Vol. 148, No. 8 — April 9, 2014

Registration

SOR/2014-69 March 28, 2014

TERRITORIAL LANDS ACT
FINANCIAL ADMINISTRATION ACT

Nunavut Mining Regulations

P.C. 2014-307 March 27, 2014

Whereas, pursuant to paragraph 24(b) of the Territorial Lands Act (see footnote 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 23 (see footnote b) of the Territorial Lands Act (see footnote c) and paragraphs 19(1)(a) (see footnote d) and 19.1(a) (see footnote e) and, considering that it is in the public interest to do so, subsection 23(2.1) (see footnote f) of the Financial Administration Act (see footnote g), makes the annexed Nunavut Mining Regulations.

TABLE OF CONTENTS

(This table is not part of the Regulations.)

NUNAVUT MINING REGULATIONS

INTERPRETATION

1. Definitions

APPLICATION

2. Nunavut Mining District

LICENCE TO PROSPECT

3. Issuance of licence

4. Licence authorization — licensee or agent

PROHIBITIONS RESPECTING PROSPECTING, STAKING AND MINING

5. Lands not open for prospecting or staking

6. Surface rights — prohibition respecting entry

7. Prohibition on removing minerals

PROSPECTING PERMITS

8. Prospecting permit zones

9. Application for prospecting permit

10. Zones excluded

11. Priority

12. Duration of prospecting permits

13. Notice respecting prospecting permits

14. Charges for prospecting permit

15. Report on work to obtain remission

16. Request for deferral of charge and extension of permit

17. Grouping of prospecting permits

18. Application to record claim in prospecting permit zone

19. Remission of charge

20. Cancellation of permit on request

21. Cancellation of permit for nonpayment

22. Effect of expiration or cancellation of permit

CLAIMS
SIZE, BOUNDARIES AND MARKING OF A CLAIM

23. Area of claim — excluded lands

24. Identification tags

25. Marking of boundaries

LEGAL POSTS

26. Requirements for legal post

27. Boundary post

28. Corner post

29. Witness post

STAKED CLAIM

30. Requirements to complete staking

31. Verification of staking

MOVING LEGAL POSTS AND MODIFYING INFORMATION

32. Prohibition

RECORDING OF A CLAIM

33. Application

34. Conflicting applications

35 Claim recorded under the law of another province

36. Claim lying partly in another province

DISPUTE RESPECTING RECORDING OF A CLAIM

37. Notice of protest

38. Inquiry by Supervising Mining Recorder

WORK REQUIREMENTS

39. Work required

40. Report of work or request for extension

WORK REPORTS AND APPLICATIONS FOR EXTENSION

41. Report on work

42. Application for extension of time

CHARGES TO HOLD RECORDED CLAIM AND ASSESS MINERAL POTENTIAL

43. Charge

EVALUATION OF REPORT AND COST OF WORK

44. Evaluation of report

45. Allocation of excess cost of work

46. Grouping of recorded claims for allocation of costs

47. Issuance of certificate of work

48. Remission of charge

49. Insufficient work

50. Period of application of requirements

SUSPENSION

51. Suspension of payment and work requirements

REDUCED AREA

52. Application for reduced-area claim

CANCELLATION OF RECORDING OF CLAIMS

53. Notice of cancellation

54. Request for cancellation of recording

55. Date of cancellation

56. Reopening of lands

LEASE OF A RECORDED CLAIM
PLAN OF SURVEY

57. Survey required for lease

58. Extra charge for additional area — one claim

59. Recording of plan of survey

REQUIREMENTS RESPECTING LEASES

60. Application for lease

61. Annual rent for lease

62. Request for renewal of lease

63. Notice of overdue rent

64. Cancellation of lease by lessee

TRANSFER OF A PROSPECTING PERMIT, CLAIM OR LEASE

65. Transfer of permit

66. Requirements for transfer of recorded claim or lease

67. Cancellation of recorded claim or lease

ROYALTIES

68. Commencement of production of mine

69. Royalties on value of output of mine

70. Deductions

71. Change of owner or operator has no effect

72. Statement respecting minerals whose gross value exceeds $100,000

73. Contents of royalty return

74. Royalty returns for certain joint ventures

75. Notice of assessment of royalties

76. Record keeping

77. Condition on removal of minerals

GENERAL PROVISIONS

78. Recorded claim and lease subject to public works

79. Suspension — death or incompetency of claim holder

80. Extension on account of strike

81. When written notice is considered to be received

82. Recording of documents

83. Consultation of records

REVIEW BY THE MINISTER

84. Request for ministerial review

85. Prohibition respecting staking

TRANSITIONAL PROVISIONS

86. Definition of “former Regulations”

87. Recording of located claim

88. Certificates of extension

89. Report on work — former Regulations

90. Deduction from lease payment

91. Application for common anniversary date

92. Honorary licence

93. Applications for leases and renewals

COMING INTO FORCE

94. Registration

SCHEDULE 1
SCHEDULE 2

INTERPRETATION

1. Definitions

PART 1

GENERAL REQUIREMENTS

2. Paper or electronic format

3. Identifying information

4. Details of contents

5. Maps or sections

GEOGRAPHIC LOCATION AND COORDINATES

6. Sample sites — coordinate systems

7. Method for determination of location

8. Elevation coordinates

MAPS, SECTIONS AND SAMPLES

9. Coordinates for geographic locations

10. Location of data collection sites

11. Cross-referencing of sample identifiers

INFORMATION ABOUT TYPES OF WORK

12. Excavation

13. Drilling

14. Geological mapping

15. Sampling and geochemistry

16. Geophysics or remote sensing work

PART 2

SIMPLIFIED REPORT

17. Simplified report

NUNAVUT MINING REGULATIONS

INTERPRETATION

Definitions

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

“Act”
« Loi »

“Act” means the Territorial Lands Act.

“boundary post”
« borne de délimitation »

“boundary post” means a legal post, excluding a corner post and a witness post, marking the boundary of a claim or a plot of land that is being staked for the purpose of making it a claim.

“business day”
« jour ouvrable »

“business day” means a day other than a Saturday or a holiday.

“Chief”
« chef »

“Chief” means the Chief of Financial Analysis and Royalties Administration Section of the Department of Indian Affairs and Northern Development.

