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Marginal note:Royalties on value of output of mine

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• Marginal note:Royalties payable to Receiver General

  (2) The royalties payable to the Receiver General of Canada under subsection (1) in respect of a mine accrue during a fiscal year as the output of a mine is produced and must be remitted to the Chief not later than the last day of the fourth month after the end of that fiscal year.

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• (4) For the purposes of this section, the value of the output of a mine for a fiscal year must be calculated in accordance with the formula

  A + B – C + D + E + F + G + H – I + J

  where

  B 

  is the market value of any inventories of minerals and processed minerals produced from the mine, as at the end of the fiscal year, determined under subsection (9);

  C 

  is the market value of any inventories of minerals and processed minerals produced from the mine, as at the beginning of the fiscal year, determined under subsection (9);

  D 

  is the lesser of

  • (a) the amount of any payment received during the fiscal year that is related to a cost that has been claimed as a deduction or allowance under this section, and

• Marginal note:Joint venture — determination of value of A

  (5) For the purpose of determining the value of A in subsection (4), if a mine is operated as a joint venture whose members deliver separate mining royalty returns under subsection 74(1),

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  • (b) any consideration paid to the member from whom the production was diverted must be included by that member as proceeds of sale of minerals or processed minerals produced from the mine.

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• Marginal note:Last year of production — option for calculation

  (7) In the case of a mining royalty return for the last fiscal year of production of a mine, the operator may, for the purpose of determining the value of B in subsection (4), elect to use the actual proceeds from the sale to a party not related to the operator of minerals or processed minerals in inventory at the end of the fiscal year, if proof of that sale is provided, rather than the market value of the inventory of minerals or processed minerals at the end of that fiscal year as required under subsection (4).

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• Marginal note:Market value of precious stones

  (9) If the minerals or processed minerals referred to in paragraphs (b) and (c) of the description of A, and in the descriptions of B and C, in subsection (4) are precious stones, the market value of the precious stones is as follows:

  [...]

• (10) For the purpose of subsection (9), the market value must be determined

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  • (b) when the value is calculated for any other purpose, as of the last time the precious stones were valued by the mining royalty valuer.

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• (14) For the purpose of these Regulations, the Bank of Canada’s noon exchange rate must be used to convert foreign currencies into Canadian dollars

  • (a) as of the date of that transaction if a transaction is carried out in a foreign currency; and

  • (b) as of the last day of the fiscal year if inventories have been valued in a foreign currency.

Marginal note:Royalties on value of output of mine

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• Marginal note:Royalties payable to Receiver General

  (2) The royalties payable to the Receiver General of Canada under subsection (1) in respect of a mine accrue during a fiscal year as the output of a mine is produced and must be remitted to the Chief not later than the last day of the fourth month after the end of that fiscal year.

• [...]

• (4) For the purposes of this section, the value of the output of a mine for a fiscal year must be calculated in accordance with the formula

  A + B – C + D + E + F + G + H – I + J

  where

  B 

  is the market value of any inventories of minerals and processed minerals produced from the mine, as at the end of the fiscal year, determined under subsection (9);

  C 

  is the market value of any inventories of minerals and processed minerals produced from the mine, as at the beginning of the fiscal year, determined under subsection (9);

  D 

  is the lesser of

  • (a) the amount of any payment received during the fiscal year that is related to a cost that has been claimed as a deduction or allowance under this section, and

• Marginal note:Joint venture — determination of value of A

  (5) For the purpose of determining the value of A in subsection (4), if a mine is operated as a joint venture whose members deliver separate mining royalty returns under subsection 74(1),

  • [...]

  • (b) any consideration paid to the member from whom the production was diverted must be included by that member as proceeds of sale of minerals or processed minerals produced from the mine.

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• Marginal note:Last year of production — option for calculation

  (7) In the case of a mining royalty return for the last fiscal year of production of a mine, the operator may, for the purpose of determining the value of B in subsection (4), elect to use the actual proceeds from the sale to a party not related to the operator of minerals or processed minerals in inventory at the end of the fiscal year, if proof of that sale is provided, rather than the market value of the inventory of minerals or processed minerals at the end of that fiscal year as required under subsection (4).

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• Marginal note:Market value of precious stones

  (9) If the minerals or processed minerals referred to in paragraphs (b) and (c) of the description of A, and in the descriptions of B and C, in subsection (4) are precious stones, the market value of the precious stones is as follows:

  [...]

• (10) For the purpose of subsection (9), the market value must be determined

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  • (b) when the value is calculated for any other purpose, as of the last time the precious stones were valued by the mining royalty valuer.

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• (14) For the purpose of these Regulations, the Bank of Canada’s exchange rate must be used to convert foreign currencies into Canadian dollars

  • (a) as of the date of that transaction if a transaction is carried out in a foreign currency; and

  • (b) as of the last day of the fiscal year if inventories have been valued in a foreign currency.

[...]

Marginal note:Definitions

• 1 (1) The following definitions apply in these Regulations.

  fiscal year

  fiscal year , in respect of a mine, means the fiscal period of the mine’s operator as that period is defined in section 249.1 of the Income Tax Act. (exercice)

  legal post

  legal post  means a post, tree or mound of stones set up in accordance with section 26 to serve as a boundary post, corner post or witness post. (borne légale)

  mining property

  mining property  means

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  • (b) a group of contiguous recorded or leased claims within the boundaries of which a mine or part of a mine is situated and

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    • (ii) if the mine is operated as a joint venture, that are owned exclusively by the members of the joint venture or parties related to the members of the joint venture, regardless of the degree of ownership of each recorded claim or leased claim. (propriété minière)

  mining reclamation trust

  mining reclamation trust  means a trust that is established for a mine and that is created

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  • (b) as a condition of

    [...]

