Proposed BC rules threaten exploration: prospectors

Mining prospectors and policy specialists are warning that a new mineral claims consultation framework due to be adopted this spring by British Columbia could end up hurting exploration in the province.

Earlier this month, B.C. unveiled draft rules to address a 2023 provincial Supreme Court ruling that said the existing online system for registering mineral claims did not meet the government’s duty to consult Indigenous people. Under a court-imposed timeline, the government must have a new working system in place by March 26.

The new draft regulations propose moving from a system where prospectors could automatically register an online mineral interest on specific land plots to one where they must submit applications to lay claims that then go through three steps of review before the government renders a decision.

Indigenous groups in B.C. complained in court about an open staking system that allowed prospectors to freely enter their traditional territories without notice.

Prospectors object

Some prospectors are already saying that the proposed new system is too complicated and onerous. Many are considering stopping exploration work in B.C. altogether, according to the Fraser Institute think tank.

“This new rule, which adds a major hurdle to the permit process and increases uncertainty in mining exploration, will further deter investment in British Columbia’s mining sector and hurt the province’s already struggling economy,” said Julio Mejía, a mining policy specialist with the Fraser Institute.

“Not only does this add a major step to the exploration process – particularly in areas with multiple First Nations groups – but it requires companies to publicly disclose where they plan to ‘stake’ before they receive permission, which is like forcing a company to give away trade secrets.”

Hugh Maddin, a long-time prospector operating in B.C., told the Vancouver Sun in an interview that while the government bears the responsibility to change the rules, it is the prospectors who will bear the costs – and complexities – of this change.

AME stance

Keerit Jutla, CEO for the Association for Mineral Exploration, B.C., said while there is general support for a consultation process that includes Indigenous groups, his members prefer a much more limited reform of the Mineral Tenure Act that does not try to include incorporating the United Nations Declaration on the Rights of Indigenous Peoples with consultation occurring at the staking stage.

In the end, some analysts say that the B.C. government should introduce new consultation rules that do not adversely affect an industry already dealing with inordinate regulatory delays. These delays, the analysts say, affect both Indigenous and non-Indigenous communities.

B.C. Premier David Eby’s “new mineral staking rules will further delay the development of new mines and may kill some exploration projects before they break ground,” Mejía warned.

“The mining companies will simply look elsewhere for minerals, which means many British Columbians – and many Indigenous communities across the province – will lose a key source of income. If the government wants to avoid this outcome, it should swiftly reconsider its new staking rules.”