Ottawa offers tax incentives for mining activities and has mandated Global Affairs Canada to help Canadian companies expand abroad.
The Liberal government should do more to rein in Canadian businesses abroad. (File photo) Photo: Radio-Canada / Benoit Roussel
Posted yesterday at 12:00 UTC+3
As Canadian mining company Barrick Gold faces criticism from NGOs and the UN and is being sued in Canada and the United Kingdom over allegations of murder, experts and elected officials are denouncing Ottawa’s lack of response.
That’s kind of the way this government works. [It] always makes polite requests. It says, ‘We hope you’re not engaged in slavery, rape, torture or murder.’ But if [companies] are, the Canadian government does nothing.
The observation made by NDP MP Peter Julian is bitter. According to him, the Canadian government is not doing enough regarding the actions of Canadian mining companies abroad.
NDP MP Peter Julian wants the government to be tougher on Canadian companies abroad. He has even tabled a bill to that effect. (File photo) Photo: The Canadian Press / Sean Kilpatrick
Including Barrick Gold.
Barrick Gold is facing allegations of torture and murder at its North Mara mine in northern Tanzania near indigenous villages. A civil lawsuit is pending in Canada over the allegations, but Barrick Gold has filed a request in Ontario court to have it dismissed because it believes Canadian courts do not have jurisdiction to hear the case.
The Canadian mining company, one of the largest in the world, also claims that it is up to the Tanzanian police to respond to these allegations, according to which at least 77 people died, explains the lawsuit.
The court has not yet rendered its decision.
Canadian mining company Barrick Gold’s headquarters are located in the TD Canada Trust Tower in Toronto. (File photo) Photo: Radio-Canada / Rozenn Nicolle
Other mining companies, however, have been sued in Canada for their actions abroad, such as Tahoe Resources . Barrick is also not new to the lawsuit , as according to several media outlets, it has already compensated women who alleged they were raped by employees of its subsidiary in Papua New Guinea.
One wonders what the government does when Canadian companies are targeted by allegations of human rights violations abroad.
Simon-Pierre Savard-Tremblay, Bloc Québécois MP, does not beat around the bush and denounces a certain laxity on the part of the government.
Canada is a flag of convenience for mining companies.A quote fromSimon-Pierre Savard-Tremblay, Bloc Québécois MP
He deplores the lack of responsiveness of the Liberal government and mentions the policy of the Toronto Stock Exchange, where a large part of the mining companies are registered. Canada offers tax incentives (New window)for mining activities.
Simon-Pierre Savard-Tremblay believes that the Liberal government is only taking symbolic measures without any real content. (Archive photo) Photo: Josh Fauvel
Alain Deneault, author of Noir Canada – a work of synthesis and analysis on the activities of Canadian companies in Africa – whose distribution was stopped after Barrick sued its publisher, remains very critical.
The author of the book Paradise Underground : How Canada Became the Hub of the Global Mining Industry , denounces hypocrisy
on the part of the government.
Canadian diplomacy is at the service of the mining industry, and Canada is a regulatory haven. Canada is the Bahamas of mining.A quote fromAlain Deneault
Without commenting on any specific case, John McKay , a federal Liberal MP, also expressed some frustration. I think the Government of Canada is not insisting that human rights and environmental rights are respected
, he said.
Alain Deneault has written several books on the mining industry. (Archive photo) Photo: Radio-Canada / Hamza Abouelouafaa
Despite our multiple requests, no representative of the Conservative Party wished to comment on the allegations concerning Barrick or on Ottawa’s response.
The ministry responds
The Ministry of Export Promotion, International Trade and Economic Development declined our interview request, preferring to respond to our questions in writing.
Thus, he indicates that the last meeting between the Minister of International Trade, Mary Ng, and theCEOBarrick Gold’s Mark Bristow was in Toronto in March 2023 at the latter’s request to discuss the company’s overseas operations, including the North Mara mine in Tanzania
.
