Act

Retention of Proceeds from Testing Activities on Leases and Patented Lands

Regulation Number(s):
Mining Act, R.S.O. 1990, c. M.14
Instrument Type:
Act
Bill or Act:
Mining Act
Summary of Decision:
A decision has been made to amend the Mining Act to allow lessees, licencees and owners of mining lands to sell and retain the proceeds from materials extracted for the purposes of testing without the requirement for a mine production closure plan to have first been filed. Bill 13, the Supporting People and Businesses Act, 2021 contained amendments to the Mining Act in Schedule 12 and received Royal Assent on Thursday December 2, 2021.

Amendments have been made to the Mining Act to allow lessees, licensees and owners of mining lands to sell and retain the proceeds from materials extracted for the purposes of testing without the requirement for a mine production closure plan being filed.

The activities (extracting materials for the purposes of testing) may be deemed by the Director of Mine Rehabilitation to be either early exploration or advanced exploration, after consideration of the proponent's application, based on how the proposed activities fit within existing regulatory thresholds. If permission is granted, proponents are then required to comply with the regulatory requirements applicable to early exploration or advanced exploration activities but would not be subject to the requirement to file a mine production closure plan. This would allow proponents to also offset the costs of testing by retaining proceeds from any sales.
Analysis of Regulatory Impact:
Under the Mining Act, the definition of "mine production" and the resulting requirement for a mine production closure plan, is triggered whenever a proponent is mining with the intention to sell materials or stockpile them for future sale. Small-scale testing activities (sampling) are caught by that definition if the proponent's intention is to sell the tested minerals (often done to offset the costs of the testing).

Currently, where mining claimholders have obtained ministerial permission under section 52 of the Mining Act, the ministry allows mining claimholders to sell materials extracted for the purposes of testing, and retain proceeds to the extent of eligible cost recovery, without first filing a mine production closure plan. Lessees, licensees and owners of mining lands, however, cannot sell any quantity of material without first filing a mine production closure plan.

The ministry is proposing to amend the Mining Act to allow lessees, licensees and owners of mining lands to sell and retain the proceeds from materials extracted for the purposes of testing without the requirement for a mine production closure plan being filed.

The activities (extracting materials for the purposes of testing) may be deemed to be either early exploration or advanced exploration, after consideration of the proponent's application, based on how the proposed activities fit within existing regulatory thresholds. If permission is granted, proponents would then be required to comply with the regulatory requirements applicable to early exploration or advanced exploration activities but would not be subject to the requirement to file a mine production closure plan. This would allow proponents to also offset the costs of testing by retaining proceeds from any sales.

The proposed legislative amendments would provide holders of all forms of tenure to mining lands with the same opportunity to sell the end product of testing without first filing a mine production closure plan.
Further Information:
Proposal Number:
21-ENDM022
Posting Date:
October 7, 2021
Summary of Proposal:
Under the Mining Act, the definition of "mine production" and the resulting requirement for a mine production closure plan, is triggered whenever a proponent is mining with the intention to sell materials or stockpile them for future sale. Small-scale testing activities (sampling) are caught by that definition if the proponent's intention is to sell the tested minerals (often done to offset the costs of the testing).

Currently, where mining claimholders have obtained ministerial permission under section 52 of the Mining Act, the ministry allows mining claimholders to sell materials extracted for the purposes of testing, and retain proceeds to the extent of eligible cost recovery, without first filing a mine production closure plan. Lessees, licensees and owners of mining lands, however, cannot sell any quantity of material without first filing a mine production closure plan.

The ministry is proposing to amend the Mining Act to allow lessees, licensees and owners of mining lands to sell and retain the proceeds from materials extracted for the purposes of testing without the requirement for a mine production closure plan being filed.

The activities (extracting materials for the purposes of testing) may be deemed to be either early exploration or advanced exploration, after consideration of the proponent's application, based on how the proposed activities fit within existing regulatory thresholds. If permission is granted, proponents would then be required to comply with the regulatory requirements applicable to early exploration or advanced exploration activities but would not be subject to the requirement to file a mine production closure plan. This would allow proponents to also offset the costs of testing by retaining proceeds from any sales.

The proposed legislative amendments would provide holders of all forms of tenure to mining lands with the same opportunity to sell the end product of testing without first filing a mine production closure plan.
Contact Address:
Effective Date:
December 2, 2021
Decision:
Approved