Rio Tinto emerged as the only company to engage in the United Nations-enshrined principle of “free, prior and informed consent” regarding indigenous peoples and local communities affected by resource operations.

The study, by social development organisation Oxfam Australia, found that the vast majority of Australian resource companies did not have policies in place to consider indigenous rights, including the right to participate in decisions that affect the people, their land and natural resources.

According to Oxfam, only 14 of the reviewed resources companies have published a commitment to uphold human rights throughout their operations despite two-thirds of alleged human rights abuses being attributed to the extractives sector.

Oxfam chief executive Helen Szoke acknowledged that some miners were improving their disclosure and engagement policies but said the report revealed much more work was needed.

“This is a critical issue for the Australian mining industry,” Szoke said.

“Australian companies are not only trying to access minerals on indigenous peoples’ land here in Australia but are increasingly venturing overseas to do the same.

“Without the consent of affected people, mining companies will find it more and more difficult to access land for mine development and operation.

“Projects risk being delayed or shut down if communities directly affected are not involved in decision-making, do not give their consent, or are denied the opportunity to share in the benefits from these projects.”

Investor research group Corporate Analysis Enhanced Responsibility worked with Oxfam in development of the report and said companies needed to understand the potential legal, reputational and financial risks of attempting to operate without this consent.

“They also increasingly run the risk of losing investor support since investors know that without consent, projects may be delayed or disrupted, adding unforeseen costs,” CAER chief executive Duncan Patterson said.

“Investors are becoming savvy when deciding where to put their money.

“Key human rights principles such as the right of indigenous peoples to consent to the use of their land will play a greater role in where they choose to invest.”

Oxfam said environmental degradation caused by mining had devastating effects on indigenous peoples’ ability to feed themselves, drink clean water, farm and fish.

Other issues were identified as malnutrition, declining social cohesion and destruction of places of cultural and spiritual significance.