`Use it or lose it’ concept raises ire of junior company

Drafting the regulations that will govern assessment work rates in Ontario is proving to be a controversial exercise. At least one junior exploration company has accused the Ontario government of adopting a “use it or lose it” approach to development of mineral lands in the province. Mike Malouf, president of three junior exploration companies, including Hardrock Extension (TSE), has launched an advocacy advertisement campaign to draw attention to his concerns about the regulations being drafted for assessment rates.

According to Malouf, high assessment and lease rental rates in Ontario could drive small companies like his out of the exploration business altogether.

However, John Gammon, director of Ontario’s Mineral Development & Land Branch told The Northern Miner the industry- government working groups which are debating the assessment requirements issue haven’t finished their discussions.

“It should be made clear that none of the assessment rates have been fixed yet,” he said. “We have not yet reached the final stages of discussions in the working groups.”

He said a working group has been formed in Thunder Bay, Ont., to gather input for the establishment of assessment and lease rates. That group contains representatives of the Ontario Mining Association, the Prospectors and Developers Association of Canada, and the Ontario Mineral Exploration Federation.

“One criticism we’ve had to deal with from junior companies is that there are too many people representing the major companies’ interests in the working group,” said Gammon. “The Thunder Bay group has proved to be one of the most controversial in terms of gaining a consensus.”

Two other working groups, which are dealing with the claim-staking regulations and mine closures, have been formed in Timmins and Toronto.

“So far, we’ve been very satisfied with the constructive approach taken by the various representatives appointed by the industry organizations to the working groups,” said Gammon.

He said the mechanism put in place by the government for consultation with the industry is designed to address the entire spectrum of concerns, including those of prospectors and junior companies. “We’ve gone out of our way to consult with the various groups concerned about assessment rates,” he said, and added that “the Minister of Mines has directed us to make sure we consult widely with all groups affected by the regulations.”