3.1 (1) An operator having an interest during a taxation year in a new mine that came into existence after the 20th day of May, 1987, or in a mine in which a major expansion occurred after the 20th day of May, 1987, may elect to exclude from profit for the taxation year an amount not exceeding the operator’s exempt amount for the taxation year for the mine, as determined under subsection (2), if the operator files or has filed a declaration and allocation for the mining tax exemption in the form approved by the Minister at the prescribed time or times.  1992, c. 4, s. 2; 1997, c. 19, s. 14 (1). Exempt amount (2) An operator’s exempt amount for a taxation year for a mine is the lesser of, (a) the operator’s profit, if any, from the new mine or from the major expansion of the existing mine, for the portion of the exempt period that is both within the taxation year and after the 30th day of April, 1991; or (b) the amount, if any, by which the operator’s exemption limit for the mine exceeds the aggregate of all amounts, if any, each of which is an amount excluded under subsection (1) from the operator’s profit for a previous taxation year.  1992, c. 4, s. 2. Determination of profit (3) The operator’s profit from the new mine or from the major expansion of the existing mine shall be determined under subsection 3 (5) as if the operator’s interest in the new mine or in the major expansion is the only interest the operator had in a mine during the taxation year provided that, (a) the allowance for depreciation under clause 3 (5) (h) shall be the amount equal to the aggregate of the maximum amounts calculated in accordance with clauses 3 (12) (a) and (b), subject to clauses 3 (12) (d) and (e) and subsection 3 (21); and (b) no amount shall be deducted in respect of the allowance for depreciation of the operator calculated under clause 3 (12) (c) in respect of depreciable property that can reasonably be considered to be used in connection with the new mine or the major expansion of the existing mine.  1992, c. 4, s. 2. Transitional adjustment (4) If the operator’s taxation year commences before the lst day of May, 1991, the operator may exclude from profit, in addition to any amount determined under subsection (2) for the taxation year, an amount not exceeding the operator’s profit, if any, from the new mine or the major expansion of the existing mine for the portion of the exempt period that is both within the taxation year and before the 1st day of May, 1991.  1992, c. 4, s. 2. Prorating depreciation allowance (5) If only part of the operator’s taxation year is within an exempt period in respect of a new mine or major expansion, the amount of the operator’s allowance for depreciation required to be deducted in determining the operator’s profit from the mine or major expansion shall be equal to the proportion of the allowance for depreciation determined under clause (3) (a) that the number of days during the portion of the exempt period in the taxation year is of the total number of days in the taxation year.  1992, c. 4, s. 2. More than one operator (6) If more than one operator is entitled to elect under subsection (1) to exclude an amount from profit in respect of the same mine, the operators shall determine among themselves the exemption limit of each of them, but in no case shall the total of the operators’ exemption limits for the mine exceed $10,000,000 less the total of all amounts, if any, each of which is an amount that has been excluded under subsection (1) in respect of the mine from the profit of a person who is no longer an operator of the mine.  1992, c. 4, s. 2. Interpretation (7) For the purposes of this section, (a) an operator’s exemption limit for a mine is, (i) if there have been no other operators of the mine after the 30th day of April, 1991, $10,000,000, (ii) if there are or have been other operators of the mine after the 30th day of April, 1991, $10,000,000 less the aggregate of, (A) all amounts, if any, each of which is an amount that was excluded from profit in respect of the mine under subsection (1) by a person who is no longer an operator of the mine, and (B) all amounts, each of which is the amount of an exemption limit allocated to another operator of the mine in a determination made under subsection (6); (b) the exempt period, in respect of a new mine or a major expansion of an existing mine, is the thirty-six month period commencing with the month when the new mine or the major expansion comes into production in reasonable commercial quantities; (c) a new mine shall be deemed to come into production in reasonable commercial quantities on the first day of the month when an operator of the new mine first becomes entitled to receive proceeds from the output of the mine; and (d) a major expansion of an existing mine shall be deemed to come into production in reasonable commercial quantities on the first day when the rate of production of mineral substances from the expanded mine exceeds by at least 30 per cent the average daily rate of production of mineral substances from the mine during each of the five calendar years ending immediately before the calendar year in which the first outlay was made to expand the mine.  1992, c. 4, s. 2. Loss (8) This section does not apply in respect of a new mine or a major expansion of an existing mine if a determination under this section of the operator’s profit from the new mine or the major expansion produces a loss with respect to the portion of the exempt period within the taxation year for which the determination was made.  1992, c. 4, s. 2. Section Amendments with date in force (d/m/y) 1992, c. 4, s. 2 - 25/06/1992; 1997, c. 19, s. 14 (1) - 10/10/1997