Regulations Amending the Nunavut Mining Regulations: SOR/2020-209

Canada Gazette, Part II, Volume 154, Number 21

Registration
SOR/2020-209 September 28, 2020

TERRITORIAL LANDS ACT
FINANCIAL ADMINISTRATION ACT

P.C. 2020-677 September 25, 2020

Whereas, pursuant to paragraph 24(b) of the Territorial Lands Act^{footnote a}, the proposed Regulations Amending the Nunavut Mining Regulations were published in the Canada Gazette, Part I, on May 25, 2019, substantially in the annexed form, and a reasonable opportunity was afforded to all interested persons to make representations to the Minister of Northern Affairs with respect to the proposed Regulations;

Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Northern Affairs pursuant to sections 8, 12 and 23^{footnote b} of the Territorial Lands Act ^{footnote a} and the Treasury Board pursuant to paragraph 19.1(a)^{footnote c} of the Financial Administration Act^{footnote d} and, considering that it is in the public interest to do so, subsection 23(2.1)^{footnote e} of that Act, makes the annexed Regulations Amending the Nunavut Mining Regulations.

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post, corner post, legal post and witness post in subsection 1(1) of the Nunavut Mining Regulations^{footnote 1} are repealed.

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

contiguous means units, claims or lands that, partly or totally, share a common boundary and not merely a point. (contigu)
mine means an undertaking that produces or has produced minerals or processed minerals from lands within the Nunavut Mining District referred to in section 2, and includes the depreciable assets that are located in Nunavut and used in connection with the undertaking. (mine)
mineral means amber and any naturally occurring inorganic substance, including frac sand, found in the Nunavut Mining District referred to in section 2, 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 that paragraph:

(f) expenses incurred in performing work referred to in paragraph (c) of the definition of work that exceed 10% of the total expenses incurred in 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 before 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 4 of Schedule 3. (unité)

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

Application for 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 every 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, the title of the Act referred to in paragraph (1)(b) under which 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 making 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.

Change in 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 the information referred to in paragraph 2(d), the licensee must provide the new information to the Mining Recorder within 10 business days after the day on which the information was changed.

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 authorized person

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 for the recording of a claim, for a lease of a recorded claim or 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 of them; 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

(a) lands covered by a prospecting permit;
(b) lands covered by a recorded claim or a leased claim;
(c) lands mentioned in any of subsections 52(5) and (6), 56(1) and (2), 62.1(5) and (6) and 67(2), section 85 and 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 any of 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.

Exceptions

(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 enter 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 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 Sections 8 to 21 of the Regulations are repealed.

6 Section 22 and the heading before it are replaced by the following:

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, other than a request referred to in section 84, to be done electronically;
(b) allows access by the public to documents relating to those applications; and
(c) represents the lands of Nunavut, as divided into grid areas, sections and units in accordance with Schedule 3, including the territorial lands of Nunavut described as the Nunavut Mining District referred to in section 2.

Online application

(2) An application, other than a request referred to in section 84, 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 a request 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.

When notice considered to be received

(2) Notice of the recording of a document under subsection (1) is considered to have been received 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 of them, 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 those 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 on which the recording of the claim is cancelled 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.

Claims

Recording Claims

Application to record 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 covered

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

Shape of claim

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

(a) each unit must be contiguous to 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, partly or totally, 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

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

Prospecting permit

(3) Despite subsection (2), if an application to record a 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 subsequently no longer form part of the permit zone.

Application to change recording date

(4) A claim holder may, not 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 to the 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.

Only one change

(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 on which the application is received by the Mining Recorder or, if a later day is set out in the application, on that day.

Non-application — 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.

Expansion

Definition — recorded claim

14 (1) In this section, a recorded claim means any recorded claim other than a leased claim.

Expansion of claims

(2) If a unit contains, partly or totally, 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 subsequently becomes part of that recorded claim.

Expansion — more than one recorded claim

(3) If a unit contains, partly or totally, 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 subsequently becomes part of one of those recorded claims, in accordance with the following order of priority:

(a) if at least one recorded claim is contiguous to that land,
- (i) the claim that is contiguous to it and that was recorded under subsection 96(2) or, if two or more are contiguous to it, the claim that encompasses the claim that was staked first, or
- (ii) the claim that is contiguous to it and that was recorded under subsection 13(1) or, if two or more are contiguous to it, 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 encompasses 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 recorded claim is 30 years, beginning on its recording date, plus any extensions referred to in paragraphs 51(6)(a) and 67(4)(c), unless the 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).

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

8 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 beginning on the day on which the claim is recorded for each unit included in the recorded claim of at least

(a) $45 in respect of the first year;
(b) $90 in respect of the second, third and fourth years;
(c) $135 in respect of the fifth, sixth and seventh years;
(d) $180 in respect of the 8th, 9th and 10th years;
(e) $225 in respect of each of the 11th to 20th years; and
(f) $270 in respect of each of the 21st to 30th years.

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.

Unit

(3) For the purposes of subsection (1), a unit is considered to be 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.

Charges to Hold Recorded Claim and Assess Mineral Potential

Charge

40 (1) The following per unit charges apply, annually beginning on the day on which the claim is recorded, 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;
(c) $135 in respect of the fifth, sixth and seventh years;
(d) $180 in respect of the 8th, 9th and 10th years;
(e) $225 in respect of each of the 11th to 20th years; and
(f) $270 in respect of each of the 21st to 30th years.

Payment

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

Unit

Report of Work

Submission

41 Subject to subsection 97(1), a holder of a recorded claim must, in respect of the work required to 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; and
(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 to do the work referred to in section 49.1.

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 have been performed within a period of not more than 12 consecutive months during the four years immediately preceding the day on which the report was 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 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; and
(b) in all other cases, by a professional engineer or a professional geoscientist 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 to 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 Reports and Cost of Work

Evaluation of reports

43 (1) The Mining Recorder must evaluate the reports referred to in section 41 and 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, in writing, from the holder of the recorded claim, supporting documents that justify the cost of work that is specified in the request.

Lack of justification

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

Allocation of excess cost of work

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) at the time the certificate of work respecting the report is ready to be issued under subsection 47(1), the Mining Recorder must 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 — excess

(2) At any time before the evaluation of the report has been completed, the holder of a recorded claim may make an application to the Mining Recorder not to allocate the excess cost of work or to allocate it to fewer years for which work is still required to be done under subsection 39(1).

Allocation or non-allocation

(3) The Mining Recorder must comply with the application.

Application — unallocated excess

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

Allocation of excess cost of work

(5) If the unallocated excess cost of work is sufficient, 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 is leased.

Application for grouping

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

Grouping certificate

(3) If the requirements set out in 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 — grouping

46 (1) On application by one of the holders 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, for any year referred to in ss. 39(1), in respect of any of the claims listed in the grouping certificate to any of the other claims listed in the certificate.

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) the evaluation of a report respecting a recorded claim has been completed; or
(b) an 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 a 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 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.

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 as required under subsection 39(1).

Charge

(2) The application must be accompanied by an amount equal to 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

(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 set out in subsections 49(1) and (3) are met; 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 set out in subsection 49.1(2) is met.

Exception

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

Cancellation of recording

50 The recording of a claim is cancelled on

(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) a certificate of extension has not been issued in respect of the claim under paragraph 49.2(1)(b), 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 the 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 already 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

Application for suspension

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 make an application 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 set out in 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 make an application for a suspension, with respect to that claim, of the work requirements set out in 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.

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 set out in subsections (1) and (2) or (3) and (4) are met, the Supervising Mining Recorder must record the suspension.

Effect of suspension

(6) When a suspension of the work requirements set out in 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 a year referred to in subsections 39(1) and 40(1), any year included in a suspension is to be excluded.

Reduction of Area of a Recorded Claim

Application

52 (1) The holder of a recorded claim (in this section referred to as the “original claim”) may make an application to the Mining Recorder to reduce the number of units included in the 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-area claim is contiguous to another unit in that claim; and
(c) the units included in the reduced-area claim do not enclose a unit that is not included in that claim.

One application per year

(2) Not more than one application for a reduced-area claim may be made per year beginning on the date of the recording of the original claim.

Recording of reduced-area claim

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

Effect of recording

(4) When a reduced-area 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-area 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-area claim are open for prospecting, and the units containing 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 — 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 containing 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 claim holder and any person related to the former claim holder are 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-area claim or to 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.

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

Unauthorized activities

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) Subsections 53(3) and (4) of the Regulations are 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.

10 Section 54 of the Regulations is repealed.

11 The Regulations are amended by adding the following before section 55:

Land or unit incorrectly included in recorded claim

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

Recording of corrected claim

(2) On the day on which the recording of the original claim is cancelled, 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

(3) When a corrected claim is recorded, 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 corrected claim.

Cancellation of recording

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

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

13 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 received by the Mining Recorder 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 received by the Mining Recorder and no lease has been issued on the claim under subsection 60(3) before the end of that period; or
(c) on the day on which 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 containing 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 — 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 containing 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 are not permitted to make an application to record a claim that includes any unit that was included in the claim the recording of which has been cancelled or to acquire a legal or beneficial interest in respect of that claim.

