On April 30, 2009, the Ontario government introduced Bill 173, the Mining Amendment Act, 2009, which is intended to modernize the way mining companies stake and explore claims in Ontario.

Bill 173's key provisions include the express recognition of Aboriginal and treaty rights, the notification of Aboriginal communities regarding claim staking and exploration activities, Aboriginal consultation and accommodation requirements and a process to address disputes relating to Aboriginal consultation.

Bill 173 also withdraws Crown-held mining rights in southern Ontario where surface rights are privately held (while preserving existing claims and leases).  In northern Ontario, private land holders will be able to apply to the government for such withdrawal.  Existing privately-held mining rights will be preserved.  New exploration provisions will also be introduced, including a graduated regulatory regime for early exploration, with exploration plans required for lower impact activities and exploration permits required for higher impact activities.  Further, no new mine openings will be permitted in Ontario's Far North that are inconsistent with community-based land use plans.

Until Bill 173's proposed regulations are released for public comment in 2009/10, it is uncertain whether Bill 173 will provide enough clarity regarding Aboriginal engagement and mineral tenure so as to meaningfully encourage mineral exploration in Ontario.

The Environmental Registry comment period for Bill 173 ends June 30, 2009.  Further information regarding Bill 173 may be found at: http://www.ontario.ca/miningact.

If you would like additional information about Bill 173, please contact Lisa Damiani (416.367.6905), Ian McBride (416.863.5530), Alex Moore  (416.863.5570), Robert Murphy (416.863.5537), Sarah Powell (416.367.6931) or Kevin West (416.863.5561) in our Toronto office or Brian Salpeter (514.841.6496) in our Montréal office.

Davies Ward Phillips & Vineberg LLP, with over 250 lawyers, practises nationally and internationally from offices in Toronto, Montréal, New York and an affiliate in Paris and is consistently at the heart of the largest and most complex commercial and financial matters on behalf of its North American and overseas clients.

The information and comments herein are for the general information of the reader and are not intended as advice or opinions to be relied upon in relation to any particular circumstance.  For particular applications of the law to specific situations, the reader should seek professional advice.