“contiguous”
« contigus »

“contiguous”, with reference to two or more claims, includes claims that were staked in a manner to be contiguous.

“corner post”
« borne d’angle »

“corner post” means a legal post marking the northeast, southeast, southwest or northwest corner of a claim or a plot of land that is being staked for the purpose of making it a claim.

“cost of work”
« coût des travaux »

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

“depreciable assets”
« actif amortissable »

“depreciable assets” means buildings, plant, machinery and equipment.

“environmental baseline studies”
« études environnementales de base »

“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.

“exploration cost”
« frais d’exploration »

“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.

“fiscal year”
« exercice »

“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.

“holder of the surface rights”
« titulaire des droits de surface »

“holder of the surface rights” means the lessee or registered holder of the surface rights to the land.

“legal post”
« borne légale »

“legal post” means a post, tree or mound of stones set up in accordance with section 26 to serve as a boundary post, corner post or witness post.

“licence”
« licence »

“licence” means a licence to prospect referred to in section 3.

“mine”
« mine »

“mine” means an undertaking that produces or has produced minerals or processed minerals from lands within the Nunavut Mining District, and includes the depreciable assets that are located in Nunavut and used in connection with the undertaking.

“mineral”
« minéral »

“mineral” means any naturally occurring inorganic substance found in the Nunavut Mining District, including frac sand, but excluding material the taking of which is regulated under the Territorial Quarrying Regulations.

“mining property”
« propriété minière »

“mining property” means

“mining reclamation trust”
« fiducie de restauration minière »

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

“Mining Recorder”
« registraire minier »

“Mining Recorder” means the person designated by the Minister as the Mining Recorder.

“mining royalty valuer”
« évaluateur des redevances minières »

“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.

“owner”
« propriétaire »

“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.

“precious stone”
« pierre précieuse »

“precious stone” means a diamond, a sapphire, an emerald or a ruby.

“prescribed form”
« formule prescrite »

“prescribed form” means a form prescribed by the Minister under section 28 of the Act.

“processing”
« traitement »

“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.

“processing assets”
« biens utilisés pour le traitement »

“processing assets” means tailings disposal facilities and depreciable assets that are located in Nunavut and that are used directly and exclusively in processing.

“related”
« liées »

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

“Supervising Mining Recorder”
« registraire minier en chef »

“Supervising Mining Recorder” means the person designated by the Minister as the Supervising Mining Recorder.

“undeducted balance”
« fraction non amortie »

“undeducted balance” means

“witness post”
« borne témoin »

“witness post” means a legal post set up in accordance with section 29 to provide reference to the corner of a claim or a plot of land that is being staked for the purpose of making it a claim.

“work”
« travaux »

“work” means

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

Nunavut Mining District

2. 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

Issuance of licence

3. (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

Licence not transferable

(2) A licence is not transferable.

Licence valid for one year

(3) A licence is valid from the date of its issue until March 31 following the date of its issue or, if renewed before March 31, for a period of one year beginning on April 1 following the date of its renewal.

Copy of licence

(4) A licensee may, on request and payment of the applicable fee set out in Schedule 1, obtain from the Mining Recorder a copy of their licence.

Licence authorization — licensee or agent

4. (1) Only a licensee or a person authorized to act on behalf of a licensee may

Licence authorization — licensee

(2) Only a licensee may

PROHIBITIONS RESPECTING PROSPECTING, STAKING AND MINING

Lands not open for prospecting or staking

5. It is prohibited to prospect or stake a claim on any of the following lands:

Surface rights — prohibition respecting entry

6. If the surface rights to lands have been granted or leased by the Crown, it is prohibited to go on the surface of those lands to prospect or stake a claim unless

Prohibition on removing minerals

7. (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.

Limitation respecting holder of a 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 issued under subsection 60(5) or a renewal issued under subsection 62(4), 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.

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.

PROSPECTING PERMITS

Prospecting permit zones

8. (1) The mining district is divided into prospecting permit zones based on the National Topographic System of Canada. Each zone consists of one quarter of the area shown on a claim staking sheet and is designated as the northeast, southeast, southwest or northwest quarter.

Claim staking sheet

(2) In this section, “claim staking sheet” means

Application for prospecting permit

9. (1) A licensee may apply to the Mining Recorder for a prospecting permit for the exclusive right to prospect and stake claims in a prospecting permit zone specified in the application.

Requirements for application

(2) An application for a prospecting permit must

Payment of charge

(3) In addition, the licensee must pay to the Mining Recorder the charge referred to in subparagraph 14(a)(i) or (b)(i), as the case may be.

Remission

(4) If a charge has been paid under subsection (3) but no prospecting permit is issued with respect to the application, the charge is remitted.

Repayment

(5) Any charge referred to in subparagraph 14(a)(i) or (b)(i) 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.

Zones excluded

10. A prospecting permit must not be issued in respect of a prospecting permit zone if, at close of business on the last business day of January in the year the permit is to be issued, either of the following situations exists:

Priority

11. (1) If two or more applications for a prospecting permit are made in respect of a prospecting permit zone, the Mining Recorder must, in issuing a prospecting permit, give priority to

Issuance

(2) The Mining Recorder must issue the prospecting permit as soon as possible after January 31 in the year following the receipt of the application.

Identification number

(3) The Mining Recorder must assign an identification number to each prospecting permit.

Exclusion of claim from permit zone

(4) The area covered by a prospecting permit must be modified by removing the area covered by a recorded claim within that zone if

Duration of prospecting permits

12. A prospecting permit takes effect on the first day of February in the year it is issued and expires at the end of January

Notice respecting prospecting permits

13. On or before the fifth business day in February, a notice must be posted in the Mining Recorder’s office identifying the zones in respect of which prospecting permits were issued that year in the mining district.

Charges for prospecting permit

14. The following charges must be paid for a prospecting permit:

Report on work to obtain remission

15. (1) A permittee who has done work in respect of a zone for which they have a prospecting permit may request remission of the charges the permittee has paid or is obligated to pay for that permit under section 14 by submitting a report on the work to the Mining Recorder no later than 60 days after the expiry of the permit.

Preparation of report

(2) The report 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 work is less than $20,000, the report may be a simplified report prepared in accordance with Part 2 of Schedule 2.

