TORONTO, ONTARIO -- (Marketwired) -- 06/12/13 -- The Prospectors & Developers Association of Canada (PDAC) applauds Prime Minister Stephen Harper's announcement today that the Government of Canada will be establishing new mandatory reporting standards for Canadian extractive companies with a view to enhance transparency on payments that they make to governments. The announcement confirms the Government's support for a made-in-Canada framework developed by the PDAC, Mining Association of Canada (MAC), Publish What You Pay - Canada (PWYP), and Revenue Watch Institute (RWI) through industry and civil society consultation since September 2012.
"We believe our efforts on transparency provided the groundwork for the Prime Minister's announcement today," says Ross Gallinger, Executive Director, PDAC. "PDAC now looks forward to building on the success of its activities through collaboration with the Government of Canada to establish new mandatory reporting standards."
In September 2012, the PDAC, MAC, PWYP and RWI established the Resource Revenue Transparency Working Group to create a made-in-Canada framework for mandatory reporting of payments to governments. The Working Group undertook months of cross-sector collaboration and consultation with companies, industry experts, investors, government officials, and civil society groups across Canada. The Working Group's draft framework received broad support from Canadian mining companies, along with investors and civil society, and can now serve as a roadmap for the Government of Canada's action on revenue transparency.
"Transparency is a necessary tool for fostering greater accountability, and helping ensure that the benefits of natural resource development reach the more than one billion people living in resource-rich countries," says Gallinger. "Mandatory reporting rules aim to provide citizens with the information they need to hold their governments to account for the use of natural resource revenues, which are often a critical source of income for developing countries. Crucial for the Canadian mining industry, detailed reporting also highlights the financial contributions of companies engaged in mineral resource development, improving trust between companies, governments and citizens, and aids fuller investor analysis of project risks."
Canada is a key market and hub for mining industry investments and the international reach of Canadian companies is significant. Approximately 60 per cent of the world's mining companies are registered in Canada, and more than 1,000 Canadian exploration companies are active in 100 countries - most of which have their only public listing in Canada. Canadian stock exchanges, the TSX Toronto and TSX Venture in particular, host the lion's share of the total global value of mining sector market capitalization and mining equity capital raised.
The implementation of a framework for mandatory reporting is an important and feasible goal for Canada. Next steps will require aligning the mandatory reporting regime in Canada with other jurisdictions as to avoid creating additional reporting burdens on the sector. About 100 major Canadian companies are already covered by mandatory disclosure requirements in the US, Europe and other jurisdictions, while other companies participate in voluntary reporting initiatives, such as the Extractive Industries Transparency Initiative (EITI).
The Working Group is pleased at the opportunity to work with the Government of Canada on developing requirements for mandatory reporting which will strengthen the country's leadership on this issue and secure a robust extractive industry within Canada and abroad.
About the PDAC
The Prospectors & Developers Association of Canada (PDAC) is a national association representing the mineral exploration and development industry with over 10,000 individual and corporate members. The PDAC Convention-the mineral industry's largest annual event-will take place March 2-5, 2014.
Media Relations and Communications, the PDAC
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