Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: Whether a graphite deposit is an industrial mineral contained in a non-bedded deposit (Certification by Minister of Natural Resources)
Position: Mineral deposit meets the requirements of definition of "mineral resource" in subpara. 248(1)(d)(i).
Reasons: See Certification by Minister of Natural Resources.
XXXXXXXXXX 2016-066900
Boriana Christov
December 17, 2016
Dear XXXXXXXXXX:
Re: XXXXXXXXXX Mineral Resource Certification
This is in response to your letter dated September 23, 2016, in which you requested on behalf of XXXXXXXXXX (the “Company”) certification pursuant to subparagraph (d)(i) of the definition “mineral resource” in subsection 248(1) of the Income Tax Act (the “Act”) with respect to the XXXXXXXXXX (the “Property”).
The Company owns XXXXXXXXXX mineral claims covering an area of XXXXXXXXXX. The Property is located in XXXXXXXXXX.
The Minister of Natural Resources has advised that the principal mineral, graphite, to be extracted from the mineral deposits located on the Property is an industrial mineral contained in non-bedded deposits. It is therefore our view that the graphite deposits on the Property will qualify as a mineral resource pursuant to subparagraph (d)(i) of the definition of this term in subsection 248(1) of the Act.
Yours truly,
Nicolas Bilodeau
Acting Manager
Resources Section
Reorganizations Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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