Building constructive relationships with Indigenous Peoples Aim of this slide: Title slide for session on building constructive relationships with Indigenous Peoples. Notes to the presenter: This session is designed to be presented by a community relations personnel to senior members of staff, including the General Manager. This session is designed to take approximately 1 hour. Building constructive relationships with Indigenous Peoples Audience A: Awareness-raising session for senior staff

Aims and objectives of this session Understanding Indigenous Peoples and the implications for business: What is the issue and why is it relevant to our business? What are the risks and opportunities? What do we need to do in practice? What is required of management? Aim of this slide: To introduce the objectives and scope of this awareness raising session. Key points: The objective of this session is to provide an overview of issues and responsibilities of business in relation to Indigenous Peoples. The following questions are addressed: What is the issue and why is it relevant to our business? What are the risks and opportunities? What do we need to do in practice? What is required of management? Note for the presenter: The main source of guidance for the content in this session is the ICMM’s Good Practice Guide. Indigenous Peoples and Mining (2015). Specific references are provided for the sections and tools used in each slide, where relevant.

What is the issue? Mineral deposits are often situated under land closely associated with Indigenous Peoples. This creates specific obligations for companies, and unique challenges and opportunities. Sensitive and customised approaches required due to: On-going marginalization, discrimination and human rights abuses More vulnerable to negative impacts on cultural and natural resources Distinct cultural characteristics and governance systems require specific approaches Requirement to seek consent for proposed project. Aim of this slide: To frame the relevance of Indigenous Peoples issues in the context of mining. Key points: Mineral deposits are often situated under land closely associated with Indigenous Peoples – through claim, custom or ownership. This association creates specific obligations for companies, as well as unique challenges and opportunities that require sensitivity to understand and address. Indigenous Peoples are often historically disadvantaged, discriminated against and dispossessed of their lands. They are also likely to be more vulnerable to negative impacts from industrial developments. Indigenous Peoples require sensitive and customised approaches due to the fact that: Indigenous Peoples often have a special relationship to land, territories and resources on which companies want to explore and mine, and have the potential to impact on negatively; Indigenous Peoples often have cultural characteristics, governance structures and traditional ways of interacting and decision making that sets them apart from the non-indigenous population and which require companies to utilize forms of engagement that are sensitive to these characteristics; Due to their historical marginalisation, Indigenous Peoples are likely to be more vulnerable to negative impacts from developments, particularly those that adversely impact culture and natural resources. Legislation in some countries requires mining companies to engage with Indigenous Peoples and, in some cases, to seek their consent before starting a mining operation on their land. This speaks to the notion of FPIC (Free, Prior and Informed Consent). FPIC is a key principle in international law and jurisprudence related to Indigenous Peoples. The principle underpinning FPIC is that an indigenous community has the right to give or withhold its consent to proposed projects that may affect the lands they customarily own, occupy or otherwise use. The ICMM Indigenous Peoples and Mining Position Statement recognizes that where consent is not forthcoming despite the best efforts of all parties, that government might determine that a project should proceed and specify the conditions that should apply. In such circumstances, ICMM members (senior management) will determine whether they ought to remain involved with a project.

Relevance to our business Placeholder for details about Indigenous Peoples relevant to your project/operation. Insert slide which provides the following details: Name of Indigenous Peoples near your mine site; The territory they occupy; Key baseline characteristics (environmental and social); Issues of concern that need to be considered.

The business risks/benefits of an IP-sensitive approach Corporate-level risks/benefits Site-level risks/benefits Reputation as a responsible/irresponsible company Building trust and respect and increased community support – or the opposite Compliance/non-compliance with UN Principles on Business and Human Rights Improved chances of sustained access and uninterrupted operations – or disrupted operations Management/mismanagement of issues which could pose reputational, financial and legal risks Management/ mismanagement of issues and risks at site level Withholding of consent for the project. Benefits to company-community relationships beyond just Indigenous Peoples. Aim of this slide: To articulate the business risks and benefits of an IP-sensitive (or insensitive) approach. Key points: Corporate-level benefits: At the corporate level, the benefits of an IP-sensitive approach are reputational. It is now widely accepted that companies have a responsibility to respect human rights, including the rights of Indigenous Peoples. Companies that adopt good practice in relation to interactions with Indigenous Peoples are likely to be considered as ‘responsible companies’ which in turn, has reputational benefits. Similarly, a company that fails to respect the rights of Indigenous Peoples would face huge reputational risks, both locally and internationally, with the associated threatened social licence to operate that accompanies such violations. An IP-sensitive approach will also ensure alignment with the UN Principles on Business and Human Rights (which extends to compliance with international standards concerning the rights of Indigenous Peoples); and with ICMM SD Framework and ICMM Position Statement on Indigenous Peoples. Although an IP-sensitive approach will have reputational benefits, it also serve an important risk management function (e.g. the ICMM’s IP Good Practice Guide, although designed to protect IPs from mining-related impacts, also protects companies from taking ill-considered decisions and actions with regards to IPs). Strained or failed relationships with Indigenous communities is very likely to result in consent for the project being withheld by the affected IPs – which in turn will force companies to: (a) withdraw from the proposed project – with associated lost revenue; or (b) decide to proceed with the project and face significant opposition and reputational damage locally, nationally and internationally. (Notes: 1 of 2)

