Mining Regulations

(1) In these regulations,

"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 with the purpose of making it a claim; (borne de délimitation)

"business day" means a day other than

"Chief" means the Chief of Financial Analysis and Royalties Administration appointed under subsection 86(1); (chef)

"contiguous", with reference to two or more claims, includes claims that were staked in a manner to be contiguous; (contigus)

"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; (borne d’angle)

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

"depreciable assets" means buildings, plant, machinery and equipment; (actif amortissable)

"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; (études environnementales de base)

"exploration cost" means an expense incurred for the purpose of determining the existence, location, extent, quality or economic potential of a mineral deposit in the Northwest Territories, but does not include an expense incurred for the purpose of bringing a mine into production; (frais d’exploration)

"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 (Canada); (exercice)

"holder of the surface rights" means the lessee of or holder of the surface rights to the land; (titulaire des droits de surface)

"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; (borne légale)

"licence" means a licence to prospect referred to in section 3; (licence)

"mine" means an undertaking that produces or has produced minerals or processed minerals from lands to which the Act applies, and includes the depreciable assets that are located in the Northwest Territories and used in connection with the undertaking; (mine)

"mineral" means any naturally occurring inorganic substance found in the Northwest Territories, including frac sand, but excludes material the taking of which is regulated under the Quarrying Regulations, made under the Act and granular materials which are regulated under the Commissioner’s Land Regulations, made under the Commissioner’s Land Act; (minéral)

"mining property" means

"mining reclamation trust" means, in respect of a mine, a trust created or security posted

"Mining Recorder" means the Mining Recorder appointed under subsection 86(2); (registraire minier)

"mining royalty valuer" means a mining royalty valuer described in subsection 86(3); (évaluateur des redevances minières)

"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; (propriétaire)

"precious stone" means a diamond, a sapphire, an emerald or a ruby; (pierre précieuse) "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; (traitement)

"processing assets" means tailings disposal facilities and depreciable assets that are located in the Northwest Territories and that are used directly and exclusively in processing; (biens utilisés pour le traitement)

"recorded claim" means a claim recorded with the Mining Recorder under these regulations; (claim enregistré)

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

"selected environmental attributes" includes meteorologic, hydrologic and hydrographic attributes, surface and ground water quality, aquatic resources, soil profiling, ecosystems, wildlife and wildlife habitat and cultural heritage and archaeology; (caractéristiques environnementales sélectionnées)

"Supervising Mining Recorder" means the Supervising Mining Recorder appointed under subsection 86(2); (registraire minier en chef)

"undeducted balance" means

"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 with the purpose of making it a claim; (borne témoin)

"work" means

(2) For the purposes of these regulations, a person who is related to another person is deemed to be also related to any person to whom the other person is related. R-087-2018,s.2,3; R-073-2019,s.2.

(1) The Mining Recorder shall issue a licence to prospect to a person who has applied and paid the applicable fee set out in Schedule 1 if the person is

(2) A licence is not transferable.

(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.

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

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

(2) Only a licensee or a person acting on behalf of a licensee may

PROHIBITIONS RESPECTING PROSPECTING,

(1) No person may 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.

(2) No person may 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), unless 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.

(3) No person may, for the purpose of the commencement of production from a mine, create a tailings, waste disposal area, dwelling, mill, concentrator or any other mine building, unless the person is a holder of a recorded claim or a holder of a lease of a recorded claim, and the person has been issued

R-087-2018,s.4(1),6.

(1) The Northwest Territories is divided into prospecting permit zones based on the National Topographic System of Canada, and 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.

(2) In this section, "claim staking sheet" means

(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.

(2) An application for a prospecting permit must

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

(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.

(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 shall be repaid by the Minister to the person entitled to it.

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

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

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

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

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

(2) The report

(3) The report must be prepared and signed

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

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

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

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

(8) The Mining Recorder shall 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).

(9) The Mining Recorder may request supporting documents that justify the cost of work reported by sending the permittee notice in writing and by specifying the cost of work for which the documents are requested.

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

(11) After completing the evaluation of a report, the Mining Recorder shall provide to the permittee a written confirmation of

R-087-2018,s.7.

(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.

(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.

(3) If the requirements of subsection (2) are met, the Supervising Mining Recorder shall record the extension.

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

(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.