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

15 The Regulations are amended by adding the following before the heading before section 60:

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 the recorded claim must

(a) obtain a plan of survey of the claim made under section 31 of the Canada Lands Surveys Act;
(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) all 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 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 the 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 set out in section 57 have been met.

16 Section 60 of the Regulations is repealed.

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

Application for lease

60 (1) A holder of a recorded claim who wants to obtain a lease of the claim must make an application to the Mining Recorder.

Making application

(2) The application 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 the following requirements are met, the Minister must issue the lease to the claim holder for a term of 21 years:

(a) before the day on which the application to obtain the lease is made, 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
(b) before the end of the duration of the recorded claim,
- (i) a plan of survey of the claim has been recorded under section 58, and
- (ii) 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 set out in subsection 39(1) and the charges referred to in subsection 40(1) do not apply.

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

Annual rent

61 (1) The annual rent for a lease that was issued before November 1, 2020 is $2.50 per hectare during the first term and $5 per hectare during each renewed term before that date. The annual rent for a lease that is issued under subsection 60(3) on or after November 1, 2020 and for any lease that is renewed under subsection 62(2) on or after that date is $10 per hectare.

19 Section 62 of the Regulations is repealed.

20 The Regulations are amended by adding the following before section 63:

Application for renewal of lease

62 (1) A lease may be renewed by the lessee by making an application to the Mining Recorder at least 120 days before the day on which the lease expires but 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 set out in subsection (1) are met, the Minister must renew the lease for a period of 21 years.

Application for reduction in area of leased claim

62.1 (1) The lessee may, not later than one year 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 (in this section referred to as the “original claim”) that is leased if

(a) an application for renewal has already been made by the lessee to the Mining Recorder in accordance with subsection 62(1) or the application for reduction in area of the leased claim is accompanied by the application for the renewal;
(b) the application for reduction in area is accompanied by a plan of survey of the reduced claim made under section 31 of the Canada Lands Surveys Act;
(c) each unit included in the reduced-area claim is contiguous to another unit in that claim; and
(d) the units included in the reduced-area claim do not enclose a unit that is not included in that claim.

Exception

(2) Despite subsection (1), no application for reduction in area of a leased claim may be made in respect of a lease that was issued before November 1, 2020 or in respect 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-area 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-area 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-area 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 containing 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 — environmental damage

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 are not permitted to make an application 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 to acquire a legal or beneficial interest in respect of that claim.

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

Application to cancel lease by lessee

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

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

23 The Regulations are amended by adding the following before the heading before section 68:

Transfer of a Claim, Lease or Interest

Requirements

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 or an interest in 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, or an interest in 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 the lease is paid, and
- (iii) the applicable fee set out in Schedule 1 is paid to the Mining Recorder.

Transfer of claim or interest

(2) The transfer of a lease, or an interest in a lease, includes, as the case may be, the transfer of the recorded claim to which the lease applies or of that same interest in the recorded claim to which the lease applies.

Condition on transfer within mining property

(3) If a recorded claim or a lease of a recorded claim or an interest in either of them 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 the lease applies, are cancelled on the day on which any of the following events occurs:

(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 containing 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 recording 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 the previous lease was cancelled.

24 (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.

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

(u) the fees set out in Schedule 1 to 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 a claim for the purpose of taking it to lease;

26 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.

27 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.

Notice 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 electronically or by registered mail to their address, as shown in the records of the Mining Recorder or Chief.

28 Sections 82 and 83 of the Regulations are repealed.

29 Section 85 of the Regulations is repealed.

30 The Regulations are amended by adding the following before the heading before section 86:

Prohibition against prospecting

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 containing those lands are not available for recording as a claim.

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

Definitions

Definitions

86 The following definitions apply in sections 87 to 95.

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 and requests

87 (1) A request or an application, with respect to a claim or a lease of a recorded claim, that is made to the Mining Recorder in accordance with section 42, 45, 46, 51, 52, 54 or 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 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 the renewal of a lease of a recorded claim may be submitted to the Mining Recorder under subsection 62(1) of the former Regulations on or before the last day of the transitional period 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 such a lease 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.

Report 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 those Regulations.

Exception

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

Definitions of cost of work and work

(3) The definitions cost of work and work in subsection 1(1) of these Regulations apply, in respect of prospecting permits issued under the former Regulations, 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 containing 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 containing 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 containing those lands for recording as a claim.

Prohibition

(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 make an application to record a claim that includes any unit that was included in the prospecting permit zone of the expired or cancelled permit or to acquire a legal or beneficial interest in respect of that claim.

Dispute Respecting Recording of 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 these Regulations, except sections 86 to 94, during the transitional period, any reference

(a) to a provision — or any concept referred to in a provision — that has been repealed or replaced on November 1, 2020, is deemed to be a reference, during that 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 that period.

Staking of lands

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

(a) the reference to the staking of lands is deemed not to form part of subsection 22(1) and section 56 of these Regulations during the transitional period; and
(b) 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 paragraph 5(1)(c) of these Regulations during the transitional period.

32 The portion of section 86 of the Regulations before the first definition is replaced by the following:

Definitions

86 The following definitions apply in sections 87 to 97.

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

Conversion of Claims

Definition of original claim

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

(a) a leased claim; and
(b) a claim in respect of which, before the first day of the transitional period, an application for a lease is pending and a plan of survey has been made under section 31 of the Canada Lands Surveys Act.

Recording as converted claim

(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 includes the units covered, partly or totally, by that claim.

Lands included in a converted claim

(3) If a unit contains, partly or totally, 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 contains, partly or totally, more than one claim and other lands, each of those lands, other than lands referred to in subsection 5(1), becomes part of one of the converted claims, in accordance with the following order of priority:

(a) the converted claim that is contiguous to that land and, if two or more are contiguous to it, the claim that encompasses the original claim that was staked first; and
(b) the converted claim that encompasses 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 amend the date of the recording of the converted claim to that date.

Report and Certificate of Work for Converted Claim

Submission of report

97 (1) The holder of a converted claim must, in respect of the work required to 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 is required to 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 in Area of Converted Claims

Making an application

98 (1) Despite subsection 52(2), the holder of a converted claim must not make an application for reduction in area 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.

Period of 12 months

(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.

34 Schedule 1 to the Regulations is amended by replacing the references after the heading “SCHEDULE 1” with the following:

(Subsections 3(1) and (4) and paragraphs 82(1)(c) and 83(1)(b))

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

36 (1) Schedule 2 to the Regulations is amended by replacing the references after the heading “SCHEDULE 2” with the following:

(Subsection 1(1))

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

(Subsections 1(1), 42(1) and 43(1))

37 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)

38 (1) Paragraphs 3(1)(a) to (d) of Schedule 2 to the Regulations are 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 are 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;

39 (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 included 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 every report made by a contractor, together with all maps and sections produced and data collected in connection with the report made by the contractor.

40 (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 related 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,

41 Subsection 6(3) of Schedule 2 to the French version of the Regulations is replaced by the following:

a) le Système de référence géodésique nord-américain de 1927 (NAD 27);
b) le Système de référence géodésique de l’Amérique du Nord 1983 (NAD 83);
c) le Système canadien de référence spatiale (NAD 83 (SCRS));
d) le Système géodésique mondial 1984 (WGS 84).

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 paragraph (c), by adding “and” at the end of paragraph (d) 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 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

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

(2) Subsections 1(2) to (5) and (7) and sections 2, 6, 8, 9, 11, 13, 15, 17, 18, 20, 21, 23, 25, 28, 30, 32, 33 and 35, subsection 36(2) and sections 37 to 46 come into force 90 days after November 1, 2020.

