Canada Gazette, Part I, Volume 153, Number 21: Regulations Amending the Nunavut Mining Regulations

May 25, 2019

Statutory authority

Territorial Lands Act
Financial Administration Act

Sponsoring department

Department of Indian Affairs and Northern Development

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Background

The rich mineral potential of Nunavut provides significant opportunities for economic growth for the territory. According to Statistics Canada, the mining sector contributed to approximately 17% of the territory’s gross domestic product between 2011 and 2015.

Crown lands in Nunavut are managed pursuant to the Territorial Lands Act (R.S.C., 1985, c. T-7) and its related regulations, including the Nunavut Mining Regulations (SOR/2014-69). These Regulations provide the rules for prospecting and developing the mineral deposits on lands in Nunavut that are open for mineral exploration. They were last updated in 2014 in a two-phased approach to correspond with the devolution of mineral rights administration to the Government of the Northwest Territories: (1) the splitting of the former Northwest Territories and Nunavut Mining Regulations into two separate mining regulations, the Northwest Territories Mining Regulations and the Nunavut Mining Regulations; and (2) the current proposed amendments to apply to the Nunavut Mining Regulations only. The current federal Northwest Territories Mining Regulations (SOR/2014-68) will continue to apply to the small residual amounts of lands still under the administration and control of Canada in the Northwest Territories after the devolution in 2014 of lands, resources and rights in respect of waters in the Northwest Territories from Canada to the Commissioner of the Northwest Territories.

Under the current Nunavut Mining Regulations, prospectors are required to physically stake a mineral claim by planting wooden posts on the ground and using metal identification tags to mark the boundaries of a parcel of land to acquire exclusive rights to prospect for minerals there. Ground staking routinely involves the use of helicopters by workers to reach remote areas that have limited transportation infrastructure and is very costly. The current Regulations also require that the federal government’s transactions with clients be made through paper forms and payments by mail or in person at the Mining Recorder’s Office in Iqaluit. Under the proposed amendments, prospectors would obtain mineral claims through an online process and pay deposits at the moment of obtaining the claims that are refundable once mineral exploration work is done on the claims and assessed. This approach is similar to the current process for obtaining prospecting permits, which requires the payment of a refundable deposit upfront to prevent the nuisance acquisition of mineral rights with the intent of blocking access to the lands from others without developing their mineral potential.

Despite its mineral riches, Nunavut is lagging behind other Canadian mining jurisdictions such as British Columbia, Ontario and Quebec, which already have processes in place to obtain mineral claims online. Although the territory has 20% of Canada’s land mass, it represents only 10% of Canada’s total annual expenditures on mineral exploration. Mining operations in Nunavut are disadvantaged by a lack of transportation infrastructure, high costs of energy and harsh weather. While exploration costs in Nunavut still remain high due to these factors, the new ability to easily obtain mineral claims online would eliminate the costly first step of ground staking of claims. It is expected that the savings would allow individuals and companies specializing in higher-risk, early-stage mining exploration to redirect resources previously spent on ground staking of mineral claims to offset the costs of actual mineral exploration activities of the claims themselves, leading to increased mineral development.

Issue: Trend toward online administration system of mining right

Mining is a major contributor to economic growth in the northern territories, but ground staking is a cumbersome and costly process that can also be dangerous, particularly in remote areas with little transportation infrastructure.

The trend in many Canadian mining jurisdictions such as British Columbia, Ontario and Quebec is toward online and cost-effective systems of obtaining mineral claims. The mining industry has asked Canada to update the Nunavut Mining Regulations so they align with other Canadian mining jurisdictions that allow for online map selection of mineral claims, payments and transactions.

Crown-Indigenous Relations and Northern Affairs Canada (the Department) is proposing amendments to the Nunavut Mining Regulations (SOR/2014-69) to help remove barriers to mineral exploration and development in Nunavut with the implementation of an online administration system of mining rights allowing for online selection of mineral claims on map.

The proposed amendments would eliminate the need to plant wooden posts on the ground to mark the boundaries of a mineral claim and introduce a web-based process whereby mineral claims on Crown lands in Nunavut could be obtained online. Decisions on mineral claims would be made almost instantly, reducing delays and potential confusion over ownership as it would be impossible for multiple claims to be recorded at the same time on the same location. Under the proposed amendments, most transactions related to mineral claims would be done online instead of using paper forms and making payments by mail or in person at the Mining Recorder’s Office in Iqaluit.

The proposed amendments would also repeal sections on prospecting permits as they would no longer be required, allow for payments to be made and documents to be submitted electronically, increase the duration of a mineral claim from 10 to 30 years, standardize the mining lease rental payments, update mineral exploration work requirements claim holders are required to fulfill in order to keep their claims, and limit the cost of environmental baseline studies work that can be used to satisfy these work requirements.

Amendments to the Nunavut Mining Regulations are required to establish a new legal framework to make these changes happen. If the Regulations are not amended, it will be impossible to implement online selection of mineral claims on map and prospectors will continue to assume costly expenses to physically stake claims on the ground. Nunavut would be less attractive as a jurisdiction for mineral exploration and the higher costs of obtaining mineral claims in remote areas would hinder mineral exploration and development, which is an important driver of the local economy. This would translate into fewer employment opportunities and declining revenues (taxes and royalties) for Inuit organizations and the Government of Nunavut as well as the Government of Canada. Furthermore, wooden posts are not durable or long lasting. Ground staking of mineral claim boundaries can cause mistakes and disputes as to the accuracy and timing of who planted the wooden posts first. Delays and inefficiencies in the processing of paper forms and payments make the current process much less competitive compared to that of mining jurisdictions that have switched to online selection of mineral claims on map. All else being equal, it is expected that there would be more mineral claims and thus more mineral exploration of these claims with the ability to obtain them online.

Objectives

The objectives of the proposed amendments are the following:

• Regulatory alignment: Better align the Nunavut Mining Regulations with regulations in other Canadian mining jurisdictions.
• Modernization: Establish an online administration system of mining rights to allow for a longer duration for mineral claims, payments by electronic means and the repeal of prospecting permits as well as most administrative fees.
• Improvement of service standards and delivery: Secure immediate approval and ownership of mineral claims.
• Update of mineral exploration work requirements and lease rents: Update mineral exploration work requirements to keep a mineral claim to better reflect the actual costs that are necessary to develop their potential over time, limit the cost of environmental baseline studies that can be used to fulfill these work requirements, and increase the annual rent for mining leases to align with the leasing requirements in other Canadian mining jurisdictions.

Description

The proposed amendments would affect everyone who has an interest in exploring for minerals on Crown lands in Nunavut. The changes would benefit the mining industry by making the process of obtaining mineral claims less costly and by making claims last for longer periods of time. It is expected that the savings from ground staking can be spent on the actual exploration for minerals on the claims themselves, which could lead to more exploration activities and better understanding of mineral deposits, thus stimulating the economic development of Nunavut.

Online administration system of mining right

The proposed amendments would enable the creation of an online administration system of mining rights in Nunavut that allows for mineral claims to be acquired online. This would change the current process of ground staking a mineral claim to selecting a claim on an online map of Nunavut that would be available on the Department’s website. The online map developed by the Department is based on the grid description (land division) of the Canada Oil and Gas Land Regulations (C.R.C., c. 1518) and would be divided into a grid with each unit of land ranging in size from 15 hectares in the far northern parts of Nunavut to 25 hectares in the southern parts, with an average size of 18 hectares. A claim would be composed of a minimum of one unit (15 to 25 hectares) to a maximum of 100 contiguous units (1 500 to 2 500 hectares).

The proposed amendments would also repeal provisions related to prospecting permits, as these would no longer be necessary, given the possibility of acquiring mineral claims online. Net cost savings, mostly for the mining industry, are expected because of the implementation of this system. Most of the savings would result from the removal of the requirement to physically stake a mineral claim using wooden posts.

The Department would convert existing ground claims into online map-based unit claims, but all existing rights would be maintained and measures would be proposed to ensure a seamless transition. These measures include not having to report mineral exploration work earlier than that would have been required under the former Regulations, and not having to report mineral exploration work for a period of time that would not have been required under the former Regulations.

New one-step process to acquire mineral rights

The proposed amendments would introduce online submission of all applications and documents, with the exception of the reports of work as well as royalty returns and their related documents. Online payment with a credit or debit card would be the only accepted method of payment, except for royalty payments, which would continue to be by cheque or wire transfer. Individuals and incorporated companies could request a user name and password to access the online system. This would allow users to apply for a licence to prospect and authorize representatives to transact on behalf of a licencee using the online system.

Regulatory modernization and alignment with other mining jurisdictions

The proposed amendments also contain a number of measures to modernize the administration of mineral claims to make it more consistent with other mining jurisdictions.

Extending the duration of mineral claims

The allocation and administration of mineral rights are fundamental to mineral development. A standard feature of mining regulatory regimes is the requirement that annual mineral exploration work be carried out on a mineral claim at costs that are prescribed in the Regulations in order to keep the claim. This ensures that prospectors invest in the development of the mineral potential of the land over a reasonable amount of time. Currently, the maximum duration of a mineral claim in Nunavut is 10 years. To maintain tenure after that period, a mining lease of the claim must be obtained and rent must be paid, but there is no obligation to carry out mineral exploration work once a mining lease is obtained. The proposed amendments would increase the duration of a mineral claim from 10 to 30 years, allowing for a longer period of time to do mineral exploration work before deciding to obtain a mining lease. These proposed changes better reflect the length of time it takes to bring a property to a stage where its mining potential is more certain. A mining lease would be required to extract minerals from the land, but a mineral claim must first be obtained and a certain amount of mineral exploration work must have been done. In expanding the duration of mineral claims to 30 years and in keeping lease terms to 21 years, the proposed amendments provide mining industry with a consistent and stable environment in which mineral exploration, development and mining can occur.

Updating mineral exploration work requirements to keep a mineral claim

To keep a mineral claim, mineral exploration work must be carried out every year at costs prescribed in the Regulations and reported on annually in order to encourage exploration and discovery of new mineral reserves as well as to collect geologic assessments of the land. The costs of work in excess of the requirements can be applied to subsequent years. Mineral exploration work requirements in Nunavut have not changed since 1978. Currently, to keep a mineral claim in Nunavut, at least $5 of mineral exploration cost of work per hectare per year needs to be assumed, on a range of acceptable activities such as geological mapping, geochemistry, geophysics, remote sensing and drilling. With the implementation of a new online system where a claim comprises units of land on a predefined grid map, it is proposed that the existing per hectare rate be replaced by a per unit rate of work requirements, even though units can vary slightly in size. With a work rate per unit instead of per hectare, the annual mineral exploration work requirements could be easily calculated at the time of selection of units included in the claim. The required annual costs of mineral exploration work rates are progressive, with costs increasing over time. Despite these changes, Nunavut would still have the least work requirements among most mining jurisdictions in Canada.

Under the proposed amendments, a 30-year duration for the claim is divided into 6 periods, with work requirements escalating each period. Escalating the required rate of work on a claim over time, instead of a fixed rate, better reflects the reality of mineral exploration activities, which require more investments over time in order to develop the potential of the land. The escalation of the work requirements would also reduce long-term speculative ownership of mineral claims. The new requirements would apply to existing mineral claims, after their conversion into claims composed of units, and new unit claims.

Table 1 compares the current and the proposed new mineral work requirements on mineral claims for each year. The proposed work rate has been converted into dollars per hectare for comparison. As the size of a unit varies depending on location, the comparison is for one claim composed of one unit of average size (18 hectares).

There has always been a requirement to carry out and report on a prescribed amount of mineral exploration work per year to keep a mineral claim and this requirement is maintained in the new online system. Reports of work include the results of field studies on mineral claims and indicate the costs of mineral exploration work spent on each claim. These reports are added to a public database of geological information for Nunavut after a confidentiality period of three years. The database is available to prospectors and mining companies to support their exploration activities in the territory.

Table 1: Annual costs of mineral exploration work required to be done to keep mineral claims

Year	Current costs per hectare of land in the claim	Proposed costs per unit of land in the claim	Proposed costs per hectare of land in the claimfootnote 1
1	$5	$45	$2.50
2 to 4	$5	$90	$5.00
5 to 7	$5	$135	$7.50
8 to 10	$5	$180	$10.00
11 to 20	N.A.	$225	$12.50
21 to 30	N.A.	$270	$15.00

When an application to record a mineral claim will be made through the online system, an acquisition work deposit of $45 per unit would be charged to deter nuisance claims, a scheme that is similar to the current prospecting permit work deposit. The deposit would correspond with the costs of the mineral exploration work required to be done for the first year of the claim to keep it. If the required cost of work is spent on the claim doing mineral exploration work, the acquisition work deposit is fully refundable upon verification of the amount of mineral exploration work reported, as the objective is to encourage the mineral development of the land, not to collect charges.

