Nunavut Mining Rent Relief

Summary#

The federal government issued the Regulations Amending the Nunavut Mining Regulations (SOR/2020-174) to give mining leaseholders in Nunavut temporary rent relief because of COVID-19. The rules let lessees ask to have lease rent due in the year beginning March 13, 2020 waived if they request it by March 13, 2021; the regulations came into force on August 10, 2020.

What it does#

• Changes the Nunavut Mining Regulations so the Minister must waive certain lease rent payments because of the COVID-19 pandemic.
• Waives annual rent for a lease that becomes due during the year starting March 13, 2020, when the lessee sends a written request before March 13, 2021.
• Waives the first-year rent for a newly issued or renewed lease (or the first year of a renewal issued during that same year) if the lessee asks in writing before the earlier of the claim’s end or March 13, 2021.
• If the rent for the year was already paid, an equivalent amount is waived from the next year’s rent (but not refunded).
• Rents normally collected by the Crown for Inuit Owned Lands that are payable to Nunavut Tunngavik Incorporated will still be treated the same; the waived amounts are handled so the Inuit organization still receives its share.
• Requests must be sent in writing to the Supervising Mining Recorder of Nunavut.

Who's affected#

• Lessees of mineral leases in Nunavut, including small exploration companies and other mineral-right holders.
• Investors and employees of those companies, because the relief aims to free up cash for operations and salaries.
• Indigenous organizations and communities in Nunavut through the continued flow of rent for Inuit Owned Lands (for example, Nunavut Tunngavik Incorporated).
• The federal department that manages northern lands, Crown‑Indigenous Relations and Northern Affairs Canada, which administers the relief.

Why it matters#

• It prevents leases from being cancelled for missed rent during the pandemic. That protects companies’ claims and investment plans after a lost 2020 field season.
• The waiver is intended to free up about $1.5 million for the northern exploration sector for 2020–2021, helping companies cover other costs such as salaries.
• Normal rent rates are modest (typically $2.50 per hectare for the first 21‑year term and $5.00 per hectare for renewed terms), but unpaid rent could still lead to lease loss without this relief.
• The rule is temporary and request-based; it does not create refunds for amounts already paid and the government noted additional system costs (over $100,000) would be needed to issue refunds, so waivers are applied against future rent instead.