After taking abuse from both the media and non governmental organizations (NGOs) for the better part of the week it was Canadian miners turn to say their piece on Thursday.
Miners, and groups sympathetic to their cause, made their case before the standing committee on foreign affairs and international development in relation to the proposed Bill C-300 — a bill that would construct new guidelines on miners in foreign countries and dish out penalties if they were broken.
Barrick Gold (ABX-T, ABX-N), Goldcorp (G-T, GG-N) and Kinross Gold (K-T, KGC-N) all appeared before the panel arguing that the bill was unnecessary and, if passed, would severely damage the Canada’s robust mining industry.
In a press release, Barrick laid out the key points of its case, saying that Canadian companies’ competitiveness would be hampered, reputations could be unjustifiably ruined, and the multi-stakeholder approach to corporate responsibility would be undermined.
The net effect, the gold miner argued, would be Canadian miners setting up headquarters in countries other than Canada.
Earlier in the week the panel heard from a host of individuals complaining about the conduct of Canadian miners in foreign countries.
The most damaging of testimonials, however, came from a former environment minister from Argentina, Romina Picolotti. Picolotti says Barrick’s strong arm tactics in connection with its seeking approval for its Pascua Lama project, included death threats to her and her family, bribes and the hiring away of her staff.
Picolotti is currently the president of the NGO Centre for Human Rights and Environment — a point that was picked up on by the miners who labelled her an activist.
Barrick also said that Picolotti’s allegations were unsubstantiated and said the hearings themselves are serving as a harbinger for the false accusations that would fly should Bill C-300 get through.
“One thing has become crystal clear as the hearings have progressed: some individuals have not been made to substantiate even their wildest allegations about the Canadian mining industry and Barrick Gold – much of which has been thoroughly disproved well before today. They have not provided the Committee with facts or evidence to support their claims as they conduct these hit-and-run company character assassinations.” Barrick’s executive vice president of communications VinceBorg said.
Miners argue that the Bill is unnecessary because countries that miners operate in already have governmental institutions, regulatory regimes, policing authorities, legal procedures and courts.
The bill was introduced by Liberal MP John McKay back in February of this year and was based on recommendations from a multi-stakeholder advisory group made up of representatives from industry and NGOs.
A month after the bill’s introduction the government unveiled a regulatory body with a mandate to enforce voluntary guidelines. The body would require a mining company’s consent to perform any investigation into alleged wrong doing, however, leaving it toothless according to many onlookers.
Perhaps in response to the voluntary set-up, bill C-300 narrowly passed a vote in the House of Commons in April.
If made into law the bill would allow anyone, from any country where Canadian mining companies are operating, to bring complaints before the ministry of foreign affairs and international trade.
The government would then have eight months to investigate, with results being made public. If a company was deemed to have broken guidelines financial support from Ottawa – from Export Development Corp. and the Canada Pension Plan Investment Board would be cut-off.
Guideline infractions would also mean companies could no longer access consular services from Canadian missions in foreign countries.
Lining up alongside miners before the committee was legal firm Fasken Martineau.
“While the intentions behind the Bill are laudable and while it is without question that Canadian companies must operate in a responsible and accountable manner, we submit that this Bill is flawed in its construction and unduly prejudicial towards an important Canadian industry,” James Peterson, council with the Fasken Martineau and former minister of international trade said in statement.
“If passed,” Peterson went on, “this Bill could deter companies from working in less
stable developing countries as it does not provide companies with any opportunity to address and remedy an issue without immediately being subject to a complaint, possible investigation and sanction.”
The firm also pointed out the difficult in implementing the bill, as a country in which an infraction of the guidelines was said to take place, would not necessarily allow the government of Canada to conduct an investigation within its borders.
The Canadian mining industry is a highly regulated and internationally-respected group of professionals, largely run by professionals belonging to similarly regulated Provincial associations. This proposed bill suggests that those various regulatory bodies, as well as the respective foreign governments that the Canadian government is proposing to inflict its will upon, are ineffective. If the Canadian government has concerns about activities in foreign countries, it should provide assistance to those governments, not trample on their sovereignty. As with any group, the mining industry is a bell curve and there are going to be members on the lower end that require guidance and correction. Crippling or causing an exodus of a industry is not the solution. If the Canadian government feels compelled to extend its sovereignty beyond its borders, it should be drafting laws that apply to all Canadians, such as the US laws against bribery, rather than single out one sector. It is a sad day in Canadian governance where small foreign interest groups and the personal agenda of a single MP are capable of inserting these types of costly distractions. The Canadian people deserve a government that focuses on important issues and not nuisance Bills such as this.
Maybe the Canadian Parliament should consider similar legislation for NGOS which source any funding from Canada. This legislation could investigate the activity and statements of NGOs in countries outside Canada and where they are found to be dishonest or illegal they would be sanctioned by being banned from undertaking any activities or raising any funds from Canadaian citizens. Of course anyone would be allowed to lodge a complaint against the NGOs.
As for death threats by Barrick Gold – absurd. Major companies in the industry now behave in a most proper manner and have the highest of ethical behaviour. Barrick should make this “activist” prove her statements before the courts. Come on Barrick – if you fail to take action against her its tantamount to your acceptance of her claims. If you dont take action to clear your name – even I would suspect that you have some thing to hide.