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
23 Nov 2018, Other, Toronto, Canada

Cybersecurity, including data privacy and security obligations, has become a critical chapter in every company’s risk management playbook.

28 Nov 2018, Speaking Engagement, Toronto, Canada

Arbitration has a number of advantages and some disadvantages for the resolution of domestic and international commercial disputes.

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