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ARTICLE · 22 JULY 2019

Mining Regulator May Owe Duty To Mine Owners

Last summer, the Supreme Court of British Columbia held that a mining regulator may, in limited circumstances, owe a duty to pay a mine owner for its losses

CanadaEnergy and Natural Resources

Last summer, the Supreme Court of British Columbia held that a mining regulator may, in limited circumstances, owe a duty to pay a mine owner for its losses suffered as a result of a breach of a duty owed. This spring, the same court applied the same test to find liability on a regulatory authority.

In Imperial Metals Corporation v Knight Piesold Ltd. et al,1 two engineering firms brought a third party proceeding against the BC Ministry of Energy, Mines and Petroleum Resources ("MEM").  They alleged that MEM owed a duty of care to the mine owner, Imperial Metals, to provide the technical advice and directions it supplied as a part of the approval process for the mine permit, with reasonable care.  MEM was also alleged to owe a duty to take all reasonable steps within its regulatory authority to reduce or eliminate known risks of imminent danger at the mine.

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