1 0 7
V I I I .  N AT U R A L   R E S O U R C E S
8.1. RIGHTS TO NATURAL RESOURCES, CON- SULTATION, BENEfITS AND COmPENSATION
The	recognition	of	indigenous	peoples’	rights	to natural resources is inextricable tied to the rights
to	lands	and	territories	see	section	7.	Therefore, Convention No. 169 establishes as a basic
principle	that	indigenous	peoples	have	the	rights to	the	natural	resources	pertaining	to	their	lands
and	to	participate	in	the	use,	management	and conservation	of	these	resources:
ILO	Convention	No.	169: Article 15.1:
The	rights	of	the	peoples concerned	to	the	natural	resources	pertaining
to	their	lands	shall	be	specially	safeguarded. These	rights	include	the	right	of	these	peoples
to	participate	in	the	use,	management	and conservation of these resources.
The	Convention	thus	speciies	that	indigenous peoples	have
rights	to	the	natural	resources	of
their	territories,	including	the	right	to	participate	in the	use,	management,	protection	and	conservation
of	these	resources.	As	a	basic	principle,	these resources	comprise	both	renewable	and	non-
renewable	resources	such	as	timber,	ish,	water, sand and minerals.
However,	there	are	many	cases	in	which	the	State Constitutions	provides	that	the	States	alone	owns
mineral	and	other	resources.	Article	152	recognizes this	situation	while	also	stipulating	that	indigenous
peoples	have	rights	regarding	consultation, participation	in	the	beneits	of	resource	exploitation
as	well	as	compensation	for	damages	resulting	from this	exploitation.
ILO	Convention	No.	169: Article 152:
In cases in which the State retains the ownership	of	mineral	or	sub-surface
resources or rights to other resources pertaining	to	lands,	governments	shall
establish	or	maintain	procedures	through which	they	shall	consult	these	peoples,	with
a view to ascertaining whether and to what degree	their	interests	would	be	prejudiced,
before	undertaking	or	permitting	any programmes	for	the	exploration	or	exploitation
of	such	resources	pertaining	to	their	lands. The	peoples	concerned	shall	wherever
possible	participate	in	the	beneits	of	such activities,	and	shall	receive	fair	compensation
for any damages which they may sustain as a result of such activities.
There	are	numerous	examples	where	the	exploration or	exploitation	of	mineral	or	sub-surface	resources
on	indigenous	peoples’	lands	has	led	to	conlicts. In	these	situations,	Article	152	of	Convention	No.
169 seeks to reconcile interests by recognizing the	following	rights	to	indigenous	peoples.	It	must
also	be	speciically	noted	that	the	responsibility	for ensuring	that	these	rights	are	respected	lies	with	the
concerned	governments	and	not	with	the	private companies	or	entities	that	are	licensed	to	undertake
the	exploration	or	exploitation.
The	right	to	be	consulted	before	natural resources	on	their	lands	are	explored	or
exploited. During	consultation,	indigenous	peoples	shall	be
able	to	state	their	concerns.	For	example,	they can give reasons why resources should not be
extracted	or	why	certain	areas	should	be	exempted due	to	environmental	concerns,	impact	upon
sacred	sites,	pollution,	health	problems,	loss	of basis	of	subsistence	economy,	etc.	Considering
that	exploratory	and	exploitative	activities	are often	long-term	processes	where	companies	are
granted	concessions	of	periods	of	30-50	years,	it	is important	to	underline	that	the	obligation	to	consult
does	not	only	apply	when	taking	the	decision	to explore	or	exploit	resources	but	also	arises	on	a
1 0 8
I N D I G E N O U S     T R I B A L   P E O P L E S ’   R I G H T S   I N   P R A C T I C E   –  A   G U I D E  T O   I L O   C O N V E N T I O N   N O .  1 6 9
general	level,	throughout	the	process	as	it	affects indigenous	peoples.
1
In	this	regard,	Article	15	should be read in conjunction with Articles 6 and 7 of the
Convention,	requiring	consultation	and	participation of	indigenous	peoples	in	the	formulation,
implementation	and	evaluation	of	development	plans affecting	them	see	also	section	5	on	consultation
and	participation. .
The	right	to	having	the	impact	of	exploration and	exploitation	ascertained.
Article	152	stipulates	that	indigenous	peoples shall	be	consulted,	with	a	view	to	ascertaining
whether and to what degree their interests would be	prejudiced	by	exploration	and	exploitation	of
resources. This article should be read in conjunction with	Articles	6	and	73	of	the	Convention,	which
specify	that	the	social,	spiritual,	cultural	and environmental	impact	of	development	activities	on
indigenous	peoples	shall	be	assessed	in	cooperation with	them,	and	that	the	results	of	such	studies
shall be considered as fundamental criteria for the implementation	of	these	activities.	Moreover,	Article
74	stipulates	that	governments,	in	collaboration with	indigenous	peoples,	shall	take	measures
to	protect	and	preserve	the	environment	of	their territories. A number of institutions and agencies
have	come	up	with	guidelines	for	such	impact assessments,	stipulating	among	other	issues
the	need	to	build	upon	and	integrate	indigenous peoples’	knowledge,	ensure	participation	throughout
the	process,	integrate	gender	concerns	and	address capacity-building	as	an	integral	element.
The	right	to	beneit	in	the	proits	made	from exploitation	and	use	of	natural	resources.
Indigenous	peoples	have	the	right	to	participate in	the	sharing	of	the	beneits	generated	by	the
exploration	or	exploitation	of	the	natural	resources on	their	lands.	This	beneit-sharing	can	take	a
variety	of	forms,	including	speciic	agreements	with individual	communities;	negotiated	agreements
between states and self-governing territories or redistribution	of	taxes	and	revenues	to	speciic
indigenous	peoples’	development	purposes.
1 see GB.282142, case cited in section 8.2
The	right	to	be	compensated	for	damages caused	by	exploration	and	exploitation	of
natural	resources. Unfortunately,	exploration	and	exploitation	may
have	a	negative	effect	on	the	environment,	health, social institutions and livelihoods of indigenous
peoples.	In	these	cases,	Article	152	speciically states	that	indigenous	peoples	should	receive	a	fair
compensation.
The	provisions	of	Convention	No.	169	are reafirmed	in	the
UN	Declaration	on	the Rights	of	Indigenous	Peoples,	which
stipulates	that: Article 32,
1.
Indigenous	peoples	have	the	right	to determine	and	develop	priorities	and
strategies	for	the	development	or	use	of	their lands or territories and other resources.
2.
States	shall	consult	and	cooperate	in	good faith	with	the	indigenous	peoples	concerned
through	their	own	representative	institutions in order to obtain their free and informed
consent	prior	to	the	approval	of	any	project affecting their lands or territories and other
resources,	particularly	in	connection	with	the development,	utilization	or	exploitation	of
mineral,	water	or	other	resources. 3.
States	shall	provide	effective	mechanisms for	just	and	fair	redress	for	any	such	activities,
and	appropriate	measures	shall	be	taken	to mitigate	adverse	environmental,	economic,
social,	cultural	or	spiritual	impact.
8.2. COmmENTS By THE ILO SUPERVISORy BODIES: NATURAL RESOURCES