Repealing sections related to disputing a ground staked claim

The current process of ground staking of mineral claims using wooden posts is susceptible to disputes over who has priority to record a mineral claim, as competing prospectors can argue over who planted the posts first on that piece of land. Under the proposed process of online selection of mineral claims on map, mineral claims will be recorded by selecting units of land on a predefined grid online, eliminating the chance of multiple claims being recorded at the same time at the same location and any resulting dispute. Sections related to disputing a ground staked claim are thus repealed. In the unlikely event of errors in the online system such as recording of a mineral claim on land that is not available, there are provisions in the Regulations to allow the Mining Recorder to correct the situation, and for ministerial review of the decisions, actions and omissions of the Mining Recorder.

Other regulatory changes that are proposed

• Repeal the following fees: duplicate or renewal of licence to prospect, claim and reduced-area claim tags, application to record a claim or reduced-area claim, certificate of work, fees for submitting work reports on claims, application for extension to do work and request to cancel the recording of a claim. These changes reflect the automation of administrative processes by the online system. Although no formal costing has been done, it is anticipated that the repeal is revenue-neutral since the reduced fees would correspond with the reduced administrative costs.
• Streamline rules on the opening of lands for prospecting and selection of mineral claims after a mineral claim or leased claim ends. Currently, timelines for the opening of lands are different depending on the reasons for cancellation of the recording of mineral claims. This distinction is no longer necessary. Changes are made so that land is open for exploration and recording of a mineral claim after 31 days, beginning on the day the recording of the claim is cancelled in all cases where mineral claims are cancelled.
• Limit the maximum amount of environmental baseline studies that can be used to fulfill mineral exploration work requirements for a mineral claim to 10% of the work in conjunction with which the environmental baseline studies’ work is done. This is in line with the general policy to encourage work that develops the mineral potential of the land and corrects the current situation where a large amount of environmental baseline studies can be done in conjunction with a very small amount of mineral exploration work.
• Extend the period to submit a report of mineral exploration work from 90 to 120 days beginning on the anniversary date of the recording of the mineral claim to allow more time to the claim holder to prepare the report.
• Establish a process by which during the first year of the recording of the claim, the holder of the claim can modify the recording date to any other day that is one year in the future from the initial recording date in order to consolidate many claims under the same anniversary date (day and month). This change would allow for flexibility in the filing of the reports on mineral exploration work done on the claims with the same anniversary date, as reports must be filed no later than 120 days beginning on the anniversary date of each recording. This would allow for one report respecting work done on multiple claims over the same period. However, the recording date could only be modified once in order not to complicate the administration of claims excessively.
• Introduce the ability to reduce a claim area once a year by removing units online, as long as the equivalent of the first two years of mineral exploration work has been done on the claim. This change is useful when prospectors no longer wish to explore any part of land comprised in their mineral claim.
• Standardize lease annual rental payments at $10 per hectare. Mineral exploration work is not required on the claim after it is leased; however, an annual rent must be paid based on the area of the leased lands. A newly obtained lease for a 21-year term to extract minerals from the lands comprising the recorded claim would have an annual rental rate of $10 per hectare. The current rent for mining leases of $2.50 per hectare for the first lease term of 21 years, and $5 per hectare for a renewed 21-year term, will be retained for the existing leases upon the coming into force of the proposed amendments. At the end of their existing first or renewed term, any further renewal would be leased at the increased rental rate of $10 per hectare.
• Establish new criteria for leasing based on a minimum of $1,260 per unit of work done on the claim, which amounts to 10 years’ worth of work or roughly $70 per hectare. This measure ensures that the mineral potential of the land has been thoroughly assessed before a lease can be obtained for a claim. Currently, a minimum of only $25 per hectare of mineral exploration work is needed before a mining lease can be obtained.
• Allow for the reporting of mineral exploration work done on a recorded claim up to four years preceding the filing of a report, instead of requiring that the work be done during the year reported on. This measure seeks to not penalize prospectors who spend money doing mineral exploration work on the land by allowing them to receive more credit for their work.
• Increase to five the combined total of possibilities for claim holders to either pay in lieu of the total of the annual costs of work requirements, or to pay only a portion of the cost of work if some work was submitted for a year but assessed to be insufficient to satisfy the work requirements to maintain the claim for that year. In both situations, a certificate of extension is issued for a one-year period to do the requested mineral exploration work.
• Continue to require a mineral claim survey for leases, but simplify the survey requirements to correspond with the change from ground staking of mineral claims using wooden posts to acquisition of mineral claims online. Although surveys will still be needed and survey monuments will still need to be put on the ground to physically mark the boundaries of the lease of the unit claims, the Canada Land Surveyor would not have to locate the wooden posts marking the boundaries of a claim on the ground as in the past, since the claim’s boundaries will now be based on the grid coordinates of the units that form the boundaries of the claim. It is anticipated that this measure would decrease survey costs by at least 20%.
• Extend the notification process required to obtain a lease so the notification is sent to holders of the surface rights, if the claim to be leased is either located on or contiguous to private lands, such as Inuit-owned lands. Currently when a survey is completed, only holders of the claims that are adjacent to the future leased claim receive a notice from the future lessee informing them that the claim is going to be leased. This proposal of extended notice to all adjacent holders of the surface rights would bring consistency with all stakeholders.
• It would no longer be possible to reduce the area of lands of leased claims for mining leases issued prior to the coming into force of the proposed amendments. Only leases of unit claims obtained through the new system could be reduced by removing units when the mining leases are renewed at the end of any of their 21-year term.

Transitional provisions

The proposed amendments would set up a 90-day transitional period following their coming into force where it will not be possible to stake new mineral claims on the ground. This 90-day period is required to carry out work to prepare for the implementation of the new system, such as to finish recording any pending application to record staked claims or process any pending application regarding existing claims. On the 91st day, the system would be fully operational: the online map would depict mineral claims converted to the grid, the existing prospecting permits and the mining leases, as well as the lands open for selection of new claims. Starting on that day, existing rights holders would have the ability to manage their tenures using the online system.

During the transitional period, prospecting could continue but staking of claims on the ground would be prohibited. Holders of mining leases would continue to manage their leases as usual with the exception that applications to reduce a lease would not be accepted and leases expiring within one year of the coming into force of the new Regulations would need to be renewed under the new Regulations. It would not be possible to request the cancellation of the recording of a claim or to transfer a claim. During the transitional period, work requirements and charges to be paid in lieu of work would be waived. The duration of existing claims would be extended until the 90th day. Mineral exploration work reports would not be accepted, but the recording of claims would not be cancelled for lack of work or unpaid charges during that period. Claim holders would have the opportunity to report on mineral exploration work done during the transitional period at a later date.

The 90-day transitional period is chosen to be as short as possible and at a time of low season of mineral exploration work so as to not interrupt mineral exploration activities but still be sufficiently long, based on best estimates, to process any pending applications about a claim and prepare for the implementation of the new system. Although no formal costing has been done, there are no anticipated temporary costs to businesses or reduced revenues to Government or Indigenous organizations resulting from the moratorium on staking during the transitional period.

Claim conversion

To ensure a uniform regime, the proposed amendments would establish a conversion of all existing ground staked claims to unit grid-based claims. In January 2017, all holders of existing claims received a letter asking them to confirm the positioning of their claims as depicted on an online map and to communicate any discrepancy to the Nunavut Mining Recorder. After consultation with the claim holders, the location of the claim was determined by the Mining Recorder and communicated.

On the 91st day beginning on the coming into force of the proposed amendments, the existing claims would be displayed on the map through the online system and expanded based on the transitional rules to include the entire available area of all grid units they occupy. This measure would increase the total area of claims in Nunavut by approximately 7%. In the future, if within a unit one of the claims is reduced, or the recording of a claim or a leased claim is cancelled, the claim that was staked first within the remaining claims in the unit would be expanded to fill the area made available, given that the claim to be expanded is adjacent to the available area. The objective is to simplify the management of claims by eliminating subdivisions of units over time.

Existing claims subject to leases would not be converted to grid-based unit claims and would remain unchanged. The rationale to exempt existing leased claims from the conversion process is that conversion would have compelled the lessee to pay for re-surveying their leased claims, which is a costly and time-consuming process, given that the leased claims would have been subject to the expansion process.

Transitional rules would modify the recording dates of the converted claims to begin as a new unit-based claim on the first anniversary date of the claim prior to conversion that follows the transitional period, with a new maximum duration of 30 years. Past obligations would not be carried forward and new mineral exploration work requirements would apply. Excess work already allocated to the future years of the mineral claims would be recognized and unallocated work could be allocated to the converted claims at the request of the claim holder, based on the new work rate.

Benefits and costs

The proposed amendments would free up resources previously spent on the ground staking of mineral claims for actual mineral exploration work that could lead to the discovery of new mineral deposits and the creation of new mines. The development of the mining potential of the land would benefit the Crown through the collection of taxes and royalties on mineral production, and benefit Nunavut through the creation of employment opportunities.

Benefits

The Department anticipates that the new Regulations would have multiple benefits for Nunavut and the mining industry. The proposed regulatory changes are expected to save the mining industry an estimated amount of $104.8 million over the next 10 years. This is equivalent to a saving of $14.9 million per year (assuming a 7% discount rate) or about $33,158 per year for each licensed prospector in Nunavut.

It is expected that the new online administration system of mining rights would lead to a better knowledge of the mineral potential of the Nunavut territory, which, compared to other Canadian jurisdictions, is largely underexplored. The Department anticipates that the proposed new Regulations would lead to an increase in mineral exploration and development expenditures in Nunavut. This would, in turn, improve employment prospects for Nunavut. Mining operations in Nunavut are disadvantaged by a lack of transportation infrastructure, high costs of energy and harsh weather. While exploration costs in Nunavut still remain high due to these factors, the new ability to easily obtain mineral claims online would eliminate the costly first step of ground staking. It is expected that the savings would allow individuals and companies specializing in higher-risk, early-stage exploration to redirect resources previously spent on ground staking of mineral claims to offset the costs of actual mineral exploration activities of the claims themselves, leading to increased mineral development.

In addition, the proposed new Regulations would reduce air traffic, particularly helicopter transportation, with the elimination of the requirement for prospectors to physically stake their claims. Disturbances caused to wildlife in Nunavut are thus reduced as well as the use of fossil fuels and the emission of greenhouse gases.

The proposed Regulations would also reduce the potential for workplace accidents and injuries that are often associated with operations in remote areas and under harsh weather conditions, as travelling to the site and physically staking claims would no longer be required.

Costs

Mineral exploration companies operating in Nunavut would need to meet some additional requirements, mostly higher mineral exploration work requirements, to keep mineral claims in good standing. Those expenses can be seen as investments, as they would allow companies to explore and develop the mineral potential of their claims. In addition, the mineral exploration work requirements increase over time because the expenditures necessary to develop the mineral potential of a property become higher over time, and because more costly exploration techniques, such as drilling, are used.

The proposed Regulations would lead to individual prospectors and companies involved in mineral exploration in Nunavut spending an estimated $41.9 million over the next 10 years in additional costs to do mineral exploration work. This is equivalent to $6.0 million per year (assuming a 7% discount rate) or about $13,268 per year for each licensed prospector in Nunavut.

The increase in costs would result mostly from changes to the mineral exploration work requirement rates. Those changes would explain the increase of $33 million over the next 10 years while the remaining cost of $8.9 million would be caused by other factors, including the necessity for industry to familiarize itself with the proposed information management and technology system.

Net outcome

It is anticipated that administrative efficiency, through the reduction of travel on site and clarified procedures, will more than compensate for any incremental costs. It is expected that the regulatory changes would result in

• savings of $62.9 million over the next 10 years;
• the equivalent of annualized savings of $8.9 million (assuming a 7% discount rate); and
• annualized average savings of $19,891 for each licensed prospector in Nunavut.

Throughout the engagement process, the mining industry has not expressed any concerns related to the net outcome of the proposed new Regulations.

“One-for-One” Rule

The current initiative is an “OUT.”

