Third

Session, 47th General Assembly

Elizabeth II, 2014

BILL 15

AN ACT TO AMEND THE

MINERAL ACT

Received and Read the First Time .................................................................................................

Second Reading .................................................................................................................................

Committee ..........................................................................................................................................

Third Reading .....................................................................................................................................

Royal Assent ......................................................................................................................................

HONOURABLE DERRICK DALLEY

Minister of Natural Resources

Ordered

to be printed by the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would amend the Mineral Act to

allow a mineral licence to be

extended for an additional 10 year period beyond the 20 year extension period and

prescribe requirements for licence holders who retain licences during that

additional period; and

amend the requirements for

renewing a mining lease.

A BILL

AN ACT TO AMEND THE MINERAL ACT

Analysis

S.22 Amdt.

Issuing of licence

S.28 R&S

Extension of licence - 20 years or less

S.28.1 Added

Extension of licence - more than 20 years

S.31 Amdt.

Mining lease

S.41 Amdt.

Regulations

Sch. R&S

Schedule A

Schedule B

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

RSNL1990 cM-12

as amended

1. Paragraph 22(3)(

b) of the Mineral Act is repealed and the following substituted:

(

b) is issued subject to this Act and the

conditions that may be set out in the licence or that may be prescribed by

regulation.

Section 28 of the Act is repealed and the

following substituted:

Extension of

licence - 20 years or less

(1) A

licence issued under

section 22 may be extended a maximum of 3 times for a

period of 5 years each where the licensee

(

a) submits to the minister before the expiry of

the licence

(

i) an application for extension,

(ii) the documentation prescribed by the minister,

and

(iii) the fee prescribed by the minister;

(

b) has complied with all the terms, provisions

and conditions of the licence during its currency; and

(

c) has either

(

i) filed with the recorder a report of the

assessment work and account of expenditures required by Condition 3 of

Schedule

A for the fifth year of the term of the licence, or

(ii) has been granted an extension under Condition

2 of

Schedule A.

(2) An extension of a licence under this

section

may be issued

(

a) for the total area of land covered by the

licence; or

(

b) for the lesser area that may be contained in

the application for extension if the area is surrendered as provided under

section 25.

(3) Notwithstanding subsection (1), a licence

extended under this

section is subject to the following conditions during the

period of extension:

(

a) that for each 12 month period of the

extension, the licensee shall carry out the assessment work prescribed by

regulation for the extension instead of the assessment work required for the

original term of the licence; and

(

b) the licensee shall fulfill all the terms and

conditions of or pertaining to the licence as originally granted.

(4) The term of a licence shall expire 5 years

after the date on which the original licence was granted or extended.

3. The Act is amended by adding immediately after

section 28 the following:

Extension of

licence - more than 20 years

28.1

(1) A

licence that has been extended 3 times under

section 28 may be extended under

this

section a maximum of 10 times for a period of one year each where the

licensee

(

a) submits to the minister before the expiry of

the licence

(

i) an application for extension,

(ii) the documentation prescribed by the minister,

and

(iii) the fee prescribed by the minister;

(

b) has complied with all the terms, provisions

and conditions of the licence during its currency; and

(

c) has either

(

i) filed with the recorder a report of the

assessment work and account of expenditures required by Condition 3 of

Schedule

B, or

(ii) has been granted an extension under Condition

2 of

Schedule B.

(2) An extension of a licence under this

section

may be issued

(

a) for the total area of land covered by the

licence if the area is 100 coterminous map staked claims or less; or

(

b) for the lesser area that may be contained in

the application for extension if the area is surrendered as provided under

section 25.

(3) A licence extended under this

section shall

(

a) be limited to 100 coterminous map staked

claims;

(

b) not be grouped with other licences issued

under this Act; and

in

Schedule B.

(4) Notwithstanding subsection (1), a licence

extended under this

section is subject to the following conditions during the

period of the extension:

(

a) the licensee shall carry out the assessment

work prescribed by regulation for the extension instead of the assessment work

required for the original term of the licence; and

(

b) the licensee shall fulfill all the terms and

conditions of or pertaining to the licence as originally granted.

