On November 28, the National Assembly passed Bill 63, marking the first major overhaul of its mining legislative framework since 2013. Spearheaded by the Minister of Natural Resources and Forestry, Maïté Blanchette-Vézina, this reform introduces major changes aimed at modernizing the management of mining rights, strengthening consideration of aboriginal communities, clarifying the status of certain resources, and providing a better framework for environmental protection.
One of the notable aspects of this new law is the replacement of the term "claim" by "exclusive right of exploration". More than a simple change of term, this choice reflects Québec's desire to gradually move away from the "free mining" regime, which allowed anyone to register a mining claim and perform limited exploration. At the same time, more stringent terms and conditions will govern the granting, sale and renewal of mining rights. This could put the brakes on exploration over the next few years.
With regard to renewals of exclusive exploration rights, a minimum requirement for the cost of work performed has been introduced. Under the new legislation, rights holders will only be able to renew or assign their rights if at least 90% of the planned work has been carried out, and penalties for failure to do so will be increased, in some cases doubling. It remains to be seen what impact these strict rules will have on future projects in Québec.
The scope of resources concerned has also been broadened: "minerals and crystals" are now included in the category of "surface mineral substances", requiring a specific exploration lease. In addition, mining of tailings will now be subject to a mining lease. These new constraints will increase the cost of work and make it more difficult to obtain permits. Finally, innovation may be more restricted for the exploration and mining of lesser-known or emerging minerals.
Another new feature is that prospecting and mineral exploration will be prohibited on private land and in urbanized areas, with exceptions at the request of municipalities and subject to the consent of landowners.
Finally, on the environmental front, all new mining projects will be subject to the impact assessment and review procedure, including reinforced obligations for site restoration and monitoring.
This reform comes at a time when Québec still wishes to assert its leadership in the field of critical minerals. However, faced with falling prices for lithium and other battery minerals, the province will undoubtedly have to step up development of more traditional deposits, such as iron, copper and gold, to maintain and ensure its growth in the mining sector. Because with the new constraints announced, only profitable projects will see the light of day in the short term.
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