Bill C-565

2nd Session, 39th Parliament,

56-57 Elizabeth II, 2007-2008

house of commons of canada

BILL C-565

An Act respecting Corporate Social Responsibility for the Activities of Canadian Mining Corporations in Developing Countries

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

SHORT TITLE

1. This Act may be cited as the Corporate Social Responsibility of Mining Corporations Outside Canada Act.

INTERPRETATION

2. The following definitions apply in this Act.

“corporation” includes any company or legal person incorporated by or under an Act of Parliament or of any province.

“developing countries” means countries and territories named in the List of Countries and Territories Eligible for Canadian Development Assistance established by the Minister of International Cooperation.

“IFC” means the International Finance Corporation affiliated with the World Bank Group.

“mining activities” means mining or prospecting operations carried out directly by a corporation or indirectly by its foreign affiliate or by a foreign affiliate acting under the control of the corporation.

“Minister” means the Minister of Foreign Affairs.

PURPOSE

3. The purpose of this Act is to ensure that Canada’s commitments to international law and the International Bill of Rights are complied with in respect of the mining activities of corporations in developing countries.

OFFICE OF THE OMBUDSMAN

4. An Office of the Ombudsman is hereby established for the purpose of creating guidelines respecting the best practices to be followed by corporations in their overseas operations in developing countries and of monitoring their mining activities to insure compliance with the guidelines.

5. The Ombudsman shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for such term as the Governor in Council considers appropriate.

6. The Ombudsman shall be paid such salary, fees or other remuneration as is fixed by the Governor in Council, and the Ombudsman is entitled to be paid reasonable travel and other expenses incurred in the course of his or her duties under this Act.

7. In carrying out its purposes under this Act, the Ombudsman may

(a) prepare, compile, publish and distribute information and provide consulting services;

(b) receive complaints concerning the mining activities of corporations in developing countries;

(c) on its own initiative, at the request of the Minister or after deciding, based on a summary evaluation, that the complaint is well founded, conduct an inquiry to determine if the mining activities of a corporation comply with the guidelines set out in section 10;

(d) advise the government and Export Development Canada in order to help them ensure that corporations not in compliance with the standards set out in this Act do not receive their support; and

(e) inform the Minister of situations that may justify the Minister’s invoking the Special Economic Measure Act or any other act against a company conducting activities in a foreign country.

REQUIREMENT

8. Every mining corporation shall, in conducting mining activities in developing countries,

(a) take all reasonable measures to minimize the negative impact of its activities on the environment or human rights in the developing country;

(b) comply with international human rights standards; and

(c) follow the guidelines established under section 10.

DUTY TO REPORT

9. (1) A corporation conducting mining activities in a developing country shall, within one year of the coming into force of the Act or within six months prior to commencing mining activities in the developing country, whichever is later, report to the Office of the Ombudsman on its activities.

(2) The report shall contain, for each site of mining activities, the following information:

(a) the name of the corporation and the name of its foreign affiliate conducting activities, if any; and

(b) the location of the mining activities.

(3) The Ombudsman may, for the purpose of assessing the mining activities of a corporation in a developing country, require the corporation to provide the Minister with any additional information that the Ombudsman considers appropriate that may be in the possession of the corporation or to which the corporation may reasonably be expected to have access.

(4) The mining corporation shall submit to the Ombudsman a report to update the information that was previously sent to the Ombudsman or to describe any new activity.

GUIDELINES

10. (1) Within three years of the coming into force of this Act, the Ombudsman shall issue guidelines respecting the best practices to be followed by corporations in their overseas mining activities in developing countries and, in issuing those guidelines, the Ombudsman shall take into account any factors that the Minister considers relevant, including, but not limited to,

(a) the Guidelines for Multinational Enterprises established by the Organisation for Economic Co-operation and Development;

(b) the IFC's Policy and Performance Standards on Social and Environmental Sustainability and IFC's Guidance Notes to the Performance Standards; and

(c) any relevant document prepared by the United Nations’ Sessional Working Group on the Working Methods and Activities of Transnational Corporations.

(2) In carrying out its duties under subsection (1), the Ombudsman shall offer to consult with any government department or agency, representative of the mining industry or other interested person in or outside Canada that the Ombudsman considers appropriate in the circumstances.

(3) Guidelines issued under this section shall be made available to the public, and the Ombudsman shall give notice of them in the Canada Gazette and in any other manner that the Ombudsman considers appropriate.

REGULATIONS

11. The Governor in Council may make regulations

(a) prescribing the form of the report to be made under section 10 and any additional information to be contained in the report; and

(b) generally, for carrying out the purposes and provisions of this Act.

REVIEW AND REPORT

12. (1) Within three years after the coming into force of this Act and each year thereafter, the Ombudsman shall cause to be laid before both Houses of Parliament a report on the provisions and operation of this Act, including any recommendations for amendments to this Act.

(2) A committee of the House of Commons as may be designated or established by the House of Commons for that purpose, shall review the report and submit a report on the review to the House of Commons within sixty days.

13. (1) Five years after the coming into force of this Act, a comprehensive review of the operation of that Act shall be undertaken by such committee of the House of Commons as may be designated or established by the House for that purpose.

(2) The committee referred to in subsection 12(2) shall, within one year after a review is undertaken pursuant to that subsection or within such further time as the House of Commons may authorize, submit a report on the review to the House of Commons.

CONSEQUENTIAL AMENDMENTS

Export Development Act

14. Section 10 of the Export Development Act is amended by adding the following after subsection (1.1):

Department of Foreign Affairs and International Trade Act

15. Section 10 of the Department of Foreign Affairs and International Trade Act is amended by adding the following after subsection (3):