As I noted recently, Prime
Minister Stephen Harper has announced that Canada will “establish new, mandatory
reporting standards for payments made to foreign and domestic governments by
Canadian extractive companies.” The move is being lauded by many, but does face
some opposition, including opposition from some business groups and trade
associations in the U.S.
Quebec is in the news again as a second lawsuit has been filed in response to their natural resource policy changes in recent years. As Nicolas Van Praet explains in the Financial Post, U.S. based mining company Strateco is suing the federal government due to potential losses relating to some $125 million in investments made to date in obtaining permission to engage in Uranium exploration at the company’s Matoush uranium mining project.
An article in the Globe highlights the rapid economic growth in Sierra Leone due to its emerging mining industry.
If business leaders ever wonder why a chunk of the public disdains business and
calls for higher corporate taxes or sector-specific increases (e.g. higher royalty rates
for energy and mining, higher stumpage fees in forestry) or just increased business
taxation in general, here's a clue: too many companies are addicted to corporate
welfare, a.k.a: crony capitalism.
According to Shawn McCarthy’s article in the Globe and Mail
September 4th, the federal, provincial and territorial resource ministers are in
agreement that Canada should require mining companies to disclose what they pay
to various levels of government both in Canada and for their foreign operations.
Reposted from Mining.com:
Mining investments in Canada’s province of Quebec dropped significantly more than expected in 2013, plunging about 37% from a record year in 2012, and marking the first annual drop in a decade.
Canada’s mining industry is global, with Canadian listed firms active in exploration and development projects around the world. Practices that are seen as bribery in Canada may be quite common in emerging economies where miners operate, such as requests from public officials for under-the-table payments to help obtain permits, licenses, and other permissions. Changes to legislation to combat corruption and bribery abroad enacted by the UK, the USA, and Canada are bringing changes for the mining industry.
According to the Financial Post, Canadian Prime Minister Stephen Harper has announced that Canada will “establish new, mandatory reporting standards for payments made to foreign and domestic governments by Canadian extractive companies.”
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