Signature of report

(3) The report must be prepared and signed

Associated documents

(4) The following must be submitted with the report:

Details of costs

(5) In respect of the details of the costs,

Record keeping

(6) The permittee must keep all supporting documents used to justify the cost of work and make them available on request by the Mining Recorder until the permittee has received a confirmation under subsection (11).

Work reported once

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

Evaluation of report

(8) The Mining Recorder must evaluate the report to determine its compliance with Schedule 2 and the cost of work to be entered in a written confirmation of the cost of work under subsection (11).

Supporting documents

(9) If the Mining Recorder requests supporting documents that justify the cost of work reported, the Mining Recorder must notify the permittee in writing and must specify the cost of work for which such documents are requested.

Lack of justification

(10) If the permittee does not, within four months after the day the notification is sent, provide the supporting documents requested, the cost of work to which they relate must be considered to be unjustified.

Justified cost of work and allocation

(11) After completing the evaluation of a report, the Mining Recorder must provide to the permittee a written confirmation of the cost of work that has been justified in the report and, if a request for allocation of the cost has been made under subsection 17(5), of the amounts allocated in accordance with the request.

Request for deferral of charge and extension of permit

16. (1) If a permittee is unable to do work with respect to a prospecting permit zone because the permittee is, for reasons beyond the permittee’s control, waiting for a public authority to give an authorization or decision without which the work cannot proceed, the permittee may request an extension of one year for the payment of the charge under section 14 and the duration of the permit.

Requirements respecting request

(2) The request must be made in writing to the Supervising Mining Recorder before the next charge under section 14 is payable and must be accompanied by documents showing that the permittee is waiting for the authorization or decision.

Recording of extension

(3) If the requirements of subsection (2) have been met, the Supervising Mining Recorder must record the extension.

Grouping of prospecting permits

17. (1) Prospecting permits may be grouped for the purpose of allocating the cost of work done with respect to them if

Requirements respecting request

(2) A request to group prospecting permits must be submitted in writing to the Mining Recorder. It must be signed by each of the permittees and be accompanied by the applicable fee set out in Schedule 1.

Grouping certificate

(3) If the requirements of subsections (1) and (2) are met, the Mining Recorder must issue a grouping certificate to each of the permittees.

Duration of grouping certificate

(4) A grouping certificate takes effect on the day on which the fee is submitted under subsection (2), and ceases to have effect on the earlier of

Allocation of cost of work within group

(5) On request by any of the permittees referred to in a grouping certificate, the Mining Recorder must allocate, in accordance with the request, the cost of work that has been justified in a report in respect of any of the prospecting permits referred to in the grouping certificate to those permits.

Limit on reallocation

(6) The cost of work allocated under subsection (5) must not be reallocated to any prospecting permit referred to in another grouping certificate.

Allocation not permitted

(7) The cost of work set out in a confirmation under subsection 15(11) with respect to a prospecting permit that was not, when the confirmation was provided, referred to in a grouping certificate must not be allocated to any other prospecting permit.

Application to record claim in prospecting permit zone

18. (1) A permittee may apply to record a claim wholly or partially within the permittee’s prospecting permit zone only if a confirmation under subsection 15(11) respecting that zone has been provided setting out a cost of work equal to or greater than the number of hectares in the permit zone multiplied by $0.25.

Exclusion of claim from permit zone

(2) When a claim referred to in subsection (1) has been recorded, the area covered by the claim no longer forms part of the permit zone.

Excess cost of work transferrable to claim

(3) If the cost of work that has been justified in a report with respect to a prospecting permit exceeds the charges remitted under subsection 19(2), the permittee may request the Mining Recorder to allocate the excess cost of work to work required under subsection 39(1) on a claim referred to in subsection (1). The request must be in the prescribed form and be accompanied by the fee for a certificate of work set out in Schedule 1.

Remission of charge

19. (1) If a confirmation in respect of a prospecting permit is provided under subsection 15(11), the portion of the charges paid or payable under section 14 that does not exceed the cost of work set out in the confirmation is remitted.

To whom remission is payable

(2) Any charge referred to under section 14 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.

Cancellation of permit on request

20. A permittee may submit to the Mining Recorder a written request for cancellation of their prospecting permit. The cancellation takes effect at the end of January after it is requested.

Cancellation of permit for nonpayment

21. If any charge payable under section 14 is not paid when due, the prospecting permit is cancelled.

Effect of expiration or cancellation of permit

22. (1) The lands that were covered by a prospecting permit that has expired or has been cancelled are open for prospecting and staking at noon on the day following the first business day after the day on which the permit expired or was cancelled.

Temporary prohibition relating to former permittee

(2) 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

CLAIMS

SIZE, BOUNDARIES AND MARKING OF A CLAIM

Area of claim — excluded lands

23. (1) The area of a claim must not exceed 1250 hectares, and must not include any lands referred to in section 5.

Shape and boundaries of claim

(2) Every claim must, as nearly as possible, meet all of the following specifications:

Identification tags

24. (1) On payment of the applicable fee set out in Schedule 1, the Mining Recorder must issue a set of four identification tags, with the following inscriptions, for use in identifying the corners of a claim — “NE 1” for the northeast corner, “SE 2” for the southeast corner, “SW 3” for the southwest corner and “NW 4” for the northwest corner.

Reduced-area tags

(2) On payment of the applicable fee set out in Schedule 1, the Mining Recorder must issue a set of four reduced-area tags for use in marking the corners of a reduced-area claim referred to in section 52.

Identification number

(3) Each identification tag in a set must contain a unique identification number for the set.

Marking of boundaries

25. (1) The boundaries and corners of a claim must be marked by legal posts in accordance with sections 26 to 30.

Marking in treed area

(2) In a treed area, the boundaries of a claim must be marked along as much of the length as it is possible to mark by cutting underbrush and flagging or blazing trees.

LEGAL POSTS

Requirements for legal post

26. (1) A legal post must be one of the following:

Requirements when mounds of stones are used

(2) If a legal post is a mound of stones, then

Boundary post

27. (1) Subject to subsection (2), boundary posts must be erected at intervals of not more than 500 metres along the boundaries of a claim.

Obstructions in boundary line

(2) If, because of the presence of a body of water or other natural obstruction or lands on which entry for staking has not been authorized by the holder of the surface rights, it is not practicable to erect a boundary post on the boundary line of the claim, a boundary post must be erected on the boundary line on each side of the body of water or natural obstruction or lands.

