Policy

New Assessment Work Policies - Work Types, Costs and Allocations

Regulation Number(s):
Ontario Regulation 65/18
Instrument Type:
Policy
Bill or Act:
Mining Act, R.S.O. 1990, M.14.
Summary of Proposal:
Assessment Work Policy - Work Types

The purpose of this policy is to provide direction to claim holders and decision makers on the types of work that are eligible to meet the annual units of assessment work requirements. This is pursuant to Mining Act, R.S.O. 1990, M.14 (the Act), Ontario Regulation 65/18 (the Regulation) and the Technical Standards for Reporting Assessment Work.

For claim holders to keep their claims in good standing, the required annual units of assessment work must be satisfied. Early exploration work must be performed and claim holders then must submit an assessment work report through the Mining Lands Administration System (MLAS). The Minister or their delegate reviews the report and assigns assessment work credits to eligible expenses, which are placed in the reserve of the mining lands on which the work was performed.

Assessment Work Policy - Costs

The purpose of this policy is to provide direction to claim holders and decision makers on the eligible costs and expenses that can be included when reporting the amount of assessment work performed on mining lands. A list of non-eligible costs is also included. This is pursuant to the Act and Regulation.

The Regulation sets out the eligible costs and expenses that may be used to determine the amount of assessment work credits to assign to the work performed. This policy provides further details of the costs and expenses that are eligible for assessment work credits.

Assessment Work Policy - Allocating Credit, Applying Credit and Making Payments in Place

The purpose of this policy is to provide direction to claim holders and decision makers on what their options are for meeting their assessment work requirements and how credits can be applied. Claim holders may allocate credit, apply credit or make payment in place. This is pursuant to the Act and Regulation.

Approved assessment work credits are placed in the reserve for mining lands and can then be distributed to a mining claim to satisfy the claim's annual assessment work requirements.

Ministry staff review the assessment work reports for adherence to the Ministry's Technical Standards, including the validity and amounts of claimed costs. These reviews must be completed within 90 days of submission. If not reviewed in that time period, the submitted expenses are deemed to be approved as is under O.Reg 65/18. This introduces risk that invalid costs are applied to the claims as credit, which keeps claims in good standing while reducing the amount of actual exploration work that is being completed.

The draft policies are attached with this posting for further viewing. Comments can be submitted for any or all of the policies.
Analysis of Regulatory Impact:
• There are no compliance costs as these policies provide direction and clarity to clients.
• Individual prospectors, and junior and large exploration companies would find the policies beneficial as it would provide direction and clarity regarding the Act and Regulation.
Further Information:
Proposal Number:
22-ENDM015
Posting Date:
September 22, 2022
Comments Due Date:
November 6, 2022