175‑1 What this Division is about175‑1 What this Division is about

#### 175‑1 What this Division is about A miner that extracts only small amounts of taxable resources, or that has a pre‑MRRT operation for transforming those taxable resources, can choose to use the alternative valuation method. This method is a version of the “retail price” or “netback” method. Under this method, mining revenue for supply, exportation or use of taxable resources is worked out from the miner’s transactions relating to the taxable resources, with appropriate reductions for downstream operating costs, depreciation and returns on capital. A mining project interest for which the alternative valuation method is used is treated separately from other mining project interests, and its royalty credits and mining losses are quarantined. > Note: Under sections 65‑20 and 100‑20, royalty credits are not available to be applied to transferred royalty allowances, and mining losses are not available to be applied to transferred mining loss allowances, if the alternative valuation method has been chosen.