SCHEDULE 1

(Section 35)

SCHEDULE 1

(Subsection 3(1), paragraphs 10(1)(c) and 11(1)(b), subsection 45(2), paragraph 58(b), subsections 60(2) and 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 a 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, an interest in the 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 46)

SCHEDULE 3

(Subsection 1(1) and paragraph 8(1)(c))

Nunavut Lands Division

North American Datum of 1927

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

South of latitude 70°

2 (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 boundaries 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

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

Meridians

(2) Each 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) Each 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 boundary 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)

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)

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)

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

4 (1) Each 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) Each 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 3(4) is bounded on its south side by the south boundary 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

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Issues: Changes to the former Nunavut Mining Regulations (SOR/2014-69) have been made to allow for the introduction of an online administration system of mining rights for Nunavut. Obtaining mineral claims under the former regulations required marking the boundaries of the mineral claim on the ground, using wooden posts. This ground staking was a burdensome and costly process, particularly in remote areas with little transportation infrastructure such as Nunavut. Introducing a web-based system streamlines the process for acquiring exclusive rights to prospect for minerals on Crown lands in Nunavut. Other changes to mineral tenure were also needed for the administration and maintenance of mineral claims to be compatible with the new online system such as updating mineral exploration work requirements, standardizing the annual rent for mining leases and phasing out prospecting permits.
Description: The Regulations Amending the Nunavut Mining Regulations are now in force. The amended Nunavut Mining Regulations eliminate the need to physically stake mineral claims by planting posts on the ground to mark their boundaries and introduce a process whereby claims on Crown lands in Nunavut can be acquired online. A mineral claim is comprised of contiguous units of land selected from a pre-defined grid on an online map. Approval is immediate, ownership of mineral claims is undisputable, and wait times are reduced for the majority of administrative processes related to the claims. The amended Nunavut Mining Regulations also repeal prospecting permits, allow for online payments and transactions, increase the duration of a claim from 10 to 30 years, standardize mining lease rental payments, update mineral exploration work requirements on the claims and limit the cost of environmental baseline studies that can be used to satisfy these work requirements. Some transitional measures are also in place to implement the changes.
Rationale: A mining rights administration system that permits online acquisition of exclusive rights to prospect for minerals on Crown lands in Nunavut allows the territory to remain competitive with other mining jurisdictions in Canada, which have already introduced online acquisition of mineral claims. The regulatory changes are expected to save the mining industry an estimated net amount of $62.9 million over the next 10 years. It is anticipated that the savings will allow the mining industry to redirect resources previously spent on ground staking to actual mineral exploration on the claims themselves, leading to increased mineral development and employment opportunities.

Issues

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

The trend in many Canadian jurisdictions such as British Columbia, Ontario and Quebec is toward online and cost-effective systems of obtaining mineral claims. The mining industry asked Canada to update the former Nunavut Mining Regulations (SOR/2014-69) to align with other Canadian jurisdictions that allow for online map selection of mineral claims, payments and transactions.

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

The amended Nunavut Mining Regulations 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 are obtained online. Decisions on mineral claims are made almost instantly, reducing delays and potential confusion over ownership, as it is impossible for multiple claims to be recorded at the same time on the same location. Under the amended regulations, most transactions related to mineral claims are done online instead of using paper forms and making payments by mail or in person at the Mining Recorder’s Office in Iqaluit.

The amended Nunavut Mining Regulations also repeal sections on prospecting permits, which are no longer 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 that can be used to satisfy these work requirements.

Amendments to the Nunavut Mining Regulations were required to establish a new legal framework to implement these changes. If the mining regulations had not been amended, it would have been impossible to implement online selection of mineral claims on map, and prospectors would continue to incur costly expenses to physically stake claims on the ground. Nunavut would be less attractive as a region for mineral exploration, and the higher costs of obtaining mineral claims in remote areas in the territory 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 and ground-based 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 made the former process much less competitive compared to processes in place in the mining jurisdictions that have switched to online selection of mineral claims on map. All else being equal, it is expected that there will be more mineral claims and thus more mineral exploration of these claims with the ability to obtain them online.

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. These regulations provide the rules for prospecting and developing the mineral deposits on lands in Nunavut that are open for mineral exploration. The former Northwest Territories and Nunavut Mining Regulations were updated in 2014 to correspond with the devolution of mineral rights administration to the Government of the Northwest Territories. They were split into two separate mining regulations: the Northwest Territories Mining Regulations (SOR/2014-68) and the Nunavut Mining Regulations (SOR/2014-69). The last round of amendments allowing for online map selection of mineral claims applies to the Nunavut Mining Regulations only. The current federal Northwest Territories Mining Regulations still require ground staking of mineral claims. They 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 former Nunavut Mining Regulations (SOR/2014-69), prospectors were 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 involved the use of helicopters by workers to reach remote areas that have limited transportation infrastructure and was very costly. The former regulations also required 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 amended regulations, prospectors obtain mineral claims through an online process and pay charges at the moment of obtaining the claims. These charges are deposits paid in lieu of the costs of the mineral exploration work required to be done on the claims during their first year. These charges are imposed under the authority of paragraph 19.1(a) of the Financial Administration Act and are remitted to the claim holders once the work is carried out and the costs of work assessed by the Mining Recorder. This approach is similar to the former process for obtaining prospecting permits, which required 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 eliminates the costly first step of ground staking of claims. It is expected that the savings will allow individuals and companies specializing in higher-risk, early-stage exploration to redirect resources previously spent on ground staking of mineral claims toward actual mineral exploration activities of the claims themselves, leading to increased mineral development.

The COVID-19 pandemic public health emergency and associated social distancing measures created a negative economic environment for the mining industry in Nunavut. The Department supported the competitiveness of the industry through the pandemic with various measures. Obligations to pay charges and to do mineral exploration work for mineral claims and prospecting permits for the year 2020 can be suspended on request in writing. Time limits to pay rents for leases due between March 13, 2020, and October 29, 2020, inclusively, as well as time limits to initiate rent collection procedures that fall in the same period, are extended by up to six months until October 30, 2020. This extension allows leases to not be in default for unpaid rent due to the pandemic. Time limits for holders of recorded claims to apply for a mineral lease that fall in the same period are equally extended in the same way. In addition, the requirement to pay the annual rent for a mineral lease in Nunavut that becomes due during the one-year period from March 13, 2020, to March 12, 2021, can be waived on request in writing. Any rent already paid can be waived the following year, and any rent waiver granted continues to be valid after the introduction of this latest regulatory amendment allowing for acquisition of mineral claims online.

Objectives

The objectives of the amendments to the Nunavut Mining Regulations 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 an 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 amount 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 amendments to the Nunavut Mining Regulations affect everyone who has an interest in exploring for minerals on Crown lands in Nunavut. The changes will 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 rights

The amendments to the Nunavut Mining Regulations enable the creation of an online administration system of mining rights in Nunavut that allows for mineral claims to be acquired online. This changes the former process of ground staking a mineral claim to selecting a claim on an online map of Nunavut that is 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 depicts 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 is 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 amended regulations also repeal provisions related to prospecting permits, as these are no longer necessary, given the possibility of acquiring mineral claims online. Net cost savings, mostly for the mining industry, are expected by implementing this system. Most of the savings will result from the removal of the requirement to physically stake a mineral claim using wooden posts.

The Department converted existing ground claims into online map-based unit claims, but all existing rights are maintained, and measures are in place to ensure a seamless transition. These measures include not having to report mineral exploration work earlier than what 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 amended Nunavut Mining Regulations 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 is now the only accepted method of payment, except for royalty payments, which continue to be made by cheque or wire transfers. Individuals and incorporated companies can request a user name and password to access the online system. This allows users to apply for a licence to prospect and authorize representatives to transact on their behalf using the online system.

Regulatory modernization and alignment with other mining jurisdictions

The amended Nunavut Mining Regulations 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. Formerly, the maximum duration of a mineral claim in Nunavut was 10 years. To maintain tenure after that period, a mining lease of the claim had to be obtained and rent had to be paid, but there was no obligation to carry out mineral exploration work once a mining lease was obtained. The amended regulations 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 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 is still 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 amendments provide mining industry with a consistent and stable environment in which mineral exploration, development and mining can occur. The rule that it is no longer mandatory to carry out mineral exploration work once the lease has been obtained is retained.

Updating mineral exploration work requirements to keep a mineral claim

In order 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. Cost of work in excess of the requirements can be applied to subsequent years. Mineral exploration work requirements in Nunavut had not changed since 1978. Under the former Nunavut Mining Regulations (SOR/2014-69), to keep a mineral claim in Nunavut, at least $5 of mineral exploration cost of work per hectare per year needed 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 is comprised of units of land on a predefined grid map, the existing per hectare rate is 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 to keep a mineral claim can be easily calculated at the time of selection of units included in the claim. The required annual cost of mineral exploration work rates are progressive, with costs increasing over time. Despite these changes, Nunavut still has the least work requirements among most mining jurisdictions in Canada.

Under the amended regulations, a 30-year duration for the claim is divided into six 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 also aims at reducing long-term speculative ownership of mineral claims. The new requirements apply to existing mineral claims, after their conversion into claims made of units, and new unit claims.

Table 1 compares the former and the new mineral work requirements on mineral claims for each year. The new 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).

Table 1: Annual costs of mineral exploration work required to be done to keep mineral claims
Year	Former costs per hectare of land in the claim	New costs per unit of land in the claim	New costs per hectare of land in the claim^{table b1 note 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
Table b1 note Table b1 note 1 Assuming the case of a claim that is comprised of only one unit, and assuming that this unit has an average size of 18 hectares. Return to table b1 note 1 referrer

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 cost 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.

When an application to record a mineral claim is made through the online system, an acquisition work deposit of $45 per unit is charged to deter nuisance claims, a scheme that is similar to the former prospecting permit work deposit. The imposition of this deposit is under the authority of paragraph 19.1(a) of the Financial Administration Act. The deposit corresponds 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.

