Mineral Resources Act - Policy Intentions MRA ITI-1346_Web.pdf

The development of “policy intention papers” is an important next step in the ongoing process to develop the regulations that will allow the Mineral Resource Act (MRA) to come into force.

These papers capture the intent and rationale of the regulations that are being proposed and are intended to be a guide in the legal drafting process of regulations.

This document provides an overview of the key themes reflected in the policy intention papers prepared by the Intergovernmental Council of the Northwest Territories and its technical working group under the NWT’s first of its kind Legislative Development Protocol.

Goals and objectives have been summarized and consolidated under five over-arching themes:

CLAIMS

It is intended that proposed regulations will set out clear requirements on what must be done in order to obtain a claim. They will require individuals intending to stake a claim to meet requirements under the regulations (like holding a valid Prospector’s Licence). Other regulations are also explored, like the ability for the Supervising Mining Recorder to have the authority to address staking disputes.

A core goal of regulations around claims is to promote engagement with Indigenous governments early and often. The regulations will implement new processes like notification of application to record. These notifications will advise Indigenous governments and organizations directly of claims staked in their respective traditional territories. The Mining Recorder will issue notifications for claims.

The claim will also see an extension in maximum time life from 10 to 30 years.

This change is necessary for industry to have time to meet the new lease issuance requirements and recognize the modern lifecycle needs of a project Additionally, when a proponent is planning to conduct work, under proposed regulations, will be required to submit a notice of intended work; and file a work assessment once they are done. The definition of “work” will be expanded to include Indigenous engagement costs.

General work requirements will move from a flat work requirement structure to an escalating work requirement. This change will enable the work system to optimize the collection of public geoscience as work requirements will increase as a project advances.

Meanwhile, regulations are also intended to set new rules for claim or lease holders, such as the requirement for a proponent to acquire permission in order to remove minerals from the land and export minerals from the NWT prior to production.

LEASES

It is intended that the new regulations will change the NWT’s temporal tenure system to a merit-based system. A merit-based system requires the interest holders to meet different milestones to progress through the tenure lifecycle.

The regulations will introduce an evidence of deposit technical report to validate the existence of a defined mineral deposit; and require applicants for leases to meet specific eligibility requirements.

Under new regulations, the Mining Recorder’s Office will notify Indigenous governments and organizations when it receives a lease application, as well as issue a notification once the Mining Recorder issues the lease.

Lease rental rates will increase to match competitive rates in comparable jurisdictions. A lease will be eligible for renewal for a term of 21 years provided requirements are met; and surveys will need to meet certain legal requirements laid out in the Canada Lands Survey Act.

BENEFITS

The Act and regulations will require Benefit Agreements and Socio- Economic Agreements where a project is above a specific threshold of benefits (costs or person-years of employment).

Benefit Agreements are agreements between proponents and Indigenous governments to ensure benefits from a project flow to the appropriate groups. Benefit Agreements will largely be private agreements (such as current Impact Benefit Agreements), with some supports within the Act and regulations, in order to maintain Indigenous autonomy over their rights.

Socio-Economic Agreements are agreements between proponents and the GNWT to ensure benefits from a project flow to the entire NWT. Proposed regulations will strengthen existing SEAs by creating firm deadlines and enhanced reporting requirements for Socio-Economic Agreements. Policy documents that accompany the proposed regulations would also indicate which Indigenous governments a proponent would need to hold a BA with to meet the requirements in the regulations.

PRODUCTION LICENCES

It is intended that regulations define what is production under a Production Licence and the ability for an owner/operator to sell minerals to a third party. They will describe what needs to be in place in order to issue a Production Licence.

Regulations will also introduce statistical returns as a requirement of a Production Licence. Statistical returns are reports on production data from the mine. This data is standard information that mines would already collect, but that is not currently reported to the GNWT or readily available to the public.

MINERAL RIGHTS REVIEW BOARD (MRRB)

It is intended that regulations will establish the MRRB to replace the current Ministerial review process; and describe its roles, responsibilities and membership. The reforms create a body that is arms-length, merit-based, independent and multi-person.

An appendix is included at the end of this overview with a comparison of the most notable changes and advances between the legislation that exists today and the Mineral Resources Act that has been created to carry the NWT mineral exploration and development sector into the future.

NWT residents wishing to provide specific input or a formal presentation or paper to share in response to the policy intentions in this document are encouraged to contact the GNWT’s MRA Implementation Unit at MRA_Implementation@gov.nt.ca; and to be a part of the exciting and historic opportunity represented by the MRA to establish a uniquely northern approach to mining that is respectful and inclusive of NWT interests and reflects the vision and priorities of NWT residents for their future