Ontario Mining Licences And Permits Overview
In Ontario, mineral rights are obtained through a series of steps, as outlined by the Government of Ontario’s mining sequence page. To have the right to open and operate a mine, you must:
- Have or obtain a prospector’s licence
- Register a mining claim through the Mining Lands Administration System (MLAS)
- Obtain a mining lease
Obtaining a mining lease is not sufficient to own and operate a mine; several other permits are needed, depending on the project in question. The Mining 101 page created by the Ontario Mining Association gives a detailed overview of the many permits you may need from provincial and federal regulators to open and operate a mine.
Companies may also obtain mining rights through transfers, mergers, acquisitions, and purchases from other mining companies; it is common for juniors to control mineral rights and for majors to buy into those rights through agreements funding exploration and other essential mining activities.
Exploration Permits And Licences
In order to conduct exploration activities, companies must submit an exploration plan (for lower impact activities) or obtain an exploration permit (for more extensive exploration work). We recommend reviewing the Government of Ontario’s exploration plan submission and permit application guide.
Several licences, permits, and approvals may need to be obtained in addition to the exploration plan or permit, including:
In addition to these licences, permits, and approvals, if mining activities may impact Indigenous communities, the mining company must meaningfully consult with the impacted communities.
Mining Leases
Converting Claims To Leases
A claim holder may convert their claim to a lease to allow for advanced exploration activities; claims alone do not allow claim holders to take or remove minerals found on, in, or under the land in most circumstances.
To convert a claim to a lease, a claim holder must file a Notice of Intent. Five units of assessment (exploration) work must be conducted; if they have not, the Notice of Intent must include plans to complete the work in the near future.
Claim holders must also include several other details, including land title documents, how mining claims will be handled if they are jointly owned by two or more claim holders, whether surface and mining rights or only mining rights are being requested, and more.
Once the Notice of Intent is accepted, the Government of Ontario may contact you to submit an application for lease. Should this application be accepted, you will obtain your mining lease.
To learn more about converting claims to leases, we recommend reviewing the Government of Ontario’s Mining Leases Guide.
Lease Terms & Conditions
Mining leases are not permits to mine and do not give lease holders ownership or title of the land. They allow the lessee to extract minerals from the leased area and to sell the minerals once extracted.
To maintain a mining lease, a lessee has to comply with the terms and conditions of the lease and with the Mining Act. The Government of Ontario has the right to terminate the lease if these conditions and regulations are not met.
Lease Renewals & Extensions
Most mining leases have a 21-year term. You cannot renew a mining lease without the government’s permission. They may allow you to renew your lease if:
- You have continually produced minerals for more than one year since the lease was issued or last renewed
- You have demonstrated a reasonable effort to begin production in the area
Closure Plans And Financial Assurance
Mine Closure Plan Requirements
Government of Ontario requires lessees to submit a mine closure plan. This plan must follow the rehabilitation standards set out by the Government, and consultations with the public and local Indigenous communities may be required.
To learn more about mine closure plans, you can review Ontario Regulation 240/00: Mine Development And Closure Under Part VII Of The Act (the Act referring to the Mining Act).
Financial Assurance Obligations
Submitting a mine closure plan alone is insufficient; the Government of Ontario also requires companies to provide financial assurance in the form of cash or other approved financial instruments. This ensures that companies have a vested financial interest in closing the mine – and that the Government of Ontario has the resources to close the mine should the company fail to meet its obligations.
Licence Transfers And Amendments
Transferring Mining Licences
The transfer of unpatented mining licences (mining claims) can be initiated through the Mining Lands Administration System (MLAS); both parties must have valid prospector’s licences and MLAS accounts.
Transferring mining leases is more complex, as the Ontario Ministry of Mines must approve the transfer. To transfer a mining lease, you must complete the Transfer of Mining Licence of Occupation Form.
Amending Licence Conditions
As a mining project progresses, lease holders may wish to amend the terms of their lease or the terms of a permit. To do so, they must contact the issuer; for mining leases, this is the Ministry of Mines. For other permits, contact the permit issuer.
Schedule A Consultation
Mining law in Ontario is complex; while registering a mining claim through MLAS is relatively straightforward, it is much more difficult to obtain a lease, transfer a lease, or obtain the permits and licences necessary to actually open and operate a mine.
The team at Licata Law can help. We have experience navigating the legal and regulatory frameworks that underpin mining licensing in Ontario. Want to hire a mining lawyer in Ontario? Contact us today.
Beyond licensing, we also offer legal services for mining finance; contact us if you’re looking for a mining finance lawyer.
Contact us about mining law in Ontario today!