9. (1) Subject to subsections (2) and (5), the following processing allowance is prescribed for the purposes of clause 3 (5) (k) of the Act: 1. Where the output has been processed in a concentrator situated in Canada and owned by the operator at the end of the taxation year and operated by the operator, but has not been processed in a smelter or refinery owned and operated by the operator, the processing allowance shall be 8 per cent of the capital cost to the operator of the processing assets used in processing the output. 2. Where the output has been processed in a concentrator and a smelter both of which are situated in Canada and owned by the operator at the end of the taxation year and operated by the operator, but has not been processed in a refinery owned and operated by the operator, the processing allowance shall be 12 per cent of the capital cost to the operator of the processing assets used in processing the output. 3. Where the output has been processed in a concentrator, a smelter and a refinery, all of which are situated in Canada and all of which are owned by the operator at the end of the taxation year and operated by the operator, the processing allowance shall be 16 per cent of the capital cost to the operator of the processing assets used in processing the output. 4. In lieu of the processing allowance under paragraph 3, where the output has been processed in, i. a concentrator, a smelter and a refinery, or ii. a concentrator, a smelter, a refinery and a semi-fabricating plant, all of which are situated in Northern Ontario and all of which are owned by the operator at the end of the taxation year and operated by the operator and 80 per cent or more of the value of the input to the semi-fabricating plant, if applicable, originates from a mine situated in Ontario that is owned by the operator, the processing allowance shall be 20 per cent of the capital cost of the processing assets used in processing the output.  R.R.O. 1990, Reg. 769, s. 9 (1). (2) Where at any stage prior to the final stage of processing in Canada undertaken by the operator, a portion of the output of the processing plant located in Canada leaves a stage of processing without proceeding to the next stage of processing in Canada, the processing allowance at each stage shall be reduced by the proportion that the value of the output that has left the stage of processing bears to the total value of the output of the processing plant at that stage.  R.R.O. 1990, Reg. 769, s. 9 (2). (3) The processing allowance shall apply to processing assets as constructed only to the extent that they remain in use after construction, provided that where processing assets are not fully completed within eight years from the date of commencement of construction, the processing allowance shall be suspended for those processing assets.  R.R.O. 1990, Reg. 769, s. 9 (3). (4) An operator’s processing allowance calculated under this section with respect to processing assets under construction and not yet in use shall be determined on the basis of a progress report to support the claim, showing the work done and the money expended on the processing assets during the taxation year.  R.R.O. 1990, Reg. 769, s. 9 (4). (5) An operator who, (a) does not own processing assets and sells output that has been processed by another person on behalf of the operator is entitled in any taxation year to claim a processing allowance under clause 3 (5) (k) of the Act equal to 15 per cent of the operator’s profit otherwise determined under subsection 3 (5) of the Act before deduction of the processing allowance; and (b) owns processing assets and sells output in a taxation year that has been processed shall claim a processing allowance under clause 3 (5) (k) of the Act in determining profit for the taxation year of not less than 15 per cent and not more than 65 per cent of the profit otherwise determined under subsection 3 (5) of the Act before deduction of the processing allowance.  R.R.O. 1990, Reg. 769, s. 9 (5). (6) Despite subsection (5), the Lieutenant Governor in Council may increase the 65 per cent rate referred to in subsection (5) where a semi-fabricating plant is constructed in Northern Ontario.  R.R.O. 1990, Reg. 769, s. 9 (6). (7) Where 80 per cent or more of the value of the input to a processing plant located in Ontario and owned and operated by the operator is from mineral substances mined in Ontario or outside Canada, whether from the operator’s mines or not, the operator is entitled to a processing allowance determined under this section with respect to the processing plant.  R.R.O. 1990, Reg. 769, s. 9 (7). (8) Where less than 80 per cent of the value of the input to a processing plant located in Ontario and owned and operated by the operator is from mineral substances mined in Ontario or outside Canada, whether from the operator’s mines or not, the processing allowance determined under subsection (1) with respect to the processing plant shall be reduced by the proportion that the value of the input of mineral substances mined in Canada outside Ontario bears to the total value of the input of mineral substances to the processing plant.  R.R.O. 1990, Reg. 769, s. 9 (8). (9) Where a processing plant owned and operated by the operator is located in Canada and outside Ontario, the operator’s processing allowance as determined under subsection (1) with respect to the processing plant shall be reduced by the proportion that the aggregate of the value of the input of, (a) mineral substances from Ontario mines, other than mineral substances from the operator’s Ontario mines, and (b) mineral substances from mines located outside Ontario whether from the operator’s mines or not, bears to the value of the total input of mineral substances to the processing plant.  R.R.O. 1990, Reg. 769, s. 9 (9).