Presentation: Increasing Global Regulation - Conflict Minerals and Transparency Laws
This presentation was given by Jennifer Egsgard to the Canadian Institute for Mining, Metallurgy and Petroleum Management and Economic Society Discussion Group at Borden Ladner Gervais LLP Toronto on April 24th, 2013.
Companies are facing significant new regulatory reporting requirements in relation to the production and use of certain minerals in various jurisdictions. Last August, the US Securities and Exchange Commission implemented new supply chain reporting requirements on “conflict minerals”, (cassiterite, columbite-tantalite (coltan), wolframite, and derivatives of these minerals including tin, tantalum and tungsten and gold mined in the Democratic Republic of Congo, Angola, Burundi, Central African Republic, Congo Republic, Rwanda, Sudan, Tanzania, Uganda, and Zambia). This presentation will address what these new US rules will mean for Canadian companies listed in the U.S., Canadian investors in such companies, Canadians doing business with U.S. registrants, and others in the supply chain, as well as various approaches to compliance with the rules.
The U.S. is not the only country to regulate in this area - in March 2013, similar legislation was proposed in Canada and the European Union, and we will consider the content of the conflict minerals bills currently proposed in Canada and in the EU, prospects for passage of these bills and the implications for Canadian companies.
The SEC has also imposed new transparency payment rules requiring that SEC-listed extraction issuers disclose all payments to governments over $100,000, and these rules will also be reviewed with a view to understanding to whom they apply and what types of payments must be reported.