Newfoundland makes changes to mineral exploration policy

Several changes in mineral exploration legislation were recently announced by the Newfoundland and Labrador government, including:

— The term of the exploration licence is increased to 20 years from 10 years.

— The annual rental required for licences held beyond the first 5-year term is eliminated. Now, a renewal fee is to be paid at the beginning of each 5-year term. For the first 5-year extension starting from year six, the fee is $25, the second is $50 and the third extension is $100.

— The minimum exploration expenditure is $1,500 per claim for the first 5-year period, $3,000 for the second 5-year period, $4,500 for years 11 to 15 and a minimum $6,000 for the last five years.

— Previously, the minimum amount of exploration work required during the first 5-year period was $2,250 and $4,500 in the second. The new schedules mean an effective reduction in exploration requirements of 33%. — The size of a licence is limited to 256 claims.