Mineral Resources Act would replace mining Act

Summary#

Bill 45, the Mineral Resources Act, would repeal and replace New Brunswick’s Mining Act and make related changes to other laws. Its stated goal is to enable responsible, competitive and sustainable mineral exploration, development and production; that is a goal, not a guaranteed result. The supplied text is a first-reading version, so it is not law, and its provisions would start only on dates set by proclamation.

  • A prospecting licence would be required to prospect, explore for minerals or carry on mining; a mining lease would be required for production.
  • The Minister would administer the Act. A Recorder would run the continued electronic claims registry, and an appeal authority—whose appointment or establishment is left to regulations—would decide listed disputes.
  • Mining leases would come with duties, including rent, work reporting and environmental reclamation and rehabilitation. The Minister could require processing of minerals in Canada if the holder is economically able.
  • The Minister could make orders to protect the “strategic mineral supply chain,” including suspending registry functions, cancelling rights or requiring transfers. Some orders could be made without prior notice or a hearing.
  • A mineral-claim holder unable to agree with a private landowner could ask the appeal authority for an order vesting the land in the holder, with compensation and payment of debts, liabilities and taxes.

What it means for you#

  • Prospectors and mining companies: You would need the required licence, claim or lease, and would have to meet conditions set by the Act and regulations. A claim would give exclusive rights to prospect and do work in its area; a lease would give production rights, subject to its terms. A claim or lease would not itself give possession of the land.
  • Landowners and Crown land lessees: Claim and lease holders would be liable for actual damage or interference they cause. Before causing such damage, they would generally need an exploration work permit. Some activities would also require consent or engagement with people identified by future regulations. A mining lease holder would need the private landowner’s consent for access.
  • Private landowners: If agreement could not be reached, a mineral-claim holder could seek a vesting order. The bill provides for compensation, but leaves key application criteria to regulations.
  • Mine operators and lease holders: They would have reclamation duties and could have to provide security. If production stopped for five years, the Minister could order more work, a transfer, reconversion to a claim or cancellation, among other steps.
  • General public and taxpayers: The bill would not set new tax rates or royalty rates in its text. It would continue the Mine Reclamation Fund and let the Minister of Finance and Treasury Board hold it in trust.
  • Current-law comparison: The bill would repeal the Mining Act and continue some existing claims, licences, leases, the registry and the Mine Reclamation Fund. The previous Act was not supplied, so I could not verify which rules are new or how they compare with current law. No amendment versions were supplied for comparison.

Money#

No publicly available information gives the bill’s total public cost or a cost estimate.

  • The bill authorizes fixed-term hiring for Act-related work, but does not require a specific number of hires or estimate staffing costs.
  • It continues the Mine Reclamation Fund. Security from mining lease holders or mine operators must be money; the fund may pay for approved reclamation work or return security, with interest, when it is no longer needed.
  • Fees, rents, royalties and security amounts would largely be set by regulations. The bill does not set their amounts.
  • The Crown would pay costs when the Recorder responds to notice about drill core by taking possession of it, logging it or allowing its disposal.

What is unclear#

  • The bill leaves many practical rules to regulations, including licence and lease requirements, fees, royalties, security, reclamation programs and appeal procedures.
  • “Strategic mineral supply chain” is not defined in the bill. It does not explain how the Minister would decide that an order is desirable to protect it.
  • For some strategic-supply orders, the bill allows action without prior notice or a hearing and says the Minister’s decision cannot be reviewed in court. The detailed process and safeguards are not set out in the bill.
  • The rules for applying for a private-land vesting order, including the criteria and compensation factors, are left to regulations.
  • No amendment documents were supplied, so it is not possible to say whether the first-reading text was later changed or whether any proposed amendments were adopted.

Case for#

  • The bill appears intended to replace the existing mining law with one Act covering claims, leases, exploration, production, reclamation and disputes.
  • Continuing the registry and existing rights, while setting out transition rules, could reduce disruption when the old Act is repealed.
  • Reclamation duties and financial security could help ensure money is available for required environmental work.
  • Powers to respond to long-term production stoppages or supply-chain risks could give the government tools to address problems that the bill identifies.

Case against#

  • The bill gives the Minister broad powers over claims, leases and agreements. In some supply-chain cases, orders could be made without prior notice or a hearing, and the decision could not be reviewed in court.
  • Private land could be vested in a mineral-claim holder after an appeal-authority decision. Although compensation and payment of debts, liabilities and taxes are required, important decision criteria are left to regulations.
  • Many rules that affect costs, eligibility and operating duties are not in the bill itself. Their effects would depend on regulations made later.
  • The bill does not estimate the cost of administering the new system or explain how the appeal authority would be staffed and funded.