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www.lexpert.ca | LEXPERT • June 2014 | 19 ed to block any new mining project on Aboriginal land that failed to meet the approval of native communities. "We want a veto right on all projects that have a devastating im- pact on our land." Dominique said the plan to dra a consultation policy regard- ing a mining project prior to beginning operations is not good enough. He said consultations must start the moment a mining claim on their land is registered. "If need be we will go before the courts to have our rights rec- ognized — and based on past court rulings we are confi dent of winning our case." STEPPING BACK, the real question is will the revised rules be enough to bring mining investment in Québec closer to previ- ous levels? Or will uncertainty and added bureaucracy continue to dampen enthusiasm? Blouin says it's tough to know for sure, but the new rules will make the lease application process more expensive. "Each time you add to rules and regulations, it adds costs. Now you need more consulting, more reports. It's a matter of money; it's always money. You just add and add and add to the requirements and it makes it more expensive to operate, even to do exploration. "But at least now we know the rules and I don't think anything I've seen Québec has done would be an obstacle for anyone want- ing to invest in the province. I think there are just bureaucratic and regulatory amendments. I don't think they'd prevent anyone wanting to go into Québec." Bryan Coates, Chief Financial Offi cer of Osisko Mining Corp., a mid-tier gold producer based in Montréal, welcomed the new regime. "It's really important that all parties work to bring closure on this and that we move on," he said shortly a er the Bill passed. John Sabine, counsel at Bennett Jones LLP in Toronto, says it's important for people to remember that the statute was passed with support of the opposition, and extensive input from the min- ing sector — which isn't to say there won't be a few bumps getting it off the ground. "Sure there is uncertainty about where the regulations will go and there is ambiguity about some of the provisions. Not every- one got what they wanted, but look at what has been done or pro- posed elsewhere in other jurisdictions. "Look at Venezuela or Argentina; look at regulation in Brazil. Look at what's happening in other jurisdictions where legislation can be draconian. I was involved with a company with assets in the Congo and we had the Congolese government unilaterally revise all of the ownership contracts." Sabine says while there may be some grumbling about the framework, he can't think of a safer place to mine than Québec. "It has the resources, the workforce, the infrastructure — and a le- gal system to deal with issues where many countries do not. So the government revised the legislation, everyone does that. So maybe there are going to be some additional costs for regulations. Every- body's got those problems. "It's still a better jurisdiction in my mind than places like Indo- nesia, Zimbabwe or the Congo. Let's put this in perspective please. Everybody needs to take an Advil." Sandra Rubin is a freelance legal affairs writer. completed before operations can commence." Goldsilver says many more mine operations will be netted by the lower threshold. "I think the potential is that it will capture most senior and mid-tier producing companies. " ere's a greater catchment now. "I think overall they've increased the regulatory regime, made it a little more burdensome." In another element of the commitment to environmental sustain- ability, leaseholders will have to provide fi nancial security up front to cover the anticipated cost of rehabilitating and restoring a mining site. "You have to fund the restoration, it's very important to know that," says Michel Blouin, a partner at Montréal's Lavery, de Billy, L.L.P. "You have to fi le a report and then you have to fund the restoration. It's more stringent than before." " e province will dictate the amount, and require the money to be aside, before an operator is granted the lease, he says, adding the condition can be waived if the time required to obtain the money risks undermining the project's realization. "Sometimes the funding for the operation itself is not completely in place, so it would be hard to provide funding for the restoration." THE COMPROMISE VERSION of the new Québec min- ing framework that limped across the fi nish line is defi nitely more conciliatory in tone than its predecessors to various stakeholders, including local governments. Regional and municipal governments have been given the pow- er to deem land as "incompatible" with mining activity, or make it subject to specifi ed conditions. "" ere were excluded areas before," says Blouin, "but rules have changed because some municipalities feel that there should not be mining in their area because it's not acceptable, for example, if you have a place with lakes and people with country houses." " e minister is not permitted to exempt a holder of mining rights from these conditions. " e proposed changes are expected to apply to lands under the jurisdiction of the Cree First Nations governments, which cover more than 300,000 square km in northern Québec. For anyone who hasn't looked at a map recently, Québec is huge. It's two-and-a-half times the size of France and even larger than Alaska. Many of the metal and mineral deposits are in the province's more remote areas on lands owned or surrounded by First Nations communities. And their initial reaction to the new mining rules was a distinct thumbs down. " e revised Act introduces a new chapter that states the gov- ernment must consult native communities separately from other constituents "if the circumstances so warrant." It prohibits the expropriation of Aboriginal burial grounds, and specifi cally recognizes that taking the rights and interests of native communities into account is an integral part of reconciling min- ing activities with other possible uses of the territory. When the new framework was passed, the government said it planned further consultations with First Nations but native com- munities were angered nonetheless. "" is Bill does not correspond to our ancestral rights," Innu Chief Gilbert Dominique, a spokesperson for the Assembly of First Nations of Québec and Labrador, said at the time. He threat- MINING IN QUÉBEC »

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