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Nunavut Mining Regulations (SOR/2014-69)

Regulations are current to 2024-10-14 and last amended on 2021-01-30. Previous Versions

Nunavut Mining Regulations

SOR/2014-69

FINANCIAL ADMINISTRATION ACT

TERRITORIAL LANDS ACT

Registration 2014-03-28

Nunavut Mining Regulations

P.C. 2014-307 2014-03-27

Whereas, pursuant to paragraph 24(b) of the Territorial Lands ActFootnote a, the proposed Nunavut Mining Regulations were published in the Canada Gazette, Part I, on June 29, 2013, substantially in the annexed form, and a reasonable opportunity was afforded to interested persons to make representations to the Minister of Indian Affairs and Northern Development with respect to the proposed Regulations;

Therefore, His Excellency the Governor General in Council, on the recommendation of the Minister of Indian Affairs and Northern Development and the Treasury Board, pursuant to sections 8, 12 and 23Footnote b of the Territorial Lands ActFootnote a and paragraphs 19(1)(a)Footnote c and 19.1(a)Footnote c and, considering that it is in the public interest to do so, subsection 23(2.1)Footnote d of the Financial Administration ActFootnote e, makes the annexed Nunavut Mining Regulations.

Interpretation

Marginal note:Definitions

  •  (1) The following definitions apply in these Regulations.

    Act

    Act means the Territorial Lands Act. (Loi)

    boundary post

    boundary post[Repealed, SOR/2020-209, s. 1]

    business day

    business day means a day other than a Saturday or a holiday. (jour ouvrable)

    Chief

    Chief means the Chief of Financial Analysis and Royalties Administration Section of the Department of Indian Affairs and Northern Development. (chef)

    contiguous

    contiguous means units, claims or lands that, partly or totally, share a common boundary and not merely a point. (contigu)

    corner post

    corner post[Repealed, SOR/2020-209, s. 1]

    cost of work

    cost of work means expenses incurred in performing work, but excludes all of the following:

    • (a) transportation costs outside Canada for persons who performed work or for equipment used in work;

    • (b) taxes and fees paid to any level of government or any institution of public government;

    • (c) costs of staking and recording a claim;

    • (d) legal fees;

    • (e) administrative costs; and

    • (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)

    depreciable assets

    depreciable assets means buildings, plant, machinery and equipment. (actif amortissable)

    environmental baseline studies

    environmental baseline studies means a description of selected environmental attributes that existed before mineral exploration or mining development and that are used to establish a benchmark from which to measure changes to the environment. Selected environmental attributes include meteorologic, hydrologic and hydro-geologic attributes, surface water and groundwater quality, aquatic resources, soil profiling, ecosystems, wildlife and wildlife habitat, cultural heritage and archaeology.  (études environnementales de base)

    exploration cost

    exploration cost means an expense incurred for the purpose of determining the existence, location, extent, quality or economic potential of a mineral deposit in Nunavut, but does not include an expense incurred for the purpose of bringing a mine into production. (frais d’exploration)

    fiscal year

    fiscal year, in respect of a mine, means the fiscal period of the mine’s operator as that period is defined in section 249.1 of the Income Tax Act. (exercice)

    holder of the surface rights

    holder of the surface rights means the lessee or registered holder of the surface rights to the land. (titulaire des droits de surface)

    legal post

    legal post[Repealed, SOR/2020-209, s. 1]

    licence

    licence means a licence to prospect referred to in section 3. (licence)

    mine

    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

    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)

    mining property

    mining property means

    • (a) a recorded claim or a leased claim within the boundaries of which a mine or part of a mine is situated; or

    • (b) a group of contiguous recorded or leased claims within the boundaries of which a mine or part of a mine is situated and

      • (i) that belong to the same owner, or

      • (ii) if the mine is operated as a joint venture, that are owned exclusively by the members of the joint venture or parties related to the members of the joint venture, regardless of the degree of ownership of each recorded claim or leased claim. (propriété minière)

    mining reclamation trust

    mining reclamation trust means a trust that is established for a mine and that is created

    Mining Recorder

    Mining Recorder means the person designated by the Minister as the Mining Recorder. (registraire minier)

    mining royalty valuer

    mining royalty valuer means a person acting on the Minister’s behalf for the purpose of ascertaining the value of minerals or processed minerals produced from a mine. (évaluateur des redevances minières)

    owner

    owner, in respect of a recorded claim, leased claim, mine or mining property, means any person with a legal or beneficial interest in the recorded claim, leased claim, mine or mining property. (propriétaire)

    precious stone

    precious stone means a diamond, a sapphire, an emerald or a ruby. (pierre précieuse)

    prescribed form

    prescribed form means a form prescribed by the Minister under section 28 of the Act.  (formule prescrite)

    processing

    processing means crushing, grinding, flotation, beneficiation, concentrating, milling, roasting, smelting, leaching, recrystallization or refining performed on minerals, and if the output of a mine is precious stones, cleaning and sorting that output. (traitement)

    processing assets

    processing assets means tailings disposal facilities and depreciable assets that are located in Nunavut and that are used directly and exclusively in processing. (biens utilisés pour le traitement)

    prospecting permit

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

    related

    related, in respect of two or more persons, means that the persons are

    • (a) related persons within the meaning of section 251 of the Income Tax Act, read without reference to paragraph 251(5)(b) of that Act;

    • (b) associated corporations within the meaning of section 256 of the Income Tax Act, read without reference to subsection 256(1.4) of that Act;

    • (c) affiliated persons within the meaning of section 251.1 of the Income Tax Act; or

    • (d) other than for the purpose of subsection 74(1), owners or operators of the same mine. (liées)

    Supervising Mining Recorder

    Supervising Mining Recorder means the person designated by the Minister as the Supervising Mining Recorder. (registraire minier en chef)

    undeducted balance

    undeducted balance means

    • (a) in respect of a depreciation allowance, the original cost of the depreciable assets in respect of which the depreciation allowance is claimed, less any depreciation allowances previously claimed in respect of those assets;

    • (b) in respect of a development allowance, the undeducted balance of costs eligible for a development allowance under paragraph 70(1)(i); and

    • (c) in respect of a mining reclamation trust contribution allowance, the total of all contributions made to the mining reclamation trust, less any allowances previously claimed. (fraction non amortie)

    unit

    unit means a unit described in section 4 of Schedule 3. (unité)

    witness post

    witness post[Repealed, SOR/2020-209, s. 1]

    work

    work means

    • (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:

      • (i) examination of outcrops and surficial deposits,

      • (ii) excavation,

      • (iii) sampling,

      • (iv) geochemical study or analysis,

      • (v) drilling,

      • (vi) geological mapping,

      • (vii) geophysical study or analysis,

      • (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),

      • (ix) the placing of grid lines in the field for the purpose of performing any of the undertakings referred to in subparagraphs (i) to (vii),

      • (x) petrography,

      • (xi) data analysis, map generation and preparation of reports that are submitted under these Regulations in respect of undertakings referred to in subparagraphs (i) to (viii) and (x);

    • (b) any of the following undertakings that are performed in respect of a recorded claim:

      • (i) the preparation of a plan of survey under paragraph 57(1)(a);

      • (ii) the building of roads, airstrips or docks for the purpose of performing any of the undertakings referred to in paragraph (a); and

    • (c) environmental baseline studies that are conducted in conjunction with undertakings referred to in subparagraphs (a)(i) to (vii) and (ix) or subparagraph (b)(ii), as well as analysis of the data resulting from the studies, map generation and the preparation of an appendix as required in paragraph 4(t) of Schedule 2. (travaux)

  • Marginal note:Related person

    (2) For the purposes of these Regulations, a person who is related to another person is considered to be also related to any person to whom the other person is related.

Application

Marginal note:Nunavut Mining District

 These Regulations apply in respect of the Nunavut Mining District, the area of which is described in Schedule 2 to the Northwest Territories Mining District and Nunavut Mining District Order.

Licence to Prospect

Marginal note:Issuance of licence

  •  (1) The Mining Recorder must issue a licence to prospect to a person who has applied for one and paid the applicable fee set out in Schedule 1 if the person is

    • (a) an individual who is 18 years of age or older; or

    • (b) a company that is incorporated or registered under the Business Corporations Act (Nunavut), S.N.W.T. 1996, c. 19, or that is incorporated under the Canada Business Corporations Act.

  • Marginal note: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.

  • Marginal note:Duration of licence

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

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note:Licence not transferable

    (6) A licence is not transferable.

Marginal note:Licence authorization — licensee or authorized person

 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

Marginal note:Lands not open for prospecting

  •  (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.

  • Marginal note: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.

Marginal note:Surface rights — prohibition respecting entry

 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.

Marginal note:Prohibition on removing minerals

  •  (1) It is prohibited to remove minerals or processed minerals from, or develop a mine within, the area of a recorded claim or a leased claim, except in the case of the holder of the recorded claim or the lessee.

  • Marginal note: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.

