Northwest Territories Mining Regulations (SOR/2014-68)

Marginal note:Notice of assessment of royalties

• 75 (1) Within six years after the end of a particular fiscal year of a mine, the Chief must send to the operator of the mine a notice of assessment for the amount of the royalty payable for that fiscal year.

• Marginal note:Notice of reassessment

  (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.

• Marginal note:When royalties are considered payable

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

• Marginal note:Royalty returns when ownership of mine changes

  (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 considered to be a fiscal year of less than 12 months for the purposes of subsection 70(2).

Marginal note:Record keeping

• 76 (1) Every operator of a mine must keep at an office in Canada and make available to the Chief, to substantiate information required on mining royalty returns,

  • (a) records, books of account and other documents evidencing

    • (i) the weight of all minerals extracted from the mine and of all minerals or processed minerals processed at the mine, whether or not they are produced from the mine,

    • (ii) the weight and value of all minerals or processed minerals produced from the mine, sold, transferred or removed from the mine by the mine’s operator,

    • (iii) any amounts received from a processing plant and any other amounts received from the sale of minerals or processed minerals, and

    • (iv) the costs, payments, allowances and other deductions referred to in section 70;

  • (b) the financial statements of the mine and the operator;

  • (c) a reconciliation between the documents referred to in paragraphs (a) and (b) and the mining royalty return;

  • (d) if the financial statements of an owner or the operator of the mine are audited by an external auditor,

    • (i) the audited financial statements and the accompanying signed audit opinion of the external auditor, and

    • (ii) any working papers and documentation prepared by the external auditor that are in the possession of an owner or the operator;

  • (e) any documents filed by an owner or the operator with a stock exchange or securities commission;

  • (f) any documents related to any internal audits of a company that is an owner or the operator; and

  • (g) any other documents that contain information necessary for ascertaining the amount of royalty payable under section 69.

• Marginal note:Non-disclosure of confidential information

  (2) It is prohibited to disclose information of a confidential nature acquired for the purposes of sections 69 to 77, except

  • (a) to the extent necessary to determine the amount of royalties payable under section 69;

  • (b) when required under a land claims agreement referred to in section 35 of the Constitution Act, 1982; or

  • (c) under an agreement entered into by the Minister for the purpose of the administration of section 69 with the government of a country, province or state, or with an Aboriginal organization owning mineral rights, under which the officers of that government or Aboriginal organization are provided with the information and the Chief is provided with information from the government or Aboriginal organization.

Marginal note:Condition on removal of minerals

• 77 (1) Subject to subsection (2), it is prohibited to 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).

• Marginal note:Condition on removal of precious stones

  (2) Precious stones must not be removed from a mine — other than in a bulk sample or in a concentrate for the purposes of establishing the grade and the value of the stones in a mineral deposit — or cut, polished, sold or transferred, until they have been valued by a mining royalty valuer.

• Marginal note:Facilities required for valuation

  (3) The operator of a mine must 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.

• Marginal note:Facilities considered part of mine

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

• Marginal note:Cleaning of precious stones

  (5) Precious stones must 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.

• Marginal note:Presentation of precious stones to royalty valuer

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

• Marginal note:Separate valuation of precious stones

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

  • (a) all stones that are to be sold or transferred to a person related to the operator, for separate valuation before their sale or transfer; and

  • (b) all stones that are to be cut or polished by the operator or any related party, for separate valuation before their being cut or polished.

• Marginal note:Presentation of diamonds to royalty valuer

  (8) For the purposes of subsections (6) and (7), unless otherwise agreed on by the operator and the mining royalty valuer, an operator must present to the mining royalty valuer

  • (a) diamonds with a weight of 10.8 carats or more, separately, together with the weight of each diamond;

  • (b) diamonds with a weight from 2.8 carats to 10.79 carats, in lots separated according to weight in carats, together with the number of diamonds per lot;

  • (c) diamonds with a weight from 0.66 carats to 2.79 carats, in lots separated according to weight in grainers, from which randomly selected samples, accurately representing the composition of each lot, have been separated; and

  • (d) diamonds with a weight of less than 0.66 carats, in lots separated according to industry standard DTC sieve sizes, from which randomly selected samples, accurately representing the composition of each lot, have been separated.