Annualized administrative costs (constant 2012 dollars) Present value base year 2012	−$34,460
Annualized administrative costs per business (constant 2012 dollars) Present value base year 2012	−$77

This proposal is considered an “OUT” under the “One-for-One” Rule, as it results in a net reduction in administrative burden costs. According to the Department’s analysis using the Regulatory Cost Calculator as per the methodology described in the Red Tape Reduction Regulations, the proposed amended Regulations would decrease the administrative burden for companies involved in mineral exploration activities in Nunavut and result in

• savings of $242,028 over the next 10 years (measured in 2012 Canadian dollars);
• the equivalent of annualized savings of $34,460 (assuming a 7% discount rate and measured in 2012 Canadian dollars); and
• annualized average savings of $77 for each licensed prospector in Nunavut (assuming a 7% discount rate, measured in 2012 Canadian dollars).

The proposed changes have an impact on the administrative and compliance costs to the mining industry. In order to monetize the impacts of the proposed amendments, consultations have been conducted with industry, as well as departmental officials at the Nunavut Regional Office.

The decrease in administrative burden will result in savings for companies involved in mineral exploration in Nunavut, as a consequence of a number of changes to the Regulations, such as the following:

Decreases

• 1. The elimination of the requirement to travel to Nunavut and physically stake or restake claims and the introduction of the new online administration system of mining rights to obtain mineral claims online.
• 2. The removal of fees related to the following activities: recording a mineral claim or a reduced-area mineral claim, reporting work on a mineral claim, requesting a duplicate licence, cancelling the recording of a mineral claim, extending the time within which work is allowed to be done and reported, and renewing annual licences for individuals and companies.
• 3. The repealing of the prospecting permits regime and all fees and costs associated with the regime.
• 4. The simplification of administrative processes related to reporting requirements.

Increases

• 1. The changes in mineral exploration work requirement rates in order to keep a mineral claim in good standing, as it would be possible to keep a mineral claim 30 years after its recording instead of 10 years before having to obtain a mining lease.
• 2. The change in the annual rents for mining leases.
• 3. The extension of the requirement to send a notice by registered mail or carrier to adjacent claim holders — to inform them that a mineral claim to be leased has been surveyed — to designated Inuit organizations, if the claim is located on or adjacent to Inuit surface-owned lands.
• 4. The necessity for all stakeholders to learn and become familiar with the new amended Regulations and the new web-based system.

Small business lens

The small business lens does not apply to this proposal, as this proposal will decrease costs to small business.

Consultation

The Department has been holding consultations and discussions with the mining industry, Inuit organizations, Canada lands surveyors and other affected groups since 2010 on the proposed changes to the Nunavut Mining Regulations. Overall feedback received has been positive.

A large information package was mailed in 2012 to licensed prospectors, Inuit organizations, mining industry associations, the Government of Nunavut, federal departments with a mandate in Nunavut and Nunavut land claim agencies. The package was sent to a total of 415 stakeholders, including 161 companies, 3 Nunavut institutions of public government, and 5 Indigenous organizations (Nunavut Tunngavik Incorporated, the Kitikmeot Inuit Association, the Kivalliq Inuit Association, the Qikiqtani Inuit Association and the Prince Albert Grand Council). The information package included a table summarizing the proposed regulatory changes and a comprehensive document presenting the project in detail. The package was also published for the public on the Department’s Mineral Resources website. The Department received 345 responses, including questions seeking clarification on the proposed amendments and comments from 29 respondents, the large majority of which support the transition to using the online administration system of mining rights.

Here is the summary of the comments received and the departmental responses. Inuit organizations offered no comments or suggestions on the proposed amendments, but did not voice any objections.

Summary of comments from 2012 consultations

• Comment: Disadvantage to those who are not computer literate. Ask for ability to mail in application to record a claim.
• Response 1: Those who are not familiar with online applications can obtain explanations from the Mining Recorder’s Office. Clients can visit the Mining Recorder’s Office in Iqaluit or other federal offices located in Nunavut to use computer facilities. In addition, clients can hire an agent who can apply to record claims on their behalf.
• Response 2: Sending applications by mail has not been retained. Adopting multiple means by which a mineral right can be applied for makes it is difficult to determine which application was received first. The responsibility for managing the priority would then be the responsibility of the Mining Recorder. With the online administration system of mining rights, the priority of applications remains with the clients.
• Comment: Online mining systems advantages those who have access to high-speed Internet and are physically closer to where the servers of the system are located. Nunavut residents are disadvantaged due to slower Internet speed access in the North.
• Response 1: The Nunavut online administration system of mining rights is designed to minimize the use of Internet bandwidth.
• Response 2: Clients can hire an agent who can apply to record claims on their behalf from another location with high-speed Internet.
• Comment: Ask that the online administration system of mining rights work seamlessly with Google Earth.
• Response: The Nunavut online administration system of mining rights is web-based and does not make use of any desktop software such as Google Earth.
• Comment: Ease of recording a claim to prevent others from doing so is a concern.
• Response: Requiring an upfront deposit of $45 per unit in the claim at the moment of the application for recording — that can be refunded if mineral exploration work is done later on — reduces acquisition of claims for nuisance purpose while encouraging the development of the mineral potential of the land.
• Comment: Ensure that the proposal encourages the development of the mineral potential of the land by spending money in mineral exploration and not with the objective for the Government to collect money.
• Response: To encourage the actual exploration for minerals, a refundable deposit of $45 per unit in the claim is required, instead of an administrative fee, with the application to record a claim. The deposit would correspond with the costs of mineral exploration work required for the first year of the claim. If the required cost of mineral exploration work is spent on the claim, the deposit is fully refundable upon verification of the amount of mineral exploration work reported.
• Comment: Adopt Alberta method of calls for bids when there are multiple prospectors trying to record a claim on the same units of land.
• Response: The calls for bids method for mineral claims issuance has not been adopted. The objective of the proposed amendments is not to change the fundamental first come first served principle governing mineral rights acquisition in Nunavut, a principle that selection of claims on map respects.
• Comment: Adopt the Canada Oil and Gas Land Regulations grid to preserve consistency across the North with respect to resource development.
• Response: The grid (land division) described in the Canada Oil and Gas Land Regulations is used for the issuance of oil and gas rights in Canada North of 60° of latitude. This is the same grid that is proposed to be used for selection of claims on map in the proposed Nunavut online administration system of mining rights.
• Comment: Do not limit the number of claims that can be applied for recording in one session.
• Response: Only one claim can be applied for recording during one session. The Department wants to encourage competition and give the ability to individual prospectors, and not just companies with large capitalization, to acquire mineral claims online.
• Comment: Some ask to keep prospecting permits whereas some others ask that they be eliminated.
• Response: A decision was made to remove prospecting permits because permits are a form of map selection of a mineral right where the application is made on paper. The proposed Nunavut online administration of mining rights system is more modern and would replace the prospecting permits system.
• Comment: Proposed costs of mineral exploration work required to keep a claim, especially in later years, are too high. Need to take into account the high cost of mineral exploration in Nunavut.
• Response 1: Initial proposed costs of mineral exploration work requirements have been revised downward.
• Response 2: The proposed costs are still the lowest among mining jurisdictions in Canada.
• Comment: The mineral exploration work requirements should be based on units of land included in the claim instead of per hectare of land in the claim.
• Response: The mineral exploration work requirements are now based on units of land of the online grid comprised in a mineral claim instead of per hectare of land of the claim to facilitate easier calculation of the mineral exploration work requirements at the time of recording of a claim.
• Comment: Do not increase annual lease rental payments.
• Response: Currently, the rent for mining leases is $2.50 per hectare of land for the first lease term of 21 years, and $5 per hectare for a renewed 21-year term. It is proposed to standardize lease rental payments at $10 per hectare of land for any term. The proposed rent is still among the lowest among mining jurisdictions in Canada.
• Comment: If the annual lease rental payment is increased, ask for the ability to pay a reduced rent if the mine site is not producing.
• Response: It is not proposed to reduce the rent for a mining lease where a mine is not producing. If there is no mining activity, the mining lease should be cancelled making the land available again to be applied for recording as a mineral claim for someone else.
• Comment: Ask for the ability to apply mineral exploration work done on a lease to reduce the annual lease rental payment.
• Response: In the former version of the Nunavut Mining Regulations, a lessee had the ability to reduce the rent on a mining lease by an amount corresponding to a percentage of mineral exploration work done on the lease. This measure has been removed because it was not used. There is no intent to reintroduce the measure.
• Comment: Need to have the ability to choose a common anniversary date for multiple claims.
• Response: Holders of a recorded claim will be able to choose a different recording date for the claim in its first year once, thus making it possible for multiple claims to have a common anniversary date.
• Comment: Increase maximum size of grouping of claims to 10 000 hectares.
• Response: The maximum size for the grouping of claims is 400 units and each unit can have a maximum area of 25 hectares, for a total of 10 000 hectares.
• Comment: Do not remove confidentiality period of three years for the report of work.
• Response: This rule is retained. Reports of mineral exploration work are not available for viewing by the public in the three years after the day on which the report of work is received by the Mining Recorder.
• Comment: Do not include a prescribed time period for the Mining Recorder to review the report of mineral exploration work and assess the cost of work reported.
• Response: There is no plan to add a prescribed time period for the Mining Recorder to assess a report of mineral exploration work submitted.

To follow up on the initial comments made, the Department met with the mining industry during the 2013 Mineral Exploration Round Up conference. Stakeholders were informed of the Department’s responses at the 2016 and 2017 Mineral Exploration Round Up conferences, the 2016 and 2017 Prospectors and Developers of Canada conferences, and the 2016 and 2017 Nunavut Mining Symposiums. These forums are attended by individual prospectors and representatives from junior and major mining companies involved in the exploration and extraction of minerals, companies providing services to the mining industry, Indigenous and Inuit organizations, and non-governmental organizations. In addition, public information available on the departmental website was regularly updated to reflect the proposed regulatory changes.

Another up-to-date information package describing the proposed amendments was mailed in July 2017 to Indigenous stakeholders (Nunavut Tunngavik Incorporated, the Kitikmeot Inuit Association, the Kivalliq Inuit Association, the Qikiqtani Inuit Association), the Nunavut Surface Rights Tribunal, and the Nunavut Impact Review Board. In response, the Department has received comments from the Kivalliq and the Qikiqtani Inuit associations. They are interested in ensuring that the rights guaranteed by the Nunavut Land Claim Agreement are not undermined by the proposed amendments. In particular, as Inuit land owners, they want to continue to receive notifications prior to the recording of mineral claims on lands to which they control access. Consent from the designated Inuit organization will continue to be required to prospect on Inuit-owned lands, where the Crown owns the mineral rights on those lands and the surface is owned by Inuit, because physical access is necessary. However, as physical access to those lands will no longer be essential to record a mineral claim, because a claim will be acquired using the online system without ground staking, the consent from the designated Inuit organization prior to recording a mineral claim will not be necessary.

The Department is once again seeking comments from stakeholders through this prepublication. The Department has taken steps to ensure that all stakeholders are aware of the prepublication of the proposed amendments, with an invitation to provide their comments during the consultation period of 30 days.

Rationale

This project for the implementation of an online administration system of mining rights in Nunavut is a departmental priority and is strongly supported by the mining industry, as the trend in Canada is toward online and cost-effective systems of mineral rights acquisition and administration.

The proposed regulatory amendments to implement the project would result in a significant overall benefit, reducing costs to prospectors who would no longer have to physically stake mineral claims in Nunavut. The resulting savings can be spent on actual mineral exploration work and the production of geological data that adds value to the Crown lands. The high cost of mineral exploration and mining in remote and northern areas in Canada is a persistent barrier to mineral resource development. An online system to obtain mineral claims in Nunavut is necessary for the territory to maintain competitiveness with other jurisdictions in Canada that are using modern online systems of mineral rights administration. Its implementation would allow for immediate approval of the recording of mineral claims and reduce approval wait times for the majority of administrative processes regarding these claims.

Online map selection of mineral claims is a fast and secure means of obtaining mineral claims and will result in greater certainty over the ownership of the mineral right. Ground-staked mineral claims can be over-staked by another person by mistake. Disputes as to the accuracy and timing of the placement of wooden posts can cause a claim holder to lose the claim in favour of someone else. Online map selection of mineral claims will eliminate disputes related to location and attribution of mineral claims by introducing the predefined grid coordinate system as the official location of a claim. In addition, it will make available for selection all lands open for claim acquisition by abolishing gaps between adjoining mineral claims or between claims and lands that are not open for selection. Gaps or overlaps between mineral claims can be generated where a new claim is staked with the objective of being adjacent to an existing claim. They are a consequence of human errors or are attributable to the wooden posts that have gone missing on the boundary of existing claims. Planted wooden posts do not always stay on the land and may be used as firewood in areas of the tundra where campers or hunters are unaware of their significance, or they may be simply vandalized. Finally, the online map selection of mineral claims will eliminate the need for low-level helicopter flights required for ground staking, which are known to disturb animals such as caribou.

