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 the nephrite deposits at issue meet the definition of mineral resource as per subparagraph (d)(i) of the definition of this term in ss. 248(1)
Position: No.
Reasons: Opinion of NRCan - the 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.
XXXXXXXXXX 2016-067355
Boriana Christov
June 16, 2017
Dear XXXXXXXXXX:
Re. Mineral Certification – XXXXXXXXXX
We are writing with respect to a request made by XXXXXXXXXX. (the “Company”) for certification pursuant to subparagraph (d)(i) of the definition of “mineral resource” in subsection 248(1) of the Income Tax Act ( the “Act”) with respect to nephrite deposits at the XXXXXXXXXX (the “Properties”).
The Company owns the following mineral claims to the Properties:
XXXXXXXXXX
The Properties are located in XXXXXXXXXX.
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. It is therefore our view that the nephrite deposits on the Properties do not 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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