Common boundary post

(3) When two or more claims are staked at the same time by or on behalf of the same licensee and have a common boundary, a single boundary post may be erected to mark any common interval along the boundary.

Numbering of boundary posts

(4) Boundary posts must be numbered consecutively in a clockwise direction, commencing at “1” after the northeast corner post, and recommencing at “1” after each subsequent corner post.

Information on boundary posts

(5) The name of the claim, the number referred to in subsection (4) and the following information must be inscribed on each boundary post:

Corner post

28. (1) Subject to section 29, corner posts must be erected at the four corners of a claim, and an identification tag marked with the required inscription must be secured to each corner post.

Common corner post

(2) When two or more claims are staked at the same time by or on behalf of the same licensee and have a common corner, a single corner post may be used to mark the common corner. The identification tag for each claim, marked with the required inscription, must be secured to the common corner post.

Information on corner posts

(3) The following information is to be clearly and indelibly inscribed on the identification tag of each corner post or, if there is insufficient room on the tag, on the post itself:

Witness post

29. (1) If, because of the presence of a body of water or other natural obstruction or lands on which entry for staking has not been authorized by the holder of the surface rights, it is not practicable to erect a corner post, a witness post must be erected at one of the following locations:

Corner post tag on witness post

(2) The identification tag for the corner post must be attached to the witness post.

Additional information on witness post

(3) In addition to the information referred to in subsection 28(3), the following information must be inscribed on the identification tag after the letters “WP”: the compass bearing and distance in metres, measured in a straight line, from the witness post to the location where the corner post would have been erected had it been practicable to do so.

STAKED CLAIM

Requirements to complete staking

30. When the boundaries and corners of a claim have been marked in accordance with sections 23 to 29, the date and time of completion of the requirements of those sections and the licence number of the licensee referred to in paragraph 28(3)(a) must be inscribed on the identification tag of the northeast corner post or of the witness post designating the northeast corner, as the case may be. The claim is then staked.

Verification of staking

31. Compliance with the requirements set out in sections 23 to 30 may be verified by a person authorized by the Minister to perform any function related to the administration and enforcement of these Regulations.

MOVING LEGAL POSTS AND MODIFYING INFORMATION

Prohibition

32. (1) Except as provided in subsections (2) and (3), it is prohibited

Exception

(2) The claim holder, the holder of the surface rights or a public authority may remove a legal post if the post is interfering with their use of the lands.

Notification

(3) If the holder of the surface rights or a public authority removes a legal post, they must, within 30 days after the removal, notify the claim holder and the Mining Recorder of the removal.

RECORDING OF A CLAIM

Application

33. (1) Only the licensee for whom a claim has been staked may submit an application to the Mining Recorder to record the claim.

Prescribed form and time limit

(2) The application must be made in the prescribed form within 60 days after the date on which the staking of the claim is completed.

Fee and map

(3) The application must be accompanied by the applicable fee set out in Schedule 1 and a map or sketch at the scale of 1:50 000 showing all of the following:

Recording of claim

(4) If the requirements of subsections (1) to (3) are met, the Mining Recorder must record the claim as soon as practicable after the 60th day following the day on which the staking is completed. The recording date is considered to be the date that the application is received at the Mining Recorder’s office.

Duration of claim

(5) Unless a recorded claim is leased under subsection 60(5) or its recording is cancelled under subsection 50(2) or 53(3) or section 54 or 55, the duration of a recorded claim is 10 years, beginning on its recording date, plus any suspensions recorded under section 51 and any extension under subsection 60(4).

Conflicting applications

34. If applications have been submitted to record two or more claims that overlap, the claim that is staked first in compliance with the staking requirements is the one that must be recorded.

Claim recorded under the law of another province

35. (1) If it is determined that lands covered by a mining claim that is recorded or otherwise recognized under the law regulating the disposition of mining interests in another province are wholly or partly in the Nunavut Mining District, and if the portion in Nunavut does not contain lands referred to in section 5, the claim holder may, within 90 days after the determination, apply to the Mining Recorder to have the portion of the claim within Nunavut recorded as a separate claim.

Limitation

(2) If an application to record the claim is not made within the period set out in subsection (1), the lands that were covered by the claim and that are within Nunavut are considered to never have been covered by a claim.

Recording date and time

(3) On receipt of an application made under subsection (1) and the applicable fee set out in Schedule 1, the Mining Recorder must record the claim as soon as practicable, using the date and time when the claim was recorded or otherwise recognized under the law regulating the disposition of mining interests in the other province.

Claim lying partly in another province

36. If a plan of survey recorded under section 59 and prepared with respect to a recorded claim shows that part of the claim is in another province, the Mining Recorder must reduce the boundaries of the claim in accordance with the plan, and must, as soon as practicable, notify the claim holder of the reduction.

DISPUTE RESPECTING RECORDING OF A CLAIM

Notice of protest

37. (1) If a person wants to dispute the recording of a claim, they must

Priority based on time of staking

(2) When the recording of a claim is disputed, the recording of the area of the claim in dispute must be accorded to the person who first staked the claim in accordance with these Regulations.

Inquiry by Supervising Mining Recorder

38. (1) When a notice of protest is filed, the Supervising Mining Recorder must

Powers related to the inquiry

(2) For the purposes of the inquiry, the Supervising Mining Recorder may

Determination and reasons

(3) After making the inquiry, the Supervising Mining Recorder must determine which claim was staked first and must provide the parties and the Mining Recorder with written reasons for the determination.

WORK REQUIREMENTS

Work required

39. (1) The holder of a recorded claim must do work that incurs a cost of work that is equal to or greater than

Work before recording of claim

(2) Work that was done during the two years before the claim was recorded is considered to be work done on the claim during the period referred to in paragraph (1)(a).

Report of work or request for extension

40. The claim holder must, no later than 90 days after the end of the period during which the work referred to in subsection 39(1) must be done, submit to the Mining Recorder

WORK REPORTS AND APPLICATIONS FOR EXTENSION

Report on work

41. (1) A report of the 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.

