On June 1, 2015, the federal Extractive Sector Transparency Measures Act, (“ESTMA”) came into effect for fiscal periods beginning after this date. This federal legislation imposes mandatory reporting requirements on Canadian mining companies. As a result, Taseko is required to report certain types of payments over $100,000 made to any level of a Canadian or foreign government, including royalty payments, certain taxes (other than consumption taxes and personal income taxes), fees, production entitlements, bonuses, dividends, infrastructure improvement payments and other prescribed categories of payments. Also extractive companies are required to report payments to Indigenous governments in Canada starting June 1, 2017. Payments reported in the ESTMA Report reflect gross payments made directly by Taseko and its subsidiaries, including payments made on behalf of joint venture partners.
Taseko and its subsidiaries have made many types of government payments that are not reportable under ESTMA, including: provincial sales tax (PST), GST/HST, fuel taxes, carbon tax, employee income tax withholdings, contributions to EHT, WCB premiums, and payments to BC Hydro for electricity costs.