Mines ministers talk transparency in Ontario

Sudbury played host to this year’s Energy and Mines Ministers’ Conference in late August. The annual gathering of federal and provincial mining and energy ministers is meant to foster discussion and collaboration to advance development across the country.

In a statement released after the meeting, the attendees affirmed their commitment to the following principles:

•  The responsible development of Canada’s energy and mines sectors is critical to our economic competitiveness, job creation and long-term prosperity

•  Provincial and territorial governments will work with the federal government in support of Canada’s commitment to establish new mandatory reporting standards for Canadian extractive companies, with a view to enhancing transparency of payments made to governments

•  The continued advancement of energy infrastructure (e.g., oil, gas, electricity, etc.) projects is fundamental to gain access to new markets and generate economic growth and revenue for critical social programs

•  Progress is being made by all levels of government in implementing regulatory reform in a way that ensures the environment is protected

•  Strengthening co-operation between the federal, provincial and territorial governments is critical to ensuring world-class safety for energy transportation

•  Effective engagement is essential to ensure aboriginal communities benefit fully from responsible resource development. The mineral sector continues to be the largest private employer of Aboriginal Peoples in Canada

•  Continued collaboration on responsible energy use is important in providing energy and cost savings to consumers and industry, as well as contributing to meeting environmental objectives

The ministers also highlighted the following priorities requiring their continued collaboration and support:

•  Reinforcing the diversification of our natural resources by ensuring the safe transport of resources by pipeline, marine and rail, including the implementation of federal legislation to build upon our world-class energy transportation system

•  Enhancing Aboriginal participation in energy and mining projects is critical in developing Canada’s natural resources

•  Exploring the framework to promote the long-term competitiveness of Canada’s junior mining sector in co-operation with stakeholders

•  Highlighting Canada’s position as a responsible resource supplier and a global leader in energy efficiency and conservation, thereby attracting investment critical to the development and diversification of our resources

•  Reinforcing Canada’s role in strengthening global energy security by providing access to expertise and natural resources

•  Helping Canadian natural resource industries address environmental performance, through the advancement of research, technology and innovation

•  Implementing mandatory reporting standards for payments made by the extractive sector to governments

“These actions, undertaken by federal, provincial and territorial governments, will promote Canada’s role as a responsible and secure supplier of natural resources while ensuring long-term economic stability and prosperity for all Canadians,” the ministers’ statement said. “There are hundreds of major natural resources projects under construction or planned over the next ten years, worth approximately $675 billion in investment.”

Of interest to the mining sector is the fact that all provinces and territories expressed support for mandatory reporting standards for mining companies regarding payments to governments. “With this support, the government of Canada intends to enact legislation,” the release said. “The federal government will defer by two years the requirement for industry to report their payments made to aboriginal governments and continue engaging aboriginal groups regarding mandatory reporting standards.”

Following the conference’s conclusion the Mining Association of Canada (MAC) and the Prospectors & Developers Association of Canada (PDAC) released a joint statement specifically applauding the ministers’ support for the push for transparency.

“We look forward to working with all levels of government on this important initiative,” said Pierre Gratton, MAC president and CEO, in a statement. “We are also encouraged to learn that some provinces are considering implementing transparency through their securities regulators, which would bring Canada in line with how similar standards in the U.S. and European Union are structured.”

The two national industry organizations have been actively supporting the transparency initiative since 2012, when they joined with two non-governmental organizations — Publish What You Pay Canada and the Natural Resources Governance Institute (formerly the Revenue Watch Institute) — to form the Resource Revenue Transparency Working Group (RRTWG).

“Improved transparency on revenues paid will help increase accountability and ensure that the benefits of resource development reach the more than 1 billion people living in resource-rich countries,” said PDAC president Rod Thomas.

The PDAC and MAC also gave their thumbs-up to the two-year deferral of transparency rules regarding payments to aboriginal governments, which they said “is consistent with the RRTWG’s process, which felt that a separate and meaningful consultation with Aboriginal organizations and communities would be needed before extending the disclosure requirements to these groups.”

In January the RRTWG released its final recommendations “which are intended to provide Canada’s federal and provincial governments with a blueprint for a payment reporting framework” to serve all stakeholders.

Next year’s ministers’ conference is scheduled for July 19–21, 2015, in Halifax, N.S.