Income Tax Regulations — (a)
Property situated in Canada that would otherwise be included in another class in this Schedule that (a) was acquired by the taxpayer (i) before 1988, or (ii) before 1990 (A) pursuant to an obligation in writing entered into by the taxpayer before June 18, 1987, (B) that was under construction by or on behalf of the taxpayer on June 18, 1987, or (C) that is machinery or equipment that is a fixed and integral part of a building, structure, plant facility or other property that was under construction by or on behalf of the taxpayer on June 18, 1987, and that (b) was acquired by the taxpayer principally for the purpose of gaining or producing income from one or more mines operated by the taxpayer and situated in Canada and each of which (i) came into production in reasonable commercial quantities after November 7, 1969, or (ii) was the subject of a major expansion after November 7, 1969 (A) whereby the greatest designed capacity, measured in weight of input of ore, of the mill that processed the ore from the mine was not less than 25% greater in the year following the expansion than it was in the year preceding the expansion, or (B) where in the one year period preceding the expansion (I) the Minister, in consultation with the Minister of Natural Resources, determines that the greatest designed capacity of the mine, measured in weight of output of ore, immediately after the expansion was not less than 25% greater than the greatest designed capacity of the mine immediately before the expansion, and (II) either 1 no mill processed the ore from the mine at any time, or 2 the mill that processed the ore from the mine processed other ore, (c) was acquired by the taxpayer (i) after November 7, 1969, (ii) before the coming into production of the mine or the completion of the expansion of the mine referred to in subparagraph (b)(i) or (ii), as the case may be, and (iii) in the case of a mine that was the subject of a major expansion described in subparagraph (b)(ii), in the course of and principally for the purposes of the expansion, (d) had not, before it was acquired by the taxpayer, been used for any purpose whatever by any person with whom the taxpayer was not dealing at arm’s length, and (e) is any of the following, namely, (i) property that was acquired before the mine came into production and that would, but for this class, be included in Class 10 by virtue of paragraph (g), (k), (l) or (r) of that class or would have been so included in that class if it had been acquired after the 1971 taxation year, (ii) property that was acquired before the mine came into production and that would, but for this class, be included in Class 10 by virtue of paragraph (m) of that class, or (iii) property that was acquired after the mine came into production and that would, but for this class, be included in Class 10 by virtue of paragraph (g), (k), (l) or (r) of that class, or that would be described in paragraphs (b) to (e) if in those paragraphs each reference to a “mine” were read as a reference to a “mine that is a location in a bituminous sands deposit, oil sands deposit or oil shale deposit from which material is extracted”, and each reference to “after November 7, 1969” were read as “before November 8, 1969”. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/78-137, s. 8; SOR/80-926, s. 5; SOR/90-22, s. 18; SOR/94-140, s. 26; SOR/2000-327, s. 5