Implementation, enforcement and service standards

The online administration system of mining rights will become accessible when the proposed amendments come into force. The service standard related to recording mineral claims would be driven by the users of the online system and would be immediate once payment has been made. The system provides immediate recording and secure, undisputable ownership of the mineral claims selected. All other administrative processes, with the exception of the procedures related to the payment of royalties and the reporting on mineral exploration work, could be transacted using the new online system. The Mining Recorder would approve the requests using the internal interface of the system. The system could track processing times, allowing the Department to report on how long it takes to process any application. The Nunavut Mining Regulations would continue to state clearly what would happen as a result of any actions or omissions from the holder of a mineral claim. Offenders would be prosecuted under the Territorial Lands Act (R.S.C., 1985, c. T-7).

Contact

Dominique Quirion
Senior Geologist
Petroleum and Mineral Resources Management Directorate
Crown-Indigenous Relations and Northern Affairs Canada
25 Eddy Street
Gatineau, Quebec
K1A 0H4
Telephone: 819‑360‑4070
Email: dominique.quirion@canada.ca

PROPOSED REGULATORY TEXT

Notice is given, pursuant to paragraph 24(b) of the Territorial Lands Act ^{footnote a}, that the Governor in Council, pursuant to sections 8, 12 and 23 ^{footnote b} of that Act and paragraphs 19(1)(a) ^{footnote c} and 19.1(a)^{footnote c} and, considering that it is in the public interest to do so, subsection 23(2.1) ^{footnote d} of the Financial Administration Act ^{footnote e}, proposes to make the annexed Regulations Amending the Nunavut Mining Regulations.

Interested persons may make representations to the Minister of Indian Affairs and Northern Development with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Dominique Quirion, Senior Geologist, Petroleum and Mineral Resource Management Directorate, Natural Resource and Environment Branch, Department of Crown-Indigenous Relations and Northern Affairs Canada, 25 Eddy Street, Gatineau, Quebec K1A 0H4 (tel.: 819‑360‑4070; fax: 819‑953‑5828; email: dominique.quirion@canada.gc.ca).

Ottawa, May 16, 2019

Julie Adair
Assistant Clerk of the Privy Council

Regulations Amending the Nunavut Mining Regulations

Amendments

1 (1) The definitions boundary post, corner post, legal post and witness post in subsection 1(1) of the Nunavut Mining Regulations ^{footnote 2} are repealed.

(2) The definitions contiguous and mineral in subsection 1(1) of the Regulations are replaced by the following:

• contiguous means units, claims or lands that, in whole or in part, share a common boundary and not merely a point. (contigu)
• mineral means amber and any naturally occurring inorganic substance, including frac sand, found in the Nunavut Mining District, excluding material the taking of which is regulated under the Territorial Quarrying Regulations. (minéral)

(3) The definition cost of work in subsection 1(1) of the Regulations is amended by adding “and” at the end of paragraph (e) and by adding the following after paragraph (e):

• (f) expenses incurred in performing work referred to in paragraph (c) of the definition of work that exceed 10% of the expenses incurred for performing the undertakings referred to in paragraph (a) and subparagraph (b)(ii) of that definition. (coût des travaux)

(4) The portion of paragraph (a) of the definition work in subsection 1(1) of the Regulations preceding subparagraph (i) is replaced by the following:

• (a) any of the following undertakings that are performed in respect of a recorded claim — or, for the purpose of subsection 42(3), in respect of a claim prior to its recording — for the purpose of assessing its mineral potential:

(5) Subparagraph (a)(viii) of the definition work in subsection 1(1) of the Regulations is replaced by the following:

• (viii) remote sensing, if one or more undertakings set out in subparagraphs (i) to (vii) have been performed to evaluate the results of the remote sensing and are reported on, together with the remote sensing, in accordance with subsection 42(1),

(6) Subsection 1(1) of the Regulations is amended by adding the following in alphabetical order:

prospecting permit means a prospecting permit issued under the Nunavut Mining Regulations as they read immediately before November 1, 2020. (permis de prospection)

(7) Subsection 1(1) of the Regulations is amended by adding the following in alphabetical order:

unit means a unit described in section 3 of Schedule 3. (unité)

(8) Section 1 of the Regulations is amended by adding the following after subsection (2):

Unit

(3) For the purposes of subsections 39(1) and 40(1), a unit means a unit that is entirely covered, either by a claim, or partly by a claim and partly by lands referred to in subsection 5(1) or lands of Nunavut to which these Regulations do not apply.

2 Subsections 3(2) to (4) of the Regulations are replaced by the following:

Application for a licence

(2) An application for a licence must include

• (a) the applicant’s name, address, telephone number and email address;
• (b) the name, address, telephone number and email address of any person who is authorized to act on behalf of the applicant;
• (c) in the case of an applicant who is an individual, proof that they are 18 years of age or older; and
• (d) in the case of an applicant that is a corporation, which of the Acts referred in paragraph (1)(b) the corporation is incorporated or registered under.

Duration of licence

(3) A licence is valid from the date of its issuance or renewal until March 31 of the following calendar year.

Application for renewal

(4) A licence may be renewed by submitting an application to the Mining Recorder containing the information set out in paragraphs (2)(a) and (b) and, in the case of an applicant that is a corporation, the information set out in paragraph 2(d). The application must be made not earlier than January 1 preceding the end of the period of validity of the licence.

Updating of licensee information

(5) If, after the issuance or renewal of the licence, there is any change in information referred to in paragraph (2)(a) or (b) or, in the case of an applicant that is a corporation, any change in information referred to in paragraph 2(d), the licensee must provide the new information to the Mining Recorder within 10 business days of the change.

Licence not transferable

(6) A licence is not transferable.

3 Sections 4 to 6 of the Regulations are replaced by the following:

Licence authorization — licensee or agent

4 Only a licensee or a person authorized to act on behalf of a licensee may

• (a) prospect for the purpose of recording a claim;
• (b) make an application to record a claim, to obtain a lease of a recorded claim or to apply for the renewal of that lease;
• (c) acquire, by themselves or with another licensee, a recorded claim, a lease of a recorded claim or an interest in either; and
• (d) be issued a certificate of work under section 47 or a certificate of extension under subsection 49.2(1).

Prohibitions Respecting Prospecting and Mining

Lands not open for prospecting

5 (1) It is prohibited to prospect on the following lands:

• (a) lands covered by a prospecting permit;
• (b) lands covered by a recorded claim, or a leased claim;
• (c) lands mentioned in subsections 52(5) or (6), 56(1) or (2), 62.1(5) or (6) or 67(2), section 85 or subsections 93(4) to (6) that are not open for prospecting;
• (d) lands that have been withdrawn from disposal under paragraph 23(a) of the Act or set apart and appropriated under paragraphs 23(b) to (e) of the Act by the Governor in Council;
• (e) lands for which the minerals have been granted by the Crown;
• (f) lands subject to a prohibition on prospecting under a land use plan that has been approved under federal legislation or under a land claims agreement; and
• (g) lands used as a cemetery.

Exception

(2) The prohibition under paragraph (1)(a) does not apply to the permittee and the prohibition under paragraph (1)(b) does not apply to the claim holder or the lessee.

Surface rights — prohibition respecting entry

6 If the surface rights to lands have been granted or leased by the Crown, it is prohibited to go on the surface of those lands to prospect unless

• (a) the holder of the surface rights has consented to entry for the prospecting; or
• (b) the Nunavut Surface Rights Tribunal has made an order that authorizes entry on those lands and that sets the compensation, if any, to the surface holder.

4 Subsection 7(2) of the Regulations is replaced by the following:

Limitation respecting holder of a recorded claim

(2) It is prohibited to remove minerals or processed minerals whose gross value exceeds $100,000 from a recorded claim that is not subject to a lease, except if the removal is for the purposes of assay and testing to determine the existence, location, extent, quality or economic potential of a mineral deposit within the claim.

5 The heading before section 8 of the Regulations is repealed.

6 Sections 8 to 21 of the Regulations are repealed.

7 The Regulations are amended by adding the following after section 7:

Online Mining Rights Administration System

Establishment of System and Representation of Lands

Establishment by Minister

8 (1) The Minister must establish and maintain an online mining rights administration system that

• (a) allows for the making and processing of applications under these Regulations to be done electronically;
• (b) allows access by the public to documents in respect of applications referred to in paragraph (a); and
• (c) represents the lands of Nunavut, as divided into grid areas, sections and units as described in Schedule 3, including the territorial lands of Nunavut described as the Nunavut Mining District referred to in section 2.

Submission — online application

(2) An application must be made in the prescribed form, if any, and submitted to the Minister or Mining Recorder by using the online mining rights administration system.

Mining Recorder — representation of lands

9 The Mining Recorder must ensure that the online mining rights administration system represents the lands that are open for prospecting and that are included in a unit for which an application to record a claim may be made.

Recording of documents

10 (1) The Mining Recorder must record,

• (a) in respect of the recorded claims or leased claims that constitute a mining property or an interest in that property, a notice of any mining royalties payable that have not been paid within 30 days after
  • (i) the day on which a mining royalty return in respect of that property or interest is delivered to the Chief, or
  • (ii) the date of any notice of assessment or reassessment sent under subsection 75(1) or (2), unless an application for review of the assessment or reassessment has been made under section 84;
• (b) every judgment or order made by a court of competent jurisdiction relating to the ownership of a recorded claim or a lease of a recorded claim and every decision made by the Minister, the Supervising Mining Recorder or the Mining Recorder; and
• (c) on the payment of the applicable fee set out in Schedule 1, every other document filed in respect of a recorded claim or a lease of a recorded claim.

Recording considered to give notice

(2) All persons are considered to have received notice of every document recorded under subsection (1) as of the date of the recording of the document.

Transfer subject to encumbrances

(3) A transfer of a recorded claim or a lease of a recorded claim, or any interest in either, is subject to all judgments, orders, liens and other encumbrances that were recorded against the claim or lease, or any interest in them, as of the date of the recording of the transfer.

Consultation of documents

11 (1) Subject to subsection (2), a person may

• (a) consult the documents relating to a prospecting permit, recorded claim or lease of a recorded claim filed with the Mining Recorder, free of charge; and
• (b) obtain a copy of any of these documents on payment of the applicable fee set out in Schedule 1.

Limit on consultation

(2) A person is not permitted to consult or obtain a copy of a report referred to in subsection 42(1), nor any accompanying or supporting document referred to in subsection 42(5) or (7), until the earlier of

• (a) the day of the cancellation of the recording of the claim under section 50, subsection 53(3) or section 54 or 55 or, if a new claim has not been recorded under paragraph 67(3)(a), subsection 67(1), and
• (b) the day after the third anniversary of the day on which the report was received by the Mining Recorder.

Recording Claims

Application to record a claim

12 (1) A licensee may make an application to the Mining Recorder to record a claim.

Number of units permitted

(2) The application may be made in respect of not less than one unit and not more than 100 units.

Unit partly or not entirely covered

(3) An application may be made in respect of a unit that is partly — but not entirely — covered by lands referred to in subsection 5(1) or lands of Nunavut to which these Regulations do not apply.

Shape of claim

(4) If an application is made in respect of more than one unit,

• (a) each unit must be contiguous with another unit in the claim; and
• (b) the units in the claim must not enclose a unit that is not included in the claim.

Prospecting permit

(5) Despite subsection (3), the holder of a prospecting permit may make an application in respect of any unit that is, in whole or in part, within their prospecting permit zone.

Recording of claim

13 (1) If an application to record a claim satisfies the requirements set out in section 12, the Mining Recorder must record the claim on payment of the charge referred to in paragraph 40(1)(a).

Exclusion from claim

(2) The lands referred to in subsection 5(1) may not be included in a claim.

Prospecting permit

(3) Despite subsection (2), if the application to record the claim is made by a holder of a prospecting permit, the recorded claim includes the lands for which the application is made that are within the prospecting permit zone and that are open for prospecting. Those lands no longer form part of the permit zone.

Application to change recording date

(4) A claim holder may, no later than the day that precedes the first anniversary date of the recording of the claim, make an application to the Mining Recorder to change the date of the recording of the claim to a date specified in the application. That date must not be earlier than the recording date of the claim and must precede the first anniversary date of the recording of the claim.

Date chosen for recording

(5) The date of the recording of the claim may only be changed once.

