In calculating the annual earnings from a mine they operate, an operator can deduct an additional depreciation allowance, in relation to a plant that processes ore from the mine, for property that:

• is class 3 property
• is used in a processing plant

Maximum additional depreciation allowance

The maximum amount that an operator can deduct for a fiscal year as an additional depreciation allowance is equal to the least of the following amounts:

• 15% of the cost of class 3 property that is used in the operation of the mine. The cost must be at least:
  • $300 million, if the property was acquired after March 25, 1997, but before April 1, 1998 
  • $150 million, if the property was acquired after December 31, 2003, but before January 1, 2008
• $50 million
• the total cost of property used in the operation of the mine that was acquired after March 25, 1997, but before April 1, 1998 (maximum of $350 million), or after December 31, 2003, but before January 1, 2008 (minimum of $150 million and maximum of $200 million), minus the total of all the amounts that the operator deducted as an additional depreciation allowance for previous fiscal years
• the annual earnings from the mine for the fiscal year before deduction of the additional depreciation allowance and the additional allowance for a mine situated in Northern Québec

Associated operators

If the operator is associated with other operators, it must enclose form IM-30.EN-V, Agreement Between Associated Operators Regarding the Mining Tax, with its return. The agreement defines how the associated operators will allocate the limits related to the additional depreciation allowance and minimum mining tax threshold.