NOVEMBER, 1991 MINING STEERING COMMITTEE MEETING
QUESTION
3. In order to be included in Class 28 by virtue of subparagraph (b)(ii) thereof, an asset must be acquired in the course of and principally for the purposes of an expansion that constitutes a major expansion of the mine and there must be an increase in the greatest designed capacity of the mill that processed the ore from the mine, measured in tons of input of ore, of not less than 25%.
If there was no mill that processed the ore from a mine, such as a coal mine, but a property (for example, a dragline) has been acquired that increases ore recovery at the mine by greater than 25%, would the Department permit such property to be included in Class 28?
ANSWER
3. For purposes of Class 28, it is our view that in the absence of a mill that processes the ore from a mine, there would not be a major expansion to the mining operation solely by virtue of acquisition of an asset that increases ore recovery by greater than 25%. This is so because the requirements of Class 28 can not be satisfied where there is no mill that processes the ore from the mine.
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