Signature of report

(2) The report must be prepared and signed

Associated documents

(3) The report must be accompanied by the fee for a certificate of work set out in Schedule 1 and the following documents:

Claim holder’s equipment or work

(4) If a holder of a recorded claim uses their own equipment to perform work or personally performs work,

Record keeping

(5) The holder of a recorded claim must keep all supporting documents used to justify the cost of work and make them available on request by the Mining Recorder until the holder has received a certificate of work under paragraph 47(1)(a).

Work reported once

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

Application for extension of time

42. (1) The application for a one-year extension referred to in paragraph 40(b) must be in the prescribed form and be accompanied by the applicable fee set out in Schedule 1 and the charge payable for that period under subsection 43(1).

Certificate of extension

(2) If the requirements of subsection (1) are met, the Mining Recorder must issue to the claim holder a certificate of extension for a one-year period to do the work, except that not more than three certificates of extension are to be issued with respect to a claim.

CHARGES TO HOLD RECORDED CLAIM AND ASSESS MINERAL POTENTIAL

Charge

43. (1) The following charges apply to the right to hold a recorded claim and assess its mineral potential:

Payment

(2) The claim holder must pay the charges in accordance with subsection 42(1) or 49(1), as the case may be.

EVALUATION OF REPORT AND COST OF WORK

Evaluation of report

44. (1) The Mining Recorder must evaluate the report of work that is referred to in paragraph 40(a) to determine its compliance with Schedule 2 and the cost of work to be entered in a certificate of work under subsection 47(2).

Supporting documents

(2) If the Mining Recorder requests supporting documents that justify the cost of work reported, the Mining Recorder must notify the holder of the recorded claim in writing and must specify the cost of work for which the documents are requested.

Lack of justification

(3) If the holder of the recorded claim does not, within four months after the day the notification is sent, provide the supporting documents requested, the cost of work to which they relate must be considered to be unjustified.

Allocation of excess cost of work

45. (1) Subject to subsection (2), if a recorded claim is not grouped under section 46 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, the Mining Recorder must allocate the excess cost of work to the next period or periods for which work is still required to be done on the claim under subsection 39(1).

Unallocated excess cost of work

(2) At any time before evaluation of the report has been completed, the claim holder may submit a written request to the Mining Recorder to not allocate the excess cost of work or to allocate it to fewer periods than would be required under subsection (1) and the Mining Recorder must comply with the request.

Previous payment of charges

(3) A claim holder who has paid a charge in respect of a period under subsection 43(1) or 49(1) may submit a written request to the Mining Recorder that remission be granted of the charge in an amount equal to the excess cost of work.

Request re unallocated excess cost of work

(4) If unallocated excess cost of work is recorded with respect to a recorded claim, the claim holder may submit a request to the Mining Recorder to allocate that cost as specified in the request. The request must be in the prescribed form and be accompanied by the fee for a certificate of work set out in Schedule 1.

Certificate of work for unallocated excess cost of work

(5) If the unallocated excess cost of work is sufficient to comply with the request, the Mining Recorder must allocate it in accordance with the request.

Grouping of recorded claims for allocation of costs

46. (1) Recorded claims may be grouped for the purpose of allocating the cost of work done with respect to them if

Request for grouping

(2) A request to group recorded claims must be submitted in the prescribed form to the Mining Recorder. It must be signed by each of the claim holders and be accompanied by the applicable fee set out in Schedule 1.

Grouping certificate

(3) If the requirements of subsections (1) and (2) are met, the Mining Recorder must issue a grouping certificate respecting the claims to each of the claim holders.

Duration of certificate

(4) A grouping certificate takes effect on the day on which the fee under subsection (2) is received and ceases to have effect on the earliest of

Request for allocation re grouped claims

(5) On request by a holder of a recorded claim listed in a grouping certificate, the Mining Recorder must allocate, in accordance with the request, the cost of work that has been justified in a report in respect of any of the claims listed in the grouping certificate to any of the other claims listed in the certificate, for any of the periods referred to in subsection 39(1).

Presentation of request

(6) A request must be in the prescribed form and, if it is not submitted with the report referred to in section 41, it must be accompanied by the fee for a certificate of work set out in Schedule 1.

Limit on reallocation

(7) The cost of work allocated to a recorded claim referred to in a grouping certificate must not be reallocated to any recorded claim referred to in another grouping certificate.

Issuance of certificate of work

47. (1) The Mining Recorder must issue a certificate of work in the following circumstances:

Certificate of work respecting claim

(2) A certificate of work respecting a claim must set out

Remission of charge

48. (1) Remission is granted of the charges paid or payable in respect of a period referred to in section 43 in an amount equal to the cost of work allocated to the recorded claim during that period in the certificate of work.

Remission in subsequent periods

(2) If a holder of a recorded claim pays a charge in respect of a period under subsection 43(1) or 49(1), remission is granted of the portion of the charge that is equal to the cost of work allocated to the claim during any subsequent period that exceeds the cost of work required to be done under subsection 39(1).

Repayment

(3) Any charge referred to in section 43 that has been paid to the Mining Recorder and that is remitted under this section must be repaid by the Minister to the person entitled to it.

Insufficient work

49. (1) Subject to subsection (3), if a certificate of work indicates that the cost of work 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 charge referred to in subsection 43(1) and the cost of work indicated in the certificate.

Payment of charge

(2) The claim holder must pay the charge within 60 days after the day on which the certificate is issued.

Cancellation of recording of claim

(3) If three certificates of work are issued in respect of a claim that indicate that the cost of work is less than the amount required by subsection 39(1), the recording of the claim is cancelled on the day that the third certificate of work is issued.

Period of application of requirements

50. (1) The requirements set out in section 39 and subsection 43(1) apply for the duration of a recorded claim.

Cancellation of recording

(2) The recording of a claim is cancelled on one of the following days, as the case may be:

SUSPENSION

Suspension of payment and work requirements

51. (1) If a holder of a recorded claim is unable to do 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 request a suspension of one year — beginning on the anniversary date of the recording of the claim — of the work requirements under section 39 and the charges under subsection 43(1).

Time limit for request

(2) The request must be made in writing to the Supervising Mining Recorder no later than 90 days after the end of the applicable period under section 39 and subsection 43(1) for which the suspension is requested, and must be accompanied by documents showing that the claim holder is waiting for the authorization or decision.

Companies’ Creditors Arrangement Act

(3) If an order under section 11.02 of the Companies’ Creditors Arrangement Act has been made with respect to a claim holder, the holder of a recorded claim may request a suspension of the payment and work requirements under section 39 and subsection 43(1) until the 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 with respect to the claim holder.