Updating charges to be paid as deposits to maintain mineral claims

Claim holders still have the ability to file applications for a one-year extension to do the mineral exploration work, accompanied by a deposit that corresponds to the cost of work required for that year. The work deposits are charges under the authority of paragraph 19.1(a) of the Financial Administration Act. They are reimbursed to the claim holder after the work has been carried out, reported, and assessed by the Mining Recorder. This measure gives individual prospectors and mineral exploration companies flexibility in the management of their exploration activities. Without that deposit scheme, if during a specific year the mineral exploration work could not be done, the claim would be cancelled for lack of work.

As these charges are considered fees under the Service Fees Act, they are subject to the requirements of applicable provisions of that Act. Notably, charges may be required to be adjusted in each fiscal year by the percentage change over 12 months in the April All-Items Consumer Price Index for Canada, as published by Statistics Canada under the Statistics Act, for the previous fiscal year. In each fiscal year, information about the charges such as the revenue received, any costs incurred in relation to the charges, the degree of compliance with any applicable performance standards, and any refund made will need to be included in a report along with other fees to be tabled before the House of Parliament. Charges are paid online and processed immediately. Once the equivalent work has been done and assessed, charges can be remitted upon request by claim holders submitting proof of payment of the charges, which are then processed in three weeks on average by direct deposit to the claim holders.

Repealing sections related to disputing a ground staked claim

The former process of ground staking of mineral claims using wooden posts was susceptible to disputes over who has priority to record a mineral claim, as competing prospectors could argue over who planted the posts first on that piece of land. Under the new process of online selection of mineral claims on map, mineral claims are recorded by selecting units of land on a pre-defined grid online, eliminating the chance of multiple claims being recorded at the same time at the same location and any resulting dispute. Former 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 amended regulations to allow the Mining Recorder to correct the situation, and for ministerial review of decisions, actions and omissions of the Mining Recorder.

Other regulatory changes

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 should correspond to the reduced administrative cost.
Streamline rules on the opening of lands for prospecting and selection of mineral claims after a mineral claim or leased claim ends. Formerly, timelines for opening of lands were different depending on the reasons for cancellation of the recording of mineral claims. This distinction is no longer necessary. Changes were 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 situation where a large amount of environmental baseline studies are 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 allows for flexibility in the filing of the reports on mineral exploration work done on the claims that have the same anniversary date, as reports must be filed no later than 120 days beginning on each anniversary date of the recording. This allows for one report respecting work done on multiple claims over the same period. However, the recording date can 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 has an annual rental rate of $10 per hectare. The former 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, is retained for the existing leases on the coming into force of the amended regulations. At the end of their existing first or renewed term, any further renewal will 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. Formerly, a minimum of only $25 per hectare of mineral exploration work was needed before a mining lease could 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 allows prospectors who spend money doing mineral exploration work 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 as a deposit 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 are still needed and survey monuments still need to be put on the ground to physically mark the boundaries of the lease of the unit claims, the Canada Land Surveyor does 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 are now based on the grid coordinates of the units that form the boundaries of the claim. It is anticipated that this measure will 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. Formerly, when a survey was completed, only holders of the claims that are adjacent to the future leased claim received a notice from the future lessee informing them that the claim was going to be leased. This new requirement to extend notice to all adjacent holders of the surface rights brings consistency to all stakeholders.
It is no longer possible to reduce the area of lands of leased claims for mining leases issued prior to the coming into force of the amendments. Only leases of unit claims obtained through the new system can be reduced by removing units when the mining leases are renewed at the end of any of their 21-year term.

Transitional provisions

The amended Nunavut Mining Regulations set up a 90-day transitional period following the coming into force on November 1, 2020, where it will not be possible to stake new mineral claims on the ground. This 90-day period, which runs from November 1, 2020, to January 29, 2021, 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, on January 30, 2021, the system will be fully operational: the online map will 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 will have the ability to manage their tenures using the online system.

During the transitional period, prospecting continues but staking of claims on the ground is prohibited. Holders of mining leases continue to manage their leases as usual with the exception that applications to reduce a lease are not accepted and leases expiring within one year of the coming into force of the amended regulations need to be renewed under the amended regulations. It is not possible to request the cancellation of the recording of a claim or to transfer a claim. During the transitional period, work requirements and charges, which are deposits to be paid in lieu of work, are waived. The duration of existing claims is extended until the 90th day. Mineral exploration work reports are not accepted, but the recording of claims is not cancelled for lack of work or unpaid charges during that period. Claim holders will 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, late fall and early winter, 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 amended Nunavut Mining Regulations 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 amended regulations, on January 30, 2021, the existing claims will 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 will increase the total area of claims in Nunavut by approximately 7%. Afterward, 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 will 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 in eliminating subdivisions of units over time.

Existing claims subject to leases will not be converted to grid-based unit claims and will 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 will 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 will not be carried forward and new mineral exploration work requirements will apply. Excess work already allocated to the future years of the mineral claims will be recognized and unallocated work will be allocated to the converted claims at the request of the claim holder, based on the new work rate.

Regulatory development

Consultation

Crown-Indigenous Relations and Northern Affairs Canada has undertaken consultation and discussions with the mining industry, Inuit organizations, the Government of Nunavut, Canada Lands Surveyors and other affected groups since 2010 on the proposed changes to the Nunavut Mining Regulations (SOR/2014-69). 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 website. The Department received 345 responses, including questions seeking clarification on the proposed amendments and comments from 29 respondents, the large majority of which supported the transition to using the online administration system of mining rights.

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 exploration and extraction of minerals, companies providing services to mining industry, Indigenous and Inuit organizations and non-governmental organizations. In addition, public information available on the Department’s website was regularly updated to reflect the proposed regulatory changes.

The Department also sought comments from stakeholders for a period of 30 days, through the prepublication of the proposed Regulations amending the Nunavut Mining Regulations in the Canada Gazette, Part I, on May 25, 2019. Steps were taken to ensure that all stakeholders were aware of the prepublication. A letter was sent to the Inuit organizations, the Government of Nunavut and the Denesuline First Nations, informing them of the prepublication and inviting them to provide comments. The Northwest Territories and Nunavut Chamber of Mines were asked to circulate the information to their members, which ensured that representatives of the mining sector were informed of the prepublication. Finally, the Department’s website was updated, with a link to the prepublished proposed amendments and an invitation to submit comments within 30 days after the date of prepublication.

As a result of this process, the Department received 42 comments from a total of nine respondents, including six representatives from the mining sector, the Government of Nunavut, the Kitikmeot Inuit Association and the Qikiqtani Inuit Association. Overall comments were positive. Approximately half of the comments were questions seeking clarification. The remaining were generally positive comments on the project, requests for modifications to specific provisions or policies, or criticism of the choice of lands division system (grid). Tables 2.1 to 2.3 present a summary of the comments that were received along with the Department’s responses, including, where applicable, a rational for the Department’s decision not to proceed with the requested changes. These tables exclude the comments related to modern treaty obligations, which are addressed separately, under the “Modern treaty obligations and Indigenous engagement and consultation” section.

One of the comments received resulted in changes to the regulatory proposal. Section 4 of Schedule 3, on Nunavut Lands Division, stating that latitudes and longitudes used in the schedule refer to the North American Datum of 1927 (NAD27), is moved to the top of Schedule 3 at section 1 (see comment No. 38 of Table 2.3).

It must also be noted, however, that following prepublication in the Canada Gazette, Part I, on May 25, 2019, administrative changes were made to two provisions of the amended Nunavut Mining Regulations in regard to mining leases applications, as recommended by the Mining Recorder’s Office:

Paragraph 60(3)(a) of the amended Nunavut Mining Regulations has been changed to require that 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, must have been allocated to the claim before an application to obtain a lease can be submitted. This change is to prevent the scenario where a lease application is submitted too early (before a minimum amount of work has been done on the claim).
Subsection 62.1(1) of the amended Nunavut Mining Regulations has been changed to advance the deadline from 120 days to at least one year before the day on which the mining lease expires to apply for a lease renewal with a request to reduce the area of the leased claim. The 120-day period allocated to the Mining Recorder to manage a lease renewal application with a reduction request is not sufficient. This one-year timeline is the same as the timeline requested to apply for a lease, as both processes — the lease application and the lease reduction — require the management of a plan of survey of the claim to be leased. This change means that lessees who want to apply to renew a leased claim that is reduced in area must apply at least one year before the end of the term of the lease.