Amended recording date

(6) The Mining Recorder must change the date of the recording of the claim in accordance with the application. The change of date takes effect on the day the application is received by the Mining Recorder or, if a later day is set out in the application, on that day.

Non application if certificate of work

(7) Subsections (4) to (6) do not apply if a certificate of work has been issued under subsection 47(1) in respect of the claim.

Interpretation — recorded claim

14 (1) For the purpose of this section, a recorded claim means any recorded claim, other than a leased claim.

Expansion of claims

(2) If a unit is comprised of only one recorded claim and a land referred to in subsection 5(1) or a land of Nunavut to which these Regulations do not apply and that land is no longer referred to in subsection 5(1) or becomes subject to these Regulations, that land becomes part of the recorded claim that comprises the unit.

Expansion — more than one recorded claim

(3) If a unit is comprised of more than one recorded claim and a land referred to in subsection 5(1) or a land of Nunavut to which these Regulations do not apply and that land is no longer referred to in subsection 5(1) or becomes subject to these Regulations, that land becomes part of one of the recorded claims that comprise the unit, in accordance with the following order of priority:

• (a) if at least one recorded claim is contiguous to that land,
  • (i) the claim recorded under subsection 96(2) that is contiguous to that land, or if two or more recorded claims under subsection 96(2) are contiguous to that land, the claim that is composed of the claim that was staked first, or
  • (ii) the claim recorded under subsection 13(1) that is contiguous to that land, or if two or more recorded claims under subsection 13(1) are contiguous to that land, the claim that was recorded first; and
• (b) if there is no recorded claim that is contiguous to that land,
  • (i) the claim recorded under subsection 96(2) that is composed of the claim that was staked first, or
  • (ii) the claim that was recorded first under subsection 13(1).

Duration of Recorded Claim

Duration

15 The duration of a claim is 30 years, beginning on its recording date, plus any extensions referred to in paragraphs 51(6)(a) and 67(4)(c), unless a recorded claim is leased under subsection 60(3) or its recording is cancelled under section 50, subsection 53(3) or section 54 or 55 or under subsection 67(1) without a new claim being recorded under paragraph 67(3)(a).

8 Section 22 of the Regulations and the heading before it are repealed.

9 The headings before section 23 and sections 23 to 52 of the Regulations are repealed.

10 The Regulations are amended by adding the following before the heading before section 53 :

Work Requirements

Work required

39 (1) A holder of a recorded claim must do work that incurs a cost of work annually for each unit included in the recorded claim of at least

• (a) $45 in respect of the first year beginning on the day on which the claim is recorded;
• (b) $90 in respect of the second, third and fourth years beginning on the day on which the claim is recorded;
• (c) $135 in respect of the fifth, sixth and seventh years beginning on the day on which the claim is recorded;
• (d) $180 in respect of the eighth, ninth and tenth years beginning on the day on which the claim is recorded;
• (e) $225 in respect of each of the 11th to 20th years beginning on the day on which the claim is recorded; and
• (f) $270 in respect of each of the 21st to 30th years beginning on the day on which the claim is recorded.

Allocation of cost of work

(2) A cost of work that is set out in a certificate of work issued under subsection 47(1) for a year is, for the purpose of subsection (1), a cost of work done for that year.

Charges to Hold Recorded Claim and Assess Mineral Potential

Charge

40 (1) The following per unit charges apply, annually, to the right to hold a recorded claim and assess its mineral potential:

• (a) $45 in respect of the first year beginning on the day on which the claim is recorded;
• (b) $90 in respect of the second, third and fourth years beginning on the day on which the claim is recorded;
• (c) $135 in respect of the fifth, sixth and seventh years beginning on the day on which the claim is recorded;
• (d) $180 in respect of the eighth, ninth and tenth years beginning on the day on which the claim is recorded;
• (e) $225 in respect of each of the 11th to 20th years beginning on the day on which the claim is recorded; and
• (f) $270 in respect of each of the 21st to 30th years beginning on the day on which the claim is recorded.

Payment

(2) The claim holder must pay the charges in accordance with subsection 13(1), 49(1) or 49.1(2), as the case may be.

Reports of Work

Submission

41 Subject to subsection 97(1), a holder of a recorded claim must, in respect of the work that must be done under subsection 39(1), submit to the Mining Recorder

• (a) within a period of 120 days beginning on the second anniversary date of the recording of the claim, a report of work referred to in section 42 in respect of the first and second years;
• (b) within a period of 120 days beginning on each subsequent anniversary date
  • (i) a report of work referred to in section 42 in respect of the year preceding that date, or
  • (ii) an application for a one-year extension referred to section 49.1 to do the work.

Preparation and content

42 (1) A report of work that has been done in respect of a claim must be prepared in accordance with Part 1 of Schedule 2, but if the report deals only with excavation, sampling or the examination of outcrops and surficial deposits — or any combination of them — and the cost of the work is less than $20,000, the report may be a simplified report prepared in accordance with Part 2 of Schedule 2.

Work reported

(2) Work reported in one report must be performed within a period of not more than 12 consecutive months during the four years immediately preceding the day on which the report is submitted and after the day on which the claim was recorded.

Work before recording of claim

(3) Despite subsection (2), work that is done during the two years immediately preceding the day on which a claim is recorded is considered to have been done on the claim during the first year following the day on which it is recorded.

Signature of report

(4) The report must be prepared and signed

• (a) in the case of a simplified report, by the individual who performed or supervised the work; or
• (b) in all other cases, by a professional geoscientist or a professional engineer as those terms are defined in subsection 1(1) of the Engineers and Geoscientists Act, S.Nu. 2008, c. 2.

Associated documents

(5) The report must be accompanied by the following documents:

• (a) a statement of work in the prescribed form;
• (b) a table setting out the cost of work by type of work, together with, for each type of work, details of the costs sufficient to enable evaluation of the report in accordance with subsection 43(1); and
• (c) a table setting out the cost of work that is allocated to each claim.

Claim holder’s equipment or work

(6) If a holder of a recorded claim uses their own equipment to do work or personally does work,

• (a) the cost claimed in relation to that equipment must not be more than the cost of leasing similar equipment for the period that the equipment is used in performing the work; and
• (b) the cost claimed in relation to that work must not be more than the cost of engaging another person to do that work.

Record keeping

(7) The holder of a recorded claim must keep all supporting documents used to justify the cost of work and make them available on request of the Mining Recorder until the holder has received a certificate of work under section 47.

Work reported once

(8) Work reported must not be reported in any other report.

Evaluation of Report and Cost of Work

Evaluation of report

43 (1) The Mining Recorder must evaluate the reports referred to in section 41 or subsection 97(1) to assess their compliance with Schedule 2 and determine the cost of work to be set out in a certificate of work under subsection 47(2).

Supporting documents

(2) The Mining Recorder may request supporting documents that justify the cost of work that is specified in the request by notifying the holder of the recorded claim in writing.

Lack of justification

(3) If the holder of the recorded claim does not, within 120 days after the day on which the notification is sent, provide the supporting documents that are requested, the cost of work to which they relate must be considered to be unjustified.

Excess cost of work allocation

44 (1) Subject to subsection (2), if a recorded claim is not grouped under section 45 and the cost of work that has been justified in a report in respect of that claim exceeds the cost of work required to be done on it under subsection 39(1), the Mining Recorder must — when the certificate of work respecting the report is ready to be issued under subsection 47(1) — allocate the excess cost of work to the next year or years for which work is still required to be done on the claim under subsection 39(1).

Application for allocation of excess cost of work

(2) At any time before evaluation of the report has been completed, the holder of a recorded claim may make an application to the Mining Recorder for non-allocation of the excess cost of work or its allocation to fewer years for which work is still required to be done under subsection 39(1).

Allocation in accordance with application

(3) The Mining Recorder must non-allocate or allocate the excess cost of work as specified in the application referred to in subsection (2).

Application for allocation of unallocated excess cost of work

(4) The holder of a recorded claim may make an application to the Mining Recorder for the allocation of unallocated excess cost of work as specified in the application.

Excess cost of work allocation in accordance with application

(5) If the unallocated excess cost of work is sufficient to comply with the application referred to in subsection (4), the Mining Recorder must allocate it as specified in the application.

Grouping of recorded claims

45 (1) Recorded claims may be grouped for the purpose of allocating the cost of work done with respect to them if

• (a) the claims are contiguous;
• (b) the grouping does not result in the enclosing of a unit that is not included in one of the claims;
• (c) the total number of units in the group does not exceed 400; and
• (d) none of the claims are leased.

Application for grouping

(2) An application to group recorded claims must be submitted to the Mining Recorder and must be accompanied by the applicable fee set out in Schedule 1.

Grouping certificate

(3) If the requirements of subsections (1) and (2) are met, the Mining Recorder must issue a grouping certificate respecting the claims to each of the claim holders.

Duration of certificate

(4) A grouping certificate takes effect on the day on which the fee referred to in subsection (2) is received and ceases to have effect on the earliest of

• (a) the day on which the recording of any claim in the group is cancelled under section 50, subsection 53(3), section 54 or 55 or subsection 67(1),
• (b) the day on which a lease of any claim in the group takes effect, and
• (c) the day on which a new grouping certificate in respect of any claim in the group takes effect.

Application for allocation

46 (1) On application by a holder of a recorded claim listed in a grouping certificate, the Mining Recorder must allocate, in accordance with the application, the cost of work that has been justified in a report in respect of any of the claims listed in the grouping certificate to any of the other claims listed in the certificate, for any year referred to in subsection 39(1).

Limit on reallocation

(2) The cost of work allocated to a recorded claim referred to in a grouping certificate must not be reallocated to any recorded claim referred to in another grouping certificate.

Issuance of certificate of work

47 (1) Subject to subsection 97(5), the Mining Recorder must issue a certificate of work if

• (a) evaluation of a report respecting a recorded claim has been completed; or
• (b) allocation of the excess cost of work has been done under subsection 44(1), (3) or (5) or 46(1).

Content of certificate of work

(2) A certificate of work respecting a claim must set out the cost of work and the allocation of the cost of work.

Remission of charge

48 (1) Remission of the charges paid or payable in respect of a year referred to in subsection 40(1) is granted in an amount equal to the cost of work allocated to the recorded claim during that year in the certificate of work.

Repayment

(2) Any charge referred to in subsection 40(1) that has been paid to the Mining Recorder and that is remitted under this section must be repaid by the Minister to the person entitled to it.

Insufficient work

49 (1) Subject to paragraph 50(c), if a certificate of work sets out an allocated cost of work that is less than the amount required by subsection 39(1), the holder of the recorded claim must pay a charge that is equal to the difference between the charges referred to in subsection 40(1) and the allocated cost of work set out in the certificate.

Exception

(2) Subsection (1) does not apply in respect of the first year beginning on the day on which a claim is recorded under subsection 13(1).

Payment of charge

(3) The claim holder must pay the charge within 120 days after the day on which the certificate is issued.

Extensions

Application for extension

49.1 (1) The claim holder may make an application to the Mining Recorder for an extension for a one-year period to do the work under subsection 39(1).

Charge

(2) The application must be accompanied by the charge set out in any of paragraphs 40(1)(b) to (f) that is payable for the year in respect of which the extension is sought.

Certificate of extension

49.2 (1) The Mining Recorder must issue to the holder of a recorded claim a certificate of extension for a one-year period to do the work if the following requirements are met:

• (a) in the case of a certificate of work setting out that the allocated cost of work is less than the amount required by subsection 39(1), the requirements of subsections 49(1) and (3); and
• (b) in the case where an application for an extension for a one-year period to do the work is made to the Mining Recorder, the requirement of subsection 49.1(2).

Exception

(2) Subsection (1) does not apply if five certificates of extension have been issued in respect of the claim under that subsection.

Cancellation of recording

50 The recording of a claim is cancelled on the earliest of the following days:

• (a) the day after the last day on which a report must be submitted under section 41 or subsection 97(1), if a report in respect of the claim has not been submitted before that day in accordance with section 42 and
  • (i) the claim holder has not been issued a certificate of extension under paragraph 49.2(1)(b) in respect of the claim, or
  • (ii) a suspension in respect of the claim has not been recorded under section 51,
• (b) subject to section 84, the day that is 121 days after the day on which a certificate of work setting out that the allocated cost of work is less than the amount required by subsection 39(1) has been issued in respect of that claim unless a certificate of extension has been issued to the claim holder under paragraph 49.2(1)(a), and
• (c) if five certificates of extension have been issued in respect of the claim under section 49.2, the day on which any subsequent certificate of work setting out that the allocated cost of work is less than the amount required by subsection 39(1) is issued.

