Miners Lien Act Amendments
Public consultation on amendments to the Miners Lien Act
The act was first introduced in 1902, and has received very few amendments since that time. As a result, the act in its current form could create uncertainty and ambiguity for investors, lenders, mine developers, contractors, and suppliers.
Amendments are proposed to modernize the act and make it current with other mining jurisdictions in Canada.
What is the Miners Lien Act?
The Miners Lien Act is legislation that provides the opportunity for contractors and suppliers to lien mine and mineral assets in situations where they have provided a good or service and have not been paid for the goods or services they had provided.
View the current Miners Lien Act
129 KB.
Public Consultation
Issues being examined include:
- Who may hold a lien – Whether the act requires some clarification in order to ensure subcontractors can file liens.
- Ability to know that a lien exists – To determine whether any changes are needed to increase transparency in areas such as public notification about the existence of liens and searches for lien records in public files and databases.
- To what the lien attaches: estates and interests – The current act provides that a lien could attach to estates and interests beyond the mine project.
- To what the lien attaches: chattels and personal property – The act is unclear concerning what can be subject to a lien. This will be clarified.
- Time limits for filing a lien - The current act specifies a six month time limit on filing a lien. This time limit makes it difficult for investors, lenders, contractors and suppliers to assess the risk of a project.
- Potential for “backdating” a lien – The present legislation could allow “backdating” of liens or “retroactivity”. This will be clarified.
- Priority and scope of liens – While it is important to ensure lien holders maintain priority, many aspects of “priority” provisions in the act are outdated, difficult to define, and confusing. The amendments proposed to the act will not diminish the rights of suppliers of goods and services to mines. Valid lien holders will enjoy a priority that is clear and quantifiable.
- Holdbacks and waivers – To define how hold backs and waivers are to be managed.
We invite you to review the amendments being considered to the Miners Lien Act and provide comments by Thursday, August 7, 2008.