Mine Development

Mining Lease

A holder of claims may apply for and obtain a mining lease-Form 14 for production if the existence, extent and value of an orebody have been determined and a decision to commence production has been made. Production means mining for the purpose of sale, trade, barter or stockpiling. Bulk sampling for assaying or for metallurgical testing is permitted on claims. Click here for applicable fees.

Detailed requirements for obtaining and maintaining a lease are specified in the Mining Act; however, for a quick reference, check the Summary of Mineral Claim and Mining Lease Requirements   document.

Standard Conditions for Obtaining, Holding and Renewing a Mining Lease

• When Granting a Mining Lease
• Dimensions and grade of deposit must be defined
• Decision to commence production
• Feasibility study including mining plan and program for environmental protection and reclamation
• Company information
• Recording fee
• Proof of surface rights ownership or consent of owner or post damage security
• Security for reclamation
• Lease boundary survey
• Size of lease as demonstrated to Minister to be necessary for mining operations
• Before opening a mine for production
• Write notice to Minister (90 days prior to production)
• Update feasibility study
• Commencement of production
• Notify Minister if production has not commenced
• Lease renewal
• Notify Minister if production ceases or is reduced
• Orebody Depleted
• Reclamation

Mine Approval Process

Mine approval process addresses the requirements of environmental, mining and land use legislation. The process is coordinated by the Department of Natural Resources through the secretary of the Standing Committee on Mining and the Environment (SCME). This committee comprises representatives of government agencies (Department of Natural Resources; Department of Environment and Environment Canada) that administer legislation applicable to mining-related activities. The committee provides “one-window” access for companies seeking mine approvals. Although the Standing Committee coordinates the process, the participating agencies are responsible for issuing the required approvals.

The mine approval process applies to mining lease approvals as well as applications for advanced exploration (e.g., bulk sampling, underground development). Potash Agreements and Coal Agreements require additional consideration and negotiation with the Minister of Natural Resources.

The SCME also serves as the focal point for other mining and environment-related regulatory issues as they arise, such as construction permits, operating permits, and environmental protection. The following information is provided as guidance to help understanding mine approvals and processing requirements:.

• Guide to Mine Approval Process in New Brunswick.
• Guide to the Development of a Feasibility Study (in preparation)
• Guide to the Development of a Mining and Reclamation Plan in New Brunswick
• Environmental Impact Assessment Program

Reclamation and Environmental Requirements

The requirements for reclamation are set forth in the Guide to the Development of a Mining and Reclamation Plan in New Brunswick. This Guide includes:

• Assessing the background conditions of the site;
• Assessing environmental risks;
• Planning an environmentally acceptable mining operation;
• Planning for progressive reclamation during operations, planning for post-closure reclamation and monitoring; and
• Providing a cost estimate of reclamation activity.

The goal of reclamation after mining is to return the land to a use whose value is at least equal to its previous value and to ensure the long term ecological and environmental stability of the land and its watershed. This includes leaving the site in a state that is safe to the public and physically stable for the long term. It is preferable in all cases to minimize the footprint of mining operations, plan for progressive reclamation and allow for a situation that is a “walk away” scenario.

Security

Financial security for reclamation is required during the mining approval process and is based on the estimated cost to complete reclamation as per the approval plan. The security shall be in a form and amount acceptable to the Department of Natural Resources. The security will be released back to the company once the reclamation has been completed according to the plan and the site is returned to an acceptable state.

The following table describes the security deposits required:

The actual minimum security must be equal to the full cost of reclaming the site.

Security must be in one of the following forms:

• Money
• A negotiable bond signed over to the Province
• An irrevocable letter of credit from a bank or other lending institution acceptable to the Minister and negotiable only by him (applicable for a term not less than one year)
• A bond of an insurance company authorized and licensed to do business in New Brunswick (applicable for a term not less than one year). The bond must be in the form prescribed by regulation.

For additional information, please contact the Secretary of Standing Committee on Mining and the Environment (SCME).