12 LEXPERT
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2018/19
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WWW.LEXPERT.CA
With about 75% of all mining companies in the
world headquartered in Canada and some 56% of
the publicly traded ones listed on the Toronto Stock
Exchange, Canadian laws capture more mining en-
tities than legislation in any other country.
at sounds simple enough, but it's more com-
plex — and at times more problematic — for the
industry than it sounds. Canada is a federation
with a central government, 10 provinces and three
territories. All of them have regulatory powers in
relation to mining.
"From an outsider's perspective, the way min-
ing is regulated in Canada may appear to be an
impediment, but I don't know that there's a better
model around," says Tom Fenton of Aird & Berlis
LLP in Toronto. "Although there is some redun-
dancy and duplication of effort, especially with
regard to environmental regulation, the system
seems to work well."
ere are some areas, however, like insolvency,
that are a bit of a mess. "You've got a mixture
of federal bankruptcy laws and provincial laws
regarding property tenure and how security is
taken that are inconsistent with both the federal
laws and amongst themselves," says Greg McNab
of Baker McKenzie LLP in Toronto.
e shiing laws relating to Aboriginal rights
also give pause for thought. According to the
Fraser Institute, the duty to consult remains "a
patchwork" of Canadian policies. "ere are
some principles that all jurisdictions share, such
as the Crown's taking responsibility for the duty
FEDERAL
/
PROVINCIAL JURISDICTIONS
MANY
COMPANIES,
MANY
GOVERNMENTS
CANADA HAS THE
MAJORITY OF THE WORLD'S
MINING COMPANIES,
AND THEY HAVE TO DEAL
WITH FEDERAL AND
PROVINCIAL JURISDICTIONS
BY JULIUS MELNITZER
PHOTO:
REUTERS