  • Marginal note:Prohibition on construction and disposal

    (3) It is prohibited to erect on a recorded claim any building to be used as a dwelling or any mill, concentrator or other mine building, or to create any tailings or waste disposal area for the purpose of the commencement of production from a mine, unless the claim holder has been issued a lease of the surface rights to, or a grant of, the land covered by the claim.

Online Mining Rights Administration System

Establishment of System and Representation of Lands

Marginal note:Establishment by Minister

  •  (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.

  • Marginal note: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.

Marginal note:Mining Recorder — representation of lands

 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.

Marginal note:Recording of documents

  •  (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.

  • Marginal note: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.

  • Marginal note: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.

Marginal note:Consultation of documents

  •  (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.

  • Marginal note: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

Marginal note:Application to record claim

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

  • Marginal note:Number of units permitted

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

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

Marginal note:Recording of claim

  •  (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).

  • Marginal note:Exclusion

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

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note:Only one change

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

  • Marginal note: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.

  • Marginal note: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

Marginal note:Definition — recorded claim

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

  • Marginal note: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.

  • Marginal note: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

Marginal note:Duration

 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).

 [Repealed, SOR/2020-209, s. 5]

 [Repealed, SOR/2020-209, s. 5]

 [Repealed, SOR/2020-209, s. 5]

 [Repealed, SOR/2020-209, s. 5]

 [Repealed, SOR/2020-209, s. 5]

 [Repealed, SOR/2020-209, s. 5]

 [Repealed, SOR/2020-209, s. 6]

 [Repealed, SOR/2020-209, s. 7]

 [Repealed, SOR/2020-209, s. 7]

 [Repealed, SOR/2020-209, s. 7]

 [Repealed, SOR/2020-209, s. 7]

 [Repealed, SOR/2020-209, s. 7]

 [Repealed, SOR/2020-209, s. 7]

 [Repealed, SOR/2020-209, s. 7]

 [Repealed, SOR/2020-209, s. 7]

 [Repealed, SOR/2020-209, s. 7]

 [Repealed, SOR/2020-209, s. 7]

 [Repealed, SOR/2020-209, s. 7]

 [Repealed, SOR/2020-209, s. 7]

 [Repealed, SOR/2020-209, s. 7]

 [Repealed, SOR/2020-209, s. 7]

 [Repealed, SOR/2020-209, s. 7]

 [Repealed, SOR/2020-209, s. 7]

Work Requirements

Marginal note:Work required

  •  (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.

  • Marginal note: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.

  • Marginal note: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

Marginal note:Charge

  •  (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.

  • Marginal note: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.

  • Marginal note: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.

Report of Work

Marginal note:Submission

 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.

Marginal note:Preparation and content

  •  (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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note:Work reported once

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

Evaluation of Reports and Cost of Work

Marginal note:Evaluation of reports

  •  (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).

  • Marginal note: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.

  • Marginal note: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.

Marginal note:Allocation of excess cost of work

  •  (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).

  • Marginal note: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).

  • Marginal note:Allocation or non-allocation

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

  • Marginal note: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.

  • Marginal note: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.

Marginal note:Grouping of recorded claims

  •  (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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

Marginal note:Application for allocation — grouping

  •  (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.

  • Marginal note: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.

Marginal note:Issuance of certificate of work

  •  (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).

  • Marginal note: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.

Marginal note:Remission of charge

  •  (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.

  • Marginal note: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.

Marginal note:Insufficient work

  •  (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.

  • Marginal note: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).

  • Marginal note:Payment of charge

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

Marginal note:Application for extension

  •  (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).

  • Marginal note: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.

Marginal note:Certificate of extension

  •  (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.

  • Marginal note:Exception

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

Marginal note:Cancellation of recording

 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

Marginal note:Application for suspension

  •  (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).

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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

Marginal note:Application

  •  (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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

Cancellation of Recording of Claims

Marginal note:Unauthorized activities

  •  (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

    • (b) the claim holder has contravened subsection 7(2).

  • Marginal note:Notice to claim holder

    (2) The notice must set out the reason for the impending cancellation and a summary of the evidence to support the cancellation.

  • Marginal note:Cancellation of recording

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

  • (4) [Repealed, SOR/2020-209, s. 9]

Marginal note:Land or unit incorrectly included in recorded claim

  •  (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”).

  • Marginal note: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.

  • Marginal note: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.

Marginal note:Cancellation of recording

 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.

Marginal note:No application for lease or termination of lease

 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.

Marginal note:Opening of lands for prospecting

  •  (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.

  • Marginal note: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.

  • Marginal note: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.

Lease of a Recorded Claim

Plan of Survey

Marginal note:Survey required for lease

  •  (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.

  • Marginal note: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.

Marginal note:Recording of plan of survey

 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.

 [Repealed, SOR/2020-209, s. 14]

Requirements Respecting Leases

Marginal note:Application for lease

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

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

Marginal note:Annual rent

  •  (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.

  • Marginal note:When rent is due

    (2) The rent must be paid to the Mining Recorder before the anniversary date of the lease.

  • Marginal note:Waiver of payment of annual rent — COVID-19

    (3) Due to the COVID-19 pandemic, the Minister must waive the payment of the annual rent for a lease that becomes due under subsection (2) during the year beginning on March 13, 2020, if the Supervising Mining Recorder receives a written request for a waiver from the lessee before March 13, 2021.

  • Marginal note:Annual rent paid — COVID-19

    (4) However, if the annual rent for a lease has already been paid to the Mining Recorder under subsection (2) during the year beginning on March 13, 2020, the Minister must waive the payment of rent for the following year, but the amount waived by the Minister must not exceed the rent paid to the Mining Recorder during the year beginning on March 13, 2020.

Marginal note:Application for renewal of lease

  •  (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.

  • Marginal note:Renewal

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

Marginal note:Application for reduction in area of leased claim

  •  (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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

Marginal note:Notice of overdue rent

  •  (1) If rent is not paid within 30 days after the day it is due, the Mining Recorder must send the lessee a notice stating the amount of rent due and the rate of interest payable on that amount.

  • Marginal note:Cancellation of lease for non-payment of rent

    (2) If the rent due, together with interest from the date on which the rent was due, is not paid within 60 days after the day the notice was sent, the lease is cancelled on the 61st day after the notice was sent.

Marginal note:Application to cancel lease by lessee

 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.

 [Repealed, SOR/2020-209, s. 22]

Transfer of a Claim, Lease or Interest

Marginal note:Requirements

  •  (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.

  • Marginal note: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.

  • Marginal note: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.

Marginal note:Cancellation — recording of claim or lease

  •  (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:

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

Royalties

Marginal note:Commencement of production of mine

  •  (1) For the purposes of these Regulations, the date on which a mine commences production is

    • (a) if the mine includes a mill or concentrator, the first day of the first 90-day period during which the mill or concentrator operates at an average of at least 60% of its rated capacity; or

    • (b) otherwise, the day the mine begins to produce minerals in reasonable commercial quantities.

  • Marginal note:Presumptions respecting mineral or processed mineral

    (2) For the purposes of these Regulations, a mineral or processed mineral is considered to

    • (a) be produced and be part of the output of a mine if the mineral or processed mineral is in a saleable form or has been removed from the mine; and

    • (b) form part of the output of the mine if it is produced from the reprocessing of tailings from a mine.

  • Marginal note:Presumptions respecting related persons

    (3) For the purposes of these Regulations,

    • (a) if minerals or processed minerals that have been sold by an operator to a person not related to the operator are later sold to a person related to the operator, those minerals or processed minerals are considered to have been sold by the operator to a related person; and

    • (b) if minerals or processed minerals that have been sold by an operator to a person related to the operator are later sold to a person not related to the operator and proof of that sale is provided, those minerals or processed minerals are considered to have been sold by the operator to a person not related to the operator.

Marginal note:Royalties on value of output of mine

  •  (1) Each fiscal year, the owner or operator of a mine must pay to the Crown royalties on the value of the mine’s output during that fiscal year in an amount equal to the lesser of

    • (a) 13% of the value of the output of the mine, and

    • (b) the sum of the royalties payable set out in Column 2 of the table to this paragraph for the dollar value of the output set out in Column 1.

      TABLE

      Column 1Column 2
      ItemDollar value of the output of the mineRoyalty payable on that portion of the value (%)
      110,000 or less0
      2greater than 10,000 but not greater than 5 million5%
      3greater than 5 million but not greater than 10 million6%
      4greater than 10 million but not greater than 15 million7%
      5greater than 15 million but not greater than 20 million8%
      6greater than 20 million but not greater than 25 million9%
      7greater than 25 million but not greater than 30 million10%
      8greater than 30 million but not greater than 35 million11%
      9greater than 35 million but not greater than 40 million12%
      10greater than 40 million but not greater than 45 million13%
      11greater than 45 million14%
  • Marginal note:Royalties payable to Receiver General

    (2) The royalties payable to the Receiver General of Canada under subsection (1) in respect of a mine accrue during a fiscal year as the output of a mine is produced and must be remitted to the Chief not later than the last day of the fourth month after the end of that fiscal year.