(5) The term of a licence extended under this

section shall expire one year after the date on which the licence was extended.

(6) A licence that had been extended 3 times under

section 28 and that expired between March 12, 2014 and the coming into force of

this

section is considered not to have expired and shall be valid for 6 months

after the coming into force of this

section unless an extension under this

section is granted earlier.

4. Subsection 31(6) of the Act is repealed and the

following substituted:

(6) The minister shall renew a lease for a further

term not exceeding 10 years from the date of expiry of the original term of the

lease or prior extension of the lease where a lessee

(

a) submits a written application no later than 3

months before the expiration of the term of a lease or 3 months before the

expiration of a subsequent term;

the lease; and

(

c) has demonstrated to the satisfaction of the

minister, including through the confirmation of a qualified person, the

existence of a mineral resource that is of sufficient size and quality to be

potentially economic.

(7) A lease renewed under subsection (6) may be

5. Subparagraphs 41(h)(ii) and (iii) of the Act

are repealed and the following substituted:

(ii) assessment work required to be carried out by

licensees for the purposes of the Schedules and fixing monetary values and

amounts to be spent upon different types and forms of assessment work

prescribed by regulation, and

(iii) forms and values of additional assessment work

required to be carried out under licences extended under

section 28 or 28.1;

6. The

Schedule to the Act is repealed and the

following substituted:

Schedule A

Conditions of Licence - 20 years or less

Condition

1. The licensee shall spend in each 12 month period during the currency of the

licence an amount of money, as is set out in the regulations, on assessment

work performed on, in or under the land subject to the licence.

Condition 2.

(1) Where

the licensee is unable to complete the assessment work required to be done in a

12 month period, the licensee may apply to the minister for an extension of

time within which the assessment work may be completed, and the minister may

grant one or more extensions of time but each extension shall

(

a) not relieve a licensee of obligations under

this Act, the regulations or the licence;

(

b) not exceed 12 months from the end of the

period during which the work would, apart from the extension, have been

required to be completed; and

(

c) only be granted where, before the end of the

year for which the extension is requested, the licensee delivers to the

recorder a security deposit in cash or other form that may be prescribed by

regulation in an amount equal to the deficiency in the assessment work for the

period.

(2) The security deposit referred to in paragraph

(1)(

c) is given to ensure that the assessment work is completed and, where the

work is not completed within the required time and the licensee does not obtain

another extension of time, the deposit is forfeit to the Crown.

(3) Where a company has to apply for an extension

of time as a result of delays caused by environmental considerations imposed

under the exploration approval, the requirement for the delivery of a deposit

shall be waived on the request of the licensee.

Condition

(1) A licensee shall submit to the recorder within 60 days after the

end of each 12 month period of the currency of the licence

(

a) an annual report of the assessment work

performed during the preceding 12 month period on, in or under the land subject

to the licence and the results; and

(

b) an account of the expenditure incurred in the

performance of that assessment work, which account shall be audited if required

by the minister.

(2) Where a licensee is unable, for reasons

satisfactory to the recorder, to submit a full annual report within the time

required by subsection (1), the recorder may accept a partial report.

(3) Where the recorder accepts a partial report

under subsection (2), the licensee shall submit the completed annual report

within 120 days after the end of the most recent 12 month period of the

currency of the licence.

(4) Where the recorder is satisfied that a

licensee has performed sufficient assessment work in previous 12 month terms to

cover that required for the current 12 month term, the recorder may waive the

requirement of an assessment report for the current term.

Condition

(1) A geological, geophysical, geochemical or other scientific survey,

whether ground or aerial, made by the licensee before grant of licence in, on,

over or under the land subject to the licence, or of an area within which the

land or part of the land subject to a licence is situated shall be considered

to be assessment work performed during the first 12 month period of the licence

(

a) the survey was made not more than one year

before the date of issuing of the licence; and

(

b) details and results of the survey and the

costs incurred are sent to the recorder with the report of assessment work and

expenditures required to be submitted under Condition 3 at the end of the first

12 month period of the licence.

