London Mining Newtwork urges reforms to stock exchange regulation of mining companies « Mining Blog

London Mining Newtwork urges reforms to stock exchange regulation of mining companies

8. September 2011,

Today (8 April 2011) the London Mining Network (LMN) submitted comments to the UK Treasury’s consultation on the proposed new UK securities regulatory framework.

The submission was backed by six case studies on mining companies which, allegely, have been guilty of human rights, environmental, or other violations: Vedanta Resources plc, Glencore plc, African Barrick Gold, London Mining plc, African Minerals and Brinkley Mining. The aim of the submission is to persuade the UK public, parliament – and funders – of the urgent need for a radical reform of the rules that have, to date, allowed such companies to list and trade on the London Stock Exchnge with comparitive impunity.

Since May 2010, the conservative-liberal democrat government has invited comments on what new rules should be put in place – and this is the last occasion on which the public can comment before debate takes place in parliament.

Says LMN: “We do not seek to comment on proposed reform of regulation of the financial sector per se. However, the proposed reform includes transference of the functions of the UK Listing Authority (UKLA), from the Financial Services Authority to a proposed new body, the Financial Conduct Authority. We therefore urge the UK Government to make use of this opportunity to ensure that the new body is equipped with the authority, the expertise, the personnel and the funding to enable it to exercise a vigilance over all UK-listed companies – not only financial services companies – which has been sadly lacking in the past.

“The report included with this submission makes clear why we remain strongly of the view that reform of securities regulation must result in much stricter oversight, particularly of companies involved in mining and trading in minerals.”

The LMN report can be obtained on request from:
lmn@gn.apc.org

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