Time limit for request

(4) The request must be made in writing to the Supervising Mining Recorder no later than 90 days after the day on which the order was made, and must be accompanied by a certified copy of the order.

Recording of suspension

(5) If the requirements of subsections (1) and (2) or (3) and (4) are met, the Supervising Mining Recorder must record the suspension with respect to the claim.

Effect of suspension

(6) A suspension extends the duration of the claim by the duration of the suspension.

REDUCED AREA

Application for reduced-area claim

52. (1) The holder of a recorded claim (the original claim) may make an application to the Mining Recorder to record, within the area of the original claim, a reduced-area claim if

Presentation of application

(2) The application must be made in the prescribed form no later than 60 days after the staking of the reduced-area claim, and must be accompanied by the applicable fee set out in Schedule 1 and the map or sketch referred to in subsection 33(3).

Recording of reduced-area claim

(3) If the requirements set out in this section are met, the Mining Recorder must record the reduced-area claim, effective on the next anniversary date of the recording of the original claim.

Effect of recording

(4) When the recording of a reduced-area claim takes effect,

Reopening of lands for prospecting and staking

(5) Subject to subsection 56(3), the lands in the original claim that are not within the reduced-area claim are open for prospecting and staking at noon on the day following the first business day after the day on which the recording of the original claim was cancelled.

Notice

(6) On the day the recording of the reduced-area claim takes effect — or if that day is not a business day, on the first business day that follows — the Mining Recorder must post a notice in the Mining Recorder’s office specifying when the lands in the original claim that are not within the reduced-area claim are open for prospecting and staking, and setting out the boundaries of the reduced-area claim.

CANCELLATION OF RECORDING OF CLAIMS

Notice of cancellation

53. (1) If the Mining Recorder has information that either of the following circumstances apply in respect of a recorded claim, the Mining Recorder must immediately send the claim holder a notice that the recording of the claim will be cancelled unless, within 60 days, the holder can show that the information is not correct:

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.

Default

(3) If the claim holder has not shown the Mining Recorder that the information is not correct within 60 days after the day on which the notice was sent, the recording of the claim is cancelled.

Cancellation of recording or exclusion of lands

(4) If it is determined that a recorded claim includes any of the following lands, the Mining Recorder must cancel the recording of the claim or, if it is possible to exclude those lands from the claim, must amend the boundaries of the recorded claim to do so, and must notify the claim holder accordingly:

Request for cancellation of recording

54. The holder of a recorded claim may request the cancellation of the recording of the claim by submitting to the Mining Recorder a written request for cancellation accompanied by the applicable fee set out in Schedule 1.

Date of cancellation

55. (1) The recording of a claim is cancelled on the day that

Prohibition

(2) For one year after the recording of a claim is cancelled, the former claim holder and any person related to the former claim holder are not permitted to

Reopening of lands

56. (1) The lands that were covered by a claim the recording of which has been cancelled under subsection 50(2), section 55 or subsection 62(3) are open for prospecting and staking at noon on the day following the first business day after the day on which the recording of the claim was cancelled.

Reopening of lands — 30-day delay

(2) Subject to section 84, the lands that were covered by a claim the recording of which has been cancelled under subsection 49(3) or 53(3) or paragraph 53(4)(b) are open for prospecting and staking at noon on the day that is 30 days after the day on which the recording of the claim was cancelled.

Delay in reopening lands

(3) 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) or (2), or the lands referred to in subsection 52(5), the Minister may delay the opening of the lands for prospecting and staking.

LEASE OF A RECORDED CLAIM

PLAN OF SURVEY

Survey required for lease

57. (1) A holder of a recorded claim who wants to obtain a lease of a recorded claim must

Perimeter survey

(2) If two or more contiguous recorded claims are to be included in one lease and their aggregate area, as stated in the applications to record them, does not exceed 1250 hectares, one plan of survey may be prepared that shows only the perimeter of the collection of contiguous claims.

Posting of notice

(3) On receipt of the documents referred to in paragraph (1)(d), the Mining Recorder must post a copy of the notice in the office of the Mining Recorder for a period of 21 days.

Extra charge for additional area — one claim

58. (1) If the surveyed area of one claim exceeds the area stated in the application to record that claim, the claim holder must pay to the Mining Recorder the charge determined by the formula

A × C × D

where

A is the excess area in hectares of the claim;

C is $5; and

D is the number of years from the date of recording of the claim.

Extra charge for additional area — collection of claims

(2) If the surveyed area of contiguous recorded claims that are shown in a plan of survey of their perimeter prepared in accordance with subsection 57(2) exceeds their aggregate area as stated in the applications to record those claims, the claim holder must pay to the Mining Recorder for each claim the charge determined by the formula

(A ⁄ B) × C × D

where

A is the total excess area in hectares of all of the claims;

B is the number of claims in the survey;

C is $5; and

D is the number of years from the recording date of the claim.

Remission

(3) Remission is granted of the portion of the charge paid or payable under subsection (1) or (2), as the case may be, that does not exceed the cost of work set out in certificates of work issued with respect to the claim or contiguous claims and that has not been remitted under these Regulations.

Recording of plan of survey

59. The Mining Recorder must record the plan of survey if

REQUIREMENTS RESPECTING LEASES

Application for lease

60. (1) A holder of a recorded claim who wants to obtain a lease of a recorded claim or a collection of contiguous recorded claims must apply for the lease in the prescribed form.

Application fee and limitation period

(2) The application must

Other requirements for lease

(3) Before a lease is issued,

Extension of duration of claim

(4) If a claim holder who has applied for a lease advises the Mining Recorder in writing that they cannot, for reasons beyond their control, obtain an official plan of survey and record it before the end of the duration of the claim to be leased,

Issuance of lease

(5) If, before the end of the duration of the recorded claim or of the claim that has the earliest recording date of any of the claims in the collection of contiguous recorded claims, the requirements of subsections (1) to (3) are met, the Minister must issue the lease to the claim holder for a term of 21 years.

Annual rent for lease

61. (1) The annual rent for a lease is $2.50 per hectare during the first term and $5.00 per hectare during each renewed term.