Table 2.1: Summary of general comments received following publication in the Canada Gazette, Part I
	Summary of Comment	Department’s Response
1	General comment Support for transition from ground staking to online selection of mineral claims on map. The change will improve the languishing health of the mineral exploration industry in Nunavut, which is experiencing some of the lowest levels of exploration since the late 1950s.	(None)
2	General comment Much thought has been put into the proposed amendments to the Nunavut Mining Regulations, and overall I believe that the proposed scheme is a good one.	(None)
3	General comment The proposed amendments are clear, concise and comparable to the processes used in other mining jurisdictions within Canada.	(None)

Table 2.2: Summary of questions seeking clarification received following publication in the Canada Gazette, Part I
	Summary of Comment	Department’s Response
4	Acquiring mineral rights on Inuit-owned lands Do the proposed amendments apply only to acquisition of mineral claims on Crown lands or do they also apply to claims on type I Inuit-owned lands?	The amended Nunavut Mining Regulations apply to acquisition of mineral rights on Crown lands, which include lands in Nunavut where the Inuit own the surface rights only. The regulations do not apply to lands in Nunavut where the Inuit own both the subsurface and surface.
5	Verification of position of existing claims Will claim holders be asked to verify the position of the existing claims before their conversion to unit claims under the new system?	To ensure that existing rights are protected, the Mining Recorder’s Office requests that claim holders verify the location of their claims on the online Nunavut Map Viewer before amendments are effective. Claim holders were invited to communicate any discrepancy and received a confirmation of their claims’ location before their conversion, as the case may be. A formal invitation to do so was sent by email to all licensees in August 2017 from the Mining Recorder.
6	Submission of the first report of work in respect of converted claims With respect to converted claims, the claim holder must submit reports no later than 120 days beginning on the anniversary date following the amended recording date. Are we to assume that the converted claims will then have a revised reporting date?	The converted claims have a revised date for reporting. Provisions regarding the dates for filing the first report of work after claim conversion are at section 97 of the amended Nunavut Mining Regulations. The converted claims always have a revised reporting date that is either the same or later than the date that applies before conversion. The month and day are the same but the year may be the same or later depending on how far the current reporting date is in the future.
7	Timeline to review reports of work Will there be changes toward expected timeline for the Department to review assessment reports?	There were no predetermined timelines in the former Nunavut Mining Regulations (SOR/2014-69) for the Mining Recorder to review assessment reports and there is no plan to change it. This remains unchanged in the amended regulations.
8	Cancellation of a claim at the end of the 30th year A claim holder must apply for a lease prior to the end of the 29-year period (at least one year prior to the expiry date), which is the case now, but what if there are circumstances beyond the claim holder’s control that prevent the Mining Recorder from issuing the lease before the end of the 30-year period? Presumably, one could apply for some sort of extension, but the wording of this clause is somewhat limiting.	The owner of a mineral claim is responsible for managing the claim under the timelines outlined in the regulations. With the amendments, a claim holder has more years to explore the claim and to prepare to go to lease. If no lease is issued by the end of the 30th year, there is no regular extension planned for this scenario and the recording of the claim will be cancelled. However, in the unlikely event that the lease is not issued by the 30th year through no fault of the claim holder, the Mining Recorder will not cancel the recording of the claim.
9	Cancellation of a claim at the end of the 30th year In paragraph 55(b), an exception to claim cancellation should be made if a lease application was made on time, but the Mining Recorder hasn’t issued the lease by the 30th anniversary, through no fault of the recorded holder/applicant. It would not be fair to cancel the claim due to a delay on the part of the Government.	(See previous answer)
10	Duration of a grouping certificate What is the minimum duration of a grouping? Is it possible to regroup a claim on subsequent days?	There is no official minimum or maximum duration of a grouping. A group ceases to have effect when the recording of a claim in the group is cancelled or when a claim is leased. A claim can be regrouped, but once the new group is formed, the former group also ceases to have effect. After a claim is regrouped, the excess cost of work from a previous grouping cannot be reallocated to a new group.
11	Time limit for suspension application The deadline to apply for a suspension is 120 days after the end of the year for which the suspension is applied. Is the "end of the year" the end of the calendar year or is it the end of the claim term year (anniversary date to anniversary date)?	The year refers to the claim year term corresponding to its anniversary date, not to the calendar year.
12	Application for a lease When is the earliest time that a company/prospector can transition claims to mining leases? Can the transition to lease occur before the 29th year of the claim tenure?	There is no minimum amount of time before a claim can go to lease. A claim holder can submit an application for a lease at any time before the end of the 29th year. There is, however, a minimum amount of cumulative eligible work of $1,260 per unit required to have been done on a claim to apply for a lease.
13	Reliability of the map selection system The functionality of the new system for the conversion and the transition period must be fully tested and verified, as further delays to establishing a functional and reliable mineral tenure system would negate many of the stated economic reasons given for moving to an online map staking system and would adversely affect investor confidence. What assurances are in place to make certain that these checks will be performed?	We are aware of the challenge and have been testing the system. In addition, our contractor (Pacific Geotech Systems) has recent experience in the conversion to an online claim acquisition system in Ontario and before that in New Brunswick and British Columbia.

