Ontario plans amendments to Mining Act to reduce red tape

Proposed amendments to Ontario’s Mining Act will simplify and streamline the process of mine closure in the province, the Ministry of Northern Development and Mines promises.

Changes include the replacement of the present closure plan review processes with a self-regulating system, under which companies will be required to prepare closure plans in accordance with provincial standards. A final plan and its financial assurance provisions will be certified to comply with Ontario’s standards by a professional engineer, a designated financial officer of the company and the company’s board of directors. Annual reporting requirements will be replaced with an audit inspection system.

The number of financial assurance options available to mining companies will be increased. For instance, financially secure mining companies might be allowed to “self-assure” if they are able to meet certain financial performance criteria. Mining reclamation trusts, pledges of assets and sinking funds will also be considered.

The legislation will also clarify liability for pre-existing abandoned mine hazards, address public health and safety concerns associated with abandoned and producing mine hazards, clarify post-decommissioning environmental liabilities and harmonize various reporting requirements with those contained in the province’s Environmental Bill of Rights.

“These amendments address the needs of both industry and government in a period of tight fiscal constraint,” said Northern Development and Mines Minister Chris Hodgson in a news release.

Hodgson went on to say the changes will allow the government to reduce regulatory uncertainty, cut red tape and lower administrative costs without backing down from a firm commitment to protecting the environment. Spot checks will alert the ministry to any compliance problems.

The current legislation’s focus on “polluter pays” and financial assurance remains unchanged, he said, adding that Ontario will set clear provincial standards for mine-site reclamation, and then ensure that these standards are met.

Patrick Reid, president of the Ontario Mining Association, said the industry views the amendment as a step in the right direction.

“These amendments help clarify and add flexibility to the mine site rehabilitation process, while maintaining environmental standards,” Reid said. “These kinds of changes will help create a more favorable mining investment climate in Ontario.”