Mark Bristow, Barrick Gold’s CEO, has himself met with several public office holders. (File photo) Photo: Getty Images / AAMIR QURESHI
This meeting allowed Minister Ng to reiterate that the Government of Canada expects Canadian companies to carry out activities abroad that respect […] human rights
, explains Jean-Pierre Godbout, spokesperson for Global Affairs Canada, the department to which Ms. Ng reports.
Mr. Godbout adds that the Government of Canada is a strong supporter of the Voluntary Principles on Security and Human Rights
. These principles, which help companies identify human rights risks and take steps to mitigate them, are however criticized by variousNGO, such as MiningWatch and the Canadian Network on Corporate Accountability, which believe that they are in no way binding.
The government declined to comment on the legal proceedings against Barrick Gold.
MP John McKay believes the government’s commitments are not enough
. The failure to respect human rights should affect not only the consular relationship that Canada may have with the company, but also its financial relationship
, he believes.
Scarborough-Guildwood MP John McKay wishes the Office of the Canadian Ombudsperson for Responsible Enterprise Abroad had more power. (File photo) Photo: The Canadian Press / Adrian Wyld
In March 2024, for example, Canada announced an envelope of 15 million dollars to support the mining sector.
It seems like a never-ending fight to achieve the basic principles of human rights
, the Liberal MP admits.
Why such support?
So what is Canada’s interest in supporting the mining industry?
According to John McKay , money is part of the explanation. Specifically, dividends and the profitability of the parent company.
[Barrick’s profitability] is probably better because of [its] operations in Tanzania and other countries around the world. That profitability drives up the stock price and we all share in the success of a Canadian company that has international operations because the profits are repatriated here. As shareholders in various pension funds and individual shareholders, we also share in those profits
, explains the Liberal MP.
A large portion of mining companies are listed on the Toronto Stock Exchange. (File photo) Photo: The Canadian Press / Aaron Vincent Elkaim
Several pension funds, such as the American BlackRock , but also Canadian banks, such as the Bank of Montreal and the Royal Bank of Canada, invest in Barrick Gold.
Others have proactive approaches such as Norges Bank , whose Norwegian sovereign wealth fund, Norges Bank Investment Management, is the second largest in the world. Barrick Gold was excluded from this fund due to serious environmental damage
.
A promising sector, according to the government
In his written response, Jean-Pierre Godbout says that mining is essential to the Canadian economy
.
The Canadian government is helping Barrick Gold for several reasons.A quote fromJean-Pierre Godbout, spokesperson for Global Affairs Canada
Mr. Godbout emphasizes the strategic resource that gold is. This is why the government [supports] companies like Barrick, [because it] guarantees a stable supply of these resources
.
He also cites Canada’s global competitiveness
, which the government is trying to maintain, as well as the economic impact of Barrick
.
Specifically, Mr. Godbout says Barrick Gold contributes significantly to the Canadian economy through job creation, tax revenues and investments in local communities
.
Barrick Gold has several gold mines around the world, including North Mara in Tanzania. Allegations of human rights abuses have been directed at that mine. (File photo) Photo: Barrick Gold website
Shin Imai, a lawyer and professor of law at Osgoode Faculty of Law at York University in Toronto, refutes these economic arguments.
According to him, mining companies registered in Canada only pay tax in Canada on their activities in the country, not on those carried out internationally. Indeed, Canadian policies on the matter (New window)give priority to the country where the taxable income is generated.
Closeness between
government and mining companies criticized
Shin Imai, who is also the director of a legal clinic that helps companies be accountable, is ultimately not surprised by the Canadian government’s position.
Barrick Gold , and Canadian mining companies in general, enjoy almost unconditional
support from the Canadian government, he said.
He points out that one of Global Affairs Canada’s goals is to help Canadian businesses expand outside the country. Canada’s role is detailed in a document entitled Responsible Business Conduct Abroad (New window)
.