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

(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

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

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

(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 may not be allocated to any other prospecting permit.

(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 greater than or equal to the number of hectares in the permit zone multiplied by $0.25.

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

(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).

(4) The request must be in the prescribed form and accompanied by payment of the fee for a certificate of work set out in Schedule 1. R-087-2018,s.8.

(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.

(2) Any amount referred to under section 14 that has been paid to the Mining Recorder and that is remitted under this section shall be repaid by the Minister to the person entitled to it.

(1) A permittee may have the permittee’s prospecting permit cancelled by submitting to the Mining Recorder a written request for cancellation.

(2) The cancellation takes effect at the end of January after it is requested.

(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.

(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

(1) The area of a claim may not exceed 1,250 hectares, and may not include any lands referred to in section 5.

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

(1) On payment of the applicable fee set out in Schedule 1, the Mining Recorder shall 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.

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

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

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

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

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

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

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

(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.

(3) If 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.

(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.

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

(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.

(2) If two or more claims are staked at the same time by or on behalf of the same licensee and have a common corner, one 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.

(3) The following information must 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:

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

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

(1) Except as provided in this section, no person may

(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 that person’s use of the land.

(3) If the holder of the surface rights or a public authority removes a legal post, that person shall, within 30 days after the removal, notify the claim holder and the Mining Recorder of the removal. R-087-2018,s.9.

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

(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.

(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:

(4) If the requirements of subsections (1) to (3) are met, the Mining Recorder shall record the claim as soon as practicable after the 60th day following the day on which the staking was completed.

(4.1) The recording date under subsection (4) is deemed to be the date that the application was received at the Mining Recorder’s office.

(5) Unless a recorded claim is leased under subsection 60(5) or its recording is cancelled under subsections 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. R-087-2018,s.10.

(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 or territory are wholly or partly in the Northwest Territories, and if the portion in the Northwest Territories 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 the Northwest Territories recorded as a separate claim.

(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 the Northwest Territories are deemed to never have been covered by a claim.

(3) On receipt of an application made under subsection (1) and payment of the applicable fee set out in Schedule 1, the Mining Recorder shall 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 or territory. R-087-2018,s.11.

(1) A person who wants to dispute the recording of a claim shall

(2) If 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.

(1) If a notice of protest is filed, the Supervising Mining Recorder shall

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

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

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

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

(3) Notwithstanding subsection (1), work requirements set out in that subsection are waived as follows for periods described in that subsection ending between April 1, 2020 and March 31, 2021:

(4) Any work completed during a period described in subsection (3), the cost of which is justified in a work report submitted to the Mining Recorder under paragraph 40(a), may be applied towards meeting the requirements of any subsequent period referred to in subsection (1). R-087-2018,s.3,8; R-134-2020,s.2.

(1) A report of the work that has been done in respect of a claim

(2) A report must be prepared and signed

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

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

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

(6) Work reported in one report may not be reported in any other report. R-087-2018,s.12.

(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).

(2) Subject to subsection (3), if an application that meets the requirements of subsection (1) is submitted to the Mining Recorder, he or she shall issue to the claim holder a certificate of extension for a one-year period to do the work.

(3) The Mining Recorder shall not issue more than three consecutive certificates of extension in respect of the same claim. R-087-2018,s.13.

CHARGES TO HOLD RECORDED CLAIM AND

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

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

EVALUATION OF REPORT AND COST OF

(1) A report submitted to the Mining Recorder under paragraph 40(a) must be evaluated by the Mining Recorder to determine the report’s compliance with Schedule 2 and that the cost of the work is justified.

(2) The Mining Recorder may request supporting documents that justify the cost of work reported by sending the holder of the recorded claim notice in writing and by specifying the cost of work for which the documents are requested.

(3) If the holder of a recorded claim does not, within four months after the day the notification was sent, provide the supporting documents requested, the cost of work to which the notification relates is deemed to be unjustified. R-087-2018,s.3,14.

(1) Subject to subsection (2), if a recorded claim is not grouped under section 46, and if 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 shall 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).

(2) At any time before the 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 for fewer periods than would be required under subsection (1), and the Mining Recorder shall comply with the request.

(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.

(4) If an unallocated excess cost of work is recorded with respect to a recorded claim, the claim holder may request the Mining Recorder to allocate that cost of work as specified in the request.

