Alec Kodasky of CIBC World Markets published a good and thoughtful paper on the C-300 Mining Bill currently going through parliament in Canada.
Click here to download and read it all, but here are the front page bullets to whet the appetite.
- We believe a proposed private member's bill going to vote on October 27 is punitive to Canadian companies involved in the extractive industries of developing countries. While the principles are noble, the mechanism for administration is flawed with multiple inadequacies that are not workable.
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- We believe that if passed, Bill C-300 will have damaging effects to all stakeholders in the resources industry and Canadians as a whole. The impacts will be primarily financial but reputational risk is also high. Furthermore, there is little guarantee that claimants will be better off.
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- We view the bill as being based on the principles of improving human rights and environmental standards in developing nations. However, as currently contemplated, we do not believe the bill will accomplish its goals and may destroy what has already been achieved.
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- We believe ambiguous authority given to ministers to police out-of-country actions where laws, rules and regulations already are in place, is redundant. The extractive industry already follows principles of best practice that in many cases exceed the laws found in developing countries of the world.
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Download here