Table 2.3: Summary of requests for changes received following publication in the Canada Gazette, Part I
	Summary of Comment	Department’s Response
14	Public authority to include designated Inuit organization In a situation where a designated Inuit organization does not consent for entry on Inuit-owned lands, there is a concern that "public authority" in subsection 51(1) does not include the designated Inuit organizations, with the result that a suspension to do the work, and the related entry order from the Nunavut Surface Rights Tribunal authorizing entry, cannot be obtained.	The term "public authority" in subsection 51(1) of the amended Nunavut Mining Regulations does indeed include designated Inuit organization if the claim is on Inuit-owned lands. It is correct that an application for suspension of the work requirements can be obtained if consent for entry is not obtained from the designated Inuit organization, allowing the holder of a claim time to apply for an entry order from the Nunavut Surface Rights Tribunal.
15	Number of units in the claim We submit that the proposed amendments allow for recording an unlimited number of units in a claim.	The system does not allow for applications to record claims in respect of more than 100 units. This measure is in response to past comments from stakeholders to not allow for acquisition of a large number of units by the same proponent during one claim application session. In the context of competition for Crown minerals, this limitation facilitates the access to lands for individual prospectors and junior mining exploration companies without large capitalization.
16	Online payments The proposed amendments provide for payment by way of credit or debit card. These limited means of electronic payment are not practical. We therefore submit that you consider that other forms of payment be made available for online administration such as electronic wire of transfer of funds with proof of submission.	The system processes each application to record a claim separately. Since each application is in respect of a maximum of 100 units, no payment can exceed the maximum of $4,500 ($45 x 100 units). It is possible to transfer the money to a credit card in advance or to purchase a prepaid credit card. It is essential that the claims registration process be on a "first come, first served" basis. Only payments by credit or debit card allow for this principle to be respected.
17	Subdivision of claims along unit lines Nunavut will avoid the massive proliferation of titles, as an existing claim will not be converted to multiple new claims. However, the proposed amendments unfairly prevent industry from subdividing a converted claim for legitimate reasons. There is a concern that the lack of a subdivision feature will act as a deterrent to recording multi-unit claims.	The new regime does not create the proliferation of titles because staked claims are not converted into many new single-unit claims. However, there is neither amalgamation of claims nor subdivision of claims. The objective of the amendments to the former Nunavut Mining Regulations (SOR/2014-69) is to implement online selection of mineral claims on a map, not to change the entire mineral regime. Currently, it is not possible to amalgamate or subdivide a claim and this policy is not modified, as it is not required for map selection. However, the suggestion can be taken into account in future rounds of amendments to improve the mineral regime.
18	Prohibition Former claim holders and related persons should not be prohibited for one year from reacquiring mineral claims that are cancelled. What precisely does "the claim holder and any person related to the claim holder" mean? How will Crown-Indigenous Relations and Northern Affairs Canada enforce this?	The definition of "related," in respect of two or more persons, is the same as defined in the former Nunavut Mining Regulations (SOR/2014-69) and is not amended. Once a mineral claim is surrendered, the one-year prohibition for the same claim holder to reacquire a claim for the same land is to allow others the opportunity to develop the mineral potential of that land, since the former claim holder already had that opportunity. It is currently and will continue to be enforced through provisions of the regulations allowing for the cancellation, by the Mining Recorder, of the recording of a claim that was acquired in contravention with the prohibition. See section 53 of the amended Nunavut Mining Regulations.
19	Environmental baseline studies Cost of environmental baseline studies should be accepted 100% as cost of work.	Environmental baseline studies are not accepted at 100% of the cost because this type of work is not considered geological work that directly supports the development of the mineral potential of Nunavut, which is the main policy supporting the amended Nunavut Mining Regulations.
20	Remote sensing The cost of remote sensing should be accepted 100% as of the cost of work for the first year of the claim without follow-up on the ground.	Remote sensing costs without ground assessment are not accepted because it is not field geological work that directly supports the development of the mineral potential of Nunavut. Given that the first report of work on mineral claims is not required before the end of the second year, there is time for a follow-up on the ground of the remote sensing outcomes.
21	Cost of work requirements Annual rates of cost of work required are too high.	Cost of work requirements have been adjusted lower following previous rounds of consultation and are among the lowest of the mining jurisdictions in Canada. They reflect the progression of costs to explore a mineral claim in Nunavut.
22	Cost of work requirements The escalating cost of exploration work scale by year required for maintaining a mineral claim has increased and better reflects the value of investment anticipated in mineral development projects (section 39). Nunavut is a jurisdiction where available geoscience information is among the poorest in the nation. It is well known that exploration costs to obtain geoscience information about the land and to perform mineral resource evaluation in the territory are high and also come at an environmental impact cost (no matter how small). We recommend that the regulations stipulate all exploration work, and not only costs at a prescribed amount, and that geoscience results be reported as a requirement.	The focus of the amendments to the former Nunavut Mining Regulations (SOR/2014-69) is to implement map selection of claims to replace ground staking. The former regulations did not require that the entire work be reported. Changes to confidentiality periods or new policies on requiring all exploration work to be submitted for assessment were not contemplated and are outside the mandate of the amendments.
23	Reporting past work The proposed amendments allow for the reporting of the work performed during the four years preceding the filing of the report. The purpose for extending the time to file a report is unclear. It makes verifying and seeking correction in reporting more difficult. In addition, allowing up to four years before a report is submitted and then a three-year confidentiality period pushes the confidentiality of information toward the seven-year mark. This is excessive. It is recommended to reduce the four-year reporting to two years.	The purpose of allowing for the reporting on the exploration work done up to four years preceding the filing of the report is to give flexibility to the claim holder to meet the cost of work requirements.
24	Minimum cost of work to reduce a claim In paragraph 52(1)(a) [reducing a recorded claim], the $135 per unit should not need to have been approved under a single certificate of work, but should be a cumulative amount approved under one or more certificates of work.	The minimum work of $135 per unit required to have been done on a claim to be eligible for reduction of claim is indeed cumulative and each certificate of work will also list this cumulative amount.
25	Charges to hold recorded claims Whereas currently our claim for 9 163 hectares costs $2,290, under the proposed regulations, this same claim would cost $21,690. This is an increase of 10 times from today’s costs of filing a claim, thereby impacting our exploration budget. We submit that the said charges be reduced to reflect a more manageable cost increase over time to allow mining and exploration companies to better plan for cost increases.	The calculations presented in the example are not valid as they compare two different concepts: the administrative fee — that is currently requested to apply to record a claim — and the charge (deposit) payable to acquire a claim under the amended Nunavut Mining Regulations. Currently, it costs $0.25 per hectare in administrative fees to apply to record a claim. Thus, a claim of 9 163 hectares costs approximately $2,290 in fees. Under the amended Nunavut Mining Regulations, this administrative fee has been removed. The upfront charge (deposit) of $45 per unit up to a maximum of $4,500 to record a largest-sized claim of 100 units that is requested under the amended Nunavut Mining Regulations is not an administrative fee. This charge is a deposit that is meant to prevent abusive acquisition of claims without intent to develop their mineral potential. The charge is reimbursed to the claim holder after an equivalent amount of exploration work has been submitted and allocated to the claim.
26	Charges to hold recorded claims Annual charges to be paid at section 40 seem to be in addition to the cost of work requirements. It should be clarified that this is not the case. It is suggested that these provisions be part of section 49 about applications for an extension to do the work.	Section 49 of the amended Nunavut Mining Regulations, which is about applications for an extension to do the work, already refers to section 40 about charges (deposits) to be paid.
27	First year charge The requirement to pay upfront the first year charge to hold a recorded claim is a barrier to many independent prospectors. It is recommended to grant individual prospectors the option to hold up to 50 units in the first year without fee on the first day and allow work filed in the assessment report to count toward those costs.	The requirement to pay upfront first year charge (deposit) to record a claim is necessary to facilitate implementation of map selection of mineral claims, as it discourages nuisance claims acquisition that is now much easier to do since there is no ground staking. To facilitate access for independent prospectors, first year charge was set at minimal amount, $45 per unit which is equivalent to $2.50 per hectare for an average unit claim size of 18 hectares. Furthermore, money formerly spent on ground staking of a claim can now be used to pay the first year charge to acquire a claim.
28	Refund of the charge Provision should be made for the refund of the charge paid under subsection 13(1) to acquire a mineral claim in case of consent to enter on the surface on the lands to carry out work cannot be obtained from the designated Inuit organization.	Refund of the charge (deposit) paid is possible only where the required cost of work has been done. See subsection 48(1) of the amended Nunavut Mining Regulations. If work cannot be carried out because the consent for entry from the designated Inuit organization cannot be obtained for reasons beyond the claim holder’s control, the claim holder can apply for a suspension of the cost of work requirements under section 51.
29	Minimum cost of work to apply for a lease In paragraph 60(3)(b), the $1,260 cost of work per unit should not need to have been approved under a single certificate of work, but should be a cumulative amount approved under one or more certificates of work.	The minimum work of $1,260 per unit required to have been done on a claim to be eligible for going to lease is indeed cumulative and each certificate of work also lists this cumulative amount.
30	Lease requirement Conversion of mineral claims to leases should only be considered when the holder is in the process of developing a mine or intends to do so. There are several reasons not to easily grant leases, the main concern being that no further assessment work is required to be filed and that land tenure with potentially valuable resources can be held for prolonged periods of time for speculative purposes. It is recommended that an application for a mineral lease to the Mining Record is to be made only when the holder intends on developing a mine on the property.	The focus of the amendments to the former Nunavut Mining Regulations (SOR/2014-69) is to implement map selection of claims to replace ground staking. Significant changes to eligibility for leases such as requiring an intention to develop a mine were not contemplated. However, in order to develop a mine and extract minerals, there must necessarily be a lease, as in the former regulations.
31	Application for lease The deadline to apply for a lease should be extended to the end of the duration of a claim.	From the moment a lease application is received, a period of time is needed by the Mining Recorder to process the application, as it requires the management of the plan of survey of the claim to be leased. Therefore, if an application for a lease is submitted at the very last minute at the end of the term of the claim, a lease will not be able to be issued on time and there will be a lapse in the status of the mineral tenure, when a claim has ended but a lease has not existed yet. It is to avoid such legal uncertainties that there is a deadline for a lease application that is earlier than the end of the term of the claim. Claim holders are responsible to manage their claims and lease applications to ensure that deadlines are met to avoid losing their claims. Furthermore, the term of the claim is changed to 30 years instead of 10 years, so there is a lot of time for claim holders to decide whether to apply for a lease.
32	Application for renewal of lease It is proposed that a mining lease may be renewed by submitting an application to the Mining Recorder at least six months before the day on which the term of the lease ends. The "six month" statement to renew a lease creates an additional administrative date that needs to be tracked. Missing the date results in the loss of the renewal. It is suggested to allow for lease applications any time before the end of the term of a lease.	Lessees are responsible to manage their lease renewal applications to ensure that deadlines are met to avoid leases expiring. From the moment a lease renewal application is received, a period of time is needed by the Mining Recorder to process the application. Therefore it is not possible to allow for lease application any time. To limit the number of administrative deadlines that a claim holder needs to track, change has been made to subsection 62(1) of the amended Nunavut Mining Regulations to reduce the deadline for a lease renewal application from six months to 120 days before the day on which the term of the lease ends. A 120-day period is commonly required throughout the amended regulations, for example to establish the deadline to submit the reports of work. The provisions of subsection 62.1(1) of the amended Nunavut Mining Regulations are also changed. If the application to renew the leased claim is accompanied by a request to reduce it, the deadline to send the application is advanced from 120 days to one year before the day on which the lease ends. More time is needed in this case, as the process requires the management, by the Mining Recorder, of the plan of survey of the reduced leased claim.
33	Application for reduced leased claim It is proposed that an application to reduce a mining lease may be applied for no less than 120 days before the day on which the lease expires. The "no less than 120 days before the day on which the lease expires" should be to "before the day on which the lease expires." The 120 days (four months) creates an additional administrative date that needs to be tracked at the risk of losing the ability to reduce the lease area.	Lessees are responsible to manage their lease reduction applications to ensure that deadlines are met to avoid leases expiring. From the moment a lease reduction application is received, a period of time is needed for the Mining Recorder to manage the application and to issue the reduced lease, as the process requires the management, by the Mining Recorder, of the plan of survey of the reduced leased claim. Therefore, if an application to reduce a leased claim is submitted at the very last minute before the end of the term of the lease, the renewed lease will not be able to be issued on time and there will be a lapse in the status of the mineral tenure, when the former lease has ended but a new lease has not existed yet. It is to avoid such legal uncertainties that there is a deadline for a lease reduction application that is earlier than the end of the term of the lease. It appears that the 120-day period allocated to the Mining Recorder to manage a lease renewal application with a reduction request is not sufficient. Rather than reducing the proposed period, change has been made to subsection 62.1(1) of the amended Nunavut Mining Regulations to advance that period from 120 days to at least one year before the end of the term of the lease. This one-year timeline is same as the timeline requested to apply for a lease, as both processes — the lease application and the lease reduction — require the management of a plan of survey of the claim to be leased.
34	Survey required for lease The proposed amendments should not request that the boundaries of the claim to be leased be surveyed. The official boundaries of the mineral claim obtained in the online process or during the conversion of existing ground staked claims to unit grid-based claims should become the official boundaries of the lease, as it is the case in Ontario and Saskatchewan.	Plans of survey of mineral claims to be leased are required under the amended Nunavut Mining Regulations. The surveys must be done by a Canada Lands Surveyor and require the placing of monuments in the ground. The surveys must comply with the standards specified the National Standards for the Survey of Canada Lands. Survey plans are approved under section 31 of the Canada Lands Surveys Act. Survey monuments provide both the holder of the mining lease and the Crown, a clear physical demarcation of the boundary on the ground. It makes the extent of the leased claim unambiguous. This is particularly true if the claim to be leased is a converted claim including partial units. In many cases, new mining leases will be adjacent to existing surface and subsurface interests that affect the new mining lease. Most existing interests have been surveyed under the Canada Lands Surveys Act or the Nunavut Mining Regulations, and the survey monuments in the ground define the boundaries of these interests. These boundaries are not defined by geographic coordinates. The new mining leases should be surveyed to ensure that adjacent land interests are properly related to the new leases. In Nunavut there are many large Inuit-owned lands parcels (some with surface rights and some with surface and subsurface rights). All these parcels are defined by monuments in the ground and by natural boundaries, such as the ocean, rivers or lakes. The boundaries of the mining lease should be surveyed to ensure that there are no overlaps or gaps between the Inuit-owned lands and the new mining leases. Natural boundaries can change over time and this change can be significant. Therefore, what appears to be a unit available to be part of a leased claim displayed in the Nunavut Map Viewer, may in fact be situated on an area that is wholly or partially within a third party interest. A survey will be required to determine the exact location of the lease boundary. A survey ensures that the assets, such as buildings and excavations, on the ground are within the bounds of the surveyed lease. This provides the Mining Recorder assurance that the mine is within the lease area. This may be particularly important when it comes to such things as pollution and contamination sources and location.
34		A ground survey helps prevent the lease holder from using the wrong geographic coordinate system when locating the extent of the lease. Using the wrong coordinate system or datum are common mistakes for non-surveyors when dealing with coordinates. In addition, the survey grade satellite receivers used by the Canada Lands Surveyors are capable of centimetre-level accuracy, compared to commonly used handheld receivers, which are capable of accuracy of only a few metres.
35	Schedule 2 — Geographic coordinate system A section should be added to Schedule 2 to clearly state the projection, datum and zone (if applicable) for the coordinate system being utilized in the report.	Section 6 of Schedule 2 of the former Nunavut Mining Regulations (SOR/2014-69), which is not modified, clearly states the geographic location and coordinates requirements to be used in the reports of work.
36	North American Datum of 1927 One stated objective, modernization, is not being met since the datum used for the online system is the North American Datum of 1927 (NAD27). When modernizing the regulations, it is curious that a grid system based on the Canada Oil and Gas Land Regulations, which date back to 1960, was adopted, a very poor choice for establishing a grid system for regulations coming into force in 2020. The regulations should be brought up to present-day standards. The NAD27 is out of date and should not be used. The grid conversion from the NAD27 to the North American Datum of 1983 (NAD83) should be built into the pre-defined grid to avoid users the burden of always having to convert between reference frames to make information compatible with current GIS databases. It is strongly recommended that the NAD83 be used as the datum for the spatial reference system of the grid.	The Nunavut Lands Division grid is based on the grid system used in the Canada Oil and Gas Land Regulations. The system is based on grid areas, sections and units. As indicated in section 4 of Schedule 3 of the amended Nunavut Mining Regulations, the geographic coordinates of the grid area are based on the North American Datum of 1927 (NAD27). However, even though the grid system is based on the NAD27, the conversion from the NAD27 to the North American Datum of 1983 (NAD83) has been built into the pre-defined grid. Therefore, all grid area corners, section corners and unit corners available through the online map selection system are in the NAD83. The user of the online system is not required to make the transformation from the NAD27 to the NAD83.
37	Schedule 3 — Grid description The spatial description of the "sections" and "units" that will comprise the grid for online acquisition of mineral claims is not particularly clear. It would be a great help if the actual grid overlain on a map of Nunavut were illustrated to avoid confusion.	Schedule 3 of the amended Nunavut Mining Regulations — Nunavut Lands Division — is the technical description of the grid areas. The grid areas overlying the map of Nunavut can currently be visualized online, through the Nunavut Map Viewer.
38	Schedule 3 — Nunavut Lands Division Section 4 of Schedule 3, on Nunavut Lands Division, indicates that all latitudes and longitudes used in the schedule refer to the North American Datum of 1927. This should be moved to the top of the schedule and made in section 1.	The suggested change has been accepted. Section 4 of Schedule 3 of the amended Nunavut Mining Regulations, on Nunavut Lands Division, is moved to the top of the Schedule 3 at section 1.
39	Transitional period We request that the dates of the transitional period be clearly stated in the regulations.	The transitional period is defined at section 86 of the amended Nunavut Mining Regulations. It is the period of 90 days beginning on November 1, 2020.
40	Transitional measures — Resolution process We submit that a dispute resolution process is necessary for issues that may come up as a result of transitional measures.	To ensure that existing rights are protected, the Mining Recorder’s Office requests that claim holders verify the location of their claims on the online Nunavut Map Viewer before amendments are effective. Claim holders were invited to communicate any discrepancy and received a confirmation of their claims location before their conversion, as the case may be. A formal invitation to do so was sent by email to all licensees in August 2017 from the Mining Recorder. In addition, there was a process to submit requests for ministerial reviews with respect to a decision made or an action taken or omitted to be taken under the former Nunavut Mining Regulations (SOR/2014-69). This process for ministerial review has not changed and can be used to seek resolution of any issues that may come up.

