PDAC calls Canadian mining corporate accountability bill ‘naïve and misguided grandstanding'

The PDAC claims The Corporate Accountability of Mining, Oil and Gas Corporations in Developing Countries Act bill would harm the reputation and ability of Canada's mining industry to do business in developing nations.

RENO, NV - 

The Prospectors and Developers Association of Canada has urged the Foreign Affairs and International Development Committee of the House of Commons to reject a bill they say would harm Canada's mineral industry and its reputation in less developed nations.

Bill C- 300, also known as the Corporate Accountability of Mining, Oil and Gas Corporations in Developing Countries Act, aims to promote responsible environmental practices and international human rights standards on the part of Canadian mining, oil and gas corporations in developing countries.

Introduced by Liberal MP John McKay, an attorney. the act would give the federal Ministers of Foreign Affairs and International Trade the responsibility of holding corporations accountable for their practices by submitting annual reports to the House of Commons and the Senate for review.

PDAC Executive Director Tony Andres called the bill a "naïve and misguided grandstanding that would be a disservice to the developing countries it aims to help as well as to Canada's mineral industry which is recognized around the world as a welcome participant in advancing economic development."

The organization says the bill ignores the year-long effort of the National Roundtable on Corporate Social Responsibility (CSR) and Canadian Extractive Industries in Developing Countries.

While the PDAC says it shares the sentiment of the sponsors of Bill C-300 concerning corporate accountability and continuous improvement of the CSR performance of Canadian exploration companies working in developing countries, the organization supports the measures taken by the Canadian government and by the exploration industry "to get there faster and in a more substantial way."

"A number of less developed countries do need help from Canada to build capacity for implementing and monitoring appropriate social and environmental standards to govern corporate behavior of all kinds, "Andrews noted. "Unfortunately this bill, if passed, will do nothing to advance that cause. Instead it will waste significant resources on activities that will not improve either government or companies' responses."

In their presentation to the Foreign Affairs and International Development Committee of the House of Commons Tuesday, PDAC representatives said the bill puts Canadian companies at risk of facing complaints filed against them by any number of anti-mining protest groups.

The measure also calls for the Canadian Ministries to issue guidelines that shall incorporate the IFC's Policy on Social & Environmental Standards and Social & Environmental Sustainability and Environmental, Health and Safety General Guidelines. The Voluntary Principles on Security and Human Rights will also be included in the guidelines issued by the Ministries.

Robert Wisner, PDAC's international law advisor told the House committee, "Bill C-300 will hamstring the Canadian government's ability to promote Canadian values abroad by interfering with the exclusive jurisdiction of developing countries."

However, the United Steelworkers of Canada are lobbying the Canadian Parliament this week in support of the bill.

"Our members in the mining sector have first-hand knowledge of the huge disparity between the corporate behaviour of Canadian companies at home and their corporate behaviour abroad," said USW National Director Ken Neumann. "We believe Bill C-300 takes an important step toward corporate accountability, which means there are real consequences for companies that do not comply with international human rights, labour and environmental standards."

"Voluntary self-regulation is not accountability for corporate social responsibility," said Neumann. "Canadian taxpayers provide generous support through Export Development Canada financing and insurance. They deserve the kind of accountability that Bill C-300 provides."

Amnesty International is also supporting the legislation. Irene Khan, the outgoing Secretary General of Amnesty International, told the Ottawa Citizen newspaper earlier this month, "Many of the most egregious human rights violations are related to the extracting industry, the mining sector," citing infamous mining operations in China and in the Democratic Republic of Congo.

"It's very relevant in Canada right now given the discussion around Bill C-300 and the Canadian government's corporate social responsibility strategy," she suggested.

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responses to this article

Wow So we now face losing listings on the TSX and TSX-V to the AIM and other resource heavy exchanges? This would add to the cost of doing business in such countries and hinders development. The steelworkers are behind it because they think it will . .more bring business back to Canada, good luck Sudbury, Strike on until you are completely replaced by contractors. . .less by MT on November 18 2009, 16:34 Find this comment inappropriate? Report it

Where's the evidence? Proponents of this bill have spread a lot of innuendo, but offer no concrete allegations or evidence that Canadian companies are abusing workers or causing unnecessary environmental destruction where they operate. As a U. S. citizen, I've . .more seen many bills requiring oversight reporting to Congress. The reporting process generally accomplishes nothing useful - it just wastes a lot of time and other resources. Commonly, the person presenting the report sits in front of a committee and spends a few hours talking without saying anything. The only industry that will benefit from this would be the paper mills and printer supply companies that provide the raw material for the report handouts. Where's the evidence the result would be any different for the reports required by this bill? Mr. McKay needs to do a realistic cost-benefit analysis. Now, IF it can be shown that a Canadian company is engaging in abusive practices WITHOUT violating existing laws, treaties or contracts, then it will be time for Parliament to consider action. A dishonest company may just lie on its report rather than admit to mistreating workers or ruining rivers. It might be more useful to permit the Government to appoint a special inspector with industry experience as needed for on-site investigation of substantial allegations of wrong-doing. . .less by PB on November 22 2009, 17:56 Find this comment inappropriate? Report it

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