Tax Planning: A Guide To Financing In The Mining Industry

Minerals are mined as a one-time crop, and the processing of one ton of ore results in there being one ton less to be recovered from the deposit. Although some minerals occur in greater abundance than others, they are to a greater or lesser degree exhaustible. Depletion Allowances One of the distinctive features of the mineral industries is the allowance for depletion. The depletion allowance is a much maligned and misunderstood principal of our tax structure. Although imperfect in design, it has nevertheless served as a constructive incentive for the development and expansion of the minerals industry.