Mineral Exploration in Ontario October 2017 An overview prepared by Northwatch for the NWT Mineral Resources Act Workshop

Transcription

1 Mineral Exploration in Ontario October 2017 An overview prepared by Northwatch for the NWT Mineral Resources Act Workshop Author: Brennain Lloyd, Northwatch The Ontario Context The first metal mine to open in Ontario was a copper mine on the north shore of Lake Huron in 1850, coincident or not with the signing of the Robinson-Huron Treaty. To this day, the federal government describes the 1850 signing of the Robinson-Huron and Robinson-Superior treaties as having opened the area's natural resources to initial exploration and exploitation. 1 Copper-nickel ore was discovered at Sudbury in 1883 and silver at Cobalt in 1903, with a rush from Cobalt north in that brought thousands of men and resulted in thousands of mining claims in the Cobalt area, followed a surge further north to the Timmins camp, with Dome Mines establishing a gold mine in 1910 that would still be operating a century later. The first mining laws were developed in the mid-1880s, and were not revised until the Mines Act of The rules would then remain largely unchanged until the Mining Act was proclaimed in The major overhaul that began in 1988 introduced requirements for such essentials as closure plans, financial bonds, and regular reporting. Many of these achievements were removed or severely reduced through an omnibus bill passed in 1996 which swept away many environmental and social protections across a range of environmental and other laws. Ontario s Mining Act was revised again in a process that began with great promise in 2008 and concluded with only moderate improvements when the Act was passed in 2009, for gradual implementation over the next several years. Ontario is the leading mining jurisdiction in Canada, with the highest level of mineral production, the most exploration and deposit appraisal spending, and the greatest number of active agreements signed between mining and exploration companies and Indigenous communities or Governments. 3 The Province of Ontario is divided - for mining law and for other regulatory purposes - into northern and southern Ontario, with northern Ontario commonly described as north of the French River but in the Mining Act more specifically delineated as that part of the Province of Ontario lying north of the south shores of the French River, Lake Nipissing and the Mattawa River. This demarcation means different rules for the different Ontarios, with the rules south of the French River being more environmentally protective, and in the north less so. For example, north of the French River there are less protective standard for air quality or emissions testing. In mining law, landowners south of the French River have rights which are denied their northern counterparts. Since 2009, if mineral rights were not attached to the surface rights (private property ownership), the lands were automatically withdrawn from mineral staking in southern Ontario. Surface rights' owners in Southern Ontario who want their lands to be open to staking must apply to the Crown to re-open their lands for mining activities. In Northern Ontario, surface rights owners must apply to the Ministry Executive Summary, A Short History of the Ontario Mining and Lands Commissioner 3 Minerals and Metals Fact Book 2016, Natural Resources Canada, ISSN MINERAL EXPLORATION IN ONTARIO BRIEF 10 OCTOBER

