will hold land tenure rights to the
resettlement site.
In 2009, the International Conference on Indigenous Peoples and Extractive Industries reported
staunch community opposition to the initial resettlement process. Since the expansion of the
budget, Business Daily Africa reports viewing regulatory documents that show community
support for the process. The investment was necessary for financial support from the World
Bank for the project, as the Bank's resettlement policies require informed consultation and
effective compensation for resettled communities.
Sources: Business Daily Africa, International Conference on Indigenous Peoples and Extractive
Industries
Operating in Conflict Territory - Chile
In 2012, Chile’s Attorney General Office reported that 300 violent incidents took place relating
to land claims of the Mapuche, the country’s largest Indigenous minority. The conflict escalated
in January 2013, when violence broke out in Santiago between police and hundreds of Mapuche
protestors demanding authority over their ancestral lands.
Also in January 2013, masked
attackers set fire to the home of wealthy landowner Werner Luchsinger, burning him and his
wife alive.
It is speculated that the attack was connected to Luchsinger’s history of land
ownership disputes with the Mapuche.
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On January 16, approximately 300 representatives from Mapuche communities gathered in
Temuco to discuss their demands for self-determination.
A letter issued to the Chilean
government by a Mapuche Chief attributes the increasing violence to “the lack of justice and the
rejection of any type of constructive dialogue regarding the return of our territory.” When
Indigenous Peoples are not given a voice in the decisions of governments or companies, they are
likely to use unconventional and/or violent methods to ensure their voices are heard.
Sources: BBC, The Economist, Santiago Times, MercoPress
Operating in Conflict Territory - Kenya
In 2010, Bedford Biofuels (Canada: Private) obtained permission from the Kenyan government
to plant 10,000 hectares of jatropha, a non-edible plant with oil-rich seeds that have potential for
biodiesel production, in the Tana Delta. Despite promising jobs and infrastructure development
to local communities, the company’s progress is being stalled by conflicts between the nearby
Orma and Pokomo tribes, and so far only 19 hectares have been planted. According to company
spokesperson Joel Ruhu, “if there are conflicts in the area of operation, you can’t do anything.
You literally can’t do anything. So instability causes a lot of delay in us moving forward with the
project.”
The conflicts, which resulted in over 100 deaths in 2012, are rooted in limited natural resources
in the region, especially water. The company may not be the direct cause of the conflicts, but its
use of already limited natural resources to support its operations may exacerbate the situation and
further jeopardize the profitability of its jatropha plantation.
Sources: Daily Nation, BBC, Practical Action
The Importance of Transparency
In January 2013, the U.S. government appointed 21 representatives from the industry,
government, and civil society sectors to guide and oversee the U.S. government’s
implementation of the Extractive Industries Transparency Initiative (EITI). EITI is a global
effort to increase the transparency and accountability of natural resource revenue reporting.
Participating governments are required to disclose all revenues from extractive companies, while
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companies disclose these same payments to governments. The two sets of data are subject to
review and approval from an independent third party approved by both sides, and released in a
public report. The committee, which includes representatives from the industry, government,
and civil society sectors, will develop USEITI reporting requirements through a multi-year,
consensus-based process. The full list of committee members is available here.
Since the opening of EITI's International Secretariat in 2008, 18 countries have become EITI
compliant and 19 countries have become EITI candidates, with additional countries planning to
implement EITI in the future. Click here for the full list of EITI participant countries.
Sources: U.S. Department of the Interior, Extractive Industry Transparency Initiative
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