Yesterday, the U.S. Securities and Exchange Commission narrowly adopted proposed rules relating to government payments by resource extraction issuers and "conflict minerals". The new rules apply to all SEC-reporting companies, including Canadian companies with securities listed on a U.S. stock exchange.
Government Payments by Resource Extraction Issuers
Starting with fiscal years ending after September 30, 2012, all SEC-reporting companies engaged in the commercial development of oil, natural gas or minerals must disclose certain payments to the U.S. government or any foreign government in excess of $100,000 that are made to further the commercial development of oil, natural gas, or minerals. The kinds of payments that must be disclosed include taxes, royalties, fees (including license fees, production entitlements, bonuses, dividends and infrastructure improvement).
A copy of the SEC's adopting release for the resource extraction issuer disclosure rules can be found at this link and a copy of the press release issued by the SEC regarding the rules can be found at this link.
"Conflict Minerals" Disclosure
Starting on May 31, 2014, and on or before May 31 of every year thereafter, all SEC-reporting issuers must disclose, in respect of the previous calendar year, whether they used any "conflict minerals" (including gold, cassiterite, coltan, tin, tantalum and tungsten) in their products or any other minerals or derivatives determined by the U.S. Secretary of State to be financing conflict in the Democratic Republic of the Congo or adjoining countries.
A copy of the SEC's adopting release for the conflict minerals rules can be found at this link and a copy of the press release issued by the SEC regarding the rules can be found at this link.
The content of this article does not constitute legal advice and should not be relied on in that way. Specific advice should be sought about your specific circumstances.
