The first made-in-the-North approach to governing mineral development in the Northwest Territories was passed in the NWT’s Legislative Assembly in 2019. 

Today, as the regulations that will bring the NWT’s new Mineral Resources Act into force, advance through the territory’s unique, collaborative legislative process, we are starting to understand how the NWT’s new approach to mining will work. 

Gone is the one-size-fits-all framework inherited from the federal government. Instead, the NWT’s new way of doing business is characterized, most notably, by elements designed to simplify, promote and standardize the relationship that must exist between the NWT’s Indigenous interests and mining companies and prospectors in order for projects to succeed.   

In this sense, the new legislation formalizes many of the NWT’s existing and industry-leading approaches. 

It is not just that the NWT is “open” for business, but rather that business gets done in a manner that is respectful and inclusive of NWT residents; their business interests, cultures, traditions and priorities. 

Yes, hard work and meaningful relationships take more investment upfront. But, they are proven to secure support and acceptance for projects through their full lifecycle. 

Additionally, the MRA facilitates increased opportunities for exploration by providing more time on claims before they must transition to leases; and the collection of more and higher-quality geoscience to support the greatly-anticipated move to online map staking.

The advancement of policy intentions to the GNWT’s Department of Justice for formal drafting is an important step towards the implementation of modern legislation that will help to attract the next generation of investor and miner to the NWT. 

The road to a successful mining project will never be without its bumps or turns. But the NWT is betting on the fact that early planning and dialogue will make the overall journey much smoother. 

The following road map depicts the journey of a resource project from the very beginning of the mining cycle when a claim is staked, through the advanced exploration on a mineral lease, to the development of a mine; extraction, production, and finally remediation. 

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Prospect to stake and record a claim 

The first step for any person or company exploring in the NWT will be to complete the Prospector Awareness Course. This course will introduce new-to-the-NWT prospectors (and re-familiarize existing prospectors) to the NWT regulatory system, the logistical intricacies of working here and the importance of building and respecting relationships with Indigenous Governments, Organizations, and communities. 

Completion of the course will be a requirement to obtain a Prospector’s Licence (#1); which, by the way, will be valid for five years (as opposed to just one year today).  A Prospector’s Licence will allow you to prospect in the NWT i.e. physically stake a claim (#2). (Eventually, physical staking will be replaced by online map staking but that is still a few miles away.) 

The next stop is to file an Application to Record a Claim with the NWT’s Mining Recorders Office (#3). 

Once all the required information is provided, the Mining Recorder sends a Notice of Application to Record a Claim to the Indigenous Governments and Organizations near the proposed activities (#4). This is the first formal notice of planned activity. It is designed to initiate an early dialogue (30 days) between the prospector/company and the NWT’s Indigenous interests; to address early issues, answer questions and start building relationships. 

If, for example, concerns are shared with prospectors about culturally sensitive lands, proposed claim boundaries can be adjusted or changed. After the identified 30-Days are up, the claim is recorded. A recorded claim under the new Act will be good for up to 30 years (which is an extension of the current 10-year life today). 

Conduct work to maintain a recorded claim 

The ‘roundabout’ on our roadmap highlights that a minimum amount of work (including expenses) must be conducted to maintain a recorded claim (#5). To this end, activities advancing indigenous engagement are eligible. 

The MRA, dictates that that Indigenous Government and Organizations be informed of proposed field work activities, before they start.  In this instance, this is done using a Notice of Intended Work form. Again, this formal notification is in place to encourage the relationships that can be established through early discussions about local concerns and opportunities.   

Once a deposit is mapped as economically viable and a project is advancing towards advanced work and production, prospectors will want to transition from a mineral claim to a mineral lease. 

An Evidence of Deposit Technical Report (#6) is a prerequisite to the application for a mineral lease. It will require technical and financial information delineating the project’s minerals and their value. 

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Advanced exploration requires a mineral lease 

A mineral lease (#7) marks the point at which a company transitions an advance a project into mine development. It is also an important threshold for Indigenous interests in the NWT.

With the award of a mineral lease, the company is granted the rights to extract minerals from a site. (Note: minerals can be extracted from a recorded claim for testing, with permission.) 

Once, the necessary information is in place, the Mining Recorder will send a Notice of Lease Application to Indigenous Governments, Organizations, and communities near the proposed activities. Once again, this formal notice initiates a 30-day consultation period after which a mineral lease can be issued and a Notice of Lease Issuance distributed to the Indigenous Governments and Organizations. A mineral lease has a life of 21-years. 

Again, the roundabout illustrates that a mineral lease will need to be maintained. In the case of a mineral lease, this means an annual payment of lease rent, and the submission of an annual exploration and expenditures report (#8). 

Agreements for benefits might be required 

A project that is expected to exceed $75 million in capital expenditures and/or provide more than 150 person years of work must engage and negotiate a Benefit Agreement (#9) with each qualifying Indigenous Government and Organization; and a Socio-Economic Agreement (#10) between the company and the GNWT. 

Small-scale projects falling below this threshold can proceed without these agreements. 

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Production Licence 

The roadmap gets simpler here because this is when the construction of a mine begins, and the early leg work pays off. 

A Production Licence is required (#11) to sell minerals. Once the Benefit Agreements and Socio-Economic Agreements are in place, and all other reporting is up to date, a Production Licence will be awarded.   

When minerals are sold, the MRA requires specialized annual reporting and payment of royalties to the GNWT. 

Of course, if there is a substantial change in the project, the commitments under the Benefit Agreement and the Socio-Economic Agreements may require revisiting. This is referred to as a Material Change (#12); and it is one of the few new legislative instruments you will encounter on this part of your journey.