  Mining Recorder

  Mining Recorder  means the person designated by the Minister as the Mining Recorder. (registraire minier)

  Supervising Mining Recorder

  Supervising Mining Recorder  means the person designated by the Minister as the Supervising Mining Recorder. (registraire minier en chef)

  work

  work  means

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  • (c) environmental baseline studies that are conducted in conjunction with undertakings referred to in subparagraphs (a)(i) to (vii) and (ix) or subparagraph (b)(ii), as well as analysis of the data resulting from the studies, map generation and the preparation of an appendix as required in paragraph 4(t) of Schedule 2. (travaux)

Marginal note:Deductions

• 70 (1) In calculating the value of the output of a mine for a fiscal year, only the following deductions and allowances may be claimed:

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  • (g) exploration costs incurred during the fiscal year by an owner of the mine, other than on the mining property, if those costs have not been otherwise claimed as an allowance or deduction under these Regulations, in an amount not greater than 10% of the value of the output of the mine multiplied by the owner’s share of that output, calculated

    [...]

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  • (i) a development allowance, not exceeding the undeducted balance at the end of the fiscal year of the mine of

    • (i) exploration costs incurred, before the date of commencement of production, on the mining property as constituted on the date of commencement of production and not deducted under paragraph (g) in respect of any other mine,

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    • (v) if minerals or processed minerals are being produced in commercial quantities from a recorded claim or leased claim that was incorporated into the mining property after the date of the commencement of production of the mine, or from another mining property that was incorporated into the mining property on which the mine is located after the date of the commencement of production,

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      • (B) in any other case, the costs referred to in subparagraphs (i) and (ii) that were incurred on the incorporated claim or lease and that have not been previously claimed as a deduction or allowance under these Regulations;

• (2) When a mine is in production for less than 12 months in a fiscal year or a fiscal year of a mine is less than 12 months,

  • (a) the deduction for processing allowance calculated under subparagraph (1)(k)(i) must be multiplied by one-twelfth times the number of months in the fiscal year that the mine was in production or the number of months in the shortened fiscal year, as the case may be; and

  • (b) each dollar amount in column 1 of the table to subsection 69(1) must be multiplied by one-twelfth times the number of months in the fiscal year that the mine was in production or the number of months in the shortened fiscal year, as the case may be.

• Marginal note:Deduction respecting related person

  (3) When the operator of a mine claims a deduction for costs incurred in a transaction with a related person, the costs allowed as a deduction under this section must be the amount of the actual costs incurred by the related person, exclusive of any profit, gain or commission to the related person or to any other related person.

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• (5) When an operator disposes of, or receives insurance proceeds in respect of, assets for which a depreciation allowance has been claimed,

  • (a) the undeducted balance of depreciable assets must be reduced by the lesser of

    • (i) the proceeds of disposition or insurance proceeds, as the case may be, and

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• Marginal note:Timing and other requirements respecting adjustments

  (10) The adjustments referred to in paragraphs (8)(d) and (9)(c) to (e) must each be calculated at the end of each fiscal year of the mine with the difference between the amount calculated for that fiscal year and the amount calculated for the previous fiscal year being added to or subtracted from the undeducted balance of the depreciable assets or the undeducted balance of the costs eligible for the development allowance, as the case may be.

• (11) Despite any other subsection of this section, no deduction or allowance can be made in respect of a mine in relation to

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  • (u) the fees set out in Schedule 1 to the Nunavut Mining Regulationsas they read immediately before November 1, 2020 for making an application to record a claim or a reduced-area claim and the costs of staking incurred under those Regulations, the charges payable at the time of the recording of a claim under subsection 13(1) and the cost of surveying a claim for the purpose of taking it to lease;

[...]

Marginal note:Definitions

• 1 (1) The following definitions apply in these Regulations.

  fiscal year

  fiscal year , in respect of a mine, means the fiscal period of the mine’s operator as that period is defined in section 249.1 of the Income Tax Act. (exercice)

  mining property

  mining property  means

  • [...]

  • (b) a group of contiguous recorded or leased claims within the boundaries of which a mine or part of a mine is situated and

    • [...]

    • (ii) if the mine is operated as a joint venture, that are owned exclusively by the members of the joint venture or parties related to the members of the joint venture, regardless of the degree of ownership of each recorded claim or leased claim. (propriété minière)

  mining reclamation trust

  mining reclamation trust  means a trust that is established for a mine and that is created

  • [...]

  • (b) as a condition of

    [...]

  Mining Recorder

  Mining Recorder  means the person designated by the Minister as the Mining Recorder. (registraire minier)

  prospecting permit

  prospecting permit  means a prospecting permit issued under the Nunavut Mining Regulationsas they read immediately before November 1, 2020. (permis de prospection)

  Supervising Mining Recorder

  Supervising Mining Recorder  means the person designated by the Minister as the Supervising Mining Recorder. (registraire minier en chef)

  work

  work  means

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  • (c) environmental baseline studies that are conducted in conjunction with undertakings referred to in subparagraphs (a)(i) to (vii) and (ix) or subparagraph (b)(ii), as well as analysis of the data resulting from the studies, map generation and the preparation of an appendix as required in paragraph 4(t) of Schedule 2. (travaux)

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