The Canadian government recently put into force the Extractive Sector Transparency Measures Act, which requires companies involved in the mining industry to publicly disclose payments that they make to foreign and domestic government entities. According to Pierre Gratton, president and CEO of the Mining Association of Canada (MAC), the Act “places Canada at the forefront of international efforts to eliminate corruption and promote transparency.” He adds that MAC is “proud to have played an active role in collaboration with the government of Canada and civil society in the promotion and design of this important legislation.”
Development of the Act
The Extractive Sector Transparency Measures Act is part of a larger movement towards better transparency in the industry supported by MAC and fellow members of the Resource Revenue Transparency Working Group (RRTWG) — the Prospectors & Developers Association of Canada, Publish What You Pay-Canada and the Natural Resource Governance Institute. The group developed recommendations for Canadian governments and pushed for Canada to join the global transparency movement.
Purpose of the Act
The Act’s main purpose is to confirm Canada’s commitment to enhance its anti-corruption efforts through the implementation of reporting and transparency measures for the mining industry. The Act imposes annual reporting obligations for mining companies that are: listed on the stock exchange in Canada, have a place of business in Canada, have assets or do business in Canada, and meet at least two of three particular conditions listed in the Act.
Transparency equates to improved safety
Better transparency can mean improved safety for the entire Canadian mining industry. Transparency is described as the willingness and ability of individuals and companies to be honest with the public about their actions including ones that may be putting people at risk. This is why transparency means so much in terms of preventing future events that may have dangerous consequences.
In the case of the Extractive Sector Transparency Measures Act, when financial information is shared, the entire industry becomes smarter and more aware. With transparency, every action flows from a permeating belief of openness, honesty, and truth, leading to better standards overall, from financial reports to the use of top-quality equipment such as mining cars, skips, cages, and the like.
Your source for quality mining equipment
Trusted manufacturers of ore cars and other mining equipment like Wabi Iron & Steel Corp. are ready to supply you with your requirements for durable, tried-and-tested mining products.
Canadian Mining Industry Welcomes Transparency Legislation, Engineering and Mining Journal, Jun. 8, 2015
Key Elements of the Extractive Sector Transparency Measures Act, Government of Canada, Jun. 15, 2015