2 of Northern Development and Mines to have their land withdrawn from mineral staking, and the decision will be made based primarily on MNDM s assessment of mineral potential. MNDM s decision will be final, with no right of appeal. The north is additionally split by mining law into northern Ontario and the Far North. The 2009 Far North Act proclaimed that there would be no mining in the Far North approximately 42% of the province without a community land use plan being in place. Eight years later, community land use plans are still not in place, and there have been very few withdrawals of land from mineral exploration in response to community concerns about - or opposition to - mining activities in the communities traditional territories. The Far North Land Use Strategy, which is to provide guidance to the development of community land use plans, has still not been released. 4 However, since November 1, 2012, Aboriginal communities have been able to apply to have sites of Aboriginal cultural significance withdrawn from claim staking to prevent mineral exploration in these areas. 5 Acquiring a Mining Claim The system for acquiring mining claims, and with them the right to explore for minerals and potentially develop a mine, has been under revision over the last several years. Prior to 2009, mining claims were acquired through ground staking. To stake the claim, the explorationist was required to be physically on the ground, filing the mining claim with the Ministry of Northern Development and Mines only after establishing corner posts and in most cases cutting lines between the posts. There were detailed requirements, with some special regulations for environmentally or culturally sensitive areas that reduced the amount of disturbance. Since 2009 in southern Ontario claims are established through map staking, by referencing their claim location on a survey using GPS coordinates. In 2018, Ontario intends to move to a system of online mining claim registration for the entire province, replacing the earlier systems of map staking or groundstaking. The changes will require shifting from the current paper-based system to one which is fully digital. 6 After a mineral claim has been acquired by registering the claim with the Ministry of Northern Development and Mines, for the first year no activity is required. In subsequent years, assessment work is required, and the claim holder must file assessment reports, including some evidence of having spent a minimum of $400 per claim unit. Numerous exploration activities qualify as assessment work, including geophysical, geochemical, and geological surveys, physical work such as overburden stripping and bedrock trenching, exploratory drilling and MNDM-approved rehabilitation work. As of November 2012, Aboriginal consultation expenses and a prescribed credit for the submission of GPS geo-referencing also count for assessment work credits. Excess credit from one year can be carried forward and applied to work in future years. Claim holders can also pay a fee in lieu of actually fulfilling the assessment work requirements, subject to certain restrictions. 7 Prior to moving to advanced exploration, mining claims must be converted to a 21 year mining lease. After the fifth unit of assessment work has been completed a claimholder can apply to convert the McMillan LLP 2013, MINERAL EXPLORATION IN ONTARIO BRIEF 10 OCTOBER

3 claim(s) to a lease. The application must include any required agreements of surface rights compensation and a plan of survey, plus a fee. Only the claim holder can apply for the lease, or its renewal. Renewal depends on there having been continual mineral production for at least one year, or a making the case that a reasonable effort has been made to bring the property into production. 8 Mineral Exploration Early mineral exploration activities are conducted without any plan, permit, or MNDM permission more generally, with the rationale from both industry and government that they are no or low impact. These prospecting activities include collecting chips or hand sample of rock and soil, research of past mineral exploration activities and assessment reports, ground surveys using battery operated equipment, geological mapping and airborne surveys. As of 2013, Exploration Plans are required in advance of commencing the following activities: Geophysical surveys requiring a power generator, including induced polarization surveys; and electro- magnetic surveys Line cutting under a width of 1.5 metres Drilling with drills weighing less than 150 kg Mechanized stripping when the total surface area stripped is < 100 m2, within a 200 m radius Pitting and trenching if the volume is between 1 and 3m3 in volume, within a 200 m radius Exploration plans must be submitted to MNDM at least 35 days prior to the expected commencement of activities, and MNDM distributes the exploration plan to Aboriginal communities for comment. Notice must be provided by the explorationist to the surface rights holder (if there is one) of their plan to undertake mineral exploration. Plan applications must indicate that the person supervising the project has completed MNDM s required Mining Act Awareness Program and that the surface rights owners have been notified, and must include a plan describing the proposed activity, and maps with enough detail to locate the area and determine where the activities could occur. The proponent can proceed with the exploration plan activities thirty days after the circulation date of the plan, unless the claim holder has been notified by MNDM that they must apply for an Exploration Permit. The Plans will be posted on an MNDM web site, but the public will have no opportunity to actually comment on the plans prior to their coming into effect. The plans have a two year term; MNDM staff may inspect a mineral exploration site to ensure compliance. Exploration permit applications were voluntary beginning November 1, 2012, and became mandatory as of April 1, Permits are required in advance of commencing the following activities: Line cutting over a width of 1.5 metres Drilling when the drill weighs more than 150 kg Mechanized stripping if the total surface area stripped is more than 100 m 2 within a 200 m radius 8 McMillan LLP 2013, MINERAL EXPLORATION IN ONTARIO BRIEF 10 OCTOBER