(5) The request must be in the prescribed form and be accompanied by payment of the fee for a certificate of work set out in Schedule 1.

(6) If the unallocated excess cost of work is sufficient to fulfill the request, the Mining Recorder shall allocate it in accordance with the request.

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

(2) A request to group recorded claims must be

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

(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

(5) On request by a holder of a recorded claim listed in a grouping certificate, the Mining Recorder shall 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).

(6) A request must be in the prescribed form and, if it is not submitted with the report referred to in section 42, it must be accompanied by the fee for a certificate of work set out in Schedule 1.

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

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

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

R-087-2018,s.15.

(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.

(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).

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

(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 shall 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.

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

(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.

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

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

(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 an anniversary date of the recording of the claim, of the work requirements under sections 39 and the charges under subsection 43(1).

(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 to obtain the authorization or decision.

(3) If an order under section 11.02 of the Companies’ Creditors Arrangement Act (Canada) has been made with respect to a claim holder, the holder of a recorded claim may request from the Supervising Mining Recorder a suspension of any of the following:

(3.1) A suspension authorized by the Supervising Mining Recorder in respect of a request submitted under subsection (3), expires not later than the anniversary date of the recording of the claim that is at least 12 months after the day on which the order, referred to in subsection (3), has ceased to have effect with respect to the claim holder.

(4) The request must be made in writing to the Supervising Mining Recorder not later than

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

(6) A suspension extends the duration of the claim by the duration of the suspension. R-087-2018,s.16.

(1) The holder of a recorded claim may apply to the Mining Recorder to record, within the area of the original claim, a reduced area claim if

(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 set out in subsection 33(3).

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

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

(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.

(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 shall 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. R-087-2018,s.3,11,17(1).

CANCELLATION OF RECORDING OF CLAIMS

(1) If the Mining Recorder has information that either of the following circumstances apply in respect of a recorded claim, the Mining Recorder shall immediately send the claim holder a notice that the claim will be cancelled unless, within 60 days, the holder can show that the information is incorrect:

(2) The notice must set out the reason for the impending cancellation and a summary of the evidence to support the cancellation.

(3) If the claim holder does not, within 60 days after the day the notice was sent, show to the Mining Recorder’s satisfaction that the information is incorrect, the recording of the claim is cancelled.

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

(1) The recording of a claim shall be cancelled on the day that

(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

(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.

(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.

(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 subsections (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.

(1) A holder of a recorded claim who wants to obtain a lease of a recorded claim shall

(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 1,250 hectares, one plan of survey may be prepared that shows only the perimeter of the collection of contiguous claims.

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

(1) If the surveyed area of one claim exceeds the area stated in the application to record that claim, the claim holder shall 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.

(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 shall 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.

(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.

(1) A holder of a recorded claim may apply for a lease of a recorded claim or for contiguous recorded claims by submitting an application to the Mining Recorder in the prescribed form.

(2) The application must

(3) Before a lease is issued,

(4) If a claim holder who has applied for a lease advises the Mining Recorder in writing that the holder cannot, for reasons beyond the holder’s control, obtain an official plan of survey and record it before the end of the duration of the claim to be leased, the Mining Recorder may issue to the claim holder an extension, in respect of obtaining the official plan of survey and recording it, of one year from the end of the duration of the claim notwithstanding paragraph (3)(a).

(5) The Minister shall, if the requirements of subsections (1) to (3) are met, issue a lease for a term of 21 years to the claim holder before

(6) If a lease is issued under paragraph (5)(b), the commencement date of the lease is deemed to be the day after the end of the duration of the claim. R-087-2018,s.18.

(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.

(2) The rent for the second and subsequent years of a term must be paid to the Mining Recorder before the anniversary date of the lease.

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

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

(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.

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

(1) If rent is not paid within 30 days after the day it is due, the Mining Recorder shall send the lessee a notice stating the amount of rent due and the rate of interest payable on that amount.

(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 shall be cancelled on the 61st day after the notice was sent.

(1) A lessee may have their lease cancelled by submitting to the Mining Recorder a written request for cancellation, and the cancellation takes effect on the day the request is received by the Mining Recorder or, if a later day for cancellation is set out in the request, on that day.

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

(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

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

(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.

(1) The recording of a claim or a lease and the recording of the claims covered by the lease shall be cancelled on the day that any of the following events occur:

(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.

