Act
Amendments to the Mining Act: Closure Plans and Financial Assurance
Regulation Number(s):
N/A
Instrument Type:
Act
Bill or Act:
Bill 71, Building More Mines Act, 2023
Summary of Decision:
Through Bill 71, Building More Mines Act, 2023, the Ministry of Mines has made amendments to the Mining Act that are intended to ensure Ontario has a modern and competitive regime for mineral exploration and development. The amendments aim to reduce administrative burden, clarify requirements for rehabilitation and create regulatory efficiencies.
The improvements align with the purpose of the Mining Act which includes encouraging prospecting, registration of mining claims and exploration for the development of mineral resources, in a manner consistent with the recognition and affirmation of existing Aboriginal and treaty rights (including the duty to consult) and to minimize the impact of these activities on public health and safety and the environment.
The amendments in the Building More Mines Act, 2023, will:
Lay the necessary groundwork for anticipated regulatory amendments that would strengthen qualified persons' certifications provided with closure plans, including establishing the concept of qualified persons in the Mining Act; this would eliminate the need for a ministry technical review.
Allow the Minister to issue an order, on request from a proponent, that allows the deferral of at least one of the required elements of the closure plan, which may include terms and conditions determined by the Minister. This would be called a "conditional filing order". In all cases there would be a condition in the order to meet the prescribed requirements at a time specified by the Minister. The intent is to prevent the delay of mining projects where these studies /elements can reasonably be deferred without compromising the integrity of the closure plan;
Eliminate the need for a Notice of Material Change for minor site alterations (non-material) and allow certain administrative changes (e.g., the form of financial assurance or change in ownership) to be made to closure plans without requiring a closure plan amendment (, deemed amendments);
Codify the practice of allowing phased Financial Assurance in the legislative framework to create a simpler and clearer mechanism for proponents to submit phased Financial Assurance tied to a project's construction of new mining features; and
Amend the definition of "rehabilitate" and the related definition of "protective measures" to support the Minister's ability to allow an alternate use or condition or feature to remain on-site post-closure (e.g., infrastructure), and to give greater flexibility and certainty to industry by allowing alternate rehabilitation measures and post-closure land uses.
The relevant amendments to the Mining Act would take effect once the related regulations have been developed and filed.
The improvements align with the purpose of the Mining Act which includes encouraging prospecting, registration of mining claims and exploration for the development of mineral resources, in a manner consistent with the recognition and affirmation of existing Aboriginal and treaty rights (including the duty to consult) and to minimize the impact of these activities on public health and safety and the environment.
The amendments in the Building More Mines Act, 2023, will:
Lay the necessary groundwork for anticipated regulatory amendments that would strengthen qualified persons' certifications provided with closure plans, including establishing the concept of qualified persons in the Mining Act; this would eliminate the need for a ministry technical review.
Allow the Minister to issue an order, on request from a proponent, that allows the deferral of at least one of the required elements of the closure plan, which may include terms and conditions determined by the Minister. This would be called a "conditional filing order". In all cases there would be a condition in the order to meet the prescribed requirements at a time specified by the Minister. The intent is to prevent the delay of mining projects where these studies /elements can reasonably be deferred without compromising the integrity of the closure plan;
Eliminate the need for a Notice of Material Change for minor site alterations (non-material) and allow certain administrative changes (e.g., the form of financial assurance or change in ownership) to be made to closure plans without requiring a closure plan amendment (, deemed amendments);
Codify the practice of allowing phased Financial Assurance in the legislative framework to create a simpler and clearer mechanism for proponents to submit phased Financial Assurance tied to a project's construction of new mining features; and
Amend the definition of "rehabilitate" and the related definition of "protective measures" to support the Minister's ability to allow an alternate use or condition or feature to remain on-site post-closure (e.g., infrastructure), and to give greater flexibility and certainty to industry by allowing alternate rehabilitation measures and post-closure land uses.
The relevant amendments to the Mining Act would take effect once the related regulations have been developed and filed.
Analysis of Regulatory Impact:
The proposed amendments would improve timelines for preparing closure plans, reduce proponents' up-front expenses for opening or changing a mine, reduce the frequency of notifications and closure plan amendments required, and improve flexibility in closure planning.
The Ministry will continue to assess potential impacts to Aboriginal and treaty rights, and as required, fulfil any obligations to consult with Indigenous communities before proposed closure activities that trigger the Duty to Consult can proceed.
The proposed changes would demonstrate action in response to industry feedback and help drive greater investment in Ontario and enable access to and development of critical minerals.
The Ministry will continue to assess potential impacts to Aboriginal and treaty rights, and as required, fulfil any obligations to consult with Indigenous communities before proposed closure activities that trigger the Duty to Consult can proceed.
The proposed changes would demonstrate action in response to industry feedback and help drive greater investment in Ontario and enable access to and development of critical minerals.
Further Information:
Link to Environmental Registry
Proposal Number:
23-ENDM010
Posting Date:
March 2, 2023
Summary of Proposal:
Closure Plans
The Mining Act requires proponents to submit a closure plan to the ministry and have the ministry "file" it before the proponent can undertake activities in the development or operational stages of the sequence.
Lands with advanced exploration and mine production activities must be rehabilitated after the activities have finished. A closure plan outlines how the land will be rehabilitated and the costs associated with doing so.
Currently, a closure plan is certified by two of the proponent's senior officers, and qualified persons where necessary. To develop a closure plan, proponents must prepare, among other things, technical studies that can take multiple years to complete (due to the necessity of gathering baseline data from multiple seasons). In addition, the current approach of the ministry is to conduct technical reviews of draft closure plans prior to formal submission and filing.
Financial Assurance
Proponents must provide the ministry with financial assurance, which amounts to the estimated costs of the rehabilitation measures described in the closure plan and allows the province access to this money to carry out the rehabilitation work outlined in a closure plan in the event that the proponent is unable or unwilling to undertake the work itself.
The proposed amendments in Bill 71, regarding the closure plan framework can be found in the ERO 019-6718
The Mining Act requires proponents to submit a closure plan to the ministry and have the ministry "file" it before the proponent can undertake activities in the development or operational stages of the sequence.
Lands with advanced exploration and mine production activities must be rehabilitated after the activities have finished. A closure plan outlines how the land will be rehabilitated and the costs associated with doing so.
Currently, a closure plan is certified by two of the proponent's senior officers, and qualified persons where necessary. To develop a closure plan, proponents must prepare, among other things, technical studies that can take multiple years to complete (due to the necessity of gathering baseline data from multiple seasons). In addition, the current approach of the ministry is to conduct technical reviews of draft closure plans prior to formal submission and filing.
Financial Assurance
Proponents must provide the ministry with financial assurance, which amounts to the estimated costs of the rehabilitation measures described in the closure plan and allows the province access to this money to carry out the rehabilitation work outlined in a closure plan in the event that the proponent is unable or unwilling to undertake the work itself.
The proposed amendments in Bill 71, regarding the closure plan framework can be found in the ERO 019-6718
Contact Address:
MiningActAmendments@ontario.ca
Royal Assent Date:
May 18, 2023
Decision:
Approved