Shin Imai
January 2, 2025
The transnational corporate structure of mining companies makes it challenging to conduct independent investigations of allegations of social or environmental harm. A parent company can hide behind a multitude of subsidiaries in a multitude of jurisdictions to avoid liability. One way to bypass these corporate structures is through the disclosure requirements of securities legislation. Whistleblowers can make a complaint to the appropriate securities regulator when a parent company fails to disclose social conflict or lack of Indigenous consent at a project.
JCAP’s own experience with submitting complaints to securities regulators shows that when social conflict or lack of Indigenous consent in extractive projects become public, the share price falls. I highlight the case of Tahoe Resources in Guatemala that had one of the largest silver mines in the world, whose stocks were worth almost $US 26, but was sold to another company at $US 3.40 when a court in Guatemala ordered the mine suspended because of a failure to consult Indigenous people.
The webinar is presented in two parts.
Part 1 provides an overview of the challenges with transnational corporate accountability and describes why all mining companies have multiple subsidiaries in tax havens. Jen Moore of the Institute for Policy Studies provides an introduction.
Part 2 provides a hands-on tutorial on how to evaluate whether there are grounds to make a security disclosure complaint, and the research necessary to submit such a complaint. At the end of this part, Viviana Herrara of MiningWatch Canada provides a reflection on her own experiences with preparing such a complaint.
More detailed information and documentation on transnational corporate accountability and its relation to CSR and ESG, can be found in the following article:
Social Conflict and Indigenous Consent in Mining: A primer on CSR, ESG and social disclosures to investors (December 15, 2024). Available at SSRN: https://ssrn.com/abstract=5057458 or http://dx.doi.org/10.2139/ssrn.5057458