Alberta’s Mines and Minerals Act is the bedrock of the many mining laws in the province. It sets out who can explore, mine, and profit from subsurface resources, making it a key law that stakeholders should understand before starting mining operations. In this article, we will unearth this law, see what it covers and how it works, especially for those interested in mining in the province.
What is Alberta’s Mines and Minerals Act?
The Mines and Minerals Act (the Act) of Alberta is the law that governs Crown-owned mines and minerals, including its management and the disposition of the rights over these resources. As a resource-rich province, Alberta has enacted several laws and regulations to govern mining activities, with the Mines and Minerals Act being a primary statute.
Unless otherwise specified, the Act applies to:
- mines, minerals, pore space, and related natural resources owned by the Crown in Alberta
- wells, mines, quarries, minerals and geothermal resources in Alberta
Coal is among the resources regulated by the Mines and Minerals Act. Recent policy changes have also led legal challenges:
Learn more about how these mining laws can affect your mining operations by consulting the best mining lawyers in Canada as ranked by Lexpert.
What are the rules under Alberta’s Mines and Minerals Act?
The Mines and Minerals Act provides several rules that mining operations should follow, including:
- how companies can acquire the rights to explore or develop these resources
- how agreements are made, renewed, or cancelled
- penalties for non-compliance with the Act
We’ll discuss these rules below.
Acquiring mineral ownership
Mineral rights, as opposed to surface rights, refer to the rights granted by the Act to an individual or a corporation to:
- own the mineral substances found on and under a specified land
- explore for and recover minerals from the land
Mineral ownership is defined in the Act and its regulations. These rules also set how to apply for ownership and the scope of such ownership.
Application for mineral rights
Along with their mining lawyer, an applicant must enter into an agreement with the government to get the rights to explore or develop Crown-owned minerals. The application is done with Alberta's Ministry of Energy and Minerals, which grants the right to explore and develop energy and mineral resources. Depending on the type of mineral and the planned activity, this agreement may be a lease, permit, or licence.
Under the Mines and Minerals Administration Regulation, one of the Act’s regulations, an application:
- will be approved only if the applicant accepts any conditions imposed
- will be denied if the applicant is ineligible (e.g., a minor or unregistered corporation)
The Act also covers how mineral rights can be transferred or assigned to someone else. It sets out the rules for paying royalties to the government and explains what happens if someone breaks the rules.
Exploration and recovery
Before any mineral exploration can begin, approval is needed from the Alberta Environment and Protected Areas. This does not include oil and gas, oil sands, and coal, which are regulated by the Alberta Energy Regulator. The Act works with other regulations, like the Exploration Regulation and the Metallic and Industrial Minerals Exploration Regulation, to ensure that all activities follow environmental and safety standards.
Most mining projects would undergo these processes:
- Environmental Impact Assessment (EIA): examines the environmental effects of a proposed project to determine if it should proceed in the public interest
- Environmental Protection and Enhancement Act approvals: if the project specifically involves conservation, pesticides or other designated materials, potable water, substance release, and/or waste management
Cancellation of agreements
The Act lays down the following grounds where the agreement may be cancelled by the government:
- breach of any condition in the agreement
- non-compliance with the Act, its regulations, or the agreement’s conditions
Before any agreement can be cancelled, a notice must be sent to the lessee, plus a period to remedy the breach or non-compliance.
Licence for exploration
Exploration of Crown-owned minerals, including the operation of exploration equipment, can only be done if an exploration licence, approval, or permit is granted by the government. An application will be denied if either:
- an applicant is indebted to the Crown
- it would be appropriate to refuse the application, as determined by the government
A stop order may be issued against a grantee if they violate the Act or any condition stated in the licence, approval, or permit. For similar reasons, a licence or permit may also be cancelled.
Offences and penalties
The Mines and Minerals Act of Alberta specifies several offences, which may apply to a grantee of a licence or a lessee in an agreement:
- recordkeeping: failure to keep the records or to provide access to records for auditing or examination purposes
- return of information: failure to comply with a notice to submit information requested by the government
- confidential information: violation of confidentiality of certain information, in relation to the Access to Information Act (AIA)
- investigation and inspection: preventing officials from entering a site or facility investigation or inspection, failing to assist these officials, or failing to supply requested information
- bidding at sales: preventing a sale by public tender of the right to an agreement through intimidation, collusion, or unfair practices
- lack of authority: when a person without proper authority:
- wins, works, or recovers a mineral
- injects any substance into a subsurface reservoir
- recovers geothermal resources
- orders of the Minister of Infrastructure: when a licensee fails to comply with an order issued by the Minister of Infrastructure, in relation to the construction and maintenance of roads
- exploration: when a person without a licence or permit conducts exploration of resources, or operates an exploration equipment
- captured carbon dioxide: injecting captured carbon dioxide into a subsurface reservoir, in violation of the agreement, regulations, or the Oil and Gas Conservation Act (OGCA)
A corporation is also vicariously liable for offences committed by its director, officer, official employee, or agent if the offence was committed either:
- during the offender's employment
- in the exercise of the offender’s powers or duties
Who implements the Mines and Minerals Act of Alberta?
Several regulators are involved in the administration of the Act, including:
- Alberta Energy and Minerals: most of the Act is managed by this Ministry, which looks after the agreements, allocations, and the general administration of mineral rights in Alberta
- Alberta Environment and Protected Areas: Part 8 of the Act is handled by this Ministry, and anyone who wants to explore oil, gas, or other minerals needs approval from them
- Alberta Energy Regulator (AER): as the regulator of energy development in Alberta, the AER also administers Part 8 of the Act, specifically regarding energy resource development
Another mining activity regulated by the Mines and Minerals Act of Alberta is oil sands mining. Learn more about this industry with this video:
Need help regarding another mining law in Alberta? Reach out to the Lexpert-ranked best mining law firms in Alberta.
How can lawyers help clients with Alberta’s Mines and Minerals Act?
Reading the law as written can be challenging; that is why lawyers help clients in reviewing laws that affect them and their businesses. As such, having a mining lawyer interpret the rules under Alberta’s Mines and Minerals Act would be beneficial.
Here are the other ways that mining lawyers can help you in relation to this mining law of Alberta:
- assist with ownership issues: a lawyer can guide clients in applying for the right agreements, such as leases or permits, and make sure all paperwork meet government standards
- transact with regulators: lawyers can guide clients when dealing with provincial mining regulators, since they know the processes, which can be overwhelming
- represent clients: if there are issues with an agreement or if a client faces penalties, a lawyer can help resolve these disputes and protect client interests
- ensure compliance with the law: most importantly, lawyers can direct clients how to follow all environmental and land use rules, which are part of the Act and its related regulations
By providing these services, mining lawyers can help clients make smart choices and reduce the risk of legal troubles, whether against regulators or other parties in an agreement.
Alberta’s Mines and Minerals Act: Unearthing opportunities legally
The Mines and Minerals Act of Alberta shapes how companies can access Crown-owned resources in the province. Knowing the basics of this law helps investors and businesses avoid surprises and protect their interests. While this law clarifies ownership, agreement procedures, and the necessary steps before mining begins, it is still important to seek legal counsel from mining lawyers who can help companies understand and comply with the Act.
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