High level practical steps to be taken Ensuring a sensitive approach to Indigenous Peoples’ requires the application of a number of practical steps: Engage to protect rights, minimise impacts, maximise benefits Agree on meaningful engagement processes Start engaging early in project planning Build IP capacity to negotiate equitably Understand and respect rights, interests and perspectives Work to obtain consent for project If no IP consent – reconsider involvement Collaborate with authorities to ensure IP best practice Anticipate and plan for disagreement. Aim of this slide: To provide a summary of the high level practical steps to be taken by companies to ensure a sensitive approach to Indigenous Peoples. These steps are based on the six commitments contained within the ICMM’s Position Statement on Indigenous Peoples. Key points: The high level practical steps outlined below can be considered best practice approach to all stakeholders, regardless of their IP status. They are: Engage with potentially impacted Indigenous Peoples with the objectives of protecting their rights, avoiding and/or minimizing negative impacts, and ensuring sustainable benefits and opportunities. Ensure an engagement process that is agreed upon with Indigenous Peoples and relevant government authorities; is consistent with Indigenous Peoples’ decision-making processes; and starts as early as possible during project planning; and facilitates meaningful participation of Indigenous Peoples in decision making. Where required, companies should participate in building the capacity of Indigenous communities to participate equitably in good faith negotiations. Actively seek to understand and respect the rights, interests and perspectives of Indigenous Peoples regarding a project and its potential impacts. Work to obtain the consent of indigenous communities for new projects (and changes to existing projects) that are located on lands traditionally owned by or under customary use of Indigenous Peoples. Collaborate with the responsible authorities to achieve outcomes consistent with best practice engagement with Indigenous Peoples. Anticipate and plan for differences of opinion, and possible delays in reaching a negotiated good faith agreement. Agree on reasonable dispute resolution mechanisms at the outset, to be applied where differences of opinion arise (e.g. seeking mediation or advice from mutually acceptable parties). Where agreement and consent cannot be reached, senior management at corporate level to determine whether the company ought to remain involved with a project. Reference for Good Practice Guide material used on this slide: Page 11.

Legal and company obligations Placeholder for details about legal and company obligations relating to Indigenous Peoples. Insert slide which provides the following details: Legal obligations relating to Indigenous Peoples; Company policy relating to Indigenous Peoples.

What is required from management? Top-level management commitment Qualified & experienced staff Indigenous advisers Ensuring gender sensitivity Cross-cultural training Leading companies recognise the importance of having the right team in place at the corporate and operational level, underpinned by strong management systems. Aim of this slide: To highlight the different types of engagement capacity that needs to be built within companies in order to better engage with Indigenous Peoples communities. To foster good relations with IP (and other) communities, companies should ensure that they have the right team in place at the corporate and operational levels, underpinned by strong management systems. Top-level management commitment: Commitment from top-level management to relationship building with Indigenous Peoples and other local communities is critical to developing community support. This commitment needs to go beyond PR work. To do so, the capacity of senior management needs to include: understanding of the rights, interests and perspectives of Indigenous Peoples; an ability to convey the business case for engaging constructively with Indigenous Peoples to all staff; an ability to lead a company team to respect, understand and work with indigenous communities; and the skills required to help the company change and adapt its approach, as necessary. Qualified and experienced staff: it is essential that companies appoint staff who are experienced and qualified in engaging with indigenous communities and the complexities this may bring … or build the necessary capacity to enable staff to meet the requirements of their role. Key skills include: awareness and understanding of how to interact with Indigenous Peoples experience or familiarization with the context in which they will need to work skills to support specific tasks associated with the employment of Indigenous Peoples, business development support and community development. (Notes: 1 of 2) Company-level ingredients to fostering engagement capacity with Indigenous Peoples 9

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