Nunavut Mining Regulations

Marginal note:Change of owner or operator has no effect

• 71 (1) A change in the ownership or of the operator of a mine does not affect

  • (a) the undeducted balance of the depreciable assets eligible for a depreciation allowance;

  • (b) the undeducted balance of the costs eligible for a development allowance;

  • (c) the undeducted balance of contributions to a mining reclamation trust; or

  • (d) the original cost of the assets used for calculating a processing allowance.

• Marginal note:Costs not eligible for development allowance

  (2) Subject to paragraph 70(1)(i), when a recorded claim expires or its recording is cancelled, or a lease expires or is cancelled, any costs incurred in respect of that claim or lease that would otherwise be eligible for a development allowance are no longer eligible for a development allowance in respect of any mine.

• Marginal note:Combining operations on two mining properties

  (3) If a mining property is acquired by the operator of another mine and the operations on the two mining properties are combined to become a single operation, the undeducted balance of the costs eligible for the development allowance, the undeducted balance of the cost of the depreciable assets eligible for the depreciation allowance, the undeducted balance of the contributions to a mining reclamation trust and the original cost of the processing assets eligible for the processing allowance for each mine must be combined.

• Marginal note:Valuations when mining property purchased from Crown

  (4) For the purpose of subsection (3), if an operator purchases a mining property from the Crown, the value of the undeducted balance of the costs eligible for the development allowance, of the undeducted balance of the cost of the depreciable assets eligible for the depreciation allowance and of the original cost of the processing assets eligible for the processing allowance of the purchased mine is the lesser of the value established at the time the Crown acquired the mining property and the value established in the agreement of purchase and sale for that property.