Mining industry backs payments transparency for listed companies
OTTAWA _ The Mining Association of Canada and the Prospectors and Developers Association of Canada are among those backing recommendations that publicly traded mining companies report project-level payments to domestic and foreign governments.
The industry is teaming up with transparency organizations to propose a transparency standard that will apply to all publicly traded mining companies in Canada, according to a report that was published in the Financial Post newspaper.
The industry hopes that if companies around the world are forced to show how much they pay foreign governments, people living near the mines who want a bigger share of the wealth will see that their own leaders already have that money and should be sharing it with the communities, the report said.
Publish What You Pay (PWYP), a global network of 750 human rights, environmental, development and faith-based organizations, launched a campaign in 2002 calling for companies to disclose what they pay to foreign governments.
The lives of billions of people living in poverty, they say, could be transformed if the profits from natural resource extraction were better managed by local governments.
The Mining Association of Canada, and Prospectors and Developers Association, PWYP, and Revenue Watch Institute are now asking the provincial securities regulators to make it mandatory for mining companies listed on the Canadian stock exchanges to disclose all payments made to governments at home and abroad on a project-by-project basis.
That information would then be collected, assessed, and distributed to communities affected by mining development.
The move comes after Barrick Gold Corp. (TSX: T.ABX, Stock Forum) suspended construction of its Pascua Lama mine in Chile last October after a costly lawsuit over the country’s water treatment and other environmental problems.
Gabriel Resources Ltd. (TSX: T.GBU, Stock Forum) was dealt a significant setback last year after legislators rejected a bill that would have allowed its Rosia Montana project in Romania to proceed.
``Transparency of payments to governments will highlight the financial contributions and benefits that come from resource development,'' said Ross Gallinger, executive director of the Prospectors & Developers Association of Canada. (with files from The Canadian Press).
June 24, 2014
June 20, 2014
June 19, 2014
5 hours ago
6 hours ago
7 hours ago