Canada’s Fighting Against Forced Labour and Child Labour in Supply Chains Act (the “Supply Chains Act”) came into force on January 1, 2024 and many mining companies with a connection to Canada will be required to report by the May 31^st, 2024 deadline mandated by the Act, and in the case of federally-incorporated companies, possibly even sooner.

The Supply Chains Act applies broadly to any “entity” (as defined in the Act, and described below) that (excluding very minor dealings, according to Public Safety Canada guidance):

• produces, sells, or distributes goods in Canada or elsewhere;

or

• imports into Canada goods produced outside Canada;

or

• controls another entity engaged in such production, sale, distribution, or importation.

An “entity”, for purposes of the Supply Chains Act, is a corporation or a trust, partnership or other unincorporated organization that:

• is listed on a Canadian stock exchange;

or

• has a place of business in Canada, does business in Canada, or has assets in Canada and also meets at least two of the following three conditions for a minimum of one of its two most recent financial years:
• has at least $20 million in assets;
• has generated at least $40 million in revenue; and
• employs an average of at least 250 employees;

or

• is otherwise prescribed by regulation.

Mining companies seeking information on reporting requirements under the Supply Chains Act, including a discussion of recent guidance from Public Safety Canada, are encouraged to read the following article from our Terms of Trade blog, found here: “Long-Awaited Guidance Released on Canada’s New Modern Slavery Legislation and its Reporting Requirements”. 

McCarthy Tétrault’s International Trade and Investment Group has advised a large number of clients in a variety of industries on how to respond to the Supply Chains Act.  For further information, please contact your McCarthy Tétrault trusted advisor or a member of our International Trade and Investment Group.