CRA indicates that a deposit to be used in the construction industry was not a mineral deposit
Capital cost allowance may be claimed under Sched. V for an industrial mineral mine, which excludes a “mineral deposit” – which is defined to include a “base or precious metal deposit” and “a mineral deposit in respect of which the Minister of Natural Resources has certified that the principal mineral extracted is an industrial mineral contained in a non-bedded deposit.” IT-492 states that “industrial mineral” means “a non-metallic mineral capable of being used in industry.” In explaining the denial of a certification request respecting a deposit of nephrite (a type of jade), CRA stated:.
The Minister of Natural Resources has advised that the principal mineral, nephrite, to be extracted from the Properties is not an industrial mineral contained in non-bedded deposits as it will be used as a construction material.
See also 2016-0674541E5.
Neal Armstrong. Summary of 16 June 2017 External T.I. 2016-0673551E5 under s. 248(1) – mineral resource.