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LEGAL FRAMEWORK FOR MINING ACTIVITIES MINING ACT Roch Gaudreau, Director Development and Control of Mining Activities Ministère de l’Énergie et des Ressources naturelles April 24, 2017
PRESENTATION OUTLINE 1. Legal framework for mining activities 2. Mining act 3. Mining titles § Claim § Mining Leases (BEX, BNE, BM) 4. Rehabilitation and Restoration Plan 5. Financial guarantee 6. Amendments to the Mining Act 7. Aboriginal communities consultation draft policy specific to the mining sector
LEGAL FRAMEWORK FOR MINING ACTIVITIES § Mining Act § Regulation respecting mineral substances other than petroleum, natural gas and brine § An Act Respecting the Lands in the Domain of the States § Sustainable Forest Development Act § § An Act Respecting the Conservation and Development of Wildlife § § Regulation respecting standards of forest management forests in the domain of the State Regulation respecting wildlife habitats Environment Quality Act § Regulation respecting pits and quarries § Regulation respecting environmental impact assessment and review
LEGAL FRAMEWORK FOR MINING ACTIVITIES Steps of the mining development process Mine e Rehabilitation plan Closure a rehabi nd litation ment C of A for exploitation Mine develo pe Occupation lease on C of A xploita t udy Site authorization Mining lease Feasib ility st ery Certificate of Authorization (C of A) Work de of the velopment depos it Final e va the de luation of posite Occupation Lease Discov Claim EXPLOITATION Bulk sampling authorization Forestry permit Grassr oo prospe t cting Verific at anoma ion of lies Region al surv ey Off claim RESERVES Decisi EXPLORATION IDENTIFIED RESOURCES DEVELOPMENT UNIDENTIFIED RESOURCES Financial guarantee
MINING ACT Objectives of the Mining Act : § Promote the optimal use of mineral resources in order to create as much wealth as possible for the people of Québec; § Engage in mineral development in a manner respectful of the environment; § Promote development that is associated with Québec communities and integrated into their environment; § Pursue sustainable diversification of the regions' economies.
MINING ACT Mining titles and authorizations : § Exploration activities § § § Claim (CDC) Bulk sampling authorization Exploitation activities § Exclusive lease to mine surface mineral substances (BEX) § Non-exclusive lease (BNE) § Mining lease (BM) § Mining without a lease (ASB)
MINING TITLES Area of Québec : 1 664 441 km 2 Mining titles Total number : 144 988 Total area : 71 188 km 2 (4, 3 %) Updated : April 7, 2017
MINING RESTRICTIONS Restrictions to mining activities Major restriction – Exploration prohibited 176 644 km 2 (10, 6 %) Major restriction – Temporary suspension 141 627 km 2 (8, 5 %) Major restriction – Urban perimeter 5 636 km 2 (0, 3 %) Major restrictions = 323 907 km 2 (19, 4%) Minor – Exploration allowed under specific conditions 124 692 km 2 (7, 5 %) Updated : April 7, 2017
EXPLORATION TITLE (CLAIMS) Claim § The holder of a claim has the exclusive right to explore for mineral substances on the parcel of land subject to the claim (~ 52 ha) § In case of discovery, and under certain conditions, the claim gives the holder a reasonable assurance of obtaining a mining lease § A claim may be obtained by map designation, without the exercise of any discretion and without regard to the means of the applicant § A claim is valid for two years; the applicant must comply with certain conditions for renewal
EXPLORATION TITLE (CLAIMS) Claim § Does not grant land rights § Does not give the right to do exploration work on private land without the written permission of the owner § Does not exempt the holder from the obligation to respect the laws in force § Cannot be designated in parts of the domain of the State withdrawn from prospecting, mining exploration and mining operations (ex. protected areas projects, urban perimeter, etc. ) § Large number assigned annually (25 000 to 60 000)
MINING LEASES For Surface mineral substances § Peat, sand, gravel, limestone, common clay § All types of rock used as dimension stone, crushed stone, silica ore or in the making of cement § Any other mineral substance found in its natural state as a loose deposit § Inert mine tailings used for construction or soil amendment
MINING LEASES For Surface mineral substances Term of leases § BNE: ends on March 31 st of every year and is renewable § BEX: 1 to 10 years and renewable for 5 years
MINING LEASES (BM) § Base metals § copper, zinc, nickel § Precious metals § gold, silver, platinum, palladium § Other metals § iron, titanium, magnesium, manganese § Gemstones § diamond, garnet, ruby § Industrial minerals § lithium, graphite, silicon, rare earths elements
MINING LEASES (BM) § A mining lease is required to mineral substances § Maximum area of 100 ha § 20 -year lease § Renewable for 10 years
MINING LEASES (BM) § Submission of a certified report describing the nature, scope and probable value of the deposit, along with a feasibility study and a scoping and market study as regards ore processing in Québec § Prior approval of the rehabilitation and restoration plan § Prior public consultation (BAPE or promoter) § Environmental impact assessment where applicable § Prior issuing of a certificate of authorization by the MDDELCC
MINING LEASES (BM) § Creation of a monitoring committee within 30 days after the lease is issued § Composed of at least § One representative from the municipal community § One representative from the economic community § One member of the general public § One representative from an Aboriginal community consulted by the Government in respect of the project § Maintained until completion of all the work set out in the rehabilitation and restoration plan
REHABILITATION AND RESTORATION PLAN § Measures for temporary stoppage of activities § Description of the mining site and restoration program § Underground activities § Emergency plan § Monitoring program § Economic and time considerations § Financial guarantee § Detailed description of the costs engendered by each activity, including administrative and design costs, as though all work was carried out by a third party § Including the cost of gradual restoration and the monitoring program (monitoring of integrity of works, environmental and agronomic monitoring).
