The Guyana Human Rights Association is endorsing a set of guidelines introduced yesterday by a Chinese mineral company as it champions full disclosure of payments made by governments, the free flow of technical information, among other conditions which speaks directly to standards expected of foreign companies operating in Guyana.
China Chamber of Commerce for Mining, Metals and Chemicals, a Chinese government affiliated body, yesterday presented a set of voluntary guidelines for Chinese mineral companies that operate mining projects outside of China.
“This move by China provides an enormous boost for efforts worldwide to bring governments in line with global transparency standards, in particular the Extractive Industries Transparency Initiative (EITI), the Dodd-Frank Act Section 1504, as well as the European Union (EU) Directives,” the GHRA said in a press release.
Hard copies of the guidelines were presented at the launch in Beijing yesterday by the China Chamber, as they are not yet online.
The Guidelines for Social Responsibility in Outbound Mining Investments speak directly to the standards expected of companies operating in countries like Guyana, the GHRA said. With respect, for example, to disclosure of payments made to governments, the Guidelines state that companies must “disclose all payments which are made to foreign government entities in countries of operation, including in-kind payments and infrastructure projects, in line with global transparency standards, in countries where those apply (FN4).”
According to the GHRA, Global Witness noted that to date 44 resource-rich countries implement the standard of the EITI which requires governments to disclose their receipts from mining companies and for companies to disclose payments made to government entities. The figures are reconciled and published in an annual national EITI report in order to prevent corruption and inform the public about revenues from resource wealth.
“The political significance of China’s endorsement of EITI standards puts considerable pressure on the United States to follow suit,” the group said. “Congressional approval of the Dodd-Frank Act (legislation drafted after the financial crises of 2008) has been held up by the powerful oil and gas lobby in the US on the grounds that ratification would render them uncompetitive with respect to China. The Chinese move effectively pulls the rug from under this argument.”
Global Witness also noted that revenue transparency is becoming imperative for the mining industry. Apart from EITI mining companies listed on US or EU stock exchanges are now required to disclose payments made to any foreign government entity related to mining projects in all countries of operation, as established by the US Dodd-Frank Act.
Similar provisions are required by the Hong Kong stock exchange as a precondition for listing and after listing. The International Finance Corporation (IFC) and other leading agencies also require mining companies to disclose their payments to governments.