(3) Subject to subsection (7), at any time after the recording of a 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 a new claim that covers those lands in the name of a specified person.

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

(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.

(6) A new lease issued under subsection (5) is deemed 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.

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

R-087-2018,s.3,17(2),19.

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

(2) For the purposes of these regulations, a mineral or processed mineral is deemed

(3) For the purposes of these regulations,

R-087-2018,s.11,20.

(1) Each fiscal year, the owner or operator of a mine shall pay to the Government of the Northwest Territories royalties on the value of the mine’s output during that fiscal year in an amount equal to the lesser of

(2) The royalties payable to the Government of the Northwest Territories 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.

(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.

(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

where

A is the total of

B is the market value of any inventories of minerals and processed minerals produced from the mine, as at the end of the fiscal year, determined under subsection (9);

C is the market value of any inventories of minerals and processed minerals produced from the mine, as at the beginning of the fiscal year, determined under subsection (9);

D is the lesser of

E is any excess amount referred to in paragraph 70(5)(b);

F is any amount withdrawn, during the fiscal year, from a mining reclamation trust established in respect of lands to which these regulations apply, up to the maximum of the total of the amounts contributed to the trust;

G is the amount of any proceeds received, during the fiscal year, from insurance on minerals or processed minerals produced from the mine;

H is the amount of any grants in respect of the mine that were made to the operator, or of any loans to the operator in respect of the mine that were forgiven, by the Government of the Northwest Territories or the Government of Canada during the fiscal year;

I is the total of the deductions and allowances claimed under subsection 70(1); and

J is the total of

(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),

(6) Costs related to the production of or value for minerals or processed minerals from lands other than lands to which these regulations apply may not be taken into account for the purposes of determining the values of A to D, G and I in subsection (4).

(7) In the case of a mining royalty return for the last 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).

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

(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 those precious stones is as follows:

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

(11) If the minerals and 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.

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

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

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

(15) If 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 daily average exchange rate for the month in which those costs were incurred. R-087-2018,s.21.

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

(2) If 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,

(3) If 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.

(4) A depreciation allowance may be claimed in respect of a depreciable asset in the fiscal year in which the asset is first used in the operation of the mine.

(5) If an operator disposes of, or receives insurance proceeds in respect of, assets for which a depreciation allowance has been claimed,

(6) For the purposes of subsection (5), if 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.

(7) If 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.

(8) If, in a particular fiscal year, a mine operator uses the mine’s depreciable assets, or any facilities located outside the Northwest Territories 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,

(9) If a mine produces minerals or processed minerals from lands to which these regulations apply and any other lands,

(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.

(11) Notwithstanding any other subsection, no deduction or allowance may be made in respect of a mine in relation to

R-087-2018,s.22.

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

(2) Subject to paragraph 70(1)(l), if 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.

(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.

(4) For the purpose of subsection (3), if an operator purchases a mining property from the

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 Government of the Northwest Territories acquired the mining property and the value established in the agreement of purchase and sale for that property.

(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 shall, within one month after the end of that year, deliver to the Chief a statement setting out

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

(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 shall deliver to the Chief a mining royalty return, in the prescribed form, setting out

(2) A mining royalty return must be

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

(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,

(2) If, under subsection (1), more than one member of a joint venture delivers a mining royalty return to the Chief for a single mine,

R-087-2018,s.3.

(1) Within six years after the end of a particular fiscal year of a mine, the Chief shall send to the operator of the mine a notice of assessment of royalties payable for that fiscal year.

(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.

(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 deemed to be payable on the last day of the fourth month after the end of that fiscal year.

(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 deemed to be a fiscal year of less than 12 months for the purposes of subsection 70(2). R-087-2018,s.3.

(1) Every operator of a mine shall keep the following materials at an office in Canada, and make them available to the Chief, to substantiate information required on mining royalty returns:

(2) No person may disclose information or material of a confidential nature acquired for the purposes of sections 69 to 77, except

(3) Notwithstanding subsection (2), a person may disclose information of a confidential nature for use in the development and evaluation of policy for the Government of the Northwest Territories. R-087-2018,s.23.

(1) Subject to subsection (2), no person may 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).

