TORONTO (miningweekly.com) – Following the first round of debates in the National Assembly on the proposed Bill to change Quebec's Mining Act, Bill 43, the Quebec Mining Exploration Association (QMEA) on Monday again raised concerns regarding certain provisions contained in the draft.

The association said that significant changes were needed to ensure the viability and functionality of the Bill, stressing that the foundation of a new law would have to be based on a transparent, predictable and stable legal framework for developing Quebec's mineral sector in line with the best economic interests of the province.

QMEA also believed that all significant changes should be made following the reaching of consensus between the main parties, which comprised government, industries and municipalities.

"The success of this Bill is based on the willingness of all parties to develop an understanding based on pragmatic and realistic compromise. Quebec has nothing to gain from adopting a legislative framework that ignores Quebec's geoscientific reality and the economic context in which we operate," QMEA chairperson and geologist Philippe Cloutier said on Monday.

The association pointed out that the Bill, as it currently stood, included many provisions that were already unanimously accepted by the industry.

These included filing a site restoration plan, paying all of the required financial guarantees to ensure future remediation of these sites, recognising a proactive role for county regional municipalities, among other provisions intended to promote responsible resource development.

The QMEA implored government to pay particular attention to the 50 provisions identified in its brief submitted to the National Assembly on September 17. Many of those proposals related to managing mining titles, withdrawing several new random requirements that would be imposed on operators, as well as arbitrary provisions that would hinder development of the sector.

"We hope that government will draw from discussions with key parties and we offer our cooperation to develop the necessary changes to render the Bill more in line with the requirements of sustainable development of our mineral resources," QMEA executive director Valérie Fillion said.

Under the current system, mining operations pay a 16% tax on net profits. The rate was pushed up from 12% during the previous Liberal government’s tenure. But for the Parti Québécois (PQ), led by Premier Pauline Marois, the increase was not extensive enough – it went on to call for a 5% tax on all mining activity and a 30% supertax on companies achieving profit margins over 8%.

On May 29, Quebec’s Minister of Natural Resources, Martine Ouellet, tabled Bill 43 that will, if approved, put into effect a new Mining Act.

Unsurprisingly, many changes are proposed. For example, companies seeking to make a mining claim will have to notify the owners of the land and, if applicable, those leasing it, within 60 days of registering the claim. Companies making a claim within municipal territory must inform the local governing body at least 90 days before work starts. In addition, certain claims could become subject to auction under the Mining Minister’s auspices.

The Bill also proposes that companies guarantee 100% of costs associated with rehabilitating a mine site. The current level is 70%.

In addition, it seeks to engender more processing of ore within Quebec.