Conflict minerals weren’t the only order of business for the Securities and Exchange Commission last week; mining and energy companies were also saddled with a new heap of disclosures to make about payments to governments—including our own.
That rule implements Section 1504 of the Dodd-Frank Act, also known as the Cardin-Lugar provision. Companies working in the development of oil, natural gas, or minerals (so-called “extraction businesses”) will now be required to disclose payments made to the U.S. or foreign governments, on a project-by-project basis, should those payments total $100,000 or more in a fiscal year. The payments can include taxes, royalties, license fees, production entitlements, bonuses, dividends, and infrastructure improvements.
