Lawyer Monthly - June 2022

59 JUN 2022 | WWW.LAWYER-MONTHLY.COM hat are the crucial mining sector disclosure standards and requirements in Canada? Currently, mining in Canada is subject to significant regulatory disclosure requirements. To begin with, there are minimum standards for disclosure of technical information incorporating the Canadian Institute of Mining, Metallurgy, and Petroleum (CIM) standards. National Instrument 43-101 sets out minimum standards for disclosure of technical information. The Companion Policy and CIM Best Practice Guidelines should also be followed where possible. The qualified person (QP) preparing the technical disclosure, based on his/her relevant experience and professional judgement is responsible for choosing the assumptions, methods, and practices used to verify, interpret, estimate and report technical information. Given that exploration and mining companies will require access to large amounts of capital over a lengthy period, there is a need for regulators to control and deal with potentially misleading information in order to protect investors. Further, under Canadian securities regulations, public companies must disclose information material to investor decision-making. This would include material environmental matters associated with activities affecting climate change. Based on the latest federal budget, Canada’s financial regulator OSFI will require federally regulated financial institutions such as banks, insurance companies and federally incorporated or registered trust and loan companies to publish climate disclosures aligned with the Taskforce on the Climate-Related Financial Disclosure (TCFD) framework commencing in 2024 and employing a “phased-in” approach. While the rules do not yet apply to non-financial institutions, OSFI will expect the financial institutions to collect and evaluate information on climate risks and emissions from their clients (including mining and oil gas clients). The government has stated that it is committed to moving towards mandatory TCFD reporting “across a broad spectrum of the Canadian economy” and that it also expects to require ESG disclosures from federally regulated pension plans. Do the requirements in North America differ greatly from those seen overseas? In jurisdictions with extensive mining activities such as Australia, Canada and South Africa, mandatory technical disclosure requirements, whilst not identical, are mostly similar in substance with similar objectives. Other aspects of disclosure, such as best practices on climate-related and ESG disclosure, have their unique differences. For example, on 21 March 2022, the Securities and Exchange Commission TheLegal Landscapeof the Mining Industry in 2022 Trends influencing business sectors across the world – such as ESG, anti-corruption and transparency – are reflected in the mining industry. Recent years have seen the introduction of sweeping legislation aimed at increasing oversight of mining ventures, leading in turn to a wave of new compliance considerations. In this interview with Darryl Levitt, we discuss the regulatory space in the mining industry and how counsel can expect to see it evolve throughout this coming decade. W EXPERT INSIGHT Get to understand what disclosure is mandatory and what is voluntary. Adopt best practices where possible.

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