  • Marginal note:Joint and several liability

    (3) Subject to paragraph 74(1)(b), any person who was an owner or operator of a mine during the fiscal year in respect of which the royalties were payable is jointly and severally liable for the entire amount of the royalties payable in respect of the period during which that person was an owner or operator.

  • Marginal note:Calculation of value of output

    (4) For the purposes of this section, the value of the output of a mine for a fiscal year must be calculated in accordance with the formula

    A + B – C + D + E + F + G + H – I + J

    where

    A
    is the total of
    • (a) the proceeds from sales, during the fiscal year, of minerals or processed minerals produced from the mine to persons not related to the operator, if proof of those sales is provided,

    • (b) the market value of any minerals or processed minerals produced from the mine that were sold or transferred to a person related to the operator, or to any other person if the proof of that disposition is not provided, and

    • (c) if the minerals or processed minerals produced from the mine are precious stones that have been cut or polished before their sale or transfer, the market value of those precious stones before they were cut or polished;

    B
    is the market value of any inventories of minerals and processed minerals produced from the mine, as at the end of the fiscal year, determined under subsection (9);
    C
    is the market value of any inventories of minerals and processed minerals produced from the mine, as at the beginning of the fiscal year, determined under subsection (9);
    D
    is the lesser of
    • (a) the amount of any payment received during the fiscal year that is related to a cost that has been claimed as a deduction or allowance under this section, and

    • (b) that cost;

    E
    is any excess amount referred to in paragraph 70(5)(b);
    F
    is any amount withdrawn, during the fiscal year, from a mining reclamation trust established in respect of lands to which these Regulations apply, up to the maximum of the total of the amounts contributed to the trust;
    G
    is the amount of any proceeds received, during the fiscal year, from insurance on minerals or processed minerals produced from the mine;
    H
    is the amount of any grants in respect of the mine that were made to the operator, or of any loans to the operator in respect of the mine that were forgiven, by the federal government during the fiscal year;
    I
    is the total of the deductions and allowances claimed under subsection 70(1); and
    J
    is the total of
    • (a) the amount by which the sum of the amounts referred to in paragraphs 70(8)(d) and (9)(e) exceeds the undeducted balance of the depreciable assets eligible for a depreciation allowance at the end of the fiscal year, and

    • (b) the amount by which the sum of the amounts referred to in paragraphs 70(9)(c) and (d) exceeds the undeducted balance of the development allowance at the end of the fiscal year.

  • Marginal note:Joint venture — determination of value of A

    (5) For the purpose of determining the value of A in subsection (4), if a mine is operated as a joint venture whose members deliver separate mining royalty returns under subsection 74(1),

    • (a) a diversion of any or all of the production of the mine from one member of the joint venture to another does not constitute a sale or transfer for the purposes of subsection 77(2), even if consideration is paid for the diversion; and

    • (b) any consideration paid to the member from whom the production was diverted must be included by that member as proceeds of sale of minerals or processed minerals produced from the mine.

  • Marginal note:Certain costs and values excluded

    (6) Costs related to the production of or value for minerals or processed minerals from lands other than lands to which these Regulations apply must not be taken into account for the purposes of determining the values of A to D, G and I in subsection (4).

  • Marginal note:Last year of production — option for calculation

    (7) In the case of a mining royalty return for the last fiscal year of production of a mine, the operator may, for the purpose of determining the value of B in subsection (4), elect to use the actual proceeds from the sale to a party not related to the operator of minerals or processed minerals in inventory at the end of the fiscal year, if proof of that sale is provided, rather than the market value of the inventory of minerals or processed minerals at the end of that fiscal year as required under subsection (4).

  • Marginal note:Election is irrevocable

    (8) An election made under subsection (7) is irrevocable.

  • Marginal note:Market value of precious stones

    (9) If the minerals or processed minerals referred to in paragraphs (b) and (c) of the description of A, and in the descriptions of B and C, in subsection (4) are precious stones, the market value of the precious stones is as follows:

    • (a) if the mining royalty valuer and the operator agree on a value for the stones, that value; or

    • (b) if the mining royalty valuer and the operator cannot agree on a value for the stones, the maximum amount that could be realized from the sale of the stones on the open market after they are sorted into market assortments.

  • Marginal note:Timing of market value of precious stones

    (10) For the purpose of subsection (9), the market value must be determined

    • (a) when the value is calculated for inventory purposes, at the beginning or end of the fiscal year; and

    • (b) when the value is calculated for any other purpose, as of the last time the precious stones were valued by the mining royalty valuer.

  • Marginal note:Market value of other minerals

    (11) If the minerals or processed minerals referred to in paragraphs (b) and (c) of the description of A, and in the descriptions of B and C, in subsection (4) are not precious stones, their market value is the price that could be obtained from their sale to a person who is not related to the operator.

  • Marginal note:Timing of market value of other minerals

    (12) For the purpose of subsection (11), the market value must be determined

    • (a) when the value is calculated for inventory purposes, at the beginning or end of the fiscal year; and

    • (b) when the value is calculated for any other purpose, at the time the minerals or processed minerals are shipped from the mine.

  • Marginal note:Exclusion respecting hedging transactions

    (13) Gains and losses from hedging transactions must not be included in calculating the value of the mine’s output.

  • Marginal note: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

    • (a) as of the date of that transaction if a transaction is carried out in a foreign currency; and

    • (b) as of the last day of the fiscal year if inventories have been valued in a foreign currency.

  • Marginal note: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.

Marginal note:Deductions

  •  (1) In calculating the value of the output of a mine for a fiscal year, only the following deductions and allowances may be claimed:

    • (a) the costs, incurred during the fiscal year, of sorting, valuing, marketing and selling the minerals or processed minerals produced from the mine;

    • (b) the costs, incurred during the fiscal year, of insurance, storage, handling and transportation to the processing plant or market, in respect of the minerals or processed minerals produced from the mine;

    • (c) the costs, incurred during the fiscal year, of mining and processing minerals or processed minerals from the mine;

    • (d) the costs, incurred during the fiscal year, of repair, maintenance or reclamation at the mine;

    • (e) the consideration paid by a member of a joint venture for minerals or processed minerals diverted from another member of the joint venture, when each member is delivering a separate mining royalty return in accordance with section 74;

    • (f) general and administrative costs incurred during the fiscal year for property, employees or operations at the mine that are not otherwise allocated to operating costs;

    • (g) exploration costs incurred during the fiscal year by an owner of the mine, other than on the mining property, if those costs have not been otherwise claimed as an allowance or deduction under these Regulations, in an amount not greater than 10% of the value of the output of the mine multiplied by the owner’s share of that output, calculated

      • (i) after deduction of the costs referred to in paragraphs (a) to (f), and

      • (ii) before the deduction of any depreciation allowance, mining reclamation trust contribution allowance, development allowance or processing allowance;

    • (h) subject to subsection (5), paragraphs (8)(d) and (9)(e) and subsection (10), a depreciation allowance for the depreciable assets of the mine, and for the depreciable assets of any facilities located outside Nunavut that are used for the processing of minerals or processed minerals produced from the mine in an amount not exceeding the undeducted balance of the cost of those depreciable assets at the end of the fiscal year of the mine;

    • (i) a development allowance, not exceeding the undeducted balance at the end of the fiscal year of the mine of

      • (i) exploration costs incurred, before the date of commencement of production, on the mining property as constituted on the date of commencement of production and not deducted under paragraph (g) in respect of any other mine,

      • (ii) all costs incurred before the date of the commencement of production for the purposes of bringing the mine into production less the total of

        • (A) the value of any minerals or processed minerals produced from the mining property that were sold or transferred before the date of commencement of production, calculated in accordance with section 69, and

        • (B) the market value of any minerals or processed minerals produced from the mining property that are in inventory on the date of commencement of production, calculated in accordance with section 69,

      • (iii) exploration costs incurred on the mining property after the date of commencement of production,

      • (iv) costs incurred after the date of commencement of production for workings designed for continuing use, including the clearing, removing or stripping of overburden from a new deposit at the mine, the sinking, excavation or extension of a mine shaft, main haulage way or similar underground workings, the construction of an adit or other underground entry and the construction of a road or of tailings disposal structures at the mine, and

      • (v) if minerals or processed minerals are being produced in commercial quantities from a recorded claim or leased claim that was incorporated into the mining property after the date of the commencement of production of the mine, or from another mining property that was incorporated into the mining property on which the mine is located after the date of the commencement of production,

        • (A) if the claim or lease was purchased, the purchase price of the claim or lease or the amount referred to in clause (B), whichever is the lesser, or

        • (B) in any other case, the costs referred to in subparagraphs (i) and (ii) that were incurred on the incorporated claim or lease and that have not been previously claimed as a deduction or allowance under these Regulations;

    • (j) a mining reclamation trust contribution allowance, determined by the operator, not exceeding the undeducted balance at the end of the fiscal year of amounts contributed to the mining reclamation trust with respect to any environmental impact resulting from the mining of minerals from lands to which these Regulations apply;

    • (k) if minerals or processed minerals are processed by the operator of the mine before their sale or transfer, an annual processing allowance equal to the lesser of

      • (i) subject to subsection (2), 8% of the original cost of the processing assets used by the operator in the processing of the output of the mine during the fiscal year, and

      • (ii) 65% of the value of the output of the mine, after deduction of the amounts referred to in paragraphs (a) to (j); and

    • (l) if minerals or processed minerals from the mine are processed at another mine, or at any facilities located outside Nunavut that are used for the processing of minerals or processed minerals produced from another mine that is owned by the operator or by a person related to the operator, the total of

      • (i) the amount of the costs of the other mine that are not deductible under paragraph (8)(b),

      • (ii) the amount by which the processing allowance for the other mine is reduced under paragraph (8)(c), and

      • (iii) the amount by which the undeducted balance of the original cost of the other mine’s depreciable assets is adjusted under paragraph (8)(d).