4 Pitting and trenching if the volume is greater than 3m 3 within a 200 m radius For exploration permits, surface rights holders must be given notice, but a notice will also be posted on Ontario s Environmental Bill of Rights electronic registry, providing the public with thirty days notice and an opportunity to comment on the application. Surface rights holder are also entitled to compensation for damages sustained to the surface rights by such prospecting, staking, assessment work or operations. 9 Exploration permit applications must be submitted at least 55 days prior to the expected commencement of activities. The Director of Exploration is required to make a decision within 50 days whether to issue the permit or refuse it. If issued, site-specific terms and conditions (e.g. timing restrictions to accommodate seasonal hunting, other traditional uses of the land) can be added. A permit is valid for three years. Applications for exploration permits must include a description of the proposed activities, and on a map identify the location of exploration sites and activities. The map should depict activities such as trenching, stripping, line cutting and geophysics within 100 m accuracy, and drill pad and pitting location(s) should be identified within 200 m accuracy. Exploration trails and roads and camps should be shown within 100 m accuracy. The maps should also identify First Nation communities, the direction North, lakes, streams and other notable topographic features, railways, roads, trails, power lines, pipelines and buildings, township boundary lines, mining claim, lease, licence of occupation or patent boundaries, the mining claim, lease, licence of occupation, patent or parcel numbers of all mining land covered by the project and the grid coordinate lines established for reference purposes (e.g. UTM coordinates). For exploration plans and permits no financial assurances are required and no closure plans must be submitted. Rehabilitation or remediation requirements are minimal, and are limited to the following: - if the drill hole is artesian or encounters underground mine openings or solution cavities the drill hole must be either sealed at the surface and into the upper bedrock by grouting the upper 30 metres of bedrock or the entire depth of the hole, whichever is the lesser, or capped with a screw-on or bolt-on cap - if the drill hole is drilled through the bed of a water body, the drill hole must be sealed at the surface and into the upper bedrock by grouting the upper 30 metres of bedrock or the entire depth of the hole, whichever is the lesser, and the drill casing removed - drilling fluids, cuttings and mud must be contained if they are left on the site, and must be at least 30 metres from any permanent water body or waterway. - drill core samples must be stored at least 30 metres away from any permanent water bodies or waterways. - stripped overburden and/or disturbed bedrock must be stockpiled on site in a safe and stable manner, separately from waste rock. - If a pit wall or vertical man-made rock face is higher than three metres then high visibility fencing that at least one metre high must be installed, with a set back of at least 3 metres from 9 Section 79, Mining Act, version current October 2017 MINERAL EXPLORATION IN ONTARIO BRIEF 10 OCTOBER

5 the brow of the rock face or pit wall, and signs stating Danger Open Pit made of durable weatherproof material must be posted to warn of the potential hazard - Disturbed overburden must be contoured to a stable angle of repose - Stripped areas if not backfilled must be contoured to a stable angle of repose. - All pit walls or man-made vertical rock faces greater than three metres in height must be backfilled or contoured to a stable angle of repose. - All pits with walls greater than three metres in height if not backfilled must be sloped to provide at least one ramp as a point of egress. 10 Continued Changes under Mining Act Modernization The mining regime in Ontario, and particularly the rules and regulations around mineral exploration, have been in a state of near constant change since 2009 when Bill An Act to Amend the Mining Act was passed into law. Regulations followed, with the most significant changes rolling out in 2011, 2012 and A program dubbed Mining Act Modernization has been the vehicle for implementing the changes. Phase I established requirements that notice of claim staking be provided to the private land owner and mapstaking was introduced in southern Ontario. An application process for private landowners in northern Ontario to apply for what the southern surface rights holders had been granted automatically was established. Phase II established the system of exploration plans and permits, made clarifications between the Crown and the proponent with respect to the Duty to consult, provided for the withdrawal from staking of locations meeting the Criteria for Sites of Aboriginal Cultural Significance, Implementing a Mandatory Mining Act Awareness Program, adding requirements for Aboriginal consultation around closure planning, and some changes around bulk samples. Phase III includes additional steps to operationalize the now eight-year old changes to the Mining Act, including moving to a completely online and digital mine claim systems. To achieve this, there will be a period of hiatus estimated at three months and expected to begin early in the new year during which no new additional mining claims can be added to the system Provincial Standards for Early Exploration, as found at MINERAL EXPLORATION IN ONTARIO BRIEF 10 OCTOBER