Study notes: Honours:

Mining Operations

All honours study notes

Definition of Gross income in sec 1

  1. Par (j) of the definition of gross income in sec 1
  • Will apply if a mine disposes of an asset on which capex allowances was claimed ito sec 15(a) read with sec36.
  • Recoupment the effective value ito sec 37 for the person acquiring the asset (determined by Director General) LESS the unredeemed capital expenditure (balance brought forward) & capital expenditure incurred during the current YOA.
  • Therefore, if capital expenditure exceeds the effective value, then no recoupment.

MINERAL: not defined in the act.

MINERAL: not defined in the act, therefore use case law.

  • G.W Railway V Carpalla United China Clay
  • A mineral is any substance that can be gotten from the surface of the earth, which possesses a value in use.  APART from its mere possession of bulk and weight.
  • Everything that has an individual value in use can be called a mineral.

Defining of mining operations & mining

Include every method or process by which any MINERAL is won from the soil or from any substance or constitution thereof.