(2) The costs of the surveys referred to in

subsection (1) shall be credited to the licensee as assessment work required to

be done on the land by the licensee during the first 12 months of the licence.

Condition

5. The cost of assessment work done by a licensee on, in or under the land

subject to a licence from the date the land was staked, or from the date the

application for a licence was made, to the date the licence was issued may be

credited as assessment work in that amount during the first 12 months of the

licence if the particulars of the work done are included with the report of

assessment work required for that 12 month period.

Condition

(1) The costs of assessment work in excess of the minimum required for

any 12 month period of the licence may be applied to the costs of assessment

work required for the following 12 month periods during the next 9 years with

(

a) full application for the excess, if the report

of the excess work and an account of expenditure of the work are filed with the

recorder at the same time that the reports and accounts are submitted under

Condition 3 for the 12 month period during which the excess work is carried

out; or

(b) 50% application for the excess if the report

of the excess work and an account of expenditure of that work are filed later

than the time set out in paragraph (a).

(2) Notwithstanding subsection (1), the costs of

assessment work in excess of the minimum required for any 12 month period shall

not be applied to the costs of assessment work 20 years after the licence was

granted.

Schedule B

Conditions of Licence - More than 20 years

Condition

1. The licensee shall spend during the currency of the licence an amount of

money, as is set out in the regulations, on assessment work performed on, in or

under the land subject to the licence.

Condition

(1) Where the licensee is unable to complete the assessment work

required to be done during the licence extension period, the licensee may apply

to the minister for an extension of time within which the assessment work may

be completed, and the minister may grant not more than 3 consecutive extensions

of time but each extension shall

(

a) not relieve a licensee of obligations under

this Act, the regulations or the licence;

(

b) not exceed 12 months from the end of the

period during which the work would, apart from the extension, have been

required to be completed; and

(

c) only be granted where, before the end of the

licence extension period, the licensee delivers to the recorder a security

deposit in cash or other form that may be prescribed by regulation in an amount

equal to the deficiency in the assessment work for the period.

(2) The security deposit referred to in paragraph

(1)(

c) is given to ensure that the assessment work is completed and, where the

work is not completed within the required time and the licensee does not obtain

another extension of time, the deposit is forfeit to the Crown.

(3) Where a company has to apply for an extension

of time as a result of delays caused by environmental considerations imposed

under the exploration approval the requirement for the delivery of a deposit

shall be waived on the request of the licensee.

Condition

(1) A licensee shall submit to the recorder within 60 days after the

end of the licence extension period

(

a) an annual report of the assessment work performed

during the preceding 12 month period, on, in or under the land subject to the

licence and the results; and

(

b) an account of the expenditure incurred in the

performance of that assessment work, which account shall be audited if required

by the minister.

(2) Where a licensee is unable, for reasons

satisfactory to the recorder, to submit a full annual report within the time

required by subsection (1), the recorder may accept a partial report.

(3) Where the recorder accepts a partial report

under subsection (2), the licensee shall submit the completed annual report

within 120 days after the end of the licence extension period.

(4) Where the recorder is satisfied that a

licensee has performed sufficient assessment work in a previous licence

extension period to cover that required for the licence extension period, the

recorder may waive the requirement of an assessment report for the current

licence extension period.

Condition

4. The costs of assessment work in excess of the minimum required for any licence

extension period may be applied to the costs of assessment work required for

the following licence extension periods during the next 5 years with

(

a) full application for the excess, if the report

of the excess work and an account of expenditure of the work are filed with the

recorder at the same time that the reports and accounts are submitted under

Condition 3 for the licence extension period during which the excess work is

carried out; or

(b) 50% application for the excess if the report

of the excess work and an account of expenditure of that work are filed later

than the time set out in paragraph (a).

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