Regulatory amendments related to retaining proceeds from the sale of samples taken from unpatented mining claims

ERO number
019-4443
Notice type
Regulation
Act
Mining Act, R.S.O. 1990
Posted by
Ministry of Northern Development, Mines, Natural Resources and Forestry
Notice stage
Decision
Decision posted
Comment period
October 7, 2021 - November 21, 2021 (45 days) Closed
Last updated

This consultation was open from:
October 7, 2021
to November 21, 2021

Decision summary

The Ministry has decided to amend O. Reg. 45/11 to set out the conditions that are required for mining claimholders to sell the end product of a bulk sample and recover associated costs, without first obtaining the Minister’s permission: a “permit by rule” approach. This will allow previous amendments to the Mining Act to come into force. 

Decision details

Previous amendments to the Mining Act in Bill 276 enabled the creation of a “permit by rule” model, which would allow mining claimholders to sell the end product of a bulk sample, and retain proceeds, without seeking the minister’s permission, provided that prescribed conditions are met. 

These regulatory amendments prescribe those conditions, allowing Ontario to proclaim the Bill 276 amendments and bring them into force.

Prescribed conditions include:

  • An advance notification requirement;
  • Reporting requirements; and
  • Details on the eligible costs that can be recovered from the sale of materials, beyond which any profits must be returned to the Crown until a claim is taken to lease.

If these conditions are not met, the claimholder is not able to sell the end product of a bulk sample and retain proceeds without either obtaining the Minister’s permission or first taking the claim to lease.

Comments received

Through the registry

1

By email

1

By mail

0
View comments submitted through the registry

Effects of consultation

We received two comments. The summary of comments is as follows:

  • Unclear as to why this regulatory amendment requires a closure plan whereas another Environmental Registry of Ontario (ERO) proposal (ERO 19-4446: Retention of Proceeds from testing Activities on Leases and Patented Lands) does not, when both are considered a bulk sample. Does the closure plan requirement just apply to Advanced Exploration Projects on staked claims?
  • Support for the regulatory amendment that allows for the retention of proceeds from small-scale testing, as well as the sale of samples taken from unpatented mining claims; this change is particularly important for critical minerals projects and for junior exploration companies.

This regulatory amendment does not affect any requirements for closure plans—it sets out the conditions whereby proponents may sell the proceeds of a bulk sample without seeking the permission of the minister. Minister’s permission is still required for the extraction, as well as any other applicable regulatory requirements such as an exploration plan/permit or an advanced exploration closure plan, which consider impacts to the environment.

 

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933 Ramsey Lake Road
Sudbury, ON
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Original proposal

ERO number
019-4443
Notice type
Regulation
Act
Mining Act, R.S.O. 1990
Posted by
Ministry of Northern Development, Mines, Natural Resources and Forestry
Proposal posted

Comment period

October 7, 2021 - November 21, 2021 (45 days)

Proposal details

Amendments to the Mining Act in Bill 276 enabled the creation of a “permit by rule” model, which would allow mining claim holders to sell the end product of a bulk sample, and retain proceeds, without seeking the minister’s permission, provided that prescribed conditions are met. 

The amendments in this proposal would prescribe those conditions, allowing Ontario to proclaim the Bill 276 amendments and bring them into force.

Prescribed conditions are anticipated to include:

  • An advance notification requirement;
  • Reporting requirements; and
  • Details on the eligible costs that can be recovered from the sale of materials, beyond which any profits must be returned to the Crown until a claim is taken to lease.

If these conditions are not met, the claimholder would not be able to sell the end product of a bulk sample and retain proceeds without either obtaining the minister’s permission or first taking the claim to lease.

The proposed regulatory amendments are seen as beneficial by the ministry and by some members of the mining industry, as they will increase certainty regarding the retention of proceeds for bulk sampling projects. The proposed changes are not expected to result in impacts to the environment as they pertain to the permission to sell materials extracted for the purpose of testing without seeking minister’s permission. minister’s permission is still required for the extraction, as well as any other applicable regulatory requirements such an exploration plan/permit or advance exploration closure plan, which consider impacts to the environment.

The proposed amendments will streamline the approvals processes and provide clarity regarding the requirements for the retention of proceeds. This will ultimately reduce red tape.

There are no anticipated costs, or cost-savings to proponents or the ministry to implement these amendments.

The proposed amendments are not expected to impact small businesses and are not expected to result in a change of annual costs. However, greater clarity regarding ability to sell bulk sample end product, and any retention of proceeds may help proponents offset a portion of the costs of early or advanced exploration on their mining claim.

Comment

Commenting is now closed.

This consultation was open from October 7, 2021
to November 21, 2021

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