Suspension

Suspension of cost of work requirement

51 (1) If a holder of a recorded claim is unable to do the work as required under subsection 39(1) because the claim holder is, for reasons beyond the claim holder’s control, waiting for a public authority to give an authorization or decision without which the work cannot proceed, the claim holder may apply for a suspension of one year with respect to the claim — beginning on the anniversary date of the recording of the claim — of the work requirements of subsection 39(1) and the charges under subsection 40(1).

Time limit for application

(2) The application must be made to the Supervising Mining Recorder not later than 120 days after the end of the year for which the suspension is applied for and must be accompanied by documents showing that the claim holder is waiting for the authorization or decision.

Companies’ Creditors Arrangement Act

(3) If an order under section 11.02 of the Companies’ Creditors Arrangement Act has been made with respect to a claim holder, the holder of a recorded claim may apply for a suspension, with respect to that claim, of the work requirements of subsection 39(1) and the charges under subsection 40(1) until the first anniversary date of the recording of the claim that is at least 12 months after the day on which the order has ceased to have effect with respect to the claim holder.

Time limit for application

(4) The application must be made to the Supervising Mining Recorder not later than 120 days after the day on which the order was made and must be accompanied by a copy of the order.

Recording of suspension

(5) If the requirements of subsections (1) and (2) or (3) and (4) are met, the Supervising Mining Recorder must record the suspension with respect to the claim.

Effect of suspension

(6) When a suspension of the work requirements of subsection 39(1) and the charges under subsection 40(1) is recorded,

• (a) the duration of the claim is extended by the duration of the suspension; and
• (b) for the purpose of determining any year referred to in subsections 39(1) and 40(1), any year included in a suspension is to be excluded.

Reducing a Recorded Claim

Application

52 (1) A holder of a recorded claim (the original claim) may make an application to the Mining Recorder to reduce the number of units included in the recorded claim if

• (a) a certificate of work in respect of the claim sets out a cost of work of at least $135 per unit;
• (b) each unit included in the reduced claim is contiguous with another unit in that claim; and
• (c) the units included in the reduced claim do not enclose a unit that is not included in that claim.

One application per year

(2) Not more than one application may be made per year beginning on the date of the recording of the claim.

Recording of reduced claim

(3) The Mining Recorder must record the reduced claim if the conditions set out in subsections (1) and (2) are met.

Effect of recording

(4) When a reduced claim is recorded,

• (a) the recording date of the original claim is considered to be its recording date;
• (b) the information recorded, including the applications and the documents filed with respect to the original claim, is considered to have been recorded or presented with respect to the reduced claim; and
• (c) the recording of the original claim is cancelled.

Opening of lands for prospecting

(5) Subject to subsection (6) and section 14, the lands in the original claim that are not within the reduced claim are open for prospecting, and the units comprising those lands are available for recording as a claim, beginning on the 31st day after the day on which the recording of the original claim is cancelled.

Delay in opening lands for environmental damage

(6) If the Minister has reasonable grounds to believe that there is unremedied environmental damage to the lands referred to in subsection (5), the Minister may delay opening the lands for prospecting and making available the units comprising those lands for recording as a claim.

Prohibition

(7) For one year after the recording of the original claim is cancelled under paragraph (4)(c), the claim holder and any person related to the former claim holder is not permitted to apply to record a claim that includes any unit that was included in the original claim but does not form part of the reduced claim, or acquire a legal or beneficial interest in respect of that claim.

Reduction — subsections 39(1) and 40(1)

(8) For the application of subsections 39(1) and 40(1), the number of units included in the claim is considered to be reduced on the first anniversary date of the recording of the claim following the reduction.

11 (1) The portion of subsection 53(1) of the Regulations before paragraph (b) is replaced by the following:

Unauthorized acquisition of claim or prohibited removal of minerals

53 (1) If the Mining Recorder has information that either of the following circumstances apply in respect of a recorded claim, the Mining Recorder must immediately send the claim holder a notice that the recording of the claim will be cancelled unless, within 120 days after the day on which the notice is sent, the holder can show that the information is not correct:

• (a) the claim holder or the person authorized to act on their behalf was not authorized under these Regulations to acquire the claim or an interest in it; or

(2) Paragraph 53(1)(b) of the French version of the Regulations is replaced by the following:

• b) le détenteur du claim a contrevenu au paragraphe 7(2).

(3) Subsection 53(3) of the Regulations is replaced by the following:

Cancellation of recording

(3) If the claim holder does not show the Mining Recorder that the information is not correct within 120 days after the day on which the notice is sent, the recording of the claim is cancelled.

(4) Subsection 53(4) of the Regulations is repealed.

12 The Regulations are amended by adding the following after section 53:

Unit incorrectly included in a recorded claim

53.1 (1) The Mining Recorder must cancel the recording of a claim in respect of which it is determined that, on the recording date of the claim, any land or unit was erroneously included in that claim (the original claim).

Recording of corrected claim

(2) On the day of cancellation of the recording of the original claim, the Mining Recorder must

• (a) record a corrected claim without including the land or unit referred to in subsection (1) if it is possible to exclude that land or unit from the claim and to amend the boundaries of the claim; and
• (b) notify the claim holder of the cancellation of the recording of the original claim and of the recording of any corrected claim.

Effect of recording date

(3) When a corrected claim is recorded, the information recorded, including the applications and documents filed with respect to the original claim, are considered to have been recorded or presented with respect to the corrected claim.

13 Section 54 of the Regulations is repealed.

14 The Regulations are amended by adding the following after section 53.1:

Cancellation of recording

54 The recording of a claim is cancelled if the claim holder submits to the Mining Recorder an application to cancel the recording of the claim. The cancellation takes effect on the day the application is received by the Mining Recorder or, if a later day for cancellation is set out in the application, on that day.

15 Paragraphs 55(1)(a) and (b) of the Regulations are repealed.

16 Sections 55 and 56 of the Regulations are replaced by the following:

No application for lease or termination of lease

55 The recording of a claim is cancelled

• (a) at the end of the 29-year period that begins on its recording date, plus any extensions referred to in paragraphs 51(6)(a) and 67(4)(c), if no application for a lease has been made to the Mining Recorder under subsection 60(1) before the end of that period;
• (b) at the end of the 30-year period that begins on its recording date, plus any extensions referred to in paragraphs 51(6)(a) and 67(4)(c), if an application for a lease has been made to the Mining Recorder under subsection 60(1) and no lease has been issued on the claim under subsection 60(3) before the end of that period; or
• (c) on the day that a lease on the claim has terminated without being renewed under subsection 62(2) or has been cancelled under subsection 63(2) or section 64.

Opening of lands for prospecting

56 (1) Subject to subsection (2) and sections 14 and 85, the lands that were covered by a claim the recording of which has been cancelled under section 50, subsection 53(3) or section 54 or 55 are open for prospecting, and the units comprising those lands are available for recording as a claim, beginning on the 31st day after the day on which the recording of the claim is cancelled.

Delay in opening lands for environmental damage

(2) If the Minister has reasonable grounds to believe that there is unremedied environmental damage to the lands that were covered by a claim the recording of which has been cancelled under a provision set out in subsection (1), the Minister may delay opening the lands for prospecting and making available the units comprising those lands for recording as a claim.

Prohibition

(3) For one year after the recording of the claim is cancelled under a provision set out in subsection (1), the former holder of the claim or leased claim and any person related to them is not permitted to apply to record a claim that includes any unit that was included in the claim the recording of which has been cancelled, or acquire a legal or beneficial interest in respect of that claim.

17 The headings before section 57 and sections 57 to 59 of the Regulations are repealed.

18 The Regulations are amended by adding the following after section 56:

Lease of a Recorded Claim

Plan of Survey

Survey required for lease

57 (1) A holder of a recorded claim who wants to obtain a lease of a recorded claim must

• (a) have the claim surveyed by a Canada Lands Surveyor, as defined in section 2 of the Canada Lands Surveyors Act, under section 31 of the Canada Lands Surveys Act and obtain a plan of survey of the claim;
• (b) send a copy of the plan of survey and a notice in the prescribed form, by registered mail or courier, to the holders of
  • (i) contiguous recorded claims and leased claims at their addresses provided to the Mining Recorder, and
  • (ii) the surface rights if the surveyed claim is located, partly or totally, on their lands or contiguous to those lands; and
• (c) send to the Mining Recorder a copy of the plan of survey, the notice and evidence that the holders referred to in paragraph (b) have received copies of those documents.

Posting of notice

(2) On receipt of the documents referred to in paragraph (1)(c), the Mining Recorder must post the notice on the online mining rights administration system for a period of 21 days.

Recording of plan of survey

58 The Mining Recorder must record the plan of survey if

• (a) 30 days have elapsed after the end of the period for posting of a notice under subsection 57(2) and the Mining Recorder has not received any protest with respect to the survey;
• (b) the applicable fee set out in Schedule 1 has been paid; and
• (c) the requirements of section 57 have been met.

19 Section 60 of the Regulations is repealed.

20 The Regulations are amended by adding the following before section 61:

Application for lease

60 (1) A holder of a recorded claim may obtain a lease of the claim by making an application to the Mining Recorder.

Submission

(2) The application to obtain the lease must be made at least one year before the end of the duration of the recorded claim referred to in section 15 and must be accompanied by the applicable fee set out in Schedule 1.

Issuance of lease

(3) If, before the end of the duration of the recorded claim, the following requirements are met, the Minister must issue the lease to the claim holder for a term of 21 years:

• (a) a plan of survey of the claim has been recorded under section 58;
• (b) a certificate of work has been issued in respect of the claim that allocates to the claim a cost of work of at least $1,260 per unit, of which the total of the costs of the plan of survey, of the construction of any roads, airstrips and docks and of environmental baseline studies does not exceed $250 per unit; and
• (c) the rent for the first year of the lease has been paid to the Mining Recorder.

Work requirements and charges not applicable

(4) In respect of any year for which the recorded claim is leased, the work requirements of subsection 39(1) and the charges referred to in subsection 40(1) do not apply in respect of it.

21 Subsection 61(1) of the Regulations is replaced by the following:

Annual rent for lease

61 (1) The annual rent for a lease is $10 per hectare.

22 Section 62 of the Regulations is repealed.

23 The Regulations are amended by adding the following after section 61:

Application for renewal of lease

62 (1) A lease may be renewed by submitting an application to the Mining Recorder at least six months before the day on which the lease expires and not earlier than two years before that day. The application must be accompanied by the applicable fee set out in Schedule 1 and the rent for the first year of the renewed lease.

Renewal

(2) If the requirements of subsection (1) are met, the Minister must renew it for a period of 21 years.

Application for reduced leased claim

62.1 (1) A lessee who has made an application for a renewal of a lease may, no less than 120 days before the day on which the lease expires, make an application to the Mining Recorder to reduce the number of units included in the recorded claim (the original claim) that is leased if

• (a) the application is accompanied by a plan of survey, made by the Surveyor General, as defined in section 2 of the Canada Lands Surveyors Act, under section 31 of the Canada Lands Surveys Act, of the reduced claim;
• (b) each unit included in the reduced claim is contiguous with another unit in that claim; and
• (c) the units included in the reduced claim do not enclose a unit that is not included in that claim.

Exception

(2) Despite subsection (1), no application to reduce a leased claim may be made in respect of a lease that was issued before November 1, 2020 or of a claim for which an application to obtain a lease submitted to the Mining Recorder was pending on that date.

Recording of reduced leased claim

(3) The Mining Recorder must record the reduced leased claim when the lease is renewed if the conditions set out in paragraphs (1)(a) to (c) are met.

Effect of recording

(4) When a reduced claim is recorded,

• (a) the recording date of the original claim is considered to be its recording date;
• (b) the information recorded, including the applications and documents filed with respect to the original claim, is considered to have been recorded or presented with respect to the reduced claim; and
• (c) the recording of the original claim is cancelled.

Opening of lands for prospecting

(5) Subject to subsection (6) and section 14, the lands included in the original claim that are not included in the reduced claim are open for prospecting, and the units comprising those lands are available for recording as a claim, beginning on the 31st day after the day on which the recording of the original claim is cancelled.

Delay in opening lands for environmental damage

(6) If the Minister has reasonable grounds to believe that there is unremedied environmental damage to the lands referred to in subsection (5), the Minister may delay opening the lands for prospecting and making available the units comprising those lands for recording as a claim.

Prohibition

(7) For one year after the recording of the original claim is cancelled under paragraph 4(c), the former lessee and any person related to the former lessee is not permitted to apply to record a claim that includes any unit that was included in the original claim but does not form part of the reduced claim, or acquire a legal or beneficial interest in respect of that claim.

