Income Tax Regulations — 1104
 to the processing by the taxpayer of (i) ore (other than iron ore or tar sands ore) from a mineral resource not owned by the taxpayer, to any stage that is not beyond the prime metal stage or its equivalent, (ii) iron ore from a mineral resource not owned by the taxpayer to any stage that is not beyond the pellet stage or its equivalent, (iii) tar sands ore from a mineral resource not owned by the taxpayer to any stage that is not beyond the crude oil stage or its equivalent, and (iv) material extracted by a well from a mineral resource not owned by the taxpayer that is a deposit of bituminous sands or oil shales to any stage that is not beyond the crude oil stage or its equivalent exceeds the cost to the taxpayer of the ore or material processed; and (c) revenue reasonably attributable to the production by the taxpayer of material from a deposit of bituminous sands or oil shales. (5.2) For the purpose of subsection (5.1), gross revenue from a mine does not include revenue reasonably attributable to the addition of diluent, for the purpose of transportation, to material extracted from a deposit of bituminous sands or oil shales. (6) For the purposes of Class 10 in Schedule II, (a) income from a mine includes income reasonably attributable to the processing of (i) ore, other than iron ore or tar sands ore, from a mineral resource not owned by the taxpayer to any stage that is not beyond the prime metal stage or its equivalent, (ii) iron ore from a mineral resource not owned by the taxpayer to any stage that is not beyond the pellet stage or its equivalent, (iii) tar sands ore from a mineral resource not owned by the taxpayer to any stage that is not beyond the crude oil stage or its equivalent, or (iv) material extracted by a well from a mineral resource not owned by the taxpayer that is a deposit of bituminous sands or oil shales to any stage that is not beyond the crude oil stage or its equivalent; and (b) mine includes a well for the extraction of material from a deposit of bituminous sands or oil shales or from a deposit of calcium chloride, halite or sylvite. (6.1) [Repealed, SOR/99-179, s. 3] (7) For the purposes of paragraphs 1100(1)(w) to (ya.2), subsections 1101(4a) to (4h) and 1102(8) and (9), section 1107 and Classes 12, 28 and 41 to 41.2 of Schedule II, (a) mine includes (i) a well for the extraction of material from a deposit of bituminous sands or oil shales or from a deposit of calcium chloride, halite or sylvite, and (ii) a pit for the extraction of kaolin or tar sands ore, but does not include (iii) an oil or gas well, or (iv) a sand pit, gravel pit, clay pit, shale pit, peat bog, deposit of peat or a stone quarry (other than a kaolin pit or a deposit of bituminous sands or oil shales); (b) all wells of a taxpayer for the extraction of material from one or more deposits of calcium chloride, halite or sylvite, the material produced from which is sent to the same plant for processing, are deemed to be one mine of the taxpayer; and (c) all wells of a taxpayer for the extraction of material from a deposit of bituminous sands or oil shales that the Minister, in consultation with the Minister of Natural Resources, determines constitute one project, are deemed to be one mine of the taxpayer. (8) For the purposes of subsection (7), stone quarry includes a mine producing dimension stone or crushed rock for use as aggregates or for other construction purposes. (8.1) For greater certainty, for the purposes of paragraphs (c) and (e) of Class 28 and paragraph (a) of Classes 41 to 41.2 in Schedule II, production means production in reasonable commercial quantities. Manufacturing or Processing (9) For the purposes of paragraph 1100(1)(a.1), subsection 1100(26) and Class 29 in Schedule II, manufacturing or processing does not include (a) farming or fishing; (b) logging; (c) construction; (d) operating an oil or gas well or extracting petroleum or natural gas from a natural accumulation thereof; (e) extracting minerals from a