The maximum amount operators can deduct as a depreciation allowance in respect of class 1A, class 2A and class 3A property in calculating the mine-mouth output value is the least of the following amounts:

• the capital cost of the property of the class that was used in the operation of the mine, multiplied by the depreciation rate that applies to the property;
• the undepreciated capital cost of the property of the class that was used in the operation of the mine at the end of the fiscal year;
• zero (where the operator no longer owns property of the class at the end of the fiscal year).

The maximum amount that operators can deduct as a depreciation allowance in respect of class 4A property in calculating the annual earnings from a mine is 30% of the undepreciated capital cost of the property of that class that is used in the operation of the mine at the end of the fiscal year. If an operator no longer owns property of the class at the end of the fiscal year, the allowance is equal to zero.

If an operator deducts an amount as a depreciation allowance in calculating the mine-mouth output value, the operator must deduct the same amount in calculating the annual earnings from the mine.

Operators can deduct the depreciation allowance in respect of class 4A property for a fiscal year only if they deducted the maximum amount in respect of class 1A, class 2A and class 3A property for the same fiscal year.

Class 1A

Any road, building or equipment acquired before April 1, 1975, is included in class 1A if it meets the following conditions:

• It is used in mining operation activities from the first accumulation site of a mineral substance following its extraction from the mine.
• It was transferred from class 1 at the beginning of the operator's first fiscal year that began after December 31, 2013.

Class 2A

Any road, building or equipment acquired after March 31, 1975, but before May 13, 1994, is included in class 2A if it meets the following conditions:

• It is used in mining operation activities from the first accumulation site of a mineral substance following its extraction from the mine.
• It was transferred from class 2 at the beginning of the operator's first fiscal year that began after December 31, 2013.

Class 3A

Any road, building, equipment or service material acquired after May 12, 1994, but before March 31, 2010, is included in class 3A if it meets the following conditions:

• It is used in mining operation activities from the first accumulation site of a mineral substance following its extraction from the mine.
• It was transferred from class 3 at the beginning of the operator's first fiscal year that began after December 31, 2013.

Property acquired after March 30, 2010, but before March 31, 2011, is also class 3A property if it was acquired in accordance with an agreement signed no later than March 30, 2010, or if its construction had begun before that date.

Class 4A

Any road, building, equipment or service material is included in class 4A if it meets either of the following conditions:

• It was acquired after March 30, 2010, and:
  • it is not class 3 property,
  • it is used in mining operation activities from the first accumulation site of a mineral substance following its extraction from the mine, and
  • it was transferred from class 4 at the beginning of the operator's first fiscal year that began after December 31, 2013.
• It was acquired after the beginning of the operator's first fiscal year that began after December 31, 2013, in the case of any other property used regularly in mining operation activities from the first accumulation site of a mineral substance following its extraction from the mine.