With almost 17,000 employees operating in countries worldwide, Agnico Eagle is a titan in the mining industry. What began as an amalgamation of five struggling mining companies has grown into a powerhouse, bringing in billions in revenue every year.
Sitting at the legal helm is Chris Vollmershausen, executive vice-president, legal, general counsel & corporate secretary.
Because Agnico Eagle operates across many jurisdictions, one of Vollmershausen's core responsibilities is global legal compliance, especially laws related to anti-corruption. As he tells Lexpert, it’s all built into the company's strategy.
“We would describe ourselves as regional miners, not global miners,” he explains. “We have operations all over the world, but really, we're focused in Canada, Australia, Finland and Mexico – and each of those regions has a pretty strong rule of law. We have those four main jurisdictions – some places that have rigorous operating frameworks which really sets the stage for how we're able to achieve compliance.”
‘We're out to do things right and do things properly’
Beyond that, Vollmershausen explains that this compliance is a part of their culture – something that each employee understands and values.
“We're out to do things right and do things properly,” he adds. “There are no shortcuts. We have our code of business conduct and ethics that every employee – all 17,000 people – needs to review, sign, and understand. We also have training around that as well as a robust whistleblower program. So, if there are any indications that something is wrong, people can make complaints through a portal, through an email, or various other channels. These complaints then come to the team where we investigate them internally or externally as appropriate.”
One example of Agnico Eagle’s commitment to doing the right thing can be seen in its approach to socially sensitive issues – especially around Indigenous relations. As Vollmershausen explains, they have a very robust Indigenous relations program and strategy, adding that Indigenous peoples are their partners everywhere they operate.
“There is a very strong connection between the legal team, the Indigenous relations and community relations teams. We definitely have the legal angle covered there. I think we're starting from a position of a good history of doing the right thing – treating our partners right, whether they be Indigenous partners, communities, municipalities, or local governments, that’s something we’ve done for decades at Agnico. It's not just the current thing we do; we've literally done it for over 60 years.”
In each region where impacted communities are located, Agnico Eagle has IBAs in place. Whether in Nunavut, the Abitibi region in Quebec, or Ontario, those agreements clearly understand the relationship between the company and its Indigenous partners.
‘An even stronger relationship with Indigenous peoples’
“There are business opportunities, training, and payments of royalties that set the framework for our relationship,” adds Vollmershausen. “We’re proud in 2024 to release our initial reconciliation action plan - an action plan that, while focused on Canada, is global in scope. It sets out around 40 actions we’re committing to take over the short, medium, and longer-term to facilitate an even stronger relationship with Indigenous peoples. That’s part of our response to the Truth and Reconciliation Commission and its calls to action, as well as some other international frameworks – and we’re quite proud of the work we’re doing there.”
As Vollmershausen tells Lexpert, Agnico Eagle is the first Canadian mining company to have a reconciliation action plan in place. The company is also in the midst of setting up an Indigenous stakeholder advisory committee, which will include several independent third parties, many of whom are Indigenous themselves.
“They will help provide guidance, advice, and insight into the things we’re already doing, and possibly areas where we can improve or take additional actions.”
Because Agnico Eagle operates in vastly differing legal landscapes, some of which face significant regulatory scrutiny, a strategic approach to environmental compliance and human rights is absolutely key. However, this is sometimes much easier said than done.
‘It's important to have buy-in from the community’
“We're in areas that have political stability, geologic potential, and where we're comfortable operating mines for many decades,” adds Vollmershausen. “The way we describe our strategy, or the way we contrast ourselves with some of our peers, is that when you want to operate somewhere for decades and not just have one mine, but a second, third, and fourth, it's important to have buy-in from the community, the employee base, your Indigenous partners, and the governments.
“The only way you're going to get that buy-in is by doing the right thing and having strong practices. As we look into new jurisdictions, we tend to take a more go-slow approach if it's truly a greenfield opportunity for us.”
As Vollmershausen explains, Agnico Eagle has a long history of taking toehold investments in junior companies, including in new regions or jurisdictions. Part of that process involves not just corporate development but also, from a legal and community perspective, getting to understand the jurisdiction, meeting the players, finding the right local legal counsel, getting to know them, and building up that trust.
“If that toehold turns into an acquisition, which then turns into operating a mine five or ten years out, we've already got the infrastructure in place. We're not learning everything right away.”
‘It’s about having a seat at the table’
This slow and steady approach has allowed Agnico Eagle to not just survive the past turbulent years but thrive through the chaos. Vollmershausen believes that a lot of this success, especially around ESG, hinges on how much sway and say the legal team has internally.
“It’s about having a seat at the table – which I do here at Agnico Eagle,” he tells Lexpert. “Our executive team is very collaborative, and there’s not a lot of silos here. We bounce ideas off each other, and that certainly helps ensure there are no surprises and that we’re all aligned on what the strategy might be. Being present when strategies are being discussed, decisions are being made, and having legal in the room is very helpful. Often, as lawyers, we can provide more than just legal advice. I refer to it as sound judgment – offering a perspective of sober second thought when someone is proposing a concept or idea.”
There has been much discussion in this area recently, whether related to Bill C-59 or evolving disclosure standards for sustainability. While the pendulum swings over time regarding its importance from an investor perspective, Vollmershausen believes it’s clear that this is not going anywhere.
“Regulations continue to evolve and generally increase, and we need to ensure the organization understands that. As we set targets, commitments, statements, or sustainability reports, we must ensure that everything we say is truthful, backed up, and not misleading. We need to follow through on what we commit to.”