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Proposed law to "paralyze" Canadians mining abroad: Fraser Institute

The Fraser Institute has come out swinging against a Liberal private member's bill which proposes to allow the federal government to investigate any complaints made against Canadian resource firms working abroad.

The Fraser Institute has come out swinging against a Liberal private member's bill which proposes to allow the federal government to investigate any complaints made against Canadian resource firms working abroad.

The British Columbia-based conservative think tank is lambasting Bill C-300, arguing in a release it would essentially allow anti-mining non-governmental organizations (NGO) to "paralyze mining exploration and development by launching a never-ending stream of complaints and investigations."

"It will not matter whether or not the allegations are unfounded," write Fred McMahon, the institute's vice-president of research, and Jean-Francois Minardi, senior policy analyst.

"When one is dealt with, another can be dreamed up. Bill C-300 turns the concept of justice on its head."

The bill, they argue, is about "anti-mining ideology," and will present a "legal nightmare" as companies will spend big money on defending against accusations, ultimately resulting in mining companies relocating outside of Canada.

In 2008, more than 75 per cent of the world's exploration and mining companies were headquartered in Canada, representing 43 per cent of global exploration expenditures.