24 Section 64 of the Regulations is replaced by the following:

Application to cancel lease by lessee

64 A lease is cancelled on the day that an application by the lessee to cancel the lease is received by the Mining Recorder or, if a later day for cancellation is set out in the application, on that day.

25 The heading before section 65 and sections 65 to 67 of the Regulations are repealed.

26 The Regulations are amended by adding the following after section 64:

Transfer of a Recorded Claim or Lease

Requirements for transfer of recorded claim or lease

66 (1) The transfer of a recorded claim or a lease of a recorded claim or an interest in either of them may be recorded only if

• (a) the transfer is made to a licensee;
• (b) in the case of the transfer of a recorded claim, an application for the transfer is made by the claim holder to the Mining Recorder; and
• (c) in the case of the transfer of a lease,
  • (i) an application for the recording of the transfer is made by the lessee to the Mining Recorder,
  • (ii) the rent and any interest on it is paid, and
  • (iii) the applicable fee set out in Schedule 1 is paid to the Mining Recorder.

Transfer of lease includes any claim

(2) The transfer of a lease includes the transfer of any recorded claim to which the lease applies.

Condition on transfer within mining property

(3) If a lease or a recorded claim is part of a mining property, its transfer may be recorded only if security in the amount of any unpaid royalties in relation to the mining property has been deposited with the Minister.

Cancellation — recording of claim or lease

67 (1) The recording of a claim, or a lease and the recorded claim to which it applies, are cancelled on the day that any of the following events occur:

• (a) the Minister has realized on a charge or security on the real property of the claim holder or the lessee for the costs of remedying any environmental condition or environmental damage under subsection 11.8(8) of the Companies’ Creditors Arrangement Act or subsection 14.06(7) of the Bankruptcy and Insolvency Act;
• (b) the interests in territorial lands represented by the claim or lease have reverted to the Crown as a result of a court order made under the Companies’ Creditors Arrangement Act or the Bankruptcy and Insolvency Act; or
• (c) the Minister has accepted the claim or lease as a security in respect of a debt or other obligation owed to the Crown and the Minister has realized on the security under section 156 of the Financial Administration Act.

Delay in opening lands by the Minister

(2) Subject to subsection (3) and section 14, the lands that were covered by a claim the recording of which has been cancelled under subsection (1), or by a lease that has been cancelled under that subsection are not open for prospecting — and the units comprising those lands are not available for recording as a claim — until the Minister opens them for prospecting.

Recording of claim or issuance of lease

(3) If it is in the financial interest of the Crown or will aid in remedying environmental damage on territorial lands, the Minister may

• (a) instruct the Mining Recorder to record, in the name of a specified person, a claim that covers the lands that were covered by the claim the recording of which has been cancelled; and
• (b) if a lease has been cancelled, issue a lease that covers the claim recorded under paragraph (a) to the holder of the claim.

Effect of recording

(4) When a claim is recorded under paragraph (3)(a),

• (a) the recording of the claim is considered to be a transfer of the claim the recording of which has been cancelled;
• (b) the recording date of the claim is considered to be the recording date of the claim the recording of which has been cancelled;
• (c) the duration of the claim is extended by a period that is equivalent to the period beginning on the anniversary date of the claim that precedes the cancellation referred to in subsection (1) and ending on the anniversary date following the transfer; and
• (d) for the purpose of determining any year referred to in subsections 39(1) and 40(1), any year included in the period beginning on the anniversary date of the claim that precedes the cancellation referred to in subsection (1) and ending on the anniversary date following the transfer is to be excluded.

Duration of new lease

(5) A lease issued under paragraph (3)(b) is considered to be a transfer of the cancelled lease on the same lands, with the same duration as was left on the previous lease at the time it was cancelled.

27 (1) The portion of subsection 69(14) of the Regulations before paragraph (a) is replaced by the following:

Exchange rate

(14) For the purpose of these Regulations, the Bank of Canada’s exchange rate must be used to convert foreign currencies into Canadian dollars

(2) Subsection 69(15) of the Regulations is replaced by the following:

Operating costs for operations outside Canada

(15) When operating costs are incurred for operations outside of Canada, the operator may convert foreign currency transactions for those costs into Canadian dollars using the Bank of Canada’s average exchange rate for the month in which those costs were incurred.

28 Paragraph 70(11)(u) of the Regulations is replaced by the following:

• (u) the fees set out in Schedule 1 of the Nunavut Mining Regulations as they read immediately before November 1, 2020 for making an application to record a claim or a reduced-area claim and the costs of staking incurred under those Regulations, the charges payable at the time of the recording of a claim under subsection 13(1) and the cost of surveying the claim for the purpose of taking it to lease;

29 Subsection 71(2) of the Regulations is replaced by the following:

Costs not eligible for development allowance

(2) Subject to paragraph 70(1)(i), if the recording of a claim is cancelled, or a lease expires or is cancelled, any costs incurred in respect of that claim or lease that would otherwise be eligible for a development allowance are no longer eligible for a development allowance in respect of any mine.

30 Sections 80 and 81 of the Regulations are replaced by the following:

Extension on account of strike

80 If, as a result of a strike, as defined in subsection 2(1) of the Federal Public Sector Labour Relations Act, a holder of a recorded claim or lease is unable, through no fault on their part, to do a thing within the time required by these Regulations, the deadline for doing that thing is extended for a period ending 15 days after the last day of the strike.

When written notice is considered to be given

81 For the purposes of these Regulations, written notice is considered to be given to the recipient if the notice is sent by registered mail or electronically to their address, as shown in the records of the Mining Recorder or Chief.

31 Sections 82 to 83 of the Regulations are repealed.

32 Section 85 of the Regulations is repealed.

33 The Regulations are amended by adding the following after section 84:

Prohibition against prospecting during review by Minister

85 Beginning on the day on which a request for review is received by the Minister and ending on the second business day after the day on which the Minister’s decision is sent, the lands covered by the claim the recording of which was cancelled are not open for prospecting and the units comprising those lands are not available for recording as a claim.

34 Sections 86 to 94 of the Regulations are replaced by the following:

Definitions

Former Regulations and transitional period

86 The following definitions apply in sections 87 to 97.

former Regulations means the Nunavut Mining Regulations as they read immediately before November 1, 2020. (règlement antérieur)

transitional period means the period of 90 days beginning on November 1, 2020. (période de transition)

Pending Applications and Requests

Former Regulations apply — certain applications or requests

87 (1) A request or an application, with respect to a claim or a lease of a recorded claim, that is submitted to the Mining Recorder in accordance with sections 42, 45, 46, 51, 52, 54, 60, subsection 62(2) or section 66 of the former Regulations that is pending on the first day of the transitional period must be dealt with in accordance with those Regulations.

Effective date — recording of reduced-area claim

(2) Despite subsection (1) and subsection 52(3) of the former Regulations, the recording of a reduced-area claim is effective on the date of its recording.

Plan of survey for lease application

(3) Despite subsection (1) and subsection 60(4) of the former Regulations, a plan of survey of the claim must have been made by the Surveyor General, as defined in section 2 of the Canada Lands Surveyors Act, under section 31 of the Canada Lands Surveys Act before the first day of the transitional period.

Reduced-area Claim Recorded Before Transitional Period

Effective date

88 Despite subsection 52(3) of the former Regulations, the recording of a reduced-area claim that is not effective on the first day of the transitional period becomes effective on that day. Subsections 52(4) to (6) of the former Regulations continue to apply to that claim.

Applications and Requests During Transitional Period

Recording of a staked claim

89 If a claim has been staked in accordance with the former Regulations before the first day of the transitional period, an application to record the claim may be submitted to the Mining Recorder under section 33 of those Regulations and must be dealt with in accordance with those Regulations.

Renewal of lease

90 An application for renewal of a lease of a recorded claim may be submitted to the Mining Recorder under subsection 62(1) of the former Regulations if it is submitted on or before the last day of the transitional period and if the lease expires within one year following the last day of the transitional period. The application must be dealt with in accordance with the former Regulations.

Transfer of lease

91 A request for the transfer of a lease of a recorded claim or an interest in it may be made to the Mining Recorder under section 66 of the former Regulations on or before the last day of the transitional period and must be dealt with in accordance with the former Regulations.

Reports of Work

Report not evaluated

92 Sections 41, 44, 45 and 47 to 50 of the former Regulations continue to apply in respect of a report of work that was or should have been submitted to the Mining Recorder in accordance with paragraph 40(a) of the former Regulations before the first day of the transitional period.

Prospecting Permits

Former Regulations apply

93 (1) Sections 12, 14 to 21, 65 and 80, subsection 83(2) and Schedule 2 of the former Regulations continue to apply in respect of prospecting permits issued under the Act.

Exception

(2) Despite subsection (1) and section 18 of the former Regulations, a permittee may not apply to record a claim during the transitional period.

Definitions of cost of work and work

(3) The definitions of cost of work and work in subsection 1(1) of these Regulations apply to work done after the last day of the transitional period.

Opening of lands for prospecting

(4) Subject to subsection (6) and section 14 of these Regulations, the lands that were covered by a prospecting permit that expires or is cancelled after the last day of the transitional period are open for prospecting and the units comprising those lands are available for recording as a claim beginning at noon on the day following the first business day after the day on which the permit expired or was cancelled.

Prohibition against prospecting during review by Minister

(5) Beginning on the day on which a request for review under section 84 with respect to lands that were covered by the prospecting permit in question is received by the Minister and ending on the second business day after the day on which the Minister’s decision is sent, those lands are not open for prospecting and the units comprising those lands are not available for recording as a claim.

Delay in opening lands for environmental damage

(6) If the Minister has reasonable grounds to believe that there is unremedied environmental damage to the lands referred to in subsection (4), the Minister may delay opening the lands for prospecting and making available the units comprising those lands for recording as a claim.

Prohibition relating to former permittee

(7) For one year after a prospecting permit expires or is cancelled, the former permittee and any person related to the former permittee are not permitted to apply to record a claim that includes any unit that was included in the prospecting permit zone of the expired or cancelled permit, or acquire a legal or beneficial interest in respect of that claim.

Dispute Respecting Recording of a Claim

Notice of protest

94 A notice of protest may be filed with the Supervising Mining Recorder under subsection 37(1) of the former Regulations within one year after the day on which the disputed claim was recorded under subsection 33(4) of those Regulations. The dispute must be dealt with in accordance with the former Regulations.

Deeming Provision

Provision repealed, replaced or added

95 (1) For the purpose of any provision of these Regulations, other than sections 86 to 94 and 96 to 98, any reference

• (a) to a provision — or any concept referred to in such a provision — that has been repealed or replaced on November 1, 2020, is deemed to be a reference, during the transitional period, to that provision as it read immediately before that date; and
• (b) to a provision that has been added to these Regulations on November 1, 2020 but that is not in force, is deemed not to form part of that provision during the transitional period.
  

Staking of lands

(2) Despite paragraph (1)(a),

• (a) for the purposes of subsections 22(1) and 56(1) of these Regulations, the reference to the staking of lands is deemed not to form part of those subsections during the transitional period; and
• (b) for the purposes of paragraph 5(1)(c) of these Regulations, the reference to the staking of lands under subsections 52(5) and 67(2) and section 85 of the former Regulations is deemed not to form part of those provisions during the transitional period.

35 The Regulations are amended by adding the following after section 95:

Conversion of Claims

Interpretation — original claim

96 (1) For the purposes of this section, an original claim means each claim that is recorded under section 33 of the former Regulations, except

• (a) a leased claim; and
• (b) a claim for which, before the first day of the transitional period, an application for its lease is pending and a plan of survey has been made by the Surveyor General, as defined in section 2 of the Canada Lands Surveyors Act, under section 31 of the Canada Lands Surveys Act.
  

Recording as converted claims

(2) On the day following the end of the transitional period, the Mining Recorder must record any original claim as a converted claim. Subject to subsections (3) and (4), the converted claim is composed of units covered, in whole or in part, by that claim.

Lands included in a converted claim

(3) If a unit is comprised of only one claim and other lands, those lands, other than lands referred to in subsection 5(1), become part of the converted claim.

More than one recorded claim

(4) If a unit is comprised of more than one claim and other lands, each of those lands, other than lands referred to in subsection 5(1), becomes part of the converted claim, in accordance with the following order of priority:

• (a) the converted claim that is composed of the original claim that was staked first that is contiguous to that land; and
• (b) the converted claim that is composed of the original claim that was staked first.