When rent is due

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

Request for renewal of lease

62. (1) To obtain renewal of a lease, the lessee must, at least six months before the end of the existing lease, submit to the Mining Recorder a written request for renewal accompanied by the applicable fee set out in Schedule 1.

Reduction in area of leased claim

(2) At the time of renewal, the Mining Recorder must reduce the area specified in the lease if, at least 90 days before the end of the existing lease,

Cancellation of recording of claim

(3) The recording of a claim that has been removed from a lease under subparagraph (2)(a)(ii) is cancelled at the time that the renewal of the lease takes effect.

Issuance of renewal

(4) If, before the existing lease ends, the lessee pays the rent for the first year of the renewal, the Minister must issue the renewal for a term of 21 years.

Notice of overdue rent

63. (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.

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.

Cancellation of lease by lessee

64. (1) A lease is cancelled if the lessee submits to the Mining Recorder a written notice of cancellation. The cancellation takes effect on the day the notice is received by the Mining Recorder or, if a later day for cancellation is set out in the notice, on that day.

Temporary prohibition relating to former lessee

(2) For one year after a lease is cancelled, the former lessee and any person related to the former lessee are not permitted to

TRANSFER OF A PROSPECTING PERMIT, CLAIM OR LEASE

Transfer of permit

65. The transfer of a prospecting permit or an interest in it may be recorded only if

Requirements for transfer of recorded claim or lease

66. (1) The transfer of a recorded claim or a lease of a recorded claim or an interest in either of them may be recorded only if

Transfer of lease includes claims

(2) The transfer of a lease includes the transfer of the recorded claims to which the lease applies.

Condition on transfer within mining property

(3) The transfer of a lease or a recorded claim either of which is part of a mining property may be recorded only if security in the amount of any unpaid royalties in relation to the mining property has been deposited with the Minister.

Cancellation of recorded claim or lease

67. (1) The recording of a claim is cancelled, or a lease and the recording of the claims covered by the lease are cancelled, on the day that any of the following events occur:

Delay in opening lands

(2) The lands that were covered by a claim or a lease the recording of which has been cancelled under subsection (1), are not open for prospecting and staking until the Minister opens them.

Disposition of interests in lands

(3) Subject to subsection (7), at any time after the recording of a claim (the original claim) was cancelled under subsection (1), the Minister may, with respect to the lands that were covered by the original claim, instruct the Mining Recorder to record, in the name of a specified person, a new claim that covers those lands.

New claim considered as transfer

(4) When a new claim is recorded under subsection (3),

Minister may issue new lease

(5) Subject to subsection (7), at any time after a lease is cancelled under subsection (1), the Minister may issue a new lease that covers the same lands as were covered by the cancelled lease.

New lease considered as transfer

(6) A new lease issued under subsection (5) is considered to be a transfer of the previous lease on the same lands, with the same duration as was left on the previous lease at the time it was cancelled.

Conditions

(7) The Minister may only act under subsection (3) or (5) if

ROYALTIES

Commencement of production of mine

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

Presumptions respecting mineral or processed mineral

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

Presumptions respecting related persons

(3) For the purposes of these Regulations,

Royalties on value of output of mine

69. (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

TABLE

Item

Column 1


Dollar value of the output of the mine

Column 2

Royalty payable on that portion of the value (%)

1.

10,000 or less

0

2.

greater than 10,000 but not greater than 5 million

5%

3.

greater than 5 million but not greater than 10 million

6%

4.

greater than 10 million but not greater than 15 million

7%

5.

greater than 15 million but not greater than 20 million

8%

6.

greater than 20 million but not greater than 25 million

9%

7.

greater than 25 million but not greater than 30 million

10%

8.

greater than 30 million but not greater than 35 million

11%

9.

greater than 35 million but not greater than 40 million

12%

10.

greater than 40 million but not greater than 45 million

13%

11.

greater than 45 million

14%

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.

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.

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

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),

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).

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).

Election is irrevocable

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

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:

Timing of market value of precious stones

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

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.

Timing of market value of other minerals

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

Exclusion respecting hedging transactions

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

Exchange rate

(14) For the purpose of these Regulations, the Bank of Canada’s noon exchange rate must be used to convert foreign currencies into Canadian dollars

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 noon exchange rate for the month in which those costs were incurred.

Deductions

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

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,

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.

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.

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,

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.

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.

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,

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,

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.

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

Change of owner or operator has no effect

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

Costs not eligible for development allowance

(2) Subject to paragraph 70(1)(i), when a recorded claim expires or its recording 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.

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.

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.

Statement respecting minerals whose gross value exceeds $100,000

72. (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

Notice of changes

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

Contents of royalty return

73. (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

Documents to accompany royalty return

(2) Every mining royalty return must be

Royalty return — election under subsection 69(7)

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

Royalty returns for certain joint ventures

74. (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,

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,

Notice of assessment of royalties

75. (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.

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.

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.

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).

Record keeping

76. (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,

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

Condition on removal of minerals

77. (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).

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.

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.

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.

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.

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.

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

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

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

Recorded claim and lease subject to public works

78. 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.

Suspension — death or incompetency of claim holder

79. 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.

Extension on account of strike

80. If, as a result of a strike within the meaning of subsection 2(1) of the Public Service Labour Relations Act, a holder of a prospecting permit, 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.

When written notice is considered to be received

81. For the purposes of these Regulations, written notice is considered to be given to the holder of a prospecting permit, recorded claim or lease when the notice is sent by registered mail to the holder at the holder’s address, or transmitted by fax or email to the holder at the holder’s fax number or email address, as shown in the records of the Mining Recorder.

Recording of documents

82. (1) The Mining Recorder must record

Recording considered to give notice

(2) All persons are considered to have received notice of every document recorded under subsection (1) as of the date of the recording of the document.

Transfer subject to encumbrances

(3) A transfer of a recorded claim or a lease, or any interest in either, is subject to all judgments, orders, liens and other encumbrances that were recorded against the claim or lease, or any interest in them, at the time of the recording of the transfer.

Consultation of records

83. (1) Subject to subsection (2), a person may

Limit on consultation

(2) A person is not permitted to consult or obtain a copy of a report submitted under subsection 15(1) or 41(1) until the earlier of

REVIEW BY THE MINISTER

Request for ministerial review

84. (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.

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

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).

Procedure for review

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

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.

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.