FINANCIAL GUARANTEE § Equal to the full estimated cost of restoring the entire site § Paid in three instalments § § § 1 st instalment (50 %) within 90 days after approval of the plan Two subsequent instalments (25% each) on the anniversary date An additional guarantee may be required if the MERN feels the original guarantee is not sufficient § The MERN sets the deadline for the guarantee § The guarantee may be lowered if the estimated cost of carrying out the plan is reduced § The MERN may demand that the guarantee be paid in full where there is a risk of non-payment
AMENDMENTS TO THE MINING ACT An Act to amend the Mining Act (dec. 2013) § New provisions for : § Economical axis § Environmental axis § Social axis
AMENDMENTS TO THE MINING ACT The Mining Act applies subject to: § the Act respecting the land regime in the James Bay and New Québec territories; § the Act approving the Agreement concerning James Bay and Northern Québec; § the Act approving the Northeastern Québec Agreement
AMENDMENTS TO THE MINING ACT § Economical axis § An application for a mining lease must be accompanied by a project feasibility study as well as a scoping and market study as regards processing in Québec. § When granting a lease, the Government may, on reasonable grounds, require that the economic spinoffs within Québec of mining the mineral resources authorized under the lease be maximized.
AMENDMENTS TO THE MINING ACT § Environmental and social axis § Amendment to the Regulation respecting environmental impact assessment and review § Public consultation held by the developer § Rehabilitation and restoration plan § Monitoring committee § New provisions for the claim holder § Annual report on all work performed § Notifications to the municipality and landowner
AMENDMENTS TO THE MINING ACT Provisions specific to Native communities § This Act must be construed in a manner consistent with the obligation to consult Native communities. § The Government shall consult Native communities separately if the circumstances so warrant. § Taking into account the rights and interests of Native communities is an integral part of reconciling mining activities with other possible uses of the territory. § The Minister draws up, makes public and keeps up to date an Aboriginal communities consultation policy specific to the mining sector.
CONSULTATION POLICY Scope § The policy was developed in compliance with the principles of the Interim Guide for Consulting the Aboriginal Communities. § The policy is not intended to : § § § define or recognize the aboriginal or treaty rights of Aboriginal communities; replace existing agreements between Québec and one or more Aboriginal communities. In the event of any conflict between the Policy and an agreement, the latter shall prevail.
CONSULTATION POLICY § Information by the Government § § § The Government is committed to share information on the granting of mining claims and exploration activities carried out. Applicable throughout Québec Information by the developer § § § The developer is invited to share information regarding obtained mining claims and exploration activities planned. Promoted throughout Québec Consultation § In compliance with the James Bay and Northern Québec Agreement
CONSULTATION POLICY Information by the Government For the claim and related exploration activities § Through its mining title management system (GESTIM), Québec makes information about registered and pending claims available to Aboriginal communities. § Information about records of work carried out annually on each claim and the exploration reports filed for claim renewal is also made available through GESTIM. § To enable them to keep track of mining activity, Québec offers training sessions on the use of GESTIM to interested Aboriginal communities.
CONSULTATION POLICY Information by the Developer § Developers § Are encouraged to approach Aboriginal communities as early as possible in the mineral development process; § Should undertake to maintain harmonious relationships with Aboriginal communities and should focus on transparency, information sharing and cooperation; § May contact Québec to obtain information about the communities concerned, as well as about their roles and responsibilities with regard to them.
CONSULTATION POLICY Information by the Developer For the claim and related exploration activities § Québec recommends that the developer inform the Aboriginal communities concerned about obtaining a claim within 60 days of its registration. § The developer is urged to inform the Aboriginal communities concerned about exploration work planned, at least 30 days before the work begins.
CONSULTATION POLICY Current provisions regarding the sharing of information § James Bay and Northern Québec Agreement § § Consent required for the granting of a mining claim on Category I Lands Mining Act, section 65 : § With respect to lands granted, alienated or leased by the State for purposes other than mining purposes and lands subject to an exclusive lease to mine surface mineral substances, the claim holder must, within 60 days after registering the claim and in the manner determined by regulation, notify the owner, the lessee, the holder of the exclusive lease to mine surface mineral substances and the local municipality of the claim obtained. § If the claim is in the territory of a local municipality, the claim holder must also inform the municipality and the landowner, at least 30 days before the work begins, of the work to be performed.
CONSULTATION POLICY Conclusion § The James Bay and Northern Québec Agreement and other agreements prevail. § Some of the current provisions are equivalent to measures proposed in the draft policy. § Enforcement of section 65 of the Mining Act vs. the draft policy.