Canada's mining industry is preparing for the next stage of a showdown with Ottawa over a controversial bill it says could devastate the industry though billions of lost investment dollars and a tarnished global reputation.
Proponents of Bill C-300 see it as a way to keep Canadian firms in check in foreign countries, while the industry says it sends a message to the world that the government questions the integrity and performance of its mining industry.
"There is an underlying assumption that there is no accountability, which is nonsense," said Tony Andrews, executive director of the Prospectors and Developers Association of Canada (PDAC). The bill, which heads for a vote as early as next month, would give Ottawa the rare power to investigate the activities of Canadian resource companies in foreign countries.
It would also deny taxpayer-funded financing to those found violating human rights or environmental standards.
PDAC is using its popular international gathering in Toronto this week as a platform for a renewed campaign to try to kill the bill introduced by Toronto-area Liberal MP John McKay.
It says the proposed legislation was crafted without industry consultation, and is urging the thousands of delegates attending its trade show to help stop it through an advertising and letter-writing campaign.
The bill passed second reading last year and work on it is expected to resume this week.
According to Mr. Andrews, the bill was never intended to become legislation, but started as a way for non-governmental organizations to pressure the government to toughen corporate social responsibility policies.
The mining industry is already highly regulated today, Mr. Andrews said. "We are very much behind a robust system of accountability. We would be crazy not to be," he said.
With Parliament back in session, Mr. McKay is pressing ahead with his bill, which he said is gathering support. However, he said he's open to amendments, including giving firms the opportunity to get back into compliance, which isn't part of the current bill.
"It's almost like a conditional sentence," he said. "We are not trying to make their lives miserable, but there are some things you can't do."
The testimony around the bill on Parliament Hill over the past several months has been shocking, including allegations of bribery, physical violence and environmental devastation. Asked if he believes the allegations, Mr. McKay couldn't say for sure. "It's like a he-said, she-said ... but after a while, where there's smoke, there's actually fire," he said. "Bill C-300 has kind of acted as a lightning rod for these concerns."
Last fall, executives from such Canadian-based mining giants as Barrick Gold Corp., Goldcorp Inc., and Kinross Gold Corp. warned in submissions to the committee that the bill will lead to "frivolous and vexatious claims" against mining firms. They also argued the bill would put Canadian firms at a disadvantage against their international competitors.
Some observers see the bill as unnecessary given increasingly strict global mining standards to which companies are expected to adhere through agencies such as the International Council on Mining and Metals. "Think of the taxpayer money that will go into investigating these complaints" in foreign countries, said Tim Griffin of the Geological Survey of Western Australia.
There is no such legislation in Australia, another big mining country.
Others say Canadian firms already have a strong environmental and human rights record internationally.
"It may be taking a sledgehammer to kill a fly," said Lee Hodgkinson, global leader of KPMG's mining practice. "If it creates an environment where it puts people off setting up corporate office in Canada, I think that would be detrimental to the Canadian industry."
