Canada: New Reporting Requirements Now In Force In Quebec For Mining, Oil And Gas Industries

Quebec mining and oil and gas industries must now comply with the Regulation respecting the application of the Act respecting transparency measures in the mining, oil and gas industries (Regulation), which came into force on August 3, 2017. The Act is designed to impose transparency measures in the mining and oil and gas industries, discourage and detect corruption and foster the social acceptability of projects and closely mirrors the federal Extractive Sector Transparency Measures Act (ESTMA).

The Act provides for reporting requirements with respect to payments made to government and municipal bodies and aboriginal payees. The first reporting deadline under the Act is set for December 31, 2017.

We also note that on August 17, 2017, the Ministère de l'Énergie et des Ressources Naturelles (MERN) published Guidelines for the application of the Act respecting transparency measures in the mining, oil and gas industries (Guidelines) for consultation. Once finalized, the Guidelines will set out the government's expectations for compliance with the Act. Interested persons may submit their comments on the Guidelines by September 15, 2017. The comments must be submitted online through the web platform created by MERN.


As set out in our June 2015 Blakes Bulletin: Drilling Down on Transparency: Quebec Introduces Bill Requiring Reporting For Mining, Oil & Gas Industries, the Act's reporting requirements apply to entities that either: are engaged in the exploration for, or development of, mineral substances or hydrocarbons; hold a permit, right, licence, lease or other authorization to carry out such activities; or control an entity engaged in such activities or an entity holding such authorizations, and which meet at least one of the following requirements:

  1. The entity is listed on a stock exchange in Canada and has its head office in Quebec
  2. The entity has an establishment, exercises activities or has assets in Quebec, and based on its consolidated financial statements, during one of its two most recent fiscal years, meets at least two of the following thresholds:

    • It has at least C$20-million in assets
    • It has generated at least C$40-million in revenues
    • It employs an average of at least 250 employees.

Entities subject to the Act are required to provide a statement to the Autorité des marchés financiers (AMF) annually declaring all "payments", monetary or in kind, made within a category of payments determined by the Act to the same "payee" in that fiscal year, if their total value is equal to, or greater than C$100,000.

"Payee" is broadly defined to include six categories of beneficiaries: all levels of government, a body established by two or more governments, all types of municipalities and the Kativik Regional Government, a body established to exercise public functions on behalf of any of the above payees, a Native nation, community or group of communities and any other payee that the government may designate by regulation. Payments made to intermediaries are caught by the Act as well.

The Act establishes eight categories of "payments" that must be reported: taxes and income tax other than consumption taxes and personal income taxes, royalties, fees, production entitlements, dividends (other than those received as an ordinary shareholder), bonuses, contributions for infrastructure construction or improvement and any other payments that the government may designate by regulation.


The Regulation sets out the form of the annual statement required to be filed with AMF, the currency conversion options for the calculation of payments made in non-Canadian currency and the list of jurisdictions whose reporting requirements with competent authorities are recognized as acceptable substitution for the filing of the annual statement with AMF under the Act. Currently, the Regulation designates Canada (the reporting to Natural Resources Canada under ESTMA) and 30 EU and European Economic Area (EEA) jurisdictions as "alternative" competent authorities for the purposes of the Act. It should be noted that a reporting entity wishing to take advantage of the substitution mechanism must, nevertheless, file the substitute statement with AMF.

The annual statement or the substitute statement must be certified by a director or officer of the reporting entity or an independent auditor and must be transmitted to AMF using the System for Electronic Document Analysis and Retrieval (SEDAR). The statement transmitted via SEDAR will be public and available for consultation by the general public.

The Guidelines clarify several requirements set forth in the Act. Notably, the Guidelines expand on what activities are covered by the Act, which include prospecting, exploration or extraction of metals and non-metallic ore, hydrocarbons, brine and surface mineral substances in Quebec or abroad. Processing operations, such as oil refining, metal smelting and alloy production, transportation and export, are excluded from the Act's application. However, it proposes that ore processing activities be covered when they occur at the mine. In addition to mining and oil and gas companies, forestry and construction companies may also be subject to the Act. An entity can be subject to the Act even if its operations are located outside of Quebec.

The Guidelines clarify the reporting obligation in case of business arrangements involving consortiums, groups of companies and production sharing arrangements. They also provide guidance on the payments subject to the Act and the calculation and reporting thereof, as well as expand on other provisions of the Act.

As a reminder, the Act applies to fiscal years that began from October 22, 2015. For fiscal years beginning between October 22, 2015 and July 31, 2016, statements must be provided no later than December 31, 2017. Entities whose fiscal year began on or after August 1, 2016 must file their statements no later than the 150th day following the end of their fiscal year. However, entities are not required to report payments made to aboriginal payees before June 1, 2017. The Act provides for administrative monetary penalties and penal proceedings in the event of failure to comply with the Act.

Entities engaged, directly or indirectly, in mining or oil and gas related activities should consider whether the Act applies to their activities and if necessary, take action to ensure the timely compliance with the Act. Parties who wish to clarify or relay concerns related to interpretation provided in the Guidelines should submit their comments to MERN by no later than September 15, 2017.

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.

Events from this Firm
30 Nov 2017, Seminar, Toronto, Canada

This seminar will feature a panel of senior counsel who will discuss a range of current ethical issues that in-house counsel may face. Attendees will be provided with scenarios and encouraged to participate in the discussion.

30 Nov 2017, Seminar, Toronto, Canada

The economic climate of the past three years has seen a marked increase in the number of construction projects that have been terminated, suspended or threatened to be terminated. Please join us as we discuss some of the key issues that can arise from such terminations or potential terminations and practical tips for protecting existing rights and remedies under the project contract.

13 Dec 2017, Seminar, Toronto, Canada

Class actions across Canada continue to grow in volume and complexity, triggering significant policy and financial implications for businesses in Canada. With the Law Commission of Ontario’s recent announcement that it is reactivating its comprehensive review of class actions in Ontario, we may see important law reform on the horizon to evolve with the changing landscape.

In association with
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
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). 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 & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd 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 or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

*** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.