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Securing Payment on Mineral Property: Lien Rights in British Columbia

Liens are a critical legal mechanism for securing payment for work performed or materials supplied. However, applying liens to mineral property in British Columbia presents unique challenges and opportunities. This bulletin explores the rules governing lien claims on mineral property under the Builders Lien Act , SBC 1997, c 45 (the “Builders Lien Act“) and the Mineral Tenure Act, RSBC 1996, c 292 (the “Mineral Tenure Act“) offering guidance on what is lienable, the filing process, and key legislative provisions.

 

Special Treatment for Mining Properties

The Builders Lien Act permits filing liens against mineral titles recorded in the Gold Commissioner’s Office under the Mineral Tenure Act. This is distinct from liens filed on land registered in the Land Title Office, providing an additional avenue for securing claims against mining improvements.

Why Special Treatment?
Mining properties are often located on unregistered Crown land. Unlike typical unregistered interests, mineral titles are kept in a public register maintained by the Gold Commissioner, ensuring lien claims can be tracked and enforced.

 

Filing a Lien Against Mining Property

Under Section 18 of the Builders Lien Act, liens can be filed in respect of mineral titles held at the Gold Commissioner’s Office.

Step 1: Filing in the Gold Commissioner’s Office

    • File the prescribed Form 5 at the Gold Commissioner’s Office where the mineral title is recorded.
    • The form must include a sufficient description of the mineral title.

Step 2: Filing in the Land Title Office (if applicable)

    • If the property on which the mineral claim is located is also registered in the Land Title Office, a filing must be submitted to the appropriate Land Title Office.

 

Key Legislative Provisions

Mineral Tenure Act Definitions
The Mineral Tenure Act provides detailed definitions relevant to lien claims:

  • “Claim”: Includes mineral and placer claims, as well as legacy claims.
  • “Mineral”: Defined as ore of metal or natural substances that can be mined, but excludes:
    • Coal, petroleum, natural gas, marl, earth, soil, peat, sand, and gravel.
    • Rock or natural substances used for construction on land outside a mineral title.
    • Materials on private land used for construction purposes.
  • “Placer Claim”: Refers to placer minerals in loose earth, gravel, or sand but excludes substances listed above.

Excluded Substances
Under the Mineral Tenure Act, substances such as coal, petroleum, and natural gas are expressly excluded from the definition of “mineral.” Consequently, liens cannot be filed against mineral titles for these excluded substances. This exclusion was confirmed in Pine Valley Mining Corporation (Re), 2007 BCSC 812 at para. 3.

Key Steps for Verification

To determine whether a mine is held under the Mineral Tenure Act or whether it involves excluded substances:

  • Contact the Gold Commissioner’s Office for title verification.
  • Use the Mineral Titles Online system to search records.
  • Ensure that the mineral title description aligns with the lien claim requirements under Section 18 of the Builders Lien Act.

The Benefits of Filing a Lien

For those in the construction sector, subcontractors, and Indigenous groups working on mining-related projects, filing a lien is a powerful tool to secure payment when disputes arise. A lien places legal pressure on the titleholder by restricting transactions on the property until the claim is resolved. This ensures your contribution to the project is recognized and protects your financial interests. Leveraging lien rights can be a vital step toward achieving payment resolution and reinforcing accountability in resource development projects.

 

Conclusion

The ability to file a lien on mineral property in BC depends on compliance with the Builders Lien Act and the specific nature of the mineral title under the Mineral Tenure Act. For practitioners, understanding the nuances of these provisions is crucial to protecting lien rights and navigating the complex regulatory framework.

For assistance in filing a lien or interpreting these laws, consult with our experienced Commercial Litigation Practice Group to ensure your rights are preserved.