Canada Mining Regulations (Amendments)
Introduction
The amendments to the Canada Mining Regulations are intended to simplify, clarify and modernize the regulations rather than changing the fundamental principles upon which the regulations are based. The proposed amendments have been separated into two packages. The first package deals with the leasing and royalty provisions while the second package deal with the mineral tenure provisions.
The highlights of the proposed changes of this package, on leasing and royalty, are as follows:
- Changing the name of the regulations to better reflect the jurisdictions to which they apply;
- Providing rules for the allocation of the revenues and expenses where a mine consists of a combination of mineral leases issued under the CMR and Aboriginal owned land pursuant to a comprehensive land claim settlement;
- Enabling the Minister to hold and sell mineral claims and leases where the Minister has acquired these through insolvency proceedings or through the realization on security;
- Prohibiting deductions for the cost of inventories of fuel, spare parts and other consumables until they have been used in the production of the output of the mine;
- Requiring mine operators to use a consistent exchange rate from the Bank of Canada to value transactions and inventories carried out in a foreign currency;
- Allowing mine operators to deduct the cost of purchased, rather than leased, assets, as is currently the case, used for sorting, marketing and selling of the output of a mine when these assets are located outside the territories.
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