International Trade Minister Mary Ng met with Barrick Gold CEO in person in March 2023. (File photo) Photo: The Canadian Press / Adrian Wyld
It says that Global Affairs Canada introduces
Canadian businesses to important contacts such as potential buyers and partners, foreign governments and decision-makers […]
. The department also provides
advice.
Global Affairs Canada has a pro-business culture while paying lip service to human rights.A quote fromShin Imai, lawyer and professor of law at Osgoode Faculty of Law at York University in Toronto
Our research also shows that since 2008, Barrick Gold lobbyists (whether registered or not) have met with public office holders 207 times, and that theCEOHe himself participated in 129 of these meetings.
Barrick reported a profit of US$483 million in its third quarter, up nearly US$100 million from the same period last year. (File photo) Photo: The Canadian Press / Nathan Denette
Documents released under the Access to Information Act also show how Canada defended Barrick when the company was challenged by the Tanzanian government in 2017 over tax issues.
What solutions?
One of the best ways to regulate the actions of Canadian extractive companies abroad seems to be through legislation, but this has always failed.
So, in 2010, the MPNPDPeter Julian tabled Bill C-354 (New window)requiring that Canadian law apply to subsidiaries of domestic companies abroad. The bill did not consider. In 2019, it returned to the charge with C-262 (New window). It is still in first reading.
Another bill was introduced by the Bloc Québécois ( C-438) (New window)in 2009. The bill would have created a standing committee capable of freezing the assets of companies if they were targeted by serious allegations. The bill was not considered.
Open in full screen mode
Several MPs have tried to pass tougher laws for resource companies, but to no avail. (File photo)
Photo: Reuters / Patrick Doyle
The same year, the Liberal Party, then in opposition, proposed a law ( C-300 (New window)) which said that if the government had reason to believe that companies were committing abusive acts, it could stop its investments. Again, there was no follow-up.
However, there is an institution that should be able to act as a safeguard against the actions of Canadian companies abroad: the Office of the Canadian Ombudsman for Responsible Enterprise Abroad (OCRE).
L’OCHERwas launched in 2019, and the Liberals originally said the watchdog would have the power to demand documents and testimony. But those powers were ultimately not included.
According to Liberal John McKay, since its creation, the organization has lacked grip: unfortunately, the Canadian government brought it to its knees and decapitated it
.
Sheri Meyerhoffer was the first ombudsperson to serve as the Office of the Canadian Ombudsperson for Responsible Enterprise Abroad. (File photo) Photo: The Canadian Press / Sean Kilpatrick
An opinion shared by the Bloc Québécois member Mr. Savard-Tremblay and several othersNGO. The very limited investigative power of theOCHERis indeed being singled out, since the body cannot demand documents or force companies to answer questions.
Simon-Pierre Savard-Tremblay believes that there should be an independent commission of inquiry that can conduct its own investigations and not just react to complaints received
.
This ombudsman is an empty shell, a website. I have the impression that it is in the image of what the Trudeau government has always done. Being symbolic. He committed to doing it, he did it, but with not much in it.A quote fromSimon-Pierre Savard-Tremblay, Bloc Québécois MP
In response to our questions regarding the powers of the OCHER, Jean-Pierre Godbout, spokesperson for Global Affairs Canada, simply indicates that in 2024, the government has committed to undertaking a review of the operations and effectiveness of the office of the OCHER
.
In May, Sheri Meyerhoffer, head of the OCHER was replaced by Masud Husain, a lawyer with Global Affairs Canada.
The office of the OCHER never responded to our emails.
In the case of Barrick Gold and its mine in Tanzania, Peter Julian ofNPDNew Democratic Partyconcludes: I hope that justice will be done and it is impossible that it will be done in Tanzania where the victims have no voice to obtain compensation. They must be given the right to sue [ Barrick Gold ] in Canadian courts.
Also read:
- Tanzania: Criticism of links between Canadian mining company Barrick Gold and the police
- Arrest of four employees of the Canadian company Barrick Gold in Mali
See also: “Accumulation by Dispossession” by the Global Extractive Industry: The Case of Canada
madaraka.online 