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DU 9: Some definitions
or “Explaining key terms used in mining prospecting and exploration”
You could also call this:

“What counts as spending on searching for industrial minerals in New Zealand”

Mining exploration expenditure means the money you spend when you look for a listed industrial mineral in New Zealand. This includes money you spend on:

Getting a permit to explore from the government under the Crown Minerals Act 1991.

Making maps of the land and doing surveys to find out what’s underground.

Looking for areas that might have the minerals you want.

Drilling holes to search for these minerals.

Searching for ore with the mineral you want by digging tunnels, drilling, or making shafts in or near a place where you think there’s ore.

However, mining exploration expenditure does not include:

The cost of buying land, machines, or equipment.

Some other types of spending that are mentioned in another part of the law.

Something called “residual expenditure”.

Remember, this is just about looking for minerals, not actually mining them yet.

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Next up: DU 11: Meaning of mining development expenditure: exclusion of operational expenditure

or “Costs to prepare for mining, excluding day-to-day expenses”
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Part D Deductions
Mineral mining expenditure: Classes of mining expenditure

DU 10Meaning of mining exploration expenditure

  1. Mining exploration expenditure—

  2. means expenditure that a mineral miner incurs in exploring or searching in New Zealand for a listed industrial mineral; and
    1. includes expenditure that the mineral miner incurs directly in relation to—
      1. acquiring an exploration right or permit under the Crown Minerals Act 1991:
        1. geological mapping and geophysical surveys:
          1. systematic searches for areas containing listed industrial minerals:
            1. searching by drilling in areas containing listed industrial minerals:
              1. searching for ore containing a listed industrial mineral within or in the vicinity of an ore body by crosscuts, drilling, drives, rises, shafts, or winzes; and
              2. does not include—
                1. the cost of land, plant, or machinery:
                  1. expenditure referred to in section DU 8(1)(a), (c), and (d):
                    1. residual expenditure.

                    Notes
                    • Section DU 10: replaced, on (applying for the 2014–15 and later income years), by section 41(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).