Effect of recording

(5) When a converted claim is recorded,

• (a) the information recorded under the former Regulations, including the applications and the documents filed with respect to the original claim, are considered to have been recorded or presented with respect to the converted claim; and
• (b) the recording of the original claim is cancelled.

Amended recording date

(6) On the anniversary date of the recording of the original claim that, but for the cancellation of its recording under paragraph (5)(b), would have followed the transitional period, the Mining Recorder must change the date of the recording of the converted claim to that date.

Reports and Certificates of Work for Converted Claims

Submission of report

97 (1) The holder of a converted claim must, in respect of the work that must be done under subsection 39(1), submit to the Mining Recorder

• (a) not later than the 120th day beginning on the anniversary date following the amended recording date referred to in subsection 96(6) for that claim, a report of work referred to in section 42 in respect of the year preceding that anniversary date; and
• (b) not later than the 120th day beginning on each subsequent anniversary date
  • (i) a report of work referred to in section 42 in respect of the previous year, or
  • (ii) an application for a one-year extension referred to in section 49.1 to do the work.
    

Work reported — recording date

(2) For the application of subsections 42(2) and (3), the day on which the claim was recorded, in the case of a converted claim, means the recording date referred to in subsection 33(4) of the former Regulations.

Exception

(3) Subsection (1) does not apply for any year for which a certificate of work has been issued under subsection 47(1) of the former Regulations setting out that an amount for the cost of work that must be done in respect of that claim for that year has been allocated.

Remission of charge

(4) Remission is granted in an amount equal to the difference between the charges payable referred to in subsection 40(1) in respect of any year referred to in subsection (3) and the allocated cost of work done set out in a certificate of work issued under subsection 47(1) of the former Regulations in respect of any of those years.

Certificate of work

(5) A certificate of work must not be issued under subsection 47(1) in respect of a converted claim before the amended recording date referred to in subsection 96(6) for that claim.

Reduction of Converted Claims

Application

98 (1) Despite subsection 52(2), the holder of a converted claim must not make an application to the Mining Recorder to reduce the number of units included in that claim before the amended recording date referred to in subsection 96(6) for that claim.

During 12-month period

(2) Despite subsections 52(1), (3) and (8), in the case of an application made to the Mining Recorder during the 12-month period beginning on the amended recording date referred to in subsection 96(6) for that claim,

• (a) the requirement set out in paragraph 52(1)(a) does not apply; and
• (b) for the application of subsections 39(1) and 40(1), the number of units included in the converted claim is considered to be reduced on the amended recording date.

36 Schedule 1 to the Regulations is replaced by the Schedule 1 set out in Schedule 1 to these Regulations.

37 Schedule 2 to the Regulations is amended by replacing the references after the heading “SCHEDULE 2” with the following:

(Subsections 42(1) and 43(1))

38 The definitions identifier and sample in section 1 of Schedule 2 to the Regulations are replaced by the following:

• identifier means a set of alphabetic, numeric or alphanumeric characters used to uniquely identify a sample or an electronic storage medium. (identificateur)
• sample includes a sample fraction, processed sample, analyzed sample, duplicate sample, blank sample, core sample, chip sample, quality control sample and each of multiple samples from one location. (échantillon)

39 (1) Paragraphs 3(1)(a) to (d) of Schedule 2 to the Regulations is replaced by the following:

• (a) a statement of the types of work being reported on and the minerals being sought;
• (b) the name of the holder of the recorded claim;
• (c) a list of the recorded claims in respect of which the work was done, setting out for each one its identification number and the name associated with it, if any;
• (d) the number of each National Topographic System of Canada 1:50 000 map sheet that shows the lands covered by the recorded claim;

(2) Subparagraphs 3(1)(e)(i) and (ii) of Schedule 2 to the Regulations is replaced by the following:

• (i) the maximum and minimum latitude and longitude of the lands covered by the recorded claim, or
• (ii) the maximum and minimum Northings and Eastings UTM coordinates of the lands covered by the recorded claim;

40 (1) Paragraph 4(d) of Schedule 2 to the Regulations is replaced by the following:

• (d) a list of the recorded claims in respect of which the work was done, setting out for each one
  • (i) its identification number and recording date and the name, if any, associated with it,
  • (ii) the number of units comprised in it,
  • (iii) the area covered by it in hectares,
  • (iv) the number of each National Topographic System of Canada 1:50 000 map sheet that shows its location, and
  • (v) the name of the claim holder;

(2) Paragraph 4(i) of Schedule 2 to the Regulations is replaced by the following:

• (i) a summary of the previous work that was done on the lands covered by the recorded claim, and on the lands adjacent to those lands, that is relevant to the work being reported on;

(3) Section 4 of Schedule 2 to the Regulations is amended by striking out “and” at the end of paragraph (s), by adding “and” at the end of paragraph (t) and by adding the following after paragraph (t):

• (u) an appendix containing a copy of any report made by a contractor, together with all maps and sections produced and data collected in connection with the report made by the contractor.

41 (1) The portion of subparagraph 5(c)(i) of Schedule 2 to the Regulations before clause (A) is replaced by the following:

• (i) the boundaries of the recorded claim where the work was done and,

(2) Clause 5(c)(i)(B) of Schedule 2 to the English version of the Regulations is replaced by the following:

• (B) the location of the work with respect to the boundaries of the recorded claim, and

(3) Clauses 5(c)(i)(C) and (D) of Schedule 2 to the Regulations are replaced by the following:

• (C) the identification number of each recorded claim and the name, if any, associated with it,

(4) Subparagraph 5(c)(ii) of Schedule 2 to the Regulations is replaced by the following:

• (ii) the location and type of the previous work that was done on the lands covered by the claim, and on the lands adjacent to those lands, that is relevant to the work being reported on,

(5) Subparagraph 5(c)(iv) of Schedule 2 to the Regulations is replaced by the following:

• (iv) the boundaries of each prospecting permit zone and each recorded claim, or leased claim, that is adjacent to the boundaries of the recorded claim on which the work was done,

42 (1) Subsection 11(1) of Schedule 2 to the Regulations is replaced by the following:

Cross-referencing of sample identifiers

11 (1) If an identifier used in a report to identify a sample, such as in an analytical certificate, is not the same as the corresponding sample identifier shown on the sample location maps or sections required under paragraph 5(d), a table that makes a cross-reference between the two identifiers must be provided.

(2) Paragraph 11(2)(a) of Schedule 2 to the Regulations is replaced by the following:

• (a) the sample identifier shown on a map or section as required under paragraph 5(d);

43 Section 13 of Schedule 2 to the Regulations is amended by striking out “and” at the end of subparagraph (c)(v), by adding “and” at the end of subparagraph (d)(iv) and by adding the following after paragraph (d):

• (e) the location where the cores and chip samples obtained from the drilling are stored at the time the report is submitted.

44 Paragraph 16(1)(d) of Schedule 2 to the Regulations is repealed.

45 The portion of section 17 of Schedule 2 to the Regulations before paragraph (a) is replaced by the following:

Simplified report

17 A simplified report provided for under subsection 42(1) of these Regulations must be prepared in accordance with sections 2 to 11 of this Schedule, other than the requirements set out in paragraphs 4(g), (m), (o), (p) and (q) and 5(a) and (e), and must also contain the following information and documents:

46 The Regulations are amended by adding after Schedule 2 the Schedule 3 set out in Schedule 2 to these Regulations.

Coming into Force

November 1, 2020

47 (1) Subject to subsection (2), these Regulations come into force on November 1, 2020.

90 days after November 1, 2020

(2) Subsections 1(2) to (5), (7) and (8) and sections 2, 5, 7, 8, 10, 11, 12, 14, 16, 18, 20, 21, 23, 24, 26, 28, 31, 33 and 35 to 46 come into force 90 days after November 1, 2020.

SCHEDULE 1

(Section 36)

SCHEDULE 1

(Subsection 3(1), paragraphs 10(1)(c) and 11(1)(b), subsection 45(2), paragraphs 58(c) and 60(2)(a), subsection 62(1) and subparagraph 66(1)(c)(iii))

FEES

Item	Column 1 Description	Column 2 Fee ($)
1	Copy of a document filed with the Mining Recorder, per page	1.00
2	Licence issued to an individual	5.00
3	Licence issued to a corporation	50.00
4	Application to group recorded claims	10.00
5	Recording of a plan of survey of a claim	2.00
6	Application for lease of a recorded claim or renewal of a lease, per claim in the lease	25.00
7	Recording of a transfer of a lease or any other document pertaining to a lease, per document	25.00
8	Recording of any document pertaining to a claim, per entry	2.00

SCHEDULE 2

(Section 42)

SCHEDULE 3

(Paragraph 8(1)(c))

Nunavut Lands Division

South of latitude 70°

1 (1) Grid areas, the whole or greater part of which lies south of latitude 70°, are bounded on the east and west sides by successive meridians of longitude of the series 50°00′00″, 50°15′00″, 50°30′00″, which series may be extended as required, and on the north and south sides by geodesics joining the points of intersection of the east and west boundaries with successive parallels of latitude of the series 40°00′00″, 40°10′00″, 40°20′00″, which series may be extended as required.

North of latitude 70°

(2) Grid areas, the whole of which lies north of latitude 70°, are bounded on the east and west sides by successive meridians of longitude of the series 50°00′00″, 50°30′00″, 51°00′00″, which series may be extended as required, and on the north and south sides by geodesics joining the points of intersection of the east and west boundaries with successive parallels of latitude of the series 70°00′00″, 70°10′00″, 70°20′00″, which series may be extended as required.

South boundary of grid area north of latitude 70°

(3) Despite subsection (2), each grid area the northeast corner of which has a latitude of 70°10′00′′ is bounded on its south side by the north sides of the two grid areas to its immediate south.

Latitude and longitude

(4) Every grid area is referred to by the latitude and longitude of the northeast corner of that grid area.

Sections

2 (1) Every grid area is divided into sections.

Meridians

(2) A section is bounded on the east and west sides by meridians spaced,

• (a) in the case of a section within a grid area, the whole or greater part of which lies south of latitude 60° or between latitudes 70° and 75°, at intervals of one-tenth of the interval between the east and west boundaries of the grid area;
• (b) in the case of a section within a grid area, the whole or greater part of which lies between latitudes 60° and 68° or between latitudes 75° and 78°, at intervals of one-eighth of the interval between the east and west boundaries of the grid area; and
• (c) in the case of a section within a grid area, the whole or greater part of which lies between latitudes 68° and 70° or between latitudes 78° and 85°, at intervals of one-sixth of the interval between the east and west boundaries of the grid area.

Section boundaries

(3) A section is bounded on the north and south sides by the geodesics joining the points of intersection of the east and west boundaries of the grid area and spaced at intervals of one tenth of the length of those boundaries.

South boundary — southernmost sections

(4) Despite subsection (3), each section in the southernmost row of sections in each grid the northeast corner of which has a latitude of 70°10′00′′ is bounded on its south side by the south side of the grid area.

Identification by number

(5) A section is identified by the number to which it corresponds,

• (a) in the case of a grid area described in paragraph (2)(a), as follows:

  100	90	80	70	60	50	40	30	20	10
  					49
  					48
  					47
  					46
  95	85	75	65	55	45	35	25	15	5
  					44
  					43
  					42
  91	81	71	61	51	41	31	21	11	1

• (b) in the case of a grid area described in paragraph (2)(b), as follows:

  80	70	60	50	40	30	20	10
  				39
  				38
  				37
  				36
  75	65	55	45	35	25	15	5
  				34
  				33
  				32
  71	61	51	41	31	21	11	1

• (c) in the case of a grid area described in paragraph (2)(c), as follows:

  60	50	40	30	20	10
  			29
  			28
  			27
  			26
  55	45	35	25	15	5
  			24
  			23
  			22
  51	41	31	21	11	1

Units

3 (1) Every section is divided into units.

East and west boundaries

(2) Every unit is bounded on the east and west sides by meridians spaced at intervals of one-quarter of the interval between the east and west boundaries of the section.

North and south boundaries

(3) A unit is bounded on the north and south sides by geodesics joining the points of intersection of the east and west boundaries of the grid area and spaced at intervals of one-fortieth of the length of those boundaries.

South boundary — southernmost units

(4) Despite subsection (3), each unit in the southernmost row of units within a section referred to in subsection 2(4) is bounded on its south side by the south side of the section.

Identification by letter

(5) Every unit is identified by the letter to which it corresponds in the following diagram:

M	N	O	P
L	K	J	I
E	F	G	H
D	C	B	A

North American Datum of 1927

4 All latitudes and longitudes used in this Schedule refer to the North American Datum of 1927 (NAD27).