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.
Canada has released a final version of its rules governing extractive sector transparency, which forces all publicly listed local miners to report payments including taxes, royalties, fees and production entitlements of $100,000 or more to governments both home and abroad.
The Extractive Sector Transparency Measures Act, which came into force in June last year, requires large Canadian oil, gas and mining companies to publish detailed records of the payments they make overseas and locally.
Sums paid to aboriginal governments in Canada will not fall under the law until June 1, 2017.
The legislation is estimated to cover the nearly 2,000 natural resource companies whose businesses are registered in Canada or trade on Toronto’s stock exchange.
The legislation covers the nearly 2,000 natural resource companies registered in Canada or trading on Toronto’s stock exchange.
The main revise, explains Carole Gilbert, an associate at global law firm Norton Rose Fulbright, is that the document now clarifies the legislation’s main intent. The idea, she adds, is to capture the key phases of commercial activity, extending from prospecting and exploration to closure, remediation and reclamation.
“Even if a business is not directly engaged in the commercial development of oil, gas or minerals, reporting obligations will apply to entities it directly or indirectly controls that are engaged in such development, in Canada or abroad,” Gilbert says.
The legislation seeks to hold authorities and companies accountable for the vast sums of money exchanged for the rights to develop natural resources. Those revenues function as the lifeblood for the resource-rich economies of developing countries, but details are often scant about precisely how much officials take in and how they appropriate those funds.
A new version of the document that specifies the steps to be taken during the technical reporting process, has also been released.
The update comes on the heels of a New York Times front-page story that shone a spotlight on a Canadian mining company accused of serious crimes in Guatemala.
It also follows Liberal MP John McKay’s call for stricter oversight of local miners abroad. The politician has long been pushing for the creation of an ombudsman position that could investigate claims against Canadian companies abroad and impose sanctions.
4 Comments
BOYET
THIS IS A LEGISLATIVE LAW THAT COULD PROTECT THE INTEREST OF THE GOVERNMENT AND THE PEOPLE FOR THOSE MINING COMPANIES ENGAGED IN EXTRACTING BUSINESS ESPECIALLY A FOREIGN SUBSIDY BY THE CANADIAN COMPANY.I WOULD LIKE TO BROUGHT OUR EXPERIENCES THAT WE 354 FORMER LABOR WORKERS WHO ARE DISLOCATED BY MARCOPPER MINING CORPORATION A SUBSIDIARY OF PLACER DOME INCORPORATION AND NOW ACQUIRED BY BARRICK GOLD CORPORATION .THIS CANADIAN COMPANY PLACER DOME INCORPORATION ARE EXTRACTING MINING BUSINESS FOR 25 YEARS HERE IN OUR PROVINCE OF MARINDUQUE PHILIPPINES. UNTIL NOW WE ARE LOOKING FOR JUSTICE FOR UNPAID SEPARATION PAY FOR ALMOST 20 YEARS.OUR SEPARATION CLAIMED IS MORE OR LESS $1M.SOME OT THE WORKERS ARE ALREADY DIED.IF THOSE WHO CAN READ THIS WE ARE ASKING YOUR SUPPORT FOR OUR GREIVANCES.my email add:[email protected].
Ophita
Hello, your cap lock is on!
Sakura Saunders
It is ridiculous to think that a law that only watches payments over $100,000 is going to curb bribery. When Barrick was caught bribing officials in Tanzania, the total amount was $400,000, and those payments were made in chunks much smaller than $100,000 each. This “law” is so easy to evade, it isn’t even funny… this is simply a way of tracking big payments to governments, but please lets not pretend it is going to do anything with respect to bribery.
boyet molbog
if politician liberal mp john mackay’s are serious in his advocacy to create an ombusdman to investigate those canadian mining company operating in abroad they could form a committee to conduct investigation in our situation who are dislocated by previous canadian mining company.we the 354 dislocated former employee of marcopper mining corporation are until now are seeking justice.barrick gold incorporation a second largest mining operation in terms of extracting business in our mother earth are looking for human consideration.workers are key component in any mining industry they should look the plight of those dislocated workers and not to abandon there obligation to the workers and to the community and to the entire provinces of marinduque philippines which the previous canadian company placer dome incorporation are operating for almost 25 years.they scrape our mountain and they pollute our river and lastly they abandon 354 dislocated workers.this canadian mining company never respect humanity.this canadian company must be talk directly to the affected claimant and not to our politician to have transparency.