November 17, 1998
(Executive Council)
(Mines and Energy)

Government introduces amendments to Mineral Act

Premier Brian Tobin and Charles Furey, Minister of Mines and Energy, announced today that government will introduce amendments to the province's Mineral Act into the House of Assembly today.

The amendments include an addition of a section to the act which will set out the conditions under which a mining lease is granted, and the requirements for the further processing of mineral resources in the province. Other changes will modernize important aspects of the province's regime governing competitive claim staking, the issuance of exploration approvals and the mineral exploration process leading to the issuance of a mining lease.

"The key aspect of this bill will be to amend Section 31 and add Section 31.1 to the Mineral Act. These changes will set out the conditions under which a mining lease is granted, and the requirements for further processing of mineral resources," said Premier Tobin. "The government's intentions and our policy regarding the requirement for further processing of mineral resources in our province, have been clearly and consistently communicated. When it is appropriate for the orderly production of mineral resources and it is in the best interests of the province, the further processing must take place here. This bill will ensure that the intent of the legislation will be understood by everyone investing in the province."

Government has chosen to introduce these amendments because it concluded that the current legislation may be subject to conflicting interpretations. These uncertainties may provide the potential for conflict or lack of certainty which is a problem for industry, for government, and for the people of Newfoundland and Labrador. "While the current wording of the legislation may open interpretation, the intent of our policy is clear. The bill which I am introducing today proposes new language which will create certainty, and clearly lay out our policy with respect to further processing of minerals in our province," said Furey.

"Government's policy is simple. If it is economically viable for primary production of minerals to take place in Newfoundland and Labrador, then it should take place in the province. The bill which will be introduced into the House of Assembly today does not change that policy. It does however, clarify the policy and reaffirms the right of government to order further processing of minerals granted under a mining lease issued by government," said Tobin. "This bill also provides the people of Newfoundland and Labrador, the owners of our mineral resources, with certainty that they will receive the maximum benefits from the development of their resources."

Other components to the bill include a new competitive claim staking procedure for a staking rush, changes to the issuance of exploration approvals, and changes to the mineral exploration process leading to the issuance of a mining lease. "These changes will essentially modernize our exploration procedures in the province and enable prospectors and explorationists around the province to effectively participate in a staking rush without having to travel to St. John's to do so," said Furey.

"Investors and developers of the province's resources are essential components to the further development of our province's potential," added the premier. "To invest in Newfoundland and Labrador, companies must be sure that they understand our requirements, and they must be sure that they can earn a reasonable return. This bill provides that certainty by establishing a clear public policy framework for the mining industry while at the same time it provides for more efficient use of an organization's resources."

This policy was first reflected in the 1995 amendments to the Mineral Act, which required "primary production", meaning the smelting, processing and refining of a mineral or mineral ore, to take place in the province as a condition of a mining lease, if it was economically feasible to do so.

Media contact:

Heidi Bonnell, Premier's Office, (709) 729-3564

Tara Laing, Mines and Energy, (709) 729-4890

FACT SHEET

Mineral Act Amendments Governing Exploration
and Land Tenure Procedures

• The bill would amend Section 21 of the act to provide a different procedure for areas coming open for re-staking, and a provision for a draw to determine the priority of applications. And as well, would allow applications for a licence to be made by mail as well as in person. The Bill would grant the Lieutenant-Governor in Council authority to make regulations to allow the minister to prescribe procedures for conducting a draw to determine the priority of applications for mineral rights during staking rushes for areas coming open for staking.

• The bill would require an exploration plan, including an outline of any activities capable of ground disturbance, disruption to wildlife or wildlife habitat, be submitted to the minister who shall grant an exploration approval before any exploration work begins.

• The bill would also make non-compliance with the amendment contained in the above clause an offence.

• The bill would increase the maximum fine upon conviction for an offence under the Mineral Act from the present $2,000 to $10,000.

• The bill would allow all mineral licences to be split into smaller licences.

• The bill would make the requirements regarding a survey and land markings to obtain a lease apply to any applicant for a mining lease.

• The bill would clarify the provisions of the act, currently included in Section 32, respecting the renewal of mining leases upon expiry of the term of a lease.

1998 11 17                              2:15 p.m.