Registering liens in relation to mines in Ontario can be an extremely confusing subject.[1] Even the title of this paper is a misnomer as mines are not actually liened. Rather, the proper characterization of the issue is that liens are registered as against the lands on which the mine is located. In this regard, the type of property interest a mining company has in the lands dictates the manner in which liens are preserved and perfected. Consequently, when liening lands on which a mine is located the paramount consideration is determining the nature of the owner’s interest in the mining claim.
Different provinces have enacted legislation which permits the registration of liens. Specifically in Ontario, the Mining Act[2] governs the regulation of liens in the province.
Section 171(1) of the Mining Act expressly states that the Construction Act[3] applies to mining claims, mining lands and connected works.[4]
A mining claim is a parcel of land, including land under water, that is registered in accordance with section 38 of the Mining Act.[5]
Mining claims can be characterized into three (3) different categories:
1. patented mining claims
2. unpatented mining claims
3. licenses of occupation
Each of the aforementioned categories of mining claims requires a different method of preserving and perfecting a claim for lien. The different manners in which a lien is registered are set out below.