Income Tax Assessment Act 1997

Mining capital expenditure is capital expenditure you incur:

in carrying on *mining and quarrying operations; or

in preparing a site for those operations; or

on buildings or other improvements necessary for you to carry on those operations; or

in providing, or in contributing to the cost of providing:

water, light or power for use on the site of those operations; or

access to, or communications with, the site of those operations; or

on buildings for use directly in connection with operating or maintaining *plant that is primarily and principally for *treating *minerals, or quarry materials, that you obtain by carrying on such operations; or

on buildings or other improvements for use directly in connection with storing minerals or quarry materials or to facilitate *minerals treatment of them (whether the storage happens before or after the treatment).

Capital expenditure you incur on *housing and welfare in carrying on *mining and quarrying operations (except quarrying operations) is also mining capital expenditure, but only if:

for residential accommodation—the accommodation is provided by you, on or adjacent to a site where you carry on those operations, for the use of:

your employees, or someone else’s employees, who are employed or engaged in those operations, or in operations of yours that are connected with those operations; or

dependants of such employees; or

for health, education, recreation or other similar facilities, or facilities for meals—the facilities:

are on or adjacent to a site where you carry on those operations, and are principally for the benefit of the employees or dependants covered by paragraph (a); and

are not run for profit by any person, except in the case of facilities for meals (which may be run for profit); or

in the case of works, including works for providing water, light, power, access or communications—the works are carried out directly in connection with the accommodation or facilities covered by this section.

However, expenditure on these is not mining capital expenditure:

railway lines, roads, pipelines or other facilities, for use wholly or partly for transporting *minerals or quarry materials, or their products, other than facilities used for transport wholly within the site of *mining and quarrying operations you carry on;

works carried out in connection with, or buildings or other improvements constructed or acquired for use in connection with, establishing, operating or using a port facility or other facility for ships;

an office building that is not at or adjacent to the site of mining and quarrying operations you carry on;

*housing and welfare in relation to quarrying operations.