By Chris Dixon
On 9 April 2013, European Union (EU) ministers reached agreement on new transparency rules for the extractives sector aimed at countering mismanagement of resources in developing economies. The EU is following in the footsteps of the US, which introduced transparency requirements under the Dodd-Frank Act in 2010. The rules are expected to be finalised by June 2013. Industry efforts to win concessions in the implementation of the law can be anticipated, however, and may delay implementation. Key business concerns include the costs of compliance and implications for data privacy.
The proposed rules put forward by the EU go beyond those introduced by the US. Notably, the rules apply to both private and publicly listed companies and extend to the forestry industry, in addition to oil, gas and mining. The EU will require companies in these sectors to disclose any payment to government over €100,000, as well as earnings by country. The rules will apply to any company with more than €40m in profits, €20m in assets or 250 employees. (more…)