Northwest Territories Mining Regulations — 70
in which the assets were disposed of, the excess must be included in the value of the output of the mine for that fiscal year. Depreciation allowance — proceeds of disposition (6) For the purposes of subsection (5), when the operator of a mine sells to a related person an asset for which a depreciation allowance has been claimed or removes the asset from the mine, the proceeds of disposition of the asset are the amount that could be expected to be realized from the sale of the asset to a person not related to the operator. Depreciation allowance — purchase cost (7) When the operator of a mine purchases from a related person an asset that is eligible for a depreciation allowance or transfers to the mine an asset from another mine owned by the operator, the cost of the asset for the purposes of calculating a depreciation allowance is the amount that the operator could be expected to pay to purchase that asset from a person not related to the operator. Rules respecting processing minerals not produced at the mine (8) When, in a particular fiscal year, a mine’s operator uses the mine’s depreciable assets, or any facilities located outside the Northwest Territories that are used for the processing of minerals or processed minerals produced from the mine, to process minerals or processed minerals other than those produced from the mine, (a) the revenue earned from the sale or processing of those minerals or processed minerals must not be included in the value of the output of the mine; (b) the deduction for the costs incurred during the fiscal year under paragraphs (1)(a) to (f) must be reduced by any costs incurred for the processing of minerals or processed minerals not produced from the mine; (c) the original cost of the processing assets used to calculate the processing allowance amount under subparagraph (1)(k)(i) must be reduced by an amount equal to the original cost of the processing assets multiplied by the ratio of the costs incurred during the fiscal year under paragraphs (1)(a) to (f) for the processing of minerals or processed minerals not produced from the mine to the total costs incurred during the fiscal year, under those paragraphs, for the processing of all minerals or processed minerals at the mine; and (d) the undeducted balance of the original cost of the mine’s depreciable assets at the end of the fiscal year must be adjusted to exclude an amount equal to the original cost of the depreciable assets used to process minerals or processed minerals not produced from the mine multiplied by the ratio of the costs incurred under paragraphs (1)(a) to (f) during that fiscal year and all prior fiscal years for the processing through those assets of minerals or processed minerals not produced from the mine to the total costs incurred under those paragraphs during that fiscal year and all prior fiscal years for the processing through those assets of all minerals and processed minerals at the mine. Rules respecting adjustment of calculations (9) When a mine produces minerals or processed minerals from lands to which these Regulations apply and any other lands, (a) the deduction for the costs incurred during the fiscal year under paragraphs (1)(a) to (f) must be reduced by any costs incurred for the production of minerals or processed minerals from lands other than lands to which these Regulations apply; (b) the original cost of the processing assets used to calculate the processing allowance under subparagraph (1)(k)(i) must be reduced by an amount equal to the original cost of the processing assets multiplied by the ratio of the costs incurred during the fiscal year under paragraphs (1)(a) to (f) for the processing of minerals or processed minerals produced from lands other than lands to which these Regulations apply to the total costs incurred during the fiscal year, under those paragraphs, for the processing of all minerals or processed minerals at the mine; (c) the undeducted balance of costs eligible for the mine’s dev