Inclusion of Aboriginal consultation costs as an eligible expense for the retention of proceeds from the sale of samples taken for the purpose of testing on leases, licences, and other mining lands.

Regulation Number(s):
Instrument Type:
Bill or Act:
Mining Act
Summary of Proposal:
Once recent amendments to the Mining Act are proclaimed, the Act will allow for lessees, licencees, and owners of other mining lands to request permission to sell and retain the proceeds from materials extracted for the purposes of testing. The proceeds of that sale which can be retained by the proponent cannot exceed the allowable expenses of their testing activity.

The allowable expenses are limited to the cost to the proponent of the related "excavation, processing, transportation, testing, evaluation and rehabilitation". Costs of Aboriginal consultation are proposed to be added to the list.

As a result of engagement on bulk sampling-related items in Ontario's Bill 13, the Supporting People and Businesses Act, 2021, announced October 7, 2021, the Ministry received feedback from both industry and an Aboriginal community that there is interest in having consultation-related costs included in the list of allowable expenses for testing mineral content from mining claims and from other mining lands.

This proposed amendment would allow proponents to submit consultation-related costs reasonably incurred during consultation with Aboriginal communities to ensure a consistent approach to eligible consultation costs considered for other activities regulated under the Mining Act.
Analysis of Regulatory Impact:
(1) This amendment is administrative in nature;
(2) No impacts are expected to health, safety, or the environment;
(3) The proposed addition of Aboriginal consultation to the list of eligible costs may make it less costly for proponents to determine the economic viability of their potential mineral development projects; and
(4) Given the individualized nature of each project involving the retention of proceeds from the sale of testing mineral content, a quantitative analysis is not possible.
Further Information:
Proposal Number:
Posting Date:
February 22, 2022
Comments Due Date:
February 28, 2022
Contact Address:
Willet Green Miller Centre
733 Ramsey Lake Road
Sudbury, ON
P3E 6B5