Marginal note:Royalty returns for certain joint ventures
74 (1) If a mine is operated as a joint venture and each member of the joint venture takes its share of the output of the mine in kind and sells that share separately and independently from other members of the joint venture to purchasers who are not related to any of the members of the joint venture,
(a) each member may deliver to the Chief a separate mining royalty return for the royalty payable under subsection 69(1) on the value of its share of the output of the mine, in lieu of including that information in a mining royalty return delivered under subsection 73(1); and
(b) each member, and any person related to that member, is liable to pay only those royalties attributable to that member’s share of the output of the mine.
Marginal note:Joint venture respecting single mine
(2) When, under subsection (1), more than one member of a joint venture delivers a mining royalty return to the Chief for a single mine,
(a) each member of the joint venture is considered to be a separate operator for the purposes of these Regulations;
(b) each member must indicate on the mining royalty return the percentage of the output of the mine represented by that mining royalty return;
(c) the value of the output on the mining royalty return for each member must be calculated in accordance with section 69 using
(i) in respect of costs eligible for deductions under paragraphs 70(1)(a) to (f),
(ii) in determining a deduction for exploration costs under paragraph 70(1)(g), the exploration costs incurred by that member alone,
(iii) a depreciation allowance based on
(iv) a development allowance based on
(v) a mining reclamation trust contribution allowance equal to the amount contributed to a mining reclamation trust in respect of lands to which these Regulations apply by that member, and
(vi) a processing allowance based on
(d) the amounts in column 1 of the table to subsection 69(1) must be adjusted by multiplying each amount by a percentage equal to the percentage of the output of the mine received by that member; and
(e) each mining royalty return must be based on the same fiscal year.
Marginal note:Notice of assessment of royalties
75 (1) Within six years after the end of a particular fiscal year of a mine, the Chief must send to the operator of the mine a notice of assessment for the amount of the royalty payable for that fiscal year.
Marginal note:Notice of reassessment
(2) If, during or after the period referred to in subsection (1), there are reasonable grounds to believe that the operator of a mine or any other person who delivers a mining royalty return has made a fraudulent or negligent misrepresentation in completing the mining royalty return or in supplying any other information under section 73 or 74, the Chief may send a notice of reassessment for the amount of the royalty payable for a fiscal year in respect of the mine.
Marginal note:When royalties are considered payable
(3) If the Chief sends an operator a notice of assessment or reassessment for the amount of royalty payable for a fiscal year, the amount of royalty assessed or reassessed for the fiscal year is considered to be payable on the last day of the fourth month after the end of that fiscal year.
Marginal note:Royalty returns when ownership of mine changes
(4) If the ownership of a mine changes, the operator may file a separate mining royalty return for the portion of the fiscal year before the change of ownership and the portion of the fiscal year after the change of ownership, and each such portion is considered to be a fiscal year of less than 12 months for the purposes of subsection 70(2).
Marginal note:Record keeping
(a) records, books of account and other documents evidencing
(i) the weight of all minerals extracted from the mine and of all minerals or processed minerals processed at the mine, whether or not they are produced from the mine,
(ii) the weight and value of all minerals or processed minerals produced from the mine, sold, transferred or removed from the mine by the mine’s operator,
(iii) any amounts received from a processing plant and any other amounts received from the sale of minerals or processed minerals, and
(iv) the costs, payments, allowances and other deductions referred to in section 70;
(b) the financial statements of the mine and the operator;
(c) a reconciliation between the documents referred to in paragraphs (a) and (b) and the mining royalty return;
(d) if the financial statements of an owner or the operator of the mine are audited by an external auditor,
(e) any documents filed by an owner or the operator with a stock exchange or securities commission;
(f) any documents related to any internal audits of a company that is an owner or the operator; and
(g) any other documents that contain information necessary for ascertaining the amount of royalty payable under section 69.
Marginal note:Non-disclosure of confidential information
(2) It is prohibited to disclose information of a confidential nature acquired for the purposes of sections 69 to 77, except
(a) to the extent necessary to determine the amount of royalties payable under section 69;
(c) under an agreement entered into by the Minister for the purpose of the administration of section 69 with the government of a country, province or state, or with an Aboriginal organization owning mineral rights, under which the officers of that government or Aboriginal organization are provided with the information and the Chief is provided with information from the government or Aboriginal organization.
Marginal note:Condition on removal of minerals
77 (1) Subject to subsection (2), it is prohibited to remove minerals or processed minerals produced from a mine, other than for the purposes of assay and testing to determine the existence, location, extent, quality or economic potential of a mineral deposit in the lands constituting the mining property, until the weight and any other information necessary to establish the value of those minerals or processed minerals has been ascertained and entered in the books of account referred to in subsection 76(1).
Marginal note:Condition on removal of precious stones
(2) Precious stones must not be removed from a mine — other than in a bulk sample or in a concentrate for the purposes of establishing the grade and the value of the stones in a mineral deposit — or cut, polished, sold or transferred, until they have been valued by a mining royalty valuer.
Marginal note:Facilities required for valuation
(3) The operator of a mine must provide, in Nunavut, any facilities and equipment, other than computer equipment, necessary for a mining royalty valuer to value any precious stones produced from the mine.
Marginal note:Facilities considered part of mine
(4) For the purposes of these Regulations, facilities referred to in subsection (3) are considered to be part of the mine and any transfer of the precious stones from one part of the mine to another is not considered to be a removal of the stones from the mine.
Marginal note:Cleaning of precious stones
(5) Precious stones must not be presented to the mining royalty valuer until the operator of the mine has cleaned the stones so as to remove all substances from the stones that are not part of them.
Marginal note:Presentation of precious stones to royalty valuer
(6) As soon as any precious stones have been processed into a saleable form, they must be presented to a mining royalty valuer for valuation.
Marginal note:Separate valuation of precious stones
(7) An operator who produces precious stones and sells or transfers them to persons who are related to the operator must present to a mining royalty valuer
Marginal note:Presentation of diamonds to royalty valuer
(8) For the purposes of subsections (6) and (7), unless otherwise agreed on by the operator and the mining royalty valuer, an operator must present to the mining royalty valuer
(a) diamonds with a weight of 10.8 carats or more, separately, together with the weight of each diamond;
(b) diamonds with a weight from 2.8 carats to 10.79 carats, in lots separated according to weight in carats, together with the number of diamonds per lot;
(c) diamonds with a weight from 0.66 carats to 2.79 carats, in lots separated according to weight in grainers, from which randomly selected samples, accurately representing the composition of each lot, have been separated; and
(d) diamonds with a weight of less than 0.66 carats, in lots separated according to industry standard DTC sieve sizes, from which randomly selected samples, accurately representing the composition of each lot, have been separated.
Marginal note:Estimate of market value of diamonds
(9) Before diamonds are presented to the mining royalty valuer under subsection (8), the operator must provide an estimate of the market value of each diamond or lot, as the case may be, to the Chief.
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