Canada: Canadian Government Announces Framework And Deadline For Mandatory Payment Reporting By Mining And Oil And Gas Companies

Last Updated: March 7 2014
Article by Graham Erion and John Munnis

* This bulletin has been updated following the March 5, 2014 release of Natural Resources Canada's consultation paper on mandatory reporting standards at an industry consultation during the Prospectors and Developers Association of Canada conference.

Canada's Minister of Natural Resources Joe Oliver announced today that the Canadian government will enact legislation by April 2015 to require mining and oil and gas companies to publicly report the payments they make to governments for resource projects on a project-by-project basis.

Minister Oliver's comments at the Prospectors and Developers Association of Canada ("PDAC") annual conference builds on the strong support for payment reporting from the mining industry itself, which publicly lobbied for this through a working group between PDAC and the Mining Association of Canada ("MAC") along with two other civil society transparency groups (the "Working Group".) The Working Group released their final recommendations for a payment reporting framework earlier this year, which is summarized in this bulletin.

According to Minister Oliver, today's announcement was "informed" by the Working Group's report, but deviates from it in some significant ways:

1. Federal Government Takes Charge

One of the biggest issues in implementing a payment reporting framework in Canada was the choice of whether the provincial or federal government should legislate in this area. The Working Group recommended that provincial securities regulators take this on since similar rules in the United States under the Dodd-Frank Act have been implemented by the US Securities and Exchange Commission. Minister Oliver mostly agreed, stating "implementing mandatory reporting standards through the provincial securities regulators would be the preferred scenario" and encouraged provinces and territories to enact their own legislation in this area. However, this seems highly unlikely, since there is insufficient time for all provinces to pass equivalent laws before the federal government's deadline of April 1, 2015, when national rules need to be fully enacted. This means the Canadian government will likely introduce legislation in this area before the end of 2014. Companies will begin having to report payments for fiscal years ending after June 1, 2015.

2. Coverage of Private Companies

Even if all the provincial securities regulators are able to adopt equivalent rules in this area in the next 13 months, these regulators would only be able to cover publicly-traded companies on a Canadian stock exchange. While this was the recommendation of the mining Working Group, the oil and gas industry has endorsed covering privately-held companies as well, including foreign companies operating in Canada. The Canadian government has sided with the oil and gas industry and created their own threshold to cover publicly-listed and privately-held mining, oil and gas companies. Any companies in these industries based or operating in Canada that meet or exceed two of the following three thresholds will have to report their payments:

1. $20 million in assets;

2. $40 million in net turnover; or

3. 250 employees.

Coverage of private companies is also important in terms of where this disclosure will be housed. Public companies in Canada file all their public documents on the SEDAR database, but this is not a platform that private companies have access to. Therefore, the federal government suggests companies will simply publish their reports on company websites and the public will somehow be notified when they do. What level of assurances would accompany such reports and what penalties would exist for not complying or publishing inaccurate information are still open questions as this framework is developed.

3. Higher Payment Threshold

One of the more controversial recommendations from the Working Group was to adopt a dual payment reporting threshold. Companies listed on the Toronto Stock Exchange would be required to report any payments over $100,000, but smaller issuers on the TSX Venture Exchange would report any payments over just $10,000. Even with PDAC's support for this approach, the federal government has proposed a single threshold set at $100,000, which is more aligned with the U.S. rules and similar to the €100,000 threshold under the amendments to the EU Transparency Directive adopted last June. The mining industry may continue to lobby for a dual reporting threshold with provincial securities regulators but the federal government's rejection of it may make it more of a longshot to be adopted.

4. Coverage of Aboriginal Payments

While Canada's reporting threshold may align with the regimes in the US and EU, today's announcement differentiates Canada's approach to payment reporting in one crucial respect: payments made to First Nations and aboriginal groups will be included in this framework. Mining companies often enter into joint ventures and/or impact benefit agreements with aboriginal groups in Canada or elsewhere that give rise to payment obligations not unlike payments to local host governments. However, such payments were never included in the Dodd-Frank rules or the EU Transparency Directive and largely ignored by the Working Group. Nonetheless, it appears they will form part of payment reporting in Canada, despite the resistance from some aboriginal groups to disclosing these payments during Natural Resources Canada ("NRCan") consultations last year. Whether NRCan has met its duty to consult on this aspect of the proposed framework and whether there may be a formal challenge to this disclosure by aboriginal groups remains at open question at this time.

Even with today's announcement, there are many details still to be worked on in terms of the final framework and rules for mandatory payment reporting in Canada. We will continue to provide legal updates as this framework is developed.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions