Act
Recovery of Minerals
Regulation Number(s):
Mining Act, R.S.O. 1990, c. M.14
Instrument Type:
Act
Bill or Act:
Mining Act, R.S.O. 1990, c. M.14
Summary of Decision:
The Mining Act was amended to support the recovery of minerals at current operating, closing or abandoned mines sites in Ontario through reprocessing of minerals, including critical minerals. A decision has been made to proceed with amendments to the Mining Act to enable the creation of a regulatory pathway for mineral recovery projects, described Recovery and Remediation under Part VII of the Mining Act. 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.
Specifically, the Mining Act has been amended to:
- Require a proponent submit an application to the ministry that describes the proposed recovery activity, as well as the proposed remediation plan;
-Provide the Director of Mine Rehabilitation with the authority to issue a permit and impose terms and conditions;
- Provide the Director of Mine Rehabilitation with discretion to determine the form of financial assurance required commensurate to the project;
- Require the Director of Mine Rehabilitation to consider whether Aboriginal consultation has occurred in accordance with any prescribed requirements; and
- Provide the Director of Mine Rehabilitation with additional order-making authority such as stop-work, remedial or preventative orders at current operating, closed or abandoned mine sites.
The amendments are intended to:
- Allow further remediation of the environment, public health and safety at mine sites to reduce liabilities.
- Create jobs and economic opportunities.
- Address environmental impacts associated with mine tailings and waste storage.
- Allow extraction of minerals to meet global needs to support the emerging green economy, while maintaining environmental practices in Ontario
Specifically, the Mining Act has been amended to:
- Require a proponent submit an application to the ministry that describes the proposed recovery activity, as well as the proposed remediation plan;
-Provide the Director of Mine Rehabilitation with the authority to issue a permit and impose terms and conditions;
- Provide the Director of Mine Rehabilitation with discretion to determine the form of financial assurance required commensurate to the project;
- Require the Director of Mine Rehabilitation to consider whether Aboriginal consultation has occurred in accordance with any prescribed requirements; and
- Provide the Director of Mine Rehabilitation with additional order-making authority such as stop-work, remedial or preventative orders at current operating, closed or abandoned mine sites.
The amendments are intended to:
- Allow further remediation of the environment, public health and safety at mine sites to reduce liabilities.
- Create jobs and economic opportunities.
- Address environmental impacts associated with mine tailings and waste storage.
- Allow extraction of minerals to meet global needs to support the emerging green economy, while maintaining environmental practices in Ontario
Analysis of Regulatory Impact:
Without the proposed amendments, proponents that are interested in recovering minerals from mine tailings and waste are subject to requirements under the Mining Act to submit a closure plan and accompanying financial assurance. This results in companies making significant investments and acceptance of liabilities that are cost-prohibitive for these types of projects, making them uneconomical.
Closure plan requirements are very prescriptive and required contents are outlined in schedule 2 of O. Reg. 240. The requirements include many baseline studies and investigations as well as the requirement to demonstrate that rehabilitation (as defined) is in accordance with the Mine Rehabilitation Code. Mine production closure plans (prepared where there is the intent to sell), require a rehabilitation plan and financial assurance for all hazards on site.
The cost to develop a mine production closure plan varies, based on size, type of mine (underground vs open pit) and site-specific considerations. The cost could vary from $250,000 to $500,000 per closure plan.
In lieu of a closure plan, the ministry would amend these requirements to require a project-specific remediation plan and financial assurance commensurate with the impacts from the proposed project. The ministry would provide for remediation to some standard to be determined but not necessarily the same as the Mine Rehabilitation Code. The recovery activity is expected to focus on only a portion of the mine site that is disturbed by the reprocessing activity, and a remediation plan would be required for the hazards the proponent creates or materially affects, not for the entire property.
The proposed changes are intended to:
- Allow further remediation of the environment, public health and safety at mine sites to reduce liabilities;
- Create jobs and economic opportunities.
- Address environmental impacts associated with mine tailings and waste storage.
- Allow extraction of minerals to meet global needs to support the emerging green economy, while maintaining environmental practices in Ontario.
Closure plan requirements are very prescriptive and required contents are outlined in schedule 2 of O. Reg. 240. The requirements include many baseline studies and investigations as well as the requirement to demonstrate that rehabilitation (as defined) is in accordance with the Mine Rehabilitation Code. Mine production closure plans (prepared where there is the intent to sell), require a rehabilitation plan and financial assurance for all hazards on site.
The cost to develop a mine production closure plan varies, based on size, type of mine (underground vs open pit) and site-specific considerations. The cost could vary from $250,000 to $500,000 per closure plan.
In lieu of a closure plan, the ministry would amend these requirements to require a project-specific remediation plan and financial assurance commensurate with the impacts from the proposed project. The ministry would provide for remediation to some standard to be determined but not necessarily the same as the Mine Rehabilitation Code. The recovery activity is expected to focus on only a portion of the mine site that is disturbed by the reprocessing activity, and a remediation plan would be required for the hazards the proponent creates or materially affects, not for the entire property.
The proposed changes are intended to:
- Allow further remediation of the environment, public health and safety at mine sites to reduce liabilities;
- Create jobs and economic opportunities.
- Address environmental impacts associated with mine tailings and waste storage.
- Allow extraction of minerals to meet global needs to support the emerging green economy, while maintaining environmental practices in Ontario.
Further Information:
Link to Environmental Registry
Proposal Number:
21-ENDM026
Posting Date:
October 7, 2021
Summary of Proposal:
Mine tailings and waste have historically been viewed as having limited economic value. However, with emerging technologies and the global priority on critical minerals, there is growing interest from industry to extract value from and further recover minerals. The ministry notes that tailings and waste at current operating, closed or abandoned mine sites in Ontario can house valuable minerals, including critical minerals, that are drawing geopolitical and economic interest.
Under the current Mining Act, a person cannot conduct extraction or reprocessing activities of tailings and mine waste for the purpose of sale, without filing a mine production closure plan covering all mine hazards on the site (beyond just the mine waste).
The ministry is proposing amendments to the Mining Act which would create a regulatory pathway for these projects to proceed without a full closure plan for the whole mine site. Instead, there would be an application-based permitting regime, where the applicant could obtain a permit for the reprocessing recycling activities on the tailings or waste rock.
Specifically, the ministry is proposing to:
• require a proponent submit an application to the Ministry that describes the proposed recovery activity, as well as the proposed remediation plan;
• provide the Director of Mine Rehabilitation with the authority to issue a permit and impose terms and conditions;
• provide the Director of Mine Rehabilitation with discretion to determine the form of financial assurance required commensurate to the project;
• require the Director of Mine Rehabilitation to consider whether Aboriginal consultation has occurred in accordance with any prescribed requirements before a permit is issued; and
• provide the Director of Mine Rehabilitation with additional order-making authority such as stop-work, remedial or preventative orders at current operating, closed or abandoned mine sites.
Under the current Mining Act, a person cannot conduct extraction or reprocessing activities of tailings and mine waste for the purpose of sale, without filing a mine production closure plan covering all mine hazards on the site (beyond just the mine waste).
The ministry is proposing amendments to the Mining Act which would create a regulatory pathway for these projects to proceed without a full closure plan for the whole mine site. Instead, there would be an application-based permitting regime, where the applicant could obtain a permit for the reprocessing recycling activities on the tailings or waste rock.
Specifically, the ministry is proposing to:
• require a proponent submit an application to the Ministry that describes the proposed recovery activity, as well as the proposed remediation plan;
• provide the Director of Mine Rehabilitation with the authority to issue a permit and impose terms and conditions;
• provide the Director of Mine Rehabilitation with discretion to determine the form of financial assurance required commensurate to the project;
• require the Director of Mine Rehabilitation to consider whether Aboriginal consultation has occurred in accordance with any prescribed requirements before a permit is issued; and
• provide the Director of Mine Rehabilitation with additional order-making authority such as stop-work, remedial or preventative orders at current operating, closed or abandoned mine sites.
Contact Address:
Geneviève Sulatycky
933 Ramsey Lake Road
Sudbury, ON
P3E 6B5
(705) 465-0859
genevieve.sulatycky@ontario.ca
933 Ramsey Lake Road
Sudbury, ON
P3E 6B5
(705) 465-0859
genevieve.sulatycky@ontario.ca
Royal Assent Date:
December 2, 2021
Decision:
Approved