On February 13, 2013, a notice was published in the Gazette
officielle du Québec by the Minister of Natural
Resources, Martine Ouellet, announcing amendments to the
Regulation respecting mineral substances other than petroleum,
natural gas and brine (the
"Regulation"). All of these amendments
pertain to the rules applicable to financial guarantee requirements
for rehabilitation and restoration plans under Section 231 and
following of the Quebec Mining Act.
The draft regulation amends the Regulation by increasing from
70% to 100% the financial guarantee required to ensure performance
of the work required by the rehabilitation and restoration plan and
by broadening the scope of the guarantee from being required only
for the rehabilitation and restoration of accumulation areas (for
mineral substances, overburden, concentrates and tailings), to
being required for the rehabilitation and restoration of the entire
The payment schedule for the financial guarantee will also be
amended for companies who are currently engaging in exploration
work as well as for those engaging in mining operations or
operating a concentration plant.
In the case of companies engaging in exploration work, under the
current Regulation, the total guarantee must be submitted within 15
days after the rehabilitation plan is approved, if the exploration
work is expected to last 1 year or less, or the financial guarantee
can be submitted in annual payments if the exploration work is
expected to last more than 1 year. The amendments now provide that
every holder of mining rights who engages in exploration work must
provide the financial guarantee to the Minister before the
beginning of exploration work.
For operators engaging in mining operations in respect of
tailings or mineral substances set out in the regulations, or
operating a concentration plant, the current Regulation provides
that their annual payments will be made according to rules set
forth in a table. However, the amendments to the Regulation provide
that the guarantee must now be submitted to the Minister in three
payments, the first of which would represent 50% of the total
guarantee and would be paid in the 90 days after approval of the
rehabilitation plan is received. The subsequent payments of 25%
each would be made on the anniversary date of approval.
The draft regulation also reviews certain forms of financial
guarantee and requires the filing of a restoration plan for the
movement of 1000 m3 or more of unconsolidated
The new amendments will also apply to operators who are
currently engaging in mining operations or operating a
concentration plant and whose restoration plan has been approved
prior to the draft regulation coming into force. These operators
will also have to provide the financial guarantee for the
restoration of the mine site in three payments, the first payment
being required at the latest one year after the draft regulation
comes into force.
The draft regulation is set to come into force on February 28,
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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