Final decision

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

Prohibition respecting staking

85. If a request for review is with respect to the cancellation of the recording of a claim under subsection 53(3) or paragraph 53(4)(b) or the amendment of the boundaries of a claim under paragraph 53(4)(b), it is prohibited to stake a claim on the lands covered by the claim the recording of which was cancelled or the boundaries of which were amended. The prohibition is in effect from the start of the review until noon on the day following the first business day after the day on which the Minister’s decision was sent in accordance with subsection 84(6).

TRANSITIONAL PROVISIONS

Definition of “former Regulations”

86. In sections 87 to 93, “former Regulations” means the Northwest Territories and Nunavut Mining Regulations.

Recording of located claim

87. (1) If, within 59 days before these Regulations come into force, a claim is located in accordance with subsection 14(14) of the former Regulations, an application to record the claim that is made after these Regulations come into force may be made under section 24 of the former Regulations or under section 33 of these Regulations.

Located claim considered as staked claim

(2) For greater certainty, a claim that is located under the former Regulations is considered to be a claim that was staked under these Regulations.

Certificates of extension

88. A certificate of extension given under section 44 of the former Regulations is not counted as a certificate of extension under subsection 42(2) of these Regulations.

Report on work — former Regulations

89. A report prepared in accordance with the former Regulations respecting representation work that was done before the coming into force of these Regulations is considered to be in accordance with these Regulations if it is submitted within two years after the coming into force of these Regulations.

Deduction from lease payment

90. Subsection 60(2) of the former Regulations applies for one year after these Regulations come into force.

Application for common anniversary date

91. If an application for a certificate under subsection 39(1) of the former Regulations — giving a common anniversary date of recording for claims — was received by the Mining Recorder before the coming into force of these Regulations but was not dealt with before that time, it must be dealt with in accordance with the former Regulations.

Honorary licence

92. A person who, when these Regulations come into force, holds an honorary licence under section 77 of the former Regulations is entitled to renew the honorary licence each year in accordance with that section.

Applications for leases and renewals

93. (1) If an application for a lease or a request for a renewal of a lease is received before, or within six months after, the day on which these Regulations come into force, the application or request must be dealt with in accordance with the former Regulations.

Continuation of lease

(2) In the case of a request for renewal under subsection (1), if the request has not been dealt with before the lease is due to expire, the lease is considered to continue in effect until the request has been dealt with.

Timing of application for lease

(3) If the duration of a recorded claim ends within one year after the day on which these Regulations come into force, paragraph 60(2)(b) is to be read without reference to the words “at least one year”.

COMING INTO FORCE

Registration

94. These Regulations come into force on the day on which the Northwest Territories Mining Regulations are registered, but if these Regulations are registered after that day, they come into force on the day on which they are registered.

SCHEDULE 1
(Subsections 3(1) and (4), paragraph 9(2)(c), subsections 17(2), 18(3), 24(1) and (2), 33(3), 35(3), 41(3), 42(1), 45(4), 46(2) and (6) and 52(2), section 54, paragraphs 59(c) and 60(2)(a), subsection 62(1) and paragraphs 65(c), 66(1)(d), 82(1)(c) and 83(1)(b))

FEES

Item

Column 1

Description

Column 2

Fee ($)

1.

Copy of a record, per page

1.00

2.

Licence issued to an individual

5.00

3.

Licence issued to a corporation

50.00

4.

Duplicate licence

2.00

5.

Identification tags or reduced-area tags, per set

2.00

6.

Application to record a claim or a reduced-area claim, per hectare in the claim

0.25

7.

Application for a prospecting permit

25.00

8.

Request to group prospecting permits

10.00

9.

Request to transfer a prospecting permit

25.00

10.

Certificate of work, per hectare in the claim

0.25

11.

Request to group recorded claims

10.00

12.

Application for extension to do work on a claim, per hectare in the claim

0.25

13.

Recording an official plan of survey of a claim, per claim in the survey

2.00

14.

Application for lease of a recorded claim or renewal of a lease, per claim in the lease

25.00

15.

Recording a transfer of a lease and any other document pertaining to a lease

25.00

16.

Recording any document pertaining to a claim, per entry

2.00

17.

Request to cancel the recording of a claim

10.00

SCHEDULE 2
(Subsections 15(2) and (8), 41(1) and 44(1))

REPORTS

INTERPRETATION

Definitions

1. The following definitions apply in this Schedule.

“identifier”
« identificateur »

“identifier” means a set of alphabetic, numeric or alphanumeric characters used to uniquely identify a sample, a prospecting permit zone or an electronic storage medium.

“map”
« carte »

“map” includes a plan, graphical image or three-dimensional model in electronic or paper form.

“preparation”
« préparation »

“preparation” includes drying, fractioning, sieving and panning.

“sample”
« échantillon »

“sample” includes a sample fraction, processed sample, analyzed sample, duplicate sample, blank sample, quality control sample and each of multiple samples from one location.

“section”
« coupe »

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

PART 1

GENERAL REQUIREMENTS

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.

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.

Identifying information

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

Where information is provided

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

Details of contents

4. A report must include the following:

Maps or sections

5. A report must include the following maps or sections:

GEOGRAPHIC LOCATION AND COORDINATES

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.

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.

Geodetic coordinates

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

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:

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

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.

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.

Requirements for maps and sections

(3) Each map and section must

Elevation coordinates

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

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.

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(1)(d), a table that makes a cross-reference between the two identifiers must be provided.

Sample identifiers

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

INFORMATION ABOUT TYPES OF WORK

Excavation

12. Reporting on excavation work must include the following:

Drilling

13. Reporting on drilling work must include the following:

Geological mapping

14. Reporting on geological mapping work must include the following:

Sampling and geochemistry

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

Geophysics or remote sensing work

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

Down-hole geophysical survey

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

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.

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.

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 2

SIMPLIFIED REPORT

Simplified report

17. A simplified report provided for under subsection 15(2) or 41(1) of these Regulations must be prepared in accordance with sections 2 to 11 of this Schedule, but without the requirements set out in paragraphs 4(g), (m), (o), (p) and (q) and 5(1)(a) and (e), and must contain the following information and documents:

N.B. The Regulatory Impact Analysis Statement for these Regulations appears following SOR/2014-68, Northwest Territories Mining Regulations.