On November 1, 2012, new rules under Ontario's recently modified Mining Act (Act) took effect and could have a significant impact on mineral exploration activities in Ontario. Most of the high-level changes to the Act were passed in 2009 and were the culmination of several years of consultation by the Ministry of Northern Development and Mines (MNDM) with industry stakeholders, environmental groups, private citizens and Aboriginal communities. One of the most controversial changes for the mining industry was the inclusion of a duty to consult affected Aboriginal communities. The long-awaited details of how the Act modernization, including the duty to consult, would work in practice became more clear on October 3, 2012, when the MNDM released the regulations. The regulations are to be fully implemented by April 1, 2013.
Of the new requirements on the resource industry, the most impactful, particularly for junior players, is the requirement to submit exploration plans or apply for exploration permits, both of which include the duty to consult affected Aboriginal communities, prior to any substantive exploration work commencing. These new requirements are in contrast to the previous system, where no permission was required to undertake explorative programs on mining claims, leases or licences. The stated purpose of requiring a consultation at an earlier stage includes the goal of achieving an early-stage agreement between the mining company and any affected Aboriginal communities, with a view to potentially avoiding such later-stage challenges as those faced in the ongoing dispute between Solid Gold Resources Corp. and Wahgoshig First Nation. However, one unintended result of these new consultation requirements could be to cause a significant delay in the MNDM's process for allowing exploration, creating uncertainties and resulting in cost increases for exploration companies who are otherwise ready to start exploration work to preliminarily assess the viability of claims.
To view original article please click here.
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.
