Energy, Mines, and Resources

Subsection 102(5)(d) – Food and Provisions

Quartz Mining Act, Section 102 – Annual Royalty
Interpretation Bulletin: Subsection 102(5)(d) – Food and Provisions
January 26, 2007

Reference
Subsection 102(5) specifies the deductions and allowances to be made from the revenue of the mine so as to determine the mine’s profit for royalty calculations. Specifically, item (d) allows a deduction for:

the actual cost price of food and provisions for all employees whose salaries or wages are made less by reason of being furnished therewith;

Interpretations
Where the mine provides meals and provisions for employees that are consumed or used on site, such costs are eligible for deduction, on the assumption that any cost for such food or provisions provided by the mine for employees are considered within the respective salaries and wages. 

Food and provision provided to the broader public or persons not immediately connected to the operation of the mine are not eligible for deduction.