Modern treaty obligations and Indigenous engagement and consultation

Inuit organizations have been consulted on the proposed amendments throughout the project and no comments or objections were received following the earlier consultations in 2012 described in the previous section. In July 2017, when the stage of completion of the draft provided a complete picture of the regulatory proposal, an updated information package describing the proposed amendments was mailed to Inuit stakeholders (Nunavut Tunngavik Incorporated, the Kitikmeot Inuit Association, the Kivalliq Inuit Association, and the Qikiqtani Inuit Association), the Nunavut Surface Rights Tribunal, and the Nunavut Impact Review Board. In response, the Department received comments from two Inuit associations. As land owners, they stated that in their opinion, the rights guaranteed by the Nunavut Land Claims Agreement are undermined by the proposed amendments, as their permission is not required to acquire a mineral claim under the new system. They also requested to receive notifications prior to the recording of mineral claims on lands to which they control access. To acquire a better understanding of their concerns, the Department held face-to-face meetings with the three Inuit associations and Nunavut Tunngavik Incorporated in March and April 2019. As a result of consultation, the Department agreed to provide notifications to the designated Inuit organizations where a claim is recorded on lands they control access to, in order to quickly inform them when mineral rights are acquired online on their lands, even if this notification is not a legal requirement.

The former as well as the amended Nunavut Mining Regulations apply on parcels of lands in Nunavut where the surface is owned by Inuit and the subsurface (minerals) is owned by the Crown. The online acquisition of mineral claims allows for the recording of claims on Inuit-owned lands without having to physically access them, as provisions on staking mineral claims are replaced with provisions on selecting mineral claims online. As for the access to Inuit-owned lands for prospecting, section 6 of the former Nunavut Mining Regulations (SOR/2014-69) required that to carry out prospecting activities on lands of which the surface rights have been granted or leased by the Crown, the claim holder must obtain the permission from the owner of the surface rights or be issued an entry order to access those lands from the Nunavut Surface Rights Tribunal. The amended Nunavut Mining Regulations maintain this obligation. Consequently, the amended Nunavut Mining Regulations are in compliance with the Nunavut Land Claims Agreement. Consent for physical access to the land from the designated Inuit organization continues to be required to prospect on Inuit-owned lands where the surface is owned by the Inuit and the subsurface (minerals) is owned by the Crown. However, as physical access to these lands is no longer essential to record a mineral claim, since a claim can be selected using the online system without ground staking, the consent from the designated Inuit organization prior to the recording of a mineral claim is not required.

In response to the consultation following the prepublication of the proposed amendments in the Canada Gazette, Part I, on May 25, 2019, only one of the two Inuit Associations that previously raised concerns regarding land access for prospecting reiterated its concerns. A face-to-face meeting was held in July 2019 with the Inuit association that raised the land access issue. The new regime by which mineral claims are acquired has highlighted a treaty implementation issue, as it was brought to light that the Code for Expedited Prospecting Access, as per sections 21.7.9 and 21.7.10 of the Nunavut Land Claims Agreement, was never created or implemented. Such a code would provide clarity on the conditions for entry on Inuit-owned lands for conduction mineral prospecting activities. As the development of the code is an obligation on the part of the designated Inuit organizations, officials from the Department have offered to help facilitate the process with the objective of having the code in place by January 2021, for consideration and approval as to align it with the timeframe of the implementation of map selection.