• Marginal note:Estimate of market value of diamonds

  (9) Before diamonds are presented to the mining royalty valuer under subsection (8), the operator must provide an estimate of the market value of each diamond or lot, as the case may be, to the Chief.

General Provisions

Marginal note:Recorded claim and lease subject to public works

78 Every recorded claim, whether leased or not, is subject to the right of the Crown and of the Commissioner of the Northwest Territories to construct and maintain roads or other public works on or over the lands covered by the claim.

Marginal note:Suspension — death or incompetency of claim holder

79 If the holder of a recorded claim for which no lease has been issued dies or is declared by a court of competent jurisdiction to be incapable of managing their affairs and notice of the death or declaration is filed with the Mining Recorder within 180 days after the date of the death or declaration, and if the recording of the claim was not cancelled before the filing of the notice, the running of a time period within which anything is required to be done by a claim holder with respect to that claim under these Regulations is suspended until the anniversary date of the recording of the claim that is at least 12 months after the day on which the notice was filed.

Marginal note:Extension on account of strike

80 If, as a result of a strike within the meaning of subsection 2(1) of the Federal Public Sector Labour Relations Act, a holder of a prospecting permit, recorded claim or lease is unable, through no fault on their part, to do a thing within the time required by these Regulations, the deadline for doing that thing is extended for a period ending 15 days after the last day of the strike.

Marginal note:When written notice is considered to be received

81 For the purposes of these Regulations, written notice is considered to be given to the holder of a prospecting permit, recorded claim or lease when the notice is sent by registered mail to the holder at the holder’s address, or transmitted by fax or email to the holder at the holder’s fax number or email address, as shown in the records of the Mining Recorder.

Marginal note:Recording of documents

• 82 (1) The Mining Recorder must record

  • (a) every judgment or order relating to the ownership of a recorded claim or a lease made by a court of competent jurisdiction, the Minister, the Supervising Mining Recorder or the Mining Recorder;

  • (b) in respect of the recorded claims and leases that constitute a mining property or an interest in that property, a notice of any mining royalties payable that have not been paid within 30 days after

    • (i) the delivery to the Chief of a mining royalty return in respect of that property or interest, or

    • (ii) when a notice of assessment or reassessment has been sent under subsection 75(1) or (2), the date of the notice of assessment or reassessment, unless a request for review of the assessment or reassessment has been made under section 84; and

  • (c) on the payment of the applicable fee set out in Schedule 1, every other document filed in relation to a recorded claim or a lease.

• Marginal note:Recording considered to give notice

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

• Marginal note:Transfer subject to encumbrances

  (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.

Marginal note:Consultation of records

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

  • (a) consult the record of a prospecting permit, recorded claim or leased claim, and any related documents filed with the Mining Recorder, free of charge; and

  • (b) obtain a copy of a record on payment of the applicable fee set out in Schedule 1.

• Marginal note:Limit on consultation

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

  • (a) the day of the expiration or cancellation of the prospecting permit or recording of the claim, and

  • (b) three years after the day on which the report was received by the Mining Recorder.

Review by the Minister

Marginal note:Request for ministerial review

• 84 (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.

• Marginal note:Requirements for request

  (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

  • (a) the name of the requester and their contact information;

  • (b) the issue the requester wishes the Minister to review;

  • (c) the date on which the decision, act or omission took place; and

  • (d) the corrective relief requested.

• Marginal note:Absence of or error in information

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

• Marginal note:Procedure for review

  (4) After receipt of a request for review, the Minister must

  • (a) provide the requester and all persons with an interest in the issue a reasonable opportunity to be heard;

  • (b) review all information received respecting the issue; and

  • (c) decide the corrective relief, if any, to be taken respecting the issue.

• Marginal note:Additional information

  (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.

• Marginal note:Decision and reasons

  (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.

• Marginal note:Final decision

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