(Marilyn Scales – Canadian Mining Journal)
Today, June 1, 2015, Canada’s Extractive Sector Transparency Measures Act (ESTMA) has come into force. The intent is to enhance accountability of payments made by the mining, oil and gas industries to all levels of government around the world.
All companies subject to the Act must now report payments – taxes, royalties, fees and production entitlements – of $100,000 or more to all levels of Canadian and foreign governments. The goal is to reduce corruption by enabling citizens around the world to hold their governments to account by allowing them to find out whether or not revenue provided by the extractive sector contributes to sustainable development and poverty reduction.
The new Act has come under fire because it will apply to Canadian aboriginals as well when they receive money from the mineral sector. However that will not happen until June 1, 2017. This concession was worked out at last year’s annual meeting of mining and energy ministers representing federal, provincial and territorial governments. Click here to read more.
Related: Canadian Law on Disclosing Payments over $100,000 Made Abroad Takes Effect (Bloomberg)