  • Marginal note:Production or fiscal year less than 12 months

    (2) When a mine is in production for less than 12 months in a fiscal year or a fiscal year of a mine is less than 12 months,

    • (a) the deduction for processing allowance calculated under subparagraph (1)(k)(i) must be multiplied by one-twelfth times the number of months in the fiscal year that the mine was in production or the number of months in the shortened fiscal year, as the case may be; and

    • (b) each dollar amount in column 1 of the table to subsection 69(1) must be multiplied by one-twelfth times the number of months in the fiscal year that the mine was in production or the number of months in the shortened fiscal year, as the case may be.

  • Marginal note:Deduction respecting related person

    (3) When the operator of a mine claims a deduction for costs incurred in a transaction with a related person, the costs allowed as a deduction under this section must be the amount of the actual costs incurred by the related person, exclusive of any profit, gain or commission to the related person or to any other related person.

  • Marginal note:Depreciation allowance

    (4) A depreciation allowance may be claimed in respect of a depreciable asset in the fiscal year in which it is first used in the operations of the mine.

  • Marginal note:Reduction in depreciation allowance

    (5) When an operator disposes of, or receives insurance proceeds in respect of, assets for which a depreciation allowance has been claimed,

    • (a) the undeducted balance of depreciable assets must be reduced by the lesser of

      • (i) the proceeds of disposition or insurance proceeds, as the case may be, and

      • (ii) the original cost of the asset; and

    • (b) when the lesser of the amounts referred to in subparagraphs (a)(i) and (ii) exceeds the undeducted balance of depreciable assets in the fiscal year in which the assets were disposed of, the excess must be included in the value of the output of the mine for that fiscal year.

  • Marginal note:Depreciation allowance — proceeds of disposition

    (6) For the purposes of subsection (5), when the operator of a mine sells to a related person an asset for which a depreciation allowance has been claimed or removes the asset from the mine, the proceeds of disposition of the asset are the amount that could be expected to be realized from the sale of the asset to a person not related to the operator.

  • Marginal note:Depreciation allowance — purchase cost

    (7) When the operator of a mine purchases from a related person an asset that is eligible for a depreciation allowance or transfers to the mine an asset from another mine owned by the operator, the cost of the asset for the purposes of calculating a depreciation allowance is the amount that the operator could be expected to pay to purchase that asset from a person not related to the operator.

  • Marginal note:Rules respecting processing minerals not produced at the mine

    (8) When, in a particular fiscal year, a mine’s operator uses the mine’s depreciable assets, or any facilities located outside Nunavut that are used for the processing of minerals or processed minerals produced from the mine, to process minerals or processed minerals other than those produced from the mine,

    • (a) the revenue earned from the sale or processing of those minerals or processed minerals must not be included in the value of the output of the mine;

    • (b) the deduction for the costs incurred during the fiscal year under paragraphs (1)(a) to (f) must be reduced by any costs incurred for the processing of minerals or processed minerals not produced from the mine;

    • (c) the original cost of the processing assets used to calculate the processing allowance amount under subparagraph (1)(k)(i) must be reduced by an amount equal to the original cost of the processing assets multiplied by the ratio of the costs incurred during the fiscal year under paragraphs (1)(a) to (f) for the processing of minerals or processed minerals not produced from the mine to the total costs incurred during the fiscal year, under those paragraphs, for the processing of all minerals or processed minerals at the mine; and

    • (d) the undeducted balance of the original cost of the mine’s depreciable assets at the end of the fiscal year must be adjusted to exclude an amount equal to the original cost of the depreciable assets used to process minerals or processed minerals not produced from the mine multiplied by the ratio of the costs incurred under paragraphs (1)(a) to (f) during that fiscal year and all prior fiscal years for the processing through those assets of minerals or processed minerals not produced from the mine to the total costs incurred under those paragraphs during that fiscal year and all prior fiscal years for the processing through those assets of all minerals and processed minerals at the mine.

  • Marginal note:Rules respecting adjustment of calculations

    (9) When a mine produces minerals or processed minerals from lands to which these Regulations apply and any other lands,

    • (a) the deduction for the costs incurred during the fiscal year under paragraphs (1)(a) to (f) must be reduced by any costs incurred for the production of minerals or processed minerals from lands other than lands to which these Regulations apply;

    • (b) the original cost of the processing assets used to calculate the processing allowance under subparagraph (1)(k)(i) must be reduced by an amount equal to the original cost of the processing assets multiplied by the ratio of the costs incurred during the fiscal year under paragraphs (1)(a) to (f) for the processing of minerals or processed minerals produced from lands other than lands to which these Regulations apply to the total costs incurred during the fiscal year, under those paragraphs, for the processing of all minerals or processed minerals at the mine;

    • (c) the undeducted balance of costs eligible for the mine’s development allowance at the end of the fiscal year must be adjusted to exclude an amount equal to the costs referred to in subparagraph (1)(i)(ii) multiplied by the ratio of the costs incurred under paragraphs (1)(a) to (f) during that fiscal year and all prior fiscal years for the production of minerals or processed minerals from lands other than lands to which these Regulations apply to the total costs incurred under those paragraphs during that fiscal year and all prior fiscal years for the production of all minerals or processed minerals at the mine;

    • (d) the undeducted balance of costs eligible for the mine’s development allowance at the end of the fiscal year must be adjusted to exclude an amount equal to the costs of the workings referred to in subparagraph (1)(i)(iv) used in the production of minerals or processed minerals from lands other than lands to which these Regulations apply multiplied by the ratio of the costs incurred under paragraphs (1)(c) to (f) during that fiscal year and all prior fiscal years for the use of those workings in the production of minerals or processed minerals from lands other than lands to which these Regulations apply to the total costs incurred under those paragraphs during that fiscal year and all prior fiscal years for the use of those workings in the production of all minerals or processed minerals at the mine; and

    • (e) the undeducted balance of the original cost of the mine’s depreciable assets at the end of the fiscal year must be adjusted to exclude an amount equal to the original cost of the depreciable assets used in the production or processing of minerals or processed minerals produced from lands other than lands to which these Regulations apply multiplied by the ratio of the costs incurred under paragraphs (1)(a) to (f) during that fiscal year and all prior fiscal years for the use of those assets for the production or processing of minerals or processed minerals produced from lands other than lands to which these Regulations apply to the total costs incurred under those paragraphs during that fiscal year and all prior fiscal years for the use of those assets for the production or processing of all minerals or processed minerals produced at the mine.

  • Marginal note:Timing and other requirements respecting adjustments

    (10) The adjustments referred to in paragraphs (8)(d) and (9)(c) to (e) must each be calculated at the end of each fiscal year of the mine with the difference between the amount calculated for that fiscal year and the amount calculated for the previous fiscal year being added to or subtracted from the undeducted balance of the depreciable assets or the undeducted balance of the costs eligible for the development allowance, as the case may be.

  • Marginal note:Limitations on deductions and allowances

    (11) Despite any other subsection of this section, no deduction or allowance can be made in respect of a mine in relation to

    • (a) the capital cost of the depreciable assets, other than those subject to the depreciation allowance under paragraph (1)(h);

    • (b) depletion in the value of the mine or mining property by reason of exhaustion of the minerals;

    • (c) if an owner or the operator of the mine is a corporation,

      • (i) remuneration and travel costs of directors,

      • (ii) stock transfer agents’ fees,

      • (iii) shareholders’ meetings or the preparation of shareholders’ reports, and

      • (iv) legal, accounting and other costs incurred in connection with incorporations, reorganizations, financing or security or stock issues;

    • (d) interest on any debt, including an overdraft, loan, mortgage, advance, debenture or bond, that is capitalized or expensed for accounting purposes;

    • (e) remuneration of executive officers, administrative and consulting costs and costs in respect of offices not located at the mine site, unless that remuneration or those costs are directly related to operations of the mine or to the marketing and selling of minerals or processed minerals produced from the mine;

    • (f) the taxes on profits, property or capital, or payments in lieu of those taxes, paid to any level of government and the cost of preparing returns in respect of those taxes, except for customs duties, sales and excise taxes not otherwise refundable to the operator, for any taxes related to the employment of employees, and for the cost of preparing a return in respect of those taxes;

    • (g) the royalties paid for the use of mining property, the royalties calculated on revenue, production or profits of the mine, and the cost of calculating any royalties other than the royalties paid or payable under these Regulations;