Instrument choice

Amendments to the former Nunavut Mining Regulations (SOR/2014-69) were required to establish an online administration system of mining rights in Nunavut. Taking no action would continue the current method of acquiring mineral claims by ground staking using wooden posts which is costly and inefficient considering the remote northern terrain and lack of transportation infrastructure in Nunavut. This would have made the territory uncompetitive for mineral exploration compared to other major mining jurisdictions such as Ontario, British Columbia and Quebec, which have already implemented online acquisition of mineral claims. The principles of outcome- or performance-based regulation were not applied, as mining regulations are detailed and rules-based, involving strict timelines and obligations from claim holders to prevent disputes and ambiguities.

Regulatory analysis

Benefits and costs

The amendments to the Nunavut Mining Regulations free up resources previously spent on the ground staking of mineral claims for actual mineral exploration work that can lead to the discovery of new mineral deposits and the creation of new mines. The development of the mining potential of the land will 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 amended Nunavut Mining Regulations will have multiple benefits for Nunavut and the mining industry. The 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 will 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 amended regulations will lead to an increase in mineral exploration and development expenditures in Nunavut. This will, 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 will eliminate the costly first step of ground staking. It is expected that the savings will 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 amended regulations will 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 will thus be reduced, as well as the use of fossil fuels and the emission of greenhouse gases.

The amended regulations will also reduce the potential for workplace accidents and injuries that are often associated with operations in remote areas and under harsh weather conditions, as it will no longer be required to travel to the site and physically stake claims.

Costs

Mineral exploration companies operating in Nunavut will 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 will allow companies to explore and develop the mineral potential of their claims. Also, the mineral exploration work requirements increase over time because the expenditures necessary to develop the mineral potential of a property become higher over time due to the use of more costly exploration techniques, such as drilling.

The amended Nunavut Mining Regulations will lead to individual prospectors and companies involved in mineral exploration in Nunavut spending an estimated amount of $41.9 million in additional costs to do mineral exploration work over the next 10 years. 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 results mostly from changes to the mineral exploration work requirement rates. Those changes explain an increase of $33 million over the next 10 years, while the remaining costs of $8.9 million are caused by other factors, including the necessity for industry to familiarize itself with the new information management and technology system.

Net outcome

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

savings of $62.9 million over the next 10 years;
annualized savings equivalent to $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 amended regulations.

Cost-benefit statement

The following table presents an analysis of the quantified costs and benefits of the regulatory amendments over a period of 10 years with a 7% discount rate.

**Table 3: Quantified impacts** (in Can$, 2015 price level / constant dollars)
	Base Year	Other Relevant Years	Final Year	Total (Present Value)	Annualized Average
Benefits per stakeholder	33,158	33,158	33,158	232,889	33,158
Costs per stakeholder	14,509	13,065	13,065	93,111	13,268
Net benefits				139,778	19,891

Small business lens

The small business lens does not apply to the regulatory amendments, as they decrease costs to small businesses.

One-for-one rule

This initiative 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 amended Nunavut Mining Regulations 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);
annualized savings equivalent to $34,460 (assuming a 7% discount rate and measured in 2012 Canadian dollars with 2012 as the present value base year); and
annualized average savings of $77 for each licensed prospector in Nunavut (assuming a 7% discount rate and measured in 2012 Canadian dollars with 2012 as the present value base year).

The regulatory changes will have an impact on the administrative and compliance costs assumed by the mining industry. In order to monetize the impacts of the regulatory 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 re-stake 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 in which work is allowed to be done and reported, renewing annual licences for individuals and companies.
3. The repeal 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 requirements rates in order to keep a mineral claim in good standing, as it is 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 get familiar with the new amended Nunavut Mining Regulations and the new online information management system.

Regulatory cooperation and alignment

The regulatory amendments are not related to a work plan or commitment under a formal regulatory cooperation forum.

Strategic environmental assessment

In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that a strategic environmental assessment is not required.

Gender-based analysis plus

A gender-based analysis plus (GBA+) has been conducted as per Crown-Indigenous Relations and Northern Affairs Canada’s Gender-Based Analysis Policy. This analysis concluded that the initiative disadvantages northern men and Inuit in the immediate term, but is expected to be generally beneficial in the long term.

The amended Nunavut Mining Regulations introduce online acquisition of mineral claims on Crown lands in Nunavut and remove the need to physically plant wooden posts on the field to acquire a claim. This means that services of people and companies to ground stake a mineral claim on Crown lands in Nunavut are no longer required. As is common to much mining-related work, persons working in the Nunavut mineral claim staking business are predominately male. Geographically, they are likely to be northerners in Nunavut and Inuit. Anyone with access to a computer and Internet is able to acquire a mineral claim under the new system and this is expected, in the long term, to stimulate the mineral exploration industry in Nunavut as savings on staking activities are shifted toward actual mineral exploration programs in Nunavut and create mining-related employment. This will benefit the same geographic group of northerners and Inuit initially disadvantaged with other socio-economic opportunities.

Gender-based analysis plus considerations are not currently directly measured and incorporated into the evaluation of the effectiveness of the amended Nunavut Mining Regulations to implement online acquisition of mineral claims on Crown land in Nunavut. Nonetheless, effects on mineral exploration expenditures in Nunavut, and therefore socio-economic activities for the affected group of northerners and Inuit, can be indirectly monitored and reported through annual statistics on mining deposit mineral exploration and appraisal expenditures in Nunavut from Natural Resources Canada.

Rationale

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

The amended Nunavut Mining Regulations will result in a significant overall benefit by reducing costs to prospectors who will no longer have to physically stake mineral claims in Nunavut. Resulting savings can be spent on actual mineral exploration work and produce 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 utilizing modern online systems of mineral rights administration. Its implementation will 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 results 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 eliminates disputes related to location and attribution of mineral claims by introducing the pre-defined grid coordinate system as the official location of a claim. In addition, it makes 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 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 eliminates the need for low-level helicopter flights required for ground staking, which are known to disturb animals such as caribou.

Implementation, compliance and enforcement, and service standards

The online administration system of mining rights will become accessible when the amended Nunavut Mining Regulations come into force on November 1, 2020. The service standard related to recording mineral claims will be driven by the users of the online system and will be immediate once payment has been made. This 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, the refunding of the deposits paid to maintain the mineral claims and the reporting on mineral exploration work, will be transacted using the new online system. The Mining Recorder will approve the requests using the internal interface of the system. The system will track processing times, thereby allowing the Department to report on how long it takes to process any application. The amended Nunavut Mining Regulations clearly state what will happen as a result of any actions or omissions from the holder of a mineral claim. Offenders will be prosecuted under the Territorial Lands Act [R.S.C. (1985), c. T-7].

Contact

Dominique Quirion
Head, Mining Legislation
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

Footnotes

Footnote a

R.S., c. T-7

Return to footnote a referrer

Footnote b

S.C. 2002, c. 7, s. 246

Return to footnote b referrer

Footnote c

S.C. 1991, c. 24, s. 6

Return to footnote c referrer

Footnote d

R.S., c. F-11

Return to footnote d referrer

Footnote e

S.C. 1991, c. 24, s. 7(2)

Return to footnote e referrer

Footnote 1

SOR/2014-69

Return to footnote 1 referrer

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Regulations Amending the Nunavut Mining Regulations: SOR/2020-209

Regulations Amending the Nunavut Mining Regulations

Amendments

Prohibitions Respecting Prospecting and Mining

Online Mining Rights Administration System

Establishment of System and Representation of Lands

Claims

Recording Claims

Expansion

Duration of Recorded Claim

Work Requirements

Charges to Hold Recorded Claim and Assess Mineral Potential

Report of Work

Evaluation of Reports and Cost of Work

Suspension

Reduction of Area of a Recorded Claim

Lease of a Recorded Claim

Plan of Survey

Transfer of a Claim, Lease or Interest

Definitions

Pending Applications and Requests

Reduced-area Claim Recorded Before Transitional Period

Applications and Requests During Transitional Period

Report of Work

Prospecting Permits

Dispute Respecting Recording of Claim

Deeming Provision

Conversion of Claims

Report and Certificate of Work for Converted Claim

Reduction in Area of Converted Claims

Coming into Force

SCHEDULE 1

SCHEDULE 1

SCHEDULE 2

SCHEDULE 3

Nunavut Lands Division

REGULATORY IMPACT ANALYSIS STATEMENT

Executive summary

Issues

Background

Objectives

Description

Online administration system of mining rights

New one-step process to acquire mineral rights

Regulatory modernization and alignment with other mining jurisdictions

Extending the duration of mineral claims

Updating mineral exploration work requirements to keep a mineral claim

Table b1 note

Updating charges to be paid as deposits to maintain mineral claims

Repealing sections related to disputing a ground staked claim

Other regulatory changes

Transitional provisions

Claim conversion

Regulatory development

Consultation

Modern treaty obligations and Indigenous engagement and consultation

Instrument choice

Regulatory analysis

Benefits and costs

Benefits

Costs

Net outcome

Cost-benefit statement

Small business lens

One-for-one rule

Decreases

Increases

Regulatory cooperation and alignment

Strategic environmental assessment

Gender-based analysis plus

Rationale

Implementation, compliance and enforcement, and service standards

Contact

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75	65	55	45	35	25	15	5
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