Canadian Lawyer

September 2012

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Mineral Tenure Act that says if we take land for a park under s. 11 of the Parks Act then there will be compensation pay- able, of Plan Nord, Hunter says the province may be able to avoid some of the headaches B.C. has witnessed. "If they can say look, at least we're going to have some certainty — it's the uncertainty that potentially kills the projects," he says. "We had the opposition screaming about the Windy Craggy deci- sion and later they came in and did many things of their own similarly problematic in terms of making ad hoc decisions." To be effective, the ultimate goal of Plan Nord should be By amending the Mining Act in Quebec in anticipation " says Hunter. to remove those uncertainties and come up with clear rules, says Hunter. If there are conflicts the legislation becomes the mechanism to solve them. Bill 14 is key to the successful development of Plan Nord, northern rigorous climate, and Australia is closer to the main markets in Asia. Another piece of Plan Nord-related legislation not yet law is bill 65, "an act respecting natural heritage conservation and the sustainable development of the area covered by the Northern Plan," which was tabled April 17. It was designed to ensure the protection of 50 per cent of the territory and establish conservation areas. Hearings were scheduled for the month of August but that will be contingent on the possible election. The reality is many BRIC countries are in great need of says Hugo-Pierre Gagnon, an associate with Osler Hoskin & Harcourt LLP in Montreal, to provide clarity to the mining companies. "Bill 14 is important for Plan Nord because what investors in mining companies need is a clear, stable, and predictable regulatory framework in which they can operate. They need to know the rules," says Gagnon. "It's not that the rule book has to be re-written, but let's say it was due for a significant overhaul. ability and stability is critical, but with a provincial election on Sept. 4, there is additional uncertainty over what will hap- pen next. "Does it mean there will be an additional six or 12 months? That is not good for investors in mining companies," says Gagnon. The issue around granting powers to municipalities is Providing the mining industry with regulatory predict- " one that is mainly a concern in the southern part of Quebec, where most of the province's municipalities are located, says Gagnon. "It would bring more insecurity to the process because you would add a new level of government that may not necessarily have a knowledge of mining. ties the province would receive from mineral development in Quebec's northern territory. With growing interest in Quebec's deposits of iron ore, nickel, rare earths, gold, and even diamonds, the province increased its mining royalties to 16 per cent on Jan. 1, as the province phased in a four-per- centage-point increase over three years and adopted a "mine- by-mine" approach, ending writeoffs of losses elsewhere against profitable operations. But the PQ says the percentage should be higher, arguing it should rival Australia's mining royalties. It also suggests royalties should be based on gross instead of net value produced, and on excess profit. The Australian government recently passed a bill provid- amendment was proposed to create a process in which a mediator could be appointed to discuss the conflict and try to reach a compromise. As well, the PQ says bill 14 doesn't increase the royal- ing for a 30-per-cent tax on excess profits of certain min- ing companies. Critics suggest conditions are different in Australia — the grade of mineral is higher, there isn't the natural resources for their own internal development. As an example, WISCO is a large Chinese company that has already offered to invest $9 billion in the development of a project in northern Quebec. And when foreign investors come to Canada they know there is political stability they can rely on, and rules that won't change at the whim of dictators or autocrats. "They don't have to give kickbacks to every civil servant they meet to get their permits. I'm not saying it never happens, but we know this is not the rule and we can count on the honesty of our public service, activity on Plan Nord, Piette adds that no party views Plan Nord negatively. "Economic development is good and creat- ing jobs is good, So while the election in Quebec could further postpone " says Piette. " he says. HOW WILL KEY LABOUR DECISIONS INFLUENCE THE WORKPLACE? WILLIS & WINKLER ON LEADING LABOUR CASES, 2012 ELAINE B. WILLIS AND THE HONOURABLE WARREN K. WINKLER, CHIEF JUSTICE OF ONTARIO " He says an Identify the cases and trends that are important to your organization with Willis & Winkler on Leading Labour Cases, 2012. RECENT DECISIONS OR CHALLENGES CONCERNING: • • • Freedom of Expression Freedom of Association Equality and Legal Rights • Due Deference post Dunsmuir • Sufficiency of Reasons • Disciplinary Trends: Unethical Conduct ON SUBSCRIPTION ORDER # 804602-65203 $77 ONE TIME PURCHASE ORDER # 804602-65203 $87 Shipping and handling are extra. Prices subject to change without notice and subject to applicable taxes. AVAILABLE RISK-FREE FOR 30 DAYS Order online at www.carswell.com Call Toll-Free: 1-800-387-5164 In Toronto: 416-609-3800 CANADA LAW BOOK® www.CANAD I AN Lawyermag.com SEPTEMBE R 2012 45

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