    • (h) payments made to an organization, community or corporation, including an Aboriginal organization, community or corporation, that are not attributable to the provision of goods and services directly related to the development and operation of the mine or to prospecting and exploration on lands to which these Regulations apply;

    • (i) payments made for the use or lease of, or access to, the surface of the land on which the mine is located;

    • (j) discounts on bonds, debentures, shares or sales of receivables;

    • (k) increases in reserves or provisions for contingencies, other than in respect of a mining reclamation trust;

    • (l) dues and memberships for persons, other than employees, involved in the operation of the mine;

    • (m) insurance premiums other than those paid for minerals or processed minerals produced from the mine;

    • (n) costs incurred during the fiscal year to produce revenue that does not form part of the value of the output of the mine;

    • (o) subject to subparagraph (1)(i)(v), the purchase price of a recorded claim, a lease of a recorded claim or a mine;

    • (p) the purchase price of any financial instrument;

    • (q) charitable donations;

    • (r) advertising costs not directly identified with the output of a particular mine;

    • (s) any cost not evidenced in accordance with generally accepted auditing standards;

    • (t) the cost of inventories of fuel, other consumables and spare parts that have not been consumed in the operation of the mine;

    • (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;

    • (v) rent paid for the lease of a recorded claim under these Regulations;

    • (w) the cost of preparing any financial information not required for the calculation of mining royalties;

    • (x) any cost incurred after any precious stones have been last valued by the mining royalty valuer, if those stones were sold or transferred to a related party, or to any other person if proof of the disposition is not provided, or if the stones were cut and polished before their sale or transfer;

    • (y) any costs related to public, community or government relations unless those costs were incurred for environmental assessments or other regulatory processes; and

    • (z) any fines, penalties or bribes.

Marginal note:Change of owner or operator has no effect

  •  (1) A change in the ownership or of the operator of a mine does not affect

    • (a) the undeducted balance of the depreciable assets eligible for a depreciation allowance;

    • (b) the undeducted balance of the costs eligible for a development allowance;

    • (c) the undeducted balance of contributions to a mining reclamation trust; or

    • (d) the original cost of the assets used for calculating a processing allowance.

  • Marginal note: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.

  • Marginal note:Combining operations on two mining properties

    (3) If a mining property is acquired by the operator of another mine and the operations on the two mining properties are combined to become a single operation, the undeducted balance of the costs eligible for the development allowance, the undeducted balance of the cost of the depreciable assets eligible for the depreciation allowance, the undeducted balance of the contributions to a mining reclamation trust and the original cost of the processing assets eligible for the processing allowance for each mine must be combined.

  • Marginal note:Valuations when mining property purchased from Crown

    (4) For the purpose of subsection (3), if an operator purchases a mining property from the Crown, the value of the undeducted balance of the costs eligible for the development allowance, of the undeducted balance of the cost of the depreciable assets eligible for the depreciation allowance and of the original cost of the processing assets eligible for the processing allowance of the purchased mine is the lesser of the value established at the time the Crown acquired the mining property and the value established in the agreement of purchase and sale for that property.

Marginal note:Statement respecting minerals whose gross value exceeds $100,000

  •  (1) If, in a particular year, minerals or processed minerals that are from a leased claim and whose gross value exceeds $100,000 are processed at a mine, removed from a mine, sold or otherwise disposed of, the lessee must, within one month after the end of that year, deliver to the Chief a statement setting out

    • (a) the name and a description of the mine;

    • (b) the names and addresses of all owners, operators and other lessees of the mine;

    • (c) the name and address of a person to whom notices may be sent;

    • (d) the weight and value of minerals or processed minerals processed at the mine, removed from the mine, sold or otherwise disposed of during the year and during each month of that year; and

    • (e) the design capacity of any mill, concentrator or other processing plant at the mine.

  • Marginal note:Notice of changes

    (2) A lessee who has delivered a statement under subsection (1) must promptly notify the Chief of

    • (a) any change in the name and address of the person to whom notices may be sent; and

    • (b) any change in the ownership or of the operator of the mine.

Marginal note:Contents of royalty return

  •  (1) On or before the last day of the fourth month after the end of each fiscal year of a mine, including the fiscal year during which the mine commences production and all subsequent years for which there are any amounts that qualify for determining the values of A to H and J in subsection 69(4), the operator of the mine must deliver to the Chief a mining royalty return, in the prescribed form, setting out

    • (a) the name and a description of the mine;

    • (b) the name and address of the operator;

    • (c) the names of processing plants to which minerals or processed minerals have been shipped from the mine for processing;

    • (d) the weight of the minerals or processed minerals produced from the mine during the fiscal year;

    • (e) the weight and value of the minerals or processed minerals produced from the mine that were

      • (i) sold or transferred during the fiscal year of the mine to persons not related to the operator,

      • (ii) sold or transferred during the fiscal year of the mine to persons related to the operator,

      • (iii) in inventory at the beginning of the fiscal year of the mine, and

      • (iv) in inventory at the end of the fiscal year of the mine;

    • (f) any costs, deductions and allowances claimed under subsection 70(1);

    • (g) if exploration costs are claimed as a deduction under paragraph 70(1)(g), or if costs are included in the costs eligible for a development allowance under paragraph 70(1)(i), the recorded claims or leases on which those costs were incurred;

    • (h) in respect of depreciable assets,

      • (i) the undeducted balance of depreciable assets at the beginning of the fiscal year,

      • (ii) the cost of additions during the fiscal year to depreciable assets,

      • (iii) the proceeds from the disposition during the fiscal year of depreciable assets,

      • (iv) the undeducted balance of depreciable assets at the end of the fiscal year before deduction of a depreciation allowance,

      • (v) the undeducted balance of depreciable assets at the end of the fiscal year after deduction of a depreciation allowance, and

      • (vi) the original cost of depreciable assets disposed of during the fiscal year;

    • (i) in respect of development allowances,

      • (i) the undeducted balance at the beginning of the fiscal year of costs eligible for a development allowance,

      • (ii) if the mining royalty return is delivered for the first fiscal year of the mine, the amount of the costs determined under subparagraphs 70(1)(i)(i) and (ii),

      • (iii) the amounts of each of the costs identified in subparagraphs 70(1)(i)(iii) to (v) incurred during the fiscal year,

      • (iv) the undeducted balance of costs eligible for a development allowance at the end of the fiscal year before deduction of a development allowance, and

      • (v) the undeducted balance of costs eligible for a development allowance at the end of the fiscal year after deduction of a development allowance;

    • (j) in respect of any mining reclamation trust established for lands to which these Regulations apply,

      • (i) the total of all amounts contributed to the mining reclamation trust,

      • (ii) the undeducted balance of contributions to the mining reclamation trust at the beginning of the fiscal year,

      • (iii) the amounts contributed to the mining reclamation trust during the fiscal year,

      • (iv) the undeducted balance of contributions to the mining reclamation trust at the end of the fiscal year before any deduction of a mining reclamation trust contribution allowance,

      • (v) the undeducted balance of contributions to the mining reclamation trust at the end of the fiscal year after deduction of a mining reclamation trust contribution allowance, and

      • (vi) the total of all amounts withdrawn from the mining reclamation trust during the fiscal year and in previous fiscal years;

    • (k) in respect of processing assets,

      • (i) the original cost of the processing assets at the beginning of the fiscal year,

      • (ii) the original cost of any new processing assets added to the mine during the fiscal year,

      • (iii) the original cost of any processing assets that were substituted for other processing assets of the mine during the fiscal year,

      • (iv) the original cost of any processing assets for which other processing assets were substituted during the fiscal year,

      • (v) the original cost of any processing assets not used, sold, discarded or otherwise disposed of during the fiscal year, and

      • (vi) the original cost of the processing assets at the end of the fiscal year;

    • (l) any payment received during the fiscal year that is related to a cost that has been claimed as a deduction or allowance; and

    • (m) any amount by which the proceeds of disposition of assets for which a depreciation allowance has been claimed exceed the undeducted balance of depreciable assets at the end of the fiscal year in which the assets were disposed of.

  • Marginal note:Documents to accompany royalty return

    (2) Every mining royalty return must be

    • (a) accompanied by the financial statements for the mine or, if the mine has no financial statements, the financial statements of the operator of the mine, and a reconciliation of those financial statements to the mining royalty return; and

    • (b) signed by the operator of the mine and include a statement under oath or solemn affirmation by the operator or, if the operator is a corporation, by an officer of the corporation, that the financial statements are to that person’s knowledge and belief complete and correct.

  • Marginal note:Royalty return — election under subsection 69(7)

    (3) If a mine’s operator makes an election under subsection 69(7),

    • (a) the operator must deliver the initial mining royalty return for the fiscal year using the market value of the inventories of minerals or processed minerals and then deliver an amended mining royalty return once those inventories have been sold; and

    • (b) the operator must deliver a mining royalty return for the mine’s subsequent fiscal years if there are any amounts that qualify for determining the values of D to H in subsection 69(4), or if the mine recommences production.

