Yukon court reinstates miner's lien against Japanese company that bought Minto mine's copper

A company left unpaid by Minto Metals Corp. has won its case in the Yukon Court of Appeal.

It reverses an earlier decision from the Yukon Supreme Court, which declared a miner's lien filed by Brad Paddison Contracting (BP Contracting) invalid.

Court of Appeal Justice Leonard Marchand ruled that the B.C.-based mining contractor has a valid claim against Japanese company Sumitomo, the company that bought Minto mine's copper. The ruling means that Sumitomo is now responsible for paying BP Contracting. 

Minto Metals Corp. was indebted to the two companies involved in the case when it abandoned the Minto mine in May 2023. The mine is about 240 kilometres northwest of Whitehorse and was purchased by the Selkirk First Nation earlier this year.

BP Contracting served the Minto mine in 2022. It wasn't paid for the work, so the company filed a miner's lien to the tune of $400,000 – which Minto ignored. The lien was outstanding when the mine closed. It was later adjusted to approximately $200,000.

Shortly afterward, Sumitomo bought about $50 million worth of copper concentrate between December 2022 and the mine's closure five months later.

In August 2023, BP Contracting amended its petition to seek relief from Sumitomo. Yukon Supreme Court heard in 2023 that Sumitomo didn't know it would inherit the lien. The court ruled in 2023 that BP Contracting didn't provide sufficient information on its claim. The company's claim only listed the mineral claims and leases held by Minto Metals, and didn't specify the copper concentrate. 

The 2023 decision declared the miner's lien against Sumitomo invalid.

In its appeal argument, BP Contracting said it wasn't required to list minerals specifically in its claim.

In his decision, Marchand agrees with BP Contracting. He says more intensive reporting requirements would "create an impractical and burdensome process for potential lien claimants that would undermine the [Miners Lien Act]."

Marchand says the Miners Lien Act exists to protect the businesses that keep the mining industry running. He says it would undermine the purpose of the act if liens became invalid after assets changed hands.