(2) Subject to section 77.1, until they have been valued by a mining royalty valuer, precious stones may not be

(3) The operator of a mine shall provide, in the Northwest Territories, any facilities and equipment, other than computer equipment, necessary for a mining royalty valuer to value any precious stones produced from the mine.

(4) For the purposes of these regulations, facilities referred to in subsection (3) are deemed to be part of the mine and any transfer of the precious stones from one part of the mine to another is deemed not to be a removal of the stones from the mine.

(5) Precious stones may 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.

(6) As soon as any precious stones have been processed into a saleable form, they shall be presented to a mining royalty valuer for valuation.

(7) An operator who produces precious stones, other than diamonds, and sells or transfers them to persons who are related to the operator shall present to a mining royalty valuer

R-096-2015,s.3; R-087-2018,s.4(2),11,24.

(8) Repealed, R-096-2015,s.3(3).

(9) Repealed, R-096-2015,s.3(3).

(1) If an operator produces diamonds and sells or transfers at least 95% of them to persons who are not related to the operator, the operator shall, after the diamonds from a production cycle have been processed into a saleable form, retain a holdback in accordance with subsection (2), or where applicable (3).

(2) Unless otherwise agreed on by the operator and a mining royalty valuer, the holdback referred to in subsection (1) must consist of

(3) Notwithstanding subsection (2), a mining royalty valuer may direct the operator to retain a holdback in accordance with the mining royalty valuer’s instructions.

(4) Subsection (2) applies to the operator of a diamond producing mine on the achievement of the following, whichever comes first:

(5) If an operator produces diamonds and sells or transfers more than 5% of them to persons who are related to the operator, the operator shall, after the diamonds from a production cycle have been processed into a saleable form, retain

(6) Unless otherwise agreed on by the operator and a mining royalty valuer, an operator shall, for each production cycle, present to the mining royalty valuer for valuation

(7) If a mining royalty valuer is not satisfied that a selected sample accurately represents the composition of the lot or the production cycle, the mining royalty valuer may direct the operator to present additional samples selected in accordance with the mining royalty valuer’s instructions.

(8) An operator shall, before diamonds are presented to a mining royalty valuer under subsection (6), provide an estimate of the market value of each diamond or lot, as the case may be, to the Chief. R-096-2015,s.4; R-087-2018,s.25.

(1) The Mining Recorder shall record

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

(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. R-087-2018,s.11.

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

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

(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.

(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

(3) A review may be undertaken despite a failure to specify, or an error in specifying, any information required under subsection (2).

(4) On receipt of a request for review, the Minister shall

(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.

(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.

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

(1) 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), no person may stake a claim on the land covered by the claim the recording of which was cancelled or the boundaries of which were amended.

(2) The prohibition described in subsection (1) 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). R-087-2018,s.27.

(1) The Minister shall appoint a Chief of Financial Analysis and Royalties Administration to carry out the duties and exercise the powers set out in these regulations.

(2) The Minister shall appoint a person to be Supervising Mining Recorder and a person to be Mining Recorder.

(3) The Minister may authorize one or more persons to act as mining royalty valuers, who shall ascertain the value of minerals or processed minerals produced from a mine.

(1) On the coming into force of these regulations, every claim marked or staked and every plan of survey prepared in accordance with the former regulations is deemed to have been marked or staked or prepared under these regulations.

(2) On the coming into force of these regulations, every licence to prospect, prospecting permit, grouping certificate, recording of a claim or reduced area claim, and lease, every cancellation of a licence, permit, recording of a claim or reduced area claim, and lease, every confirmation of cost of work or allocation of cost, every certificate of work or certificate of extension, every notification, every report and every election granted, made or sent under the former regulations is deemed to have been granted, made or sent under these regulations and remains in effect and continues to be subject to any terms, conditions, requirements, orders or directions to which it had originally been subject, until

(3) On the coming into force of these regulations, every application or request for a licence to prospect, a prospecting permit, the recording of a claim, a lease of a recorded claim, the transfer or cancellation of a licence, permit or lease, the allocation of cost of work, the extension or suspension of time, or to group recorded claims that was made but not decided before the coming into force of these regulations shall be dealt with in accordance with these regulations.

(4) On the coming into force of these regulations, every dispute respecting the recording of a claim and every request for the Minister to review an issue that was made but not decided before the coming into force of these regulations shall be dealt with in accordance with these regulations.