Enhancing the Benefits of Local Content in Extractive Industry Agreements: Legal Approaches and Trends in Frontier Extractive Jurisdictions

Determined to maximize and equitably distribute the direct benefits of extractive industry investments to Indigenous and host communities, resource rich countries across the world have increasingly introduced local content requirements (LCRs) into their legal framework, through Indigenous-industry contracts, legislation, and bidding practices. While LCRs can provide a robust basis for addressing Indigenous-industry relationship in resource management, lack of clarity and resulting misalignment in understanding and expectations, between Indigenous communities and extractive operators, on the meaning, nature, scope and methodology for implementing, measuring and reporting LCRs, could result in significant risks and disputes. This chapter provides a multijurisdictional analysis and survey of LCRs in frontier oil, gas and mining jurisdictions, especially Canada, Australia, United Kingdom, Nigeria, Saudi Arabia and Qatar, six countries that are home to significant portions of the world's extractive resources. It also examines how LCRs can be clarified and aligned to deliver mutually reinforcing outcomes for governments, industry and host communities.