Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
A Canadian mining watchdog created by the Conservative government has yet to mediate a single case despite costing taxpayers $1.1 million over the last two years.
CBC News reports the impressive-sounding Office of the Extractive Sector Corporate Responsibility Counsellor has “racked up hundreds of thousands of dollars in travel, entertainment, training, meetings, reports and other expenses,” including renovations costing $189,000 to an office housing the agency’s three employees. The agency’s top bureaucrat makes $170,000 a year in salary and expenses.
The federal mining watchdog was formed in 2009 to probe complaints about Canadian companies abroad, but the Toronto-based agency has so far only received two complaints, one of which was dropped because the mining company chose voluntarily not to be investigated.
The first case involved allegations against Vancouver-based Excellon Resources (TSE:EXN) regarding its La Platosa mine in Mexico. The second stems from a complaint submitted last year against First Quantum Minerals (TSE:FM) about a mine in Mauritania. The case is currently in limbo, according to the CBC.
3 Comments
Bill Jackson
Typical government job, lots of $$, zero work or supervision – do you have any openings?
Mark Harder
Sounds like some reform of allowable expenses is due. The news that there is a watchdog group may take a while to penetrate. The fact that one complaint was dropped by one or another of the parties says that the Office is some sort of deterrent. I say wait a couple of years and then re-examine their performance.
Stonecutter
A million dollars? Over two years? This is news??
Does CBC forget that 1.23 Billion dollars wasted implementing the liberal gun registry.