TORONTO (miningweekly.com) – Canada’s new rules governing extractive sector transparency came into effect on Monday, forcing all extractive companies subject to the Act to report payments including taxes, royalties, fees, and production entitlements of $100 000 or more to all levels of government in Canada and abroad.
Canada’s Natural Resources Minister and Minister for the Federal Development Initiative for Northern Ontario Greg Rickford on Monday said that the ‘Extractive Sector Transparency Measures Act’ (ESTMA) was a multilateral mandatory reporting initiative that would help to ensure that Canada’s resource industries continued to prosper and to provide the broad economic benefits that were fundamental to Canada’s success.
The ESTMA followed through on the federal government’s commitment with its G7 counterparts to improve transparency and accountability of payments made by the extractive industry to all levels of government.
The eurozone had already developed similar legislation, which the UK had adopted late last year, with transparency directives to follow soon. The directives required oil, gas, mining and logging companies to publicly disclose the payments they made to governments to extract natural resources.
The directives were modelled on Section 1504 of the US Dodd-Frank Act, which required companies to disclose payments at the country and project level. Despite Section 1504 having become law more than four years ago, its implementation had been delayed multiple times by the Securities and Exchange Commission.
“Working together with our largest trading partners, Canada is delivering on its commitment to supporting transparency and accountability of our extractive industries. Canada’s contribution is an important step toward establishing a global standard of transparency while supporting jobs and growth both at home and abroad,” Rickford said.
The ESTMA received Royal Assent on December 16, 2014.
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