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Income Tax Act 2007

Income - Income from mineral mining - Definitions

CU 7: Some definitions

You could also call this:

“Defines key mining terms and activities for industrial minerals in New Zealand”

In this part of the law, you’ll learn about some important words and what they mean for mining.

Mining operations are what mineral miners do in New Zealand to make money. These operations happen in areas where they’re allowed to mine. Mining operations include looking for certain industrial minerals, getting ready to look for or mine these minerals, taking the minerals out of the ground, or doing work that’s directly related to mining these minerals.

Associated mining operations are things that happen along with mining operations in New Zealand. These include collecting the industrial minerals, doing some basic work on them, and moving them. This continues until the minerals are ready to be sold, or until they’re ready to be worked on more or used in making things.

When we say “initial treatment” of minerals, we mean things like breaking them, cleaning them, crushing them, sorting them by size or quality, grinding them, using chemicals to separate them, or screening them. It also includes getting the minerals ready for concentration, or if they don’t need that, doing the steps that would come before concentration. Concentration itself is also part of initial treatment.

However, initial treatment doesn’t include heating the minerals until they change form (calcining) or heating them until they stick together (sintering). It also doesn’t include making alumina, iron pellets, or other forms of iron that are stuck together.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1512992.

Topics:

Business > Industry rules

Environment and resources > Farming and fishing

CU 6: Meaning of mineral miner, or

“Who qualifies as a mineral miner for income tax purposes”

CU 8: Meaning of listed industrial mineral, or

“Definition and management of key minerals for New Zealand's industry”

Part C Income
Income from mineral mining: Definitions

CU 7Some definitions

Mining operations means operations that—
are carried on by a mineral miner in a permit area in New Zealand for the purpose of deriving income; and
consist of—
1. exploring, or searching for 1 or more listed industrial minerals; or
2. performing development work for exploring, searching, or mining for 1 or more listed industrial minerals; or
3. extracting 1 or more listed industrial minerals; or
4. mining or performing work directly related to mining for 1 or more listed industrial minerals.

Associated mining operations means operations that—
are carried on in New Zealand in association with mining operations; and
consist of the accumulation, initial treatment, and transport of listed industrial minerals up to the stage at which the minerals—
1. are in a saleable form and in a location suitable for a person to acquire them; or
2. are ready to be processed beyond the initial treatment or to be used in a manufacturing operation.

For the purposes of subsection (2)(b)(ii), initial treatment—
means—
1. breaking, cleaning, crushing, grading, grinding, leaching, screening, or sizing; or
2. a treatment that is applied before concentration or, for a listed industrial mineral not requiring concentration, a treatment that would have been applied before concentration if the mineral had required concentration; or
3. concentration; and
does not include—
1. calcining or sintering; or
2. the production of, or processes carried on in connection with the production of, alumina, or pellets, or other agglomerated forms of iron.

Notes

Section CU 7: replaced, on 1 April 2014 (applying for the 2014–15 and later income years), by section 14(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).