Marginal note:Royalty returns for certain joint ventures

  •  (1) If a mine is operated as a joint venture and each member of the joint venture takes its share of the output of the mine in kind and sells that share separately and independently from other members of the joint venture to purchasers who are not related to any of the members of the joint venture,

    • (a) each member may deliver to the Chief a separate mining royalty return for the royalty payable under subsection 69(1) on the value of its share of the output of the mine, in lieu of including that information in a mining royalty return delivered under subsection 73(1); and

    • (b) each member, and any person related to that member, is liable to pay only those royalties attributable to that member’s share of the output of the mine.

  • Marginal note:Joint venture respecting single mine

    (2) When, under subsection (1), more than one member of a joint venture delivers a mining royalty return to the Chief for a single mine,

    • (a) each member of the joint venture is considered to be a separate operator for the purposes of these Regulations;

    • (b) each member must indicate on the mining royalty return the percentage of the output of the mine represented by that mining royalty return;

    • (c) the value of the output on the mining royalty return for each member must be calculated in accordance with section 69 using

      • (i) in respect of costs eligible for deductions under paragraphs 70(1)(a) to (f),

        • (A) a percentage of costs that have been jointly incurred, equal to the percentage of the output of the mine received by that member, and

        • (B) the costs that have been incurred by that member alone,

      • (ii) in determining a deduction for exploration costs under paragraph 70(1)(g), the exploration costs incurred by that member alone,

      • (iii) a depreciation allowance based on

        • (A) a percentage of the depreciable assets of the mine that are jointly held, equal to the percentage of the output of the mine received by that member, and

        • (B) the depreciable assets of the mine that are held by the member alone,

      • (iv) a development allowance based on

        • (A) a percentage of the costs referred to in subparagraphs 70(1)(i)(i) to (v) that have been jointly incurred, equal to the percentage of the output of the mine received by that member, and

        • (B) the costs referred to in subparagraphs 70(1)(i)(i) to (v) that have been incurred by that member alone,

      • (v) a mining reclamation trust contribution allowance equal to the amount contributed to a mining reclamation trust in respect of lands to which these Regulations apply by that member, and

      • (vi) a processing allowance based on

        • (A) a percentage of the processing assets of the mine that are jointly held equal to the percentage of the output of the mine received by that member, and

        • (B) the processing assets of the mine that are held by that member alone;

    • (d) the amounts in column 1 of the table to subsection 69(1) must be adjusted by multiplying each amount by a percentage equal to the percentage of the output of the mine received by that member; and

    • (e) each mining royalty return must be based on the same fiscal year.

Marginal note:Notice of assessment of royalties

  •  (1) Within six years after the end of a particular fiscal year of a mine, the Chief must send to the operator of the mine a notice of assessment for the amount of the royalty payable for that fiscal year.

  • Marginal note:Notice of reassessment

    (2) If, during or after the period referred to in subsection (1), there are reasonable grounds to believe that the operator of a mine or any other person who delivers a mining royalty return has made a fraudulent or negligent misrepresentation in completing the mining royalty return or in supplying any other information under section 73 or 74, the Chief may send a notice of reassessment for the amount of the royalty payable for a fiscal year in respect of the mine.

  • Marginal note:When royalties are considered payable

    (3) If the Chief sends an operator a notice of assessment or reassessment for the amount of royalty payable for a fiscal year, the amount of royalty assessed or reassessed for the fiscal year is considered to be payable on the last day of the fourth month after the end of that fiscal year.

  • Marginal note:Royalty returns when ownership of mine changes

    (4) If the ownership of a mine changes, the operator may file a separate mining royalty return for the portion of the fiscal year before the change of ownership and the portion of the fiscal year after the change of ownership, and each such portion is considered to be a fiscal year of less than 12 months for the purposes of subsection 70(2).

Marginal note:Record keeping

  •  (1) Every operator of a mine must keep at an office in Canada and make available to the Chief, to substantiate information required on mining royalty returns,

    • (a) records, books of account and other documents evidencing

      • (i) the weight of all minerals extracted from the mine and of all minerals or processed minerals processed at the mine, whether or not they are produced from the mine,

      • (ii) the weight and value of all minerals or processed minerals produced from the mine, sold, transferred or removed from the mine by the mine’s operator,

      • (iii) any amounts received from a processing plant and any other amounts received from the sale of minerals or processed minerals, and

      • (iv) the costs, payments, allowances and other deductions referred to in section 70;

    • (b) the financial statements of the mine and the operator;

    • (c) a reconciliation between the documents referred to in paragraphs (a) and (b) and the mining royalty return;

    • (d) if the financial statements of an owner or the operator of the mine are audited by an external auditor,

      • (i) the audited financial statements and the accompanying signed audit opinion of the external auditor, and

      • (ii) any working papers and documentation prepared by the external auditor that are in the possession of an owner or the operator;

    • (e) any documents filed by an owner or the operator with a stock exchange or securities commission;

    • (f) any documents related to any internal audits of a company that is an owner or the operator; and

    • (g) any other documents that contain information necessary for ascertaining the amount of royalty payable under section 69.

  • Marginal note:Non-disclosure of confidential information

    (2) It is prohibited to disclose information of a confidential nature acquired for the purposes of sections 69 to 77, except

    • (a) to the extent necessary to determine the amount of royalties payable under section 69;

    • (b) when required under a land claims agreement referred to in section 35 of the Constitution Act, 1982; or

    • (c) under an agreement entered into by the Minister for the purpose of the administration of section 69 with the government of a country, province or state, or with an Aboriginal organization owning mineral rights, under which the officers of that government or Aboriginal organization are provided with the information and the Chief is provided with information from the government or Aboriginal organization.

Marginal note:Condition on removal of minerals

  •  (1) Subject to subsection (2), it is prohibited to remove minerals or processed minerals produced from a mine, other than for the purposes of assay and testing to determine the existence, location, extent, quality or economic potential of a mineral deposit in the lands constituting the mining property, until the weight and any other information necessary to establish the value of those minerals or processed minerals has been ascertained and entered in the books of account referred to in subsection 76(1).

  • Marginal note:Condition on removal of precious stones

    (2) Precious stones must not be removed from a mine — other than in a bulk sample or in a concentrate for the purposes of establishing the grade and the value of the stones in a mineral deposit — or cut, polished, sold or transferred, until they have been valued by a mining royalty valuer.

  • Marginal note:Facilities required for valuation

    (3) The operator of a mine must provide, in Nunavut, any facilities and equipment, other than computer equipment, necessary for a mining royalty valuer to value any precious stones produced from the mine.

  • Marginal note:Facilities considered part of mine

    (4) For the purposes of these Regulations, facilities referred to in subsection (3) are considered to be part of the mine and any transfer of the precious stones from one part of the mine to another is not considered to be a removal of the stones from the mine.

  • Marginal note:Cleaning of precious stones

    (5) Precious stones must not be presented to the mining royalty valuer until the operator of the mine has cleaned the stones so as to remove all substances from the stones that are not part of them.

  • Marginal note:Presentation of precious stones to royalty valuer

    (6) As soon as any precious stones have been processed into a saleable form, they must be presented to a mining royalty valuer for valuation.

  • Marginal note:Separate valuation of precious stones

    (7) An operator who produces precious stones and sells or transfers them to persons who are related to the operator must present to a mining royalty valuer

    • (a) all stones that are to be sold or transferred to a person related to the operator, for separate valuation before their sale or transfer; and

    • (b) all stones that are to be cut or polished by the operator or any related party, for separate valuation before their being cut or polished.

  • Marginal note:Presentation of diamonds to royalty valuer

    (8) For the purposes of subsections (6) and (7), unless otherwise agreed on by the operator and the mining royalty valuer, an operator must present to the mining royalty valuer

    • (a) diamonds with a weight of 10.8 carats or more, separately, together with the weight of each diamond;

    • (b) diamonds with a weight from 2.8 carats to 10.79 carats, in lots separated according to weight in carats, together with the number of diamonds per lot;

    • (c) diamonds with a weight from 0.66 carats to 2.79 carats, in lots separated according to weight in grainers, from which randomly selected samples, accurately representing the composition of each lot, have been separated; and

    • (d) diamonds with a weight of less than 0.66 carats, in lots separated according to industry standard DTC sieve sizes, from which randomly selected samples, accurately representing the composition of each lot, have been separated.

  • Marginal note:Estimate of market value of diamonds

    (9) Before diamonds are presented to the mining royalty valuer under subsection (8), the operator must provide an estimate of the market value of each diamond or lot, as the case may be, to the Chief.

General Provisions

Marginal note:Recorded claim and lease subject to public works

 Every recorded claim, whether leased or not, is subject to the right of the Crown and of the Commissioner of Nunavut to construct and maintain roads or other public works on or over the lands covered by the claim.

