2018-0785211E5 Mineral resource certification - Jade nephrite

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: Does the jade (nephrite) property described in the letter meet the definition of a "mineral resource", pursuant to subparagraph 248(1)(d)(i)?

Position: Yes.

Reasons: Minister of Natural Resources opinion.

Author: Verlinden, Nicole

Section: Definition of "mineral resource" in subpara. 248(1)(d)(i)

XXXXXXXXXX                                                                                                            2018-078521
                                                                                                                                    Nicki Verlinden
December 28, 2018


Re:   XXXXXXXXXX (“Taxpayer”)
         Mineral Resource Certification

This letter is in response to your fax, dated November 5, 2018, in which you requested certification pursuant to subparagraph (d)(i) of the definition of “mineral resource” in subsection 248(1) of the Income Tax Act (the “Act”) on behalf of the Taxpayer regarding the XXXXXXXXXX located in XXXXXXXXXX (the “Property”).

More specifically, the Taxpayer owns XXXXXXXXXX mineral claims to the Property, all of which are located in the Province of XXXXXXXXXX.

In order for subparagraph (d)(i) of the definition of “mineral resource” in subsection 248(1) of the Act to apply, two conditions must be met:

1.    a principal mineral must be extracted, and

2.    that mineral is an industrial mineral contained in a non-bedded deposit.

We obtained an opinion from the Minister of Natural Resources (“Minister”) regarding the nephrite deposits located on the Property. The Minister has advised us that the principal mineral to be extracted from the Property, nephrite, is an industrial mineral XXXXXXXXXX contained in non-bedded deposits. It is therefore our view that the nephrite deposits on the Property will 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,


Kimberley Wharram
Resources Section
Reorganizations Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch

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