Northwest Territories Mining Regulations — 70
Deductions 70 (1) In calculating the value of the output of a mine for a fiscal year, only the following deductions and allowances may be claimed: (a) the costs, incurred during the fiscal year, of sorting, valuing, marketing and selling the minerals or processed minerals produced from the mine; (b) the costs, incurred during the fiscal year, of insurance, storage, handling and transportation to the processing plant or market, in respect of the minerals or processed minerals produced from the mine; (c) the costs, incurred during the fiscal year, of mining and processing minerals or processed minerals from the mine; (d) the costs, incurred during the fiscal year, of repair, maintenance or reclamation at the mine; (e) the consideration paid by a member of a joint venture for minerals or processed minerals diverted from another member of the joint venture, when each member is delivering a separate mining royalty return in accordance with section 74 ; (f) general and administrative costs incurred during the fiscal year for property, employees or operations at the mine that are not otherwise allocated to operating costs; (g) exploration costs incurred during the fiscal year by an owner of the mine, other than on the mining property, if those costs have not been otherwise claimed as an allowance or deduction under these Regulations, in an amount not greater than 10% of the value of the output of the mine multiplied by the owner’s share of that output, calculated (i) after deduction of the costs referred to in paragraphs (a) to (f), and (ii) before the deduction of any depreciation allowance, mining reclamation trust contribution allowance, development allowance or processing allowance; (h) subject to subsection (5), paragraphs (8)(d) and (9)(e) and subsection (10), a depreciation allowance for the depreciable assets of the mine, and for the depreciable assets of any facilities located outside the Northwest Territories that are used for the processing of minerals or processed minerals produced from the mine in an amount not exceeding the undeducted balance of the cost of those depreciable assets at the end of the fiscal year of the mine; (i) a development allowance, not exceeding the undeducted balance at the end of the fiscal year of the mine of (i) exploration costs incurred, before the date of commencement of production, on the mining property as constituted on the date of commencement of production and not deducted under paragraph (g) in respect of any other mine, (ii) all costs incurred before the date of the commencement of production for the purposes of bringing the mine into production less the total of (A) the value of any minerals or processed minerals produced from the mining property that were sold or transferred before the date of commencement of production, calculated in accordance with section 69 , and (B) the market value of any minerals or processed minerals produced from the mining property that are in inventory on the date of commencement of production, calculated in accordance with section 69 , (iii) exploration costs incurred on the mining property after the date of commencement of production, (iv) costs incurred after the date of commencement of production for workings designed for continuing use, including the clearing, removing or stripping of overburden from a new deposit at the mine, the sinking, excavation or extension of a mine shaft, main haulage way or similar underground workings, the construction of an adit or other underground entry and the construction of a road or of tailings disposal structures at the mine, and (v) if minerals or processed minerals are being produced in commercial quantities from a recorded claim or leased claim that was incorporated into the mining property after the date of the commencement of production of the mine, or from another mining property that was incorporated into the mining property on which the mine is located after the date of the commencement of production, (A) if