Marginal note:Suspension — death or incompetency of claim holder

 If the holder of a recorded claim for which no lease has been issued dies or is declared by a court of competent jurisdiction to be incapable of managing their affairs and notice of the death or declaration is filed with the Mining Recorder within 180 days after the date of the death or declaration, and if the recording of the claim was not cancelled before the filing of the notice, the running of a time period within which anything is required to be done by a claim holder with respect to that claim under these Regulations is suspended until the anniversary date of the recording of the claim that is at least 12 months after the day on which the notice was filed.

Marginal note:Extension on account of strike

 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.

Marginal note:Notice considered to be given

 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.

 [Repealed, SOR/2020-209, s. 28]

 [Repealed, SOR/2020-209, s. 28]

Review by the Minister

Marginal note:Request for ministerial review

  •  (1) Any person with a legal or beneficial interest in the subject matter of a decision made or an action taken or omitted to be taken under these Regulations may request that the Minister review any issue the person has with respect to the decision, action or omission.

  • Marginal note:Requirements for request

    (2) A request for review must be made in writing within 30 days after the day on which the decision is made or the action is taken or, in the case of an omission to take action, within 30 days after the day on which action should have been taken and must specify

    • (a) the name of the requester and their contact information;

    • (b) the issue the requester wishes the Minister to review;

    • (c) the date on which the decision, act or omission took place; and

    • (d) the corrective relief requested.

  • Marginal note:Absence of or error in information

    (3) A review may be undertaken despite a failure to specify, or an error in specifying, any information required under subsection (2).

  • Marginal note:Procedure for review

    (4) After receipt of a request for review, the Minister must

    • (a) provide the requester and all persons with an interest in the issue a reasonable opportunity to be heard;

    • (b) review all information received respecting the issue; and

    • (c) decide the corrective relief, if any, to be taken respecting the issue.

  • Marginal note:Additional information

    (5) The Minister may request the requester or any other person to provide any document or other information that may be relevant to the review.

  • Marginal note:Decision and reasons

    (6) A written statement of the Minister’s decision and the reasons for it must be sent to the requester and all persons with an interest in the issue.

  • Marginal note:Final decision

    (7) The Minister’s decision under this section is not to be the subject of a request for review.

Marginal note:Prohibition against prospecting

 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.

Transitional Provisions

Definitions

Marginal note:Definitions

 The following definitions apply in sections 87 to 97.

former Regulations

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

transitional period

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

Pending Applications and Requests

Marginal note:Former Regulations apply — certain applications and requests

  •  (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.

  • Marginal note: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.

  • Marginal note: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

Marginal note:Effective date

 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

Marginal note:Recording of a staked claim

 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.

Marginal note:Renewal of lease

 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.

Marginal note:Transfer of lease

 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

Marginal note:Report not evaluated

 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

Marginal note:Former Regulations apply

  •  (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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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

Marginal note:Notice of protest

 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

Marginal note:Provision repealed, replaced or added

  •  (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.

  • Marginal note: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.

Conversion of Claims

Marginal note:Definition of original claim

  •  (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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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

Marginal note:Submission of report

  •  (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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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

Marginal note:Making an application

  •  (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.

  • Marginal note: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.

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

ItemColumn 1Column 2
DescriptionFee ($)
1Copy of a document filed with the Mining Recorder, per page1.00
2Licence issued to an individual5.00
3Licence issued to a corporation50.00
4Application to group recorded claims10.00
5Recording of a plan of survey of a claim2.00
6Application for a lease of a recorded claim or renewal of a lease, per claim in the lease25.00
7Recording of a transfer of a lease, an interest in the lease or any other document pertaining to a lease, per document25.00
8Recording of any document pertaining to a claim, per entry2.00

SCHEDULE 2(Subsections 1(1), 42(1) and 43(1))Reports

Interpretation

  • Marginal note:Definitions

    1 The following definitions apply in this Schedule.

    identifier

    identifier means a set of alphabetic, numeric or alphanumeric characters used to uniquely identify a sample or an electronic storage medium. (identificateur)

    map

    map includes a plan, graphical image or three-dimensional model in electronic or paper form. (carte)

    preparation

    preparation includes drying, fractioning, sieving and panning. (préparation)

    sample

    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)

    section

    section, except when used to refer to a legislative provision, includes a cross-section, inclined section and longitudinal section in electronic or paper form. (coupe)

PART 1General Requirements

  • Marginal note:Paper or electronic format

    • 2 (1) A report must be submitted in paper format, in electronic format or in a combination of paper and electronic formats.

    • Marginal note:Report submitted in electronic format

      (2) The electronic format in which any part of a report — other than the raw data specified in paragraph 4(s) — is submitted must be such that the report can be read using the Mining Recorder’s computer systems.

  • Marginal note:Identifying information

    • 3 (1) The following identifying information must be provided:

      • (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;

      • (e) the four values representing either

        • (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;

      • (f) the name of the individual who prepared and signed the report;

      • (g) for each period that work was done in the field, the first date and last date that work in the field was done;

      • (h) the date of the report;

      • (i) for a report submitted in paper format in more than one volume, the volume number and total number of volumes in the report; and

      • (j) for a report submitted on more than one electronic medium, the number of media submitted and the identifiers for each.

    • Marginal note:Where information is provided

      (2) The information referred to in subsection (1) must appear

      • (a) for the parts of a report submitted in paper format, on the front cover of each volume of the report; and

      • (b) for the parts of a report submitted in electronic format,

        • (i) on a label affixed to, or on a sheet of paper inserted into, each container submitted, or

        • (ii) in a file named “Readme - Lisez-moi” stored on each electronic medium submitted.

  • Marginal note:Details of contents

    4 A report must include the following:

    • (a) a table of contents;

    • (b) a list of the electronic media submitted and their identifiers;

    • (c) a list of the tables, charts, diagrams, maps, sections and images presented in the report and the location of each in the report;

    • (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;

    • (e) a bibliography setting out the sources and references used in the report;

    • (f) an alphabetized list of definitions for all abbreviations used in the report;

    • (g) a brief description of the regional geology of the area in which the work was done;

    • (h) a statement of the purpose of the work being reported on;

    • (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;

    • (j) a summary and a detailed description of the work being reported on;

    • (k) if sampling was performed, a description of the sampling methodology and a statement of the number of samples analyzed;

    • (l) identification of quality control samples submitted to laboratories, along with the elemental concentration of each sample;

    • (m) a description of the methods of preparation, processing and analysis applied to samples and the calculations used to arrive at the results of geochemical analyses;

    • (n) specification of the cutoff grades used for the results of geochemical analyses shown on maps and sections;

    • (o) a description of any geophysical or remote sensing anomalies and any anomalous results of geochemical analysis, with an explanation of the criteria used to define them;

    • (p) interpretation of the data collected and of observations made during the work;

    • (q) conclusions and recommendations resulting from the interpretation of the data and of observations made during the work;

    • (r) if geochemical analyses were performed, copies of all resulting analytical certificates and laboratory reports;

    • (s) an electronic copy of the raw data that was acquired in electronic format during the work;

    • (t) if environmental baseline studies were conducted, an appendix that sets out the results of the studies; and

    • (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.

  • Marginal note:Maps or sections

    5 A report must include the following maps or sections:

    • (a) a regional geological map that is marked to indicate the area in which the work was done and that is published by the Geological Survey of Canada, the Canada-Nunavut Geoscience Office, the Northwest Territories Geoscience Office or other source of geoscientific publications;

    • (b) a map that shows the area in which the work was done, the regional infrastructure (including roads, airfields, ports and mine sites) and, if the scale of the map permits, communities and boundaries of Nunavut;

    • (c) one or more maps on which the following elements are indicated:

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

        • (A) the type of work being reported on,

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

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

        • (D) [Repealed, SOR/2020-209, s. 40]

      • (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,

      • (iii) all surface and underground workings that are not part of the work being reported on,

      • (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,

      • (v) the infrastructure, hydrography and natural landmarks within the boundaries referred to in subparagraphs (i) and (iv);

    • (d) one or more maps or sections with a symbol indicating every site at which samples or data were collected, and a sample identifier for each sample; and

    • (e) one or more maps or sections indicating any geochemical or geophysical anomalies.

Geographic Location and Coordinates

  • Marginal note:Sample sites — coordinate systems

    • 6 (1) All coordinates used in a report to locate the sites where samples or data were collected — including those in sections, maps, tables and lists — must be geographic coordinates or UTM coordinates.

    • Marginal note:Coordinate system specified on map

      (2) The geodetic reference system — and, for UTM coordinates, the zone number — must be indicated for each map, section and table in which that coordinate system is used.

    • Marginal note:Geodetic coordinates

      (3) The geodetic reference system must be one of the following:

      • (a) North American Datum 1927 (NAD 27);

      • (b) North American Datum 1983 (NAD 83);

      • (c) Canadian Spatial Reference System (NAD 83 (CSRS));

      • (d) World Geodetic System 1984 (WGS 84).

  • Marginal note:Method for determination of location

    7 For each location where work was done, a report must specify how the location was determined for each type of work, using one or more of the following methods:

    • (a) a satellite positioning system, indicating the geodetic reference system used and, if UTM coordinates are used, the zone number;

    • (b) a map, indicating the scale, the geodetic reference system used and, if UTM coordinates are used, the zone number;

    • (c) surveying, together with a description of the surveying equipment and method used.

