70‑15 The amount of a pre‑mining loss al70‑15 The amount of a pre‑mining loss allowance

#### 70‑15 The amount of a pre‑mining loss allowance (1) The amount of the miner’s \*pre‑mining loss allowance is so much of the sum of the available pre‑mining losses as does not exceed the remaining profit. > Note: Example: A miner has, for a mining project interest for an MRRT year, a mining profit of $400 million, a royalty allowance of $200 million and a transferred royalty allowance of $100 million. The sum of the available pre‑mining losses for the interest for the year is $20 million. > Note: Under section 70‑10, the miner has a pre‑mining loss allowance for the interest for the year because the mining profit exceeds the sum of the higher ranked allowances ($300 million), giving the miner a remaining profit of $100 million. > Note: Under this section, the amount of the pre‑mining loss allowance is the sum of the available pre‑mining losses ($20 million), because that sum does not exceed the remaining profit. (2) In working out the amount of a \*pre‑mining loss allowance, \*pre‑mining losses are applied in the order in which they arise. > Note: If an available pre‑mining loss cannot be wholly applied in an MRRT year, the unapplied amount can be carried forward: see section 70‑50.