June 3, 2014
Strengthening Resource Development
Mineral Act Amendments Encourage Mining Exploration Activity in the Province
Today, an Act to Amend the Mineral Act and Regulations received second reading in the House of Assembly. The amendments will encourage additional mineral exploration activity in the province and will clarify rules regarding the renewal of mining leases.
“Amendments to the Mineral Act will bring Newfoundland and Labrador’s legislation closer in line with other mining jurisdictions across the country and will therefore enhance the province’s competitive business environment. Amendments are based on consultation with companies, industry associations, as well as Aboriginal governments and organizations.”
- The Honourable Derrick Dalley, Minister of Natural Resources and Minister Responsible for the Forestry and Agrifoods Agency
Through these amendments, a term of 30 years on mineral licenses will replace the current maximum term of 20 years. There will be mandatory requirements for license holders to ensure progress continues to be made on the development of the property. For example, a license holder with a license past 20 years will have to spend more on mineral exploration each year to keep the license in good standing. In addition, restrictions on license size are expected to encourage exploration over a wider geographical area within existing licenses.
The process for renewing mining leases will also be more clearly defined as a result of these amendments. Lease holders must ensure a written application for renewal is received no later than three months before expiration of original lease or extension, and must demonstrate that the mineral resource is of sufficient size and quality to be economically viable.
QUICK FACTS
- An Act to Amend the Mineral Act and Regulations received second reading in the House of Assembly today (June 3). The amendments will encourage mineral exploration activity in the province and clarify rules regarding renewal of mining leases.
- Through these amendments, a term of 30 years on mineral licenses will replace the current maximum term of 20 years, and there will be mandatory requirements for license holders to ensure progress continues to be made on the development of the property.
- The process for renewing mining leases will also be more clearly defined as a result of these amendments.
- Mineral license holders have the exclusive right to explore for minerals, but do not have the right to remove minerals, except for the purpose of sampling, assaying and testing. A license holder who wishes to remove and sell minerals must hold a mining lease.
- The Provincial Government already has rigorous monitoring requirements in place when it comes to mineral licenses and mining leases. The legislation requires that companies complete annual exploration assessment work, submit annual reports, and pay renewal fees every five years. The new 30-year term will include further requirements of license holders to conduct exploration work.
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Media contact:
Diana Quinton
Director of Communications
Department of Natural Resources
709-729-5282, 631-8155
dianaquinton@gov.nl.ca
2014 06 03 7:20 p.m.