  • Marginal note:Elevation coordinates

    8 If elevation coordinates are used with respect to the work, those coordinates and their zero reference level must be specified in the report.

Maps, Sections and Samples

  • Marginal note:Coordinates for geographic locations

    • 9 (1) Each map and section submitted with a report must have the location it represents indicated on it in geographical or UTM coordinates that are shown by means of a grid or by a specification of those coordinates that is sufficient to allow the location of any point on the map.

    • Marginal note:Requirements respecting grid lines

      (2) If grid lines were used to perform the work, at least one map of each grid must be submitted showing the name of the grid, its geographic location and the coordinates established to identify each of the grid lines.

    • Marginal note:Requirements for maps and sections

      (3) Each map and section must

      • (a) be legible;

      • (b) have its scale set out on it using a bar scale in metric units;

      • (c) have a geographic north indicator;

      • (d) have a legend; and

      • (e) indicate the units of measure used on it.

    • Marginal note:Elevation coordinates

      (4) Each map and section must show the relevant elevation coordinates.

  • Marginal note:Location of data collection sites

    10 Every table or list that contains data with respect to a site (including sample data) must set out the location of the data collection site specified in geographic or UTM coordinates.

  • Marginal note: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.

    • Marginal note:Sample identifiers

      (2) Data about samples must set out one of the following identifiers for each sample:

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

      • (b) the identifier cross-referenced, in accordance with subsection (1), to the sample identifier mentioned in paragraph (a).

Information About Types of Work

  • Marginal note:Excavation

    12 Reporting on excavation work must include the following:

    • (a) maps and sections showing the location, dimensions and orientation of each of the workings, including stripped areas, trenches, open pits, shafts, adits, drifts and ramps;

    • (b) maps or sections showing any anomalous results of geochemical analyses;

    • (c) a description of

      • (i) the excavation methods and the equipment used,

      • (ii) the samples or groups of samples collected from each of the workings,

      • (iii) the geological observations and any geotechnical observations,

      • (iv) the results of any geophysical surveys, and

      • (v) the results of geoscientific investigations; and

    • (d) a copy of any log made respecting excavation of overburden or extraction of bedrock.

  • Marginal note:Drilling

    13 Reporting on drilling work must include the following:

    • (a) maps showing the locations of drill hole collars and traces;

    • (b) sections showing

      • (i) the overburden thickness,

      • (ii) the geological units intersected,

      • (iii) the locations where samples were taken, and

      • (iv) all anomalous results of geochemical analyses;

    • (c) a description of

      • (i) the drilling methods and the equipment used,

      • (ii) the samples and their down-hole intervals,

      • (iii) the geological observations and any geotechnical observations,

      • (iv) the results of any geophysical surveys, and

      • (v) the results of geoscientific investigations;

    • (d) drill logs setting out for each drill hole

      • (i) the hole number,

      • (ii) the hole or core diameter,

      • (iii) the date of drilling, the date logged, the geographic or UTM coordinates of the collar, initial azimuth and inclination, final hole length and the results of any down-hole tests, and

      • (iv) the overburden thickness; and

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

  • Marginal note:Geological mapping

    14 Reporting on geological mapping work must include the following:

    • (a) a table setting out the geological formations of the area mapped, if the information on those formations is published by the Geological Survey of Canada, the Canada-Nunavut Geoscience Office, the Northwest Territories Geoscience Office or other source of geoscientific publications;

    • (b) maps or sections showing geological units, structural data, areas of mineralization, locations of rock outcrops and mineralized erratic blocks, anomalous results of geochemical analyses, locations of any trenches, stripped areas, drill holes and other workings referred to in the report, and, if applicable, indicators of the direction of ice movement;

    • (c) a description of the features of geological interest, such as overburden, rock types, structures, veins, areas of mineralization, mineralized erratic blocks, altered zones, anomalous results of geochemical analyses, and, if applicable, indicators of the direction of ice movement; and

    • (d) the results of geoscientific investigations, including the results of any petrographic studies, and any interpretation that has been made of the glacial history based on the geological mapping work.

  • Marginal note:Sampling and geochemistry

    15 Reporting on sampling and geochemical analysis must include the following:

    • (a) complete results of geochemical analyses;

    • (b) a geological description of the samples or group of samples;

    • (c) a description of the sampling methodologies, including any pattern of sample collection;

    • (d) the dates the samples or group of samples were collected and the dates that any preparation or processing of the samples was done in the field or in a laboratory;

    • (e) a description of any preparation or processing of samples or group of samples that was done in the field or in a laboratory;

    • (f) a description of the methods of geochemical analysis used on each sample or group of samples, including a list of the elements and compounds for which the analysis was done and the limits for their detection;

    • (g) a description of any statistical methods used and the results obtained;

    • (h) the results of the geochemistry survey, represented on maps or sections; and

    • (i) if any geoscientific investigation of surficial deposits was performed, an interpretation of the sources from which the indicator minerals came, a description of the methods used to determine the direction of movement of ice, water or other transport medium for those minerals and any interpretation of the glacial history revealed by the investigation.

  • Marginal note:Geophysics or remote sensing work

    • 16 (1) Reporting on geophysical analysis or remote sensing work must be accompanied by the following information and documents:

      • (a) the type of survey performed;

      • (b) the dates that the survey started and ended;

      • (c) if the work was done using a grid, the distance between the lines, the azimuth and the length of the lines surveyed and the total distance surveyed;

      • (d) [Repealed, SOR/2020-209, s. 44]

      • (e) a description of the survey methods, including

        • (i) the characteristics of the equipment used;

        • (ii) the characteristics of the instruments and sensors used, including their precision,

        • (iii) the positioning system used to record the location of data collection points, and

        • (iv) a description of any methods used to make corrections to the data;

      • (f) a description of the methods of analysis applied to the data;

      • (g) a database or spreadsheet containing the geographic coordinates of each ground data collection site, the raw measurements, the measurements used to correct the raw measurements, the corrected measurements and calculated results used for interpretations; and

      • (h) the results of the geophysical or remote sensing survey, represented on maps, sections, pseudo-sections or profiles.

    • Marginal note:Down-hole geophysical survey

      (2) If a down-hole geophysical survey was performed, the section required under paragraph (1)(h) must show

      • (a) the hole number;

      • (b) the date the hole was drilled;

      • (c) the location of the drill hole collar and trace;

      • (d) the geographic or UTM collar coordinates;

      • (e) the initial azimuth and inclination of the hole; and

      • (f) the length of the hole.

    • Marginal note:Electromagnetic survey

      (3) If an electromagnetic survey was performed, the map required under paragraph (1)(h) must show the projection of the surveyed drill hole to the surface and the location and configuration of the transmitter and receiver.

    • Marginal note:Geophysical survey grids

      (4) If a ground-based, waterborne or airborne geophysical survey was performed, it must be presented in the report accompanied by a map showing the surveyed lines.

    • Marginal note:Underground geophysical survey

      (5) If an underground geophysical survey was performed, it must be presented in the report accompanied by a map showing the location of the geophysical survey, the surveyed lines and the location, dimensions and orientation of the underground workings.

PART 2Simplified Report

  • Marginal note: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:

    • (a) a description of

      • (i) each sample or group of samples collected,

      • (ii) methods of preparation, processing and analysis applied to samples,

      • (iii) the excavation methods and the equipment used for the excavation,

      • (iv) the field observations, and

      • (v) the results of the work performed and of geochemical analyses;

    • (b) maps or sections showing

      • (i) the area investigated and the traverses performed,

      • (ii) the locations of rock outcrops investigated,

      • (iii) the locations of the sampling sites, including the locations of any erratic blocks that were sampled,

      • (iv) the locations of any stripped areas and trenches, and

      • (v) features of interest such as significant results of geochemical analyses; and

    • (c) comments respecting follow-up work for the purpose of assessing the mineral potential of the area investigated.

SCHEDULE 3(Subsection 1(1) and paragraph 8(1)(c))Nunavut Lands Division

  • Marginal note:North American Datum of 1927

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

  • Marginal note: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.

    • Marginal note: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.

    • Marginal note: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.

    • Marginal note:Latitude and longitude

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

  • Marginal note:Sections

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

    • Marginal note: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.

    • Marginal note: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.

    • Marginal note: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.

    • Marginal note: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)

        100908070605040302010
        49
        48
        47
        46
        9585756555453525155
        44
        43
        42
        9181716151413121111
      • (b) in the case of a grid area described in paragraph (2)(b)

        8070605040302010
        39
        38
        37
        36
        756555453525155
        34
        33
        32
        716151413121111
      • (c) in the case of a grid area described in paragraph (2)(c)

        605040302010
        29
        28
        27
        26
        55453525155
        24
        23
        22
        51413121111
  • Marginal note:Units

    • 4 (1) Each section is divided into units.

    • Marginal note: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.

    • Marginal note: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.

    • Marginal note: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.

    • Marginal note:Identification by letter

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

      MNOP
      LKJI
      EFGH
      DCBA

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