New Canadian Government Unlikely to Push Mining CSR Legislation Immediately, MP Says

The new Liberal government under Justin Trudeau likely will not get around to legislation overseeing Canadian mining companies' overseas projects in the near future, Liberal MP for Scarborough-Guildwood John McKay told SNL Metals & Mining on Nov. 9.

 

McKay has been on the forefront of this type of legislation, and previously tabled Bill C-300, which was defeated by a Conservative parliament in 2010.

 

"It was referenced during the election," McKay said. "I don't think it's the highest priority this government has, as it didn't form any part of the platform."

 

The original bill would have required mining firms which operate abroad and which receive support from the Canadian government to uphold human rights and environmental standards. Companies which would be found violating these standards would be reported to Export Development Canada, which provides financial assistance for Canadian firms operating internationally, as well as the Canada Pension Plan Investment Board.

 

However, McKay said existing structures overseeing Canadian mining operations need to be strengthened.

 

"Here we are in 2015, and it's about to be 2016, and I still get correspondence, and still get people stopping me on the streets and at my door, and people still reference [the bill]," he said.

 

"There is still a significant appetite from the public" for this legislation, he said.

 

He would like to see the creation of an ombudsman that would oversee Canadian mining firms, as opposed to the existing Extractive Sector Corporate and Social Responsibility Counsellor position which exists at the moment.

 

"The CSR [Corporate Social Responsibility] Counsellor is still largely a mediator and is there at the leisure of the parties, and as a consequence has significant limitations," McKay said.

 

"An ombudsman has the power to facilitate or mediate, and then failing that, resolve the dispute in a more significant manner."

 

Pierre Gratton, President and CEO of the Mining Association of Canada, told SNL on Nov. 10 that the current strategy implemented by the Conservative government is sufficient.

 

"The recent strategy that the previous government brought in is actually quite robust," he said. "The CSR strategy involves both the CSR Counsellor and the National Contact Point, as part of the OECD [Organization for Economic Cooperation and Development]. The CSR Counsellor is the first entry point, and if there's a grievance, the CSR Counsellor will look into it, and identify opportunities for mediation. Then the National Contact Point steps in and provides that mediation function."

 

Canadian mining companies are required to be part of that process, Gratton said.

 

"If they refuse, they lose the support of the government of Canada, so it has some teeth," he said. "I think McKay probably has trouble accepting that the previous government brought in something that was pretty decent."

 

Gratton recognizes that the existing structure could be improved and could benefit from more resources.

 

"We'd be happy to work with the new government to look at opportunities," he said.

 

Gratton would be surprised if the new government attempted to pass another version of Bill C-300.

 

"I don't think the new government would be interested in the kind of acrimonious process that Bill C-300 engendered," Gratton said. "There are better ways to develop policy than that one was, and we certainly hope to be engaged in that."