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Quebec’s reputation as a mining-friendly jurisdiction is threatened by revisions to the province’s mining code, says a letter released last week by the Quebec Mining Association.
The Canadian province, which hosts a number of producing mines as well as mines in various stages of development, was named as the top jurisdiction for mining investment in 2008, 2009 and 2010 in the Fraser Institute’s annual Survey of Mining Companies. Amendments to the Quebec Mining Act, known as Bill 14, were introduced in May but have yet to be passed by the Quebec legislature.
The crux of the changes, and the criticism by the mining industry, is the part of the bill that transfers power from the province to municipalities, which will have more control over mining activities on their territories.
An article written by Jean-François Minardi, associate director of the Global Natural Resource Policy Centre with the Fraser Institute, that appeared in The Montreal Gazette, argues that the changes will create another layer of regulation that will act as a drag on investment. Perhaps the biggest problem with the bill, however, writes Minardi, is the uncertainty it will create. Municipalites without mining expertise will be allowed to implement different rules, he states, while mining companies that have “invested millions of dollars in exploration” on Crown land stand to lose their right to explore their properties if the companies fail to obtain consent from the municipalties:
Future decisions regarding mining development in municipalities will run the risk of being politicized and unstable because of municipal power to veto mining exploration and development and because changing administrations every four years may have different opinions regarding the same mining project.
The Quebec Mining Association, in the Dec. 1 letter, accuses the provincial government of “turning a deaf ear to concerns of industry” and “abandoning its responsibility of mineral resource management”:
For the QMA, the proposed amendments to the bill reflect a misunderstanding of the reality of the mining industry by a government concerned about the settlement of problems in the short term but whose actions may instead, in fact, generate a climate of loss of investor confidence in the mining regime in Quebec. The government turned a deaf ear to the concerns of industry and the concerns of some municipalities in mining regions who declared themselves in public consultations, not having the knowledge or the highly specialized expertise to assess the potential and mining projects their territory.
The QMA goes on to say it believes it is the province’s responsibility to oversee mineral resource extraction in Quebec.
Read the CMA letter here (Google translation from French available):
3 Comments
Dan Oancea
Every tepee would have a saying – power to the people the wrong way. Local politics. Nothing would get done anymore. That could be the end of mining as we know it in the lovely province of Quebec.
Petermrakic
Free Mining in Canada is based on a 2002 Court-case-In which the Mister of Mines in Quebec and The Atorney General of Quebec defended me in a 2 year court case.Change the law and you FIGHT ME IN THE SUPREME COURT OF CANADA-MINING IS AN AQUIRED RIGHT.Don’t SCREW WITH IT!!!!
Legant66
2 issues here. 1 the provincial Government is abrogating it’s obligation under the Canadian Charter and the B.N.A (nothing new here) in which it states clearly that the provincial government is responsible for Mining and resource developement. 2 unable to adiquitly fund municiple Governments it’s allowing municipalities to develope news means for funding and thereby adding yet another layer of cost to an already expensive industry. Mr. Charest and his Government need to take responsibility for that and not try to pass the costs on too hard working entrepeneurs. Q.M.A has every right to be wary of this legislation we have a system that works presently…Don’t fix it if it aint broke.