As global demand for all minerals and metals rapidly increases, lengthy and onerous development timelines present a major threat to decarbonization. However, new solutions like Novamera’s Surgical Mining method can now unlock opportunities for smaller-scale deposits that were previously uneconomic, radically reducing the capital and time required to add more supply to the market. In addition, starting small could also provide opportunities for better consultation and participation by Indigenous partners and communities.
The average permitting timeline for a new mine, according to the International Energy Agency, is about 16 years, with an additional 10 years being the average time a new mine takes to achieve full-scale production.

However, small-scale mining permits and regulations exist globally (and are increasing) however, provisions and definitions of a small-scale operation vary widely from country to country and even between regions.

Note: The below information focuses on ‘Formal’ mining operations versus ‘artisanal’ mining. A comprehensive breakdown is currently being done with our global partner WSP. This will include more details regarding the permitting process in the United States- if your project is based in the US, please reach out to a member of our team.

NEWFOUNDLAND & LABRADOR, CANADA
In Newfoundland Canada, there is a provision to exempt “Small Scale Mines” from the Mining Act significantly reducing the time and technical reports required to start production.
A mining operation is considered a small scale mine and exempt from the Mining Act if it:

• excavates less than 20,000 cubic metres of ore, waste, and/or overburden per calendar year with a maximum amount of 100,000 cubic metres of ore, waste,
  and/or overburden being excavated from the original commencement of
  operations: or
• disturbs less than 35,000 square metres of surface area during the life of the operation.
  If a mine were to excavate more than 100,000 cubic metres of ore, waste and/or overburden, or disturb more than 35,000 square metres of surface area, the operator would have three months to become compliant with the Mining Act.
  Note: A project which has the potential to form acid mine water may not be exempted from the Mining Act.

NORTHWEST TERRITORIES, CANADA
A “small-scale” mine is defined as a mining project that is projected to have less than $50M cumulative capital expenditures and producing less than 100,000 tonnes per year, requiring significantly less documentation than a conventional mine.

“A Small Scale Mine is a mining project that does not pass the threshold of a Major Mining Project and as a such will not be subject to benefit agreements. A Small Scale Mine will still require a Production Licence to operate. A small scale mine will be defined as a mining project that is projected to have less than $50M CapEx cumulative (2021 constant $) and less than 100 PY.”
Small Scale Mines are exempt from filing an Evidence of Deposit Technical Report and instead need to file a Simplified Evidence of Deposit Technical Report for certification prior to application to convert a claim to a lease.

Simplified EDTR Requirements

• Application in the approved form
• A description of the small scale mine
• A description of the project
• A plan for the extraction of mineral(s) including method(s)
• Employment resources plan for the duration of the mine
• A summary of operational and capital expenditures
• An estimate of the mineral value to be mined

CHILE
In Chile, projects with a monthly production under 5,000 tonnes of material are exempt from submitting reports to the Environmental Impact Assessment System. This is the largest contributing factor for lengthy permitting timelines. To apply for the exemption, projects require a consultation letter, together with the corresponding supporting information, to be submitted by the project owner to the Environmental Assessment Agency, who will decide if the project must enter the Environmental Impact Assessment System or not.

Reference

Novamera has various partners that support small-scale mining permitting. Please contact our team to learn more.

OTHER COUNTRIES
Through preliminary online research, other countries have provisions that will be investigated through this process.

Ghana: Ghana has a system for small-scale mining permits known as “Small-Scale Mining License.” This allows individuals or groups to mine gold or diamonds on a small scale, subject to certain conditions and regulations.

Peru: Peru has regulations for small-scale mining operations, particularly in the informal mining sector, to formalize operations and provide legal frameworks for small-scale miners.

Philippines: The Philippines has provisions for small-scale mining permits under its mining laws. These permits are typically issued for small-scale mining operations such as artisanal and small-scale gold mining.

Indonesia: Indonesia has provisions for small-scale mining permits, particularly in areas where large-scale mining is not feasible or where local communities engage in small-scale mining activities.

Tanzania: Tanzania has a system for small-scale mining permits, allowing individuals or groups to engage in small-scale mining activities, particularly in gold mining.

Zimbabwe: Zimbabwe has provisions for small-scale mining permits under its Mines and Minerals Act. These permits are aimed at promoting small-scale mining and supporting local economic development.

Brazil: In Brazil, small-scale mining permits are issued for activities such as gold mining in certain designated areas, subject to environmental regulations and compliance.

Mongolia: Mongolia has regulations for artisanal and small-scale mining activities, particularly in the informal mining sector, to formalize operations and promote sustainable mining practices.