Fillable Form M30-P - Production Cost Summary

2016 Form M30-P Instructions

Line 8

Form M30-P, the production cost

c) Plant Depreciation. The beneficiation

plant includes all crushing and beneficia-

Development

summary, is an informational

tion equipment and facilities; all build-

Stripping and development costs for the

report used for statistical and

ings housing beneficiation and process-

purpose of determining deferred develop-

ing machinery, generators, welding and

ment expenses are defined as the cost of

cost information . It is based on

clearing the land, removing the surface

burning equipment, compressors, and

your pre-1990 occupation tax

overburden (glacial drift), and removing

all buildings containing machinery and

report . Please mail completed

any waste iron formation (or Virginia Slate)

auxiliary equipment within; stockpile

down to the first layer of mineable iron

conveyors and stacker, tailings basins and

form by May 25, 2017.

formation (taconite).

reserve water control facilities; and power

plants and substations serving these fa-

Any waste or lean iron formation removed

Line 1

cilities. Do not include land acquisition

thereafter is charged to current mining

costs in the value of these assets.

Gross Tons Produced

costs. If magnetic taconite is mined beneath

Include all production, including acid and

The depreciation on a beneficiation plant

a previously mined natural ore mine, the

flux pellets, chips, fines, concentrate not

for taconite facilities is at a 4 percent

cost of removing the waste iron formation

converted into pellets and direct reduced

straight-line rate. The depreciation is

above the first layer of mineable taconite is

iron (DRI).

limited to 90 percent of the cost of all

considered a development expense.

depreciable assets on hand at the end of

Enter the total of column A from Form

The deferred development expense is

the taxable year.

M30-G, Gross Income.

deducted on a prorated basis per ton of

If it becomes apparent that this deprecia-

crude taconite or pellets in the proportion

Line 2

tion rate will not permit recovery of the

of the current year’s production to the total

Mine Value

cost of nonmovable property prior to

reserve. The computation may be made

The value of taconite or iron ore at the mine

exhaustion of a mine, a tonnage basis of

either on a crude ore or concentrate (pellet)

is subject to change annually. The factors

computing depreciation may be substi-

basis, as long as the method is consistent

that determine changes in the mine value

tuted.

from year to year.

are the Steel Mill Products Index (SMPI)

and the non-equity selling price of taconite

d) Plant Interest. For the purposes of this

In calculations involving future develop-

products.

information return, report actual inter-

ment expenditures and unamortized

est paid for the entire plant (capital),

expenditures, the tonnages of crude ore

Enter the amount from Form M30-I, line 1.

or pellets and the cubic yards of surface

not for normal operations.

or waste formation should be in a deduc-

Nonstatutory Deductions

e) Miscellaneous. Attach a schedule identi-

tive relationship from year to year unless a

fying any costs included on this line. Do

Nonstatutory deductions are costs not

new engineering estimate is made. If a new

not include employer-paid benefits such

specifically allowed as deductions under

estimate is made, a summary of it must ac-

as insurance, pensions, Social Security

M.S. 298 as it was written and effective

company the occupation tax report. Also, all

taxes and worker’s compensation insur-

through 1989. These deductions are a result

fringe benefits that apply to man-hours in

ance. Include these costs on line 11.

of court decisions and administrative inter-

development must be included in develop-

pretations.

ment costs, not in mining costs.

Line 4

Stockpile Loading Costs

Attach a detailed schedule for line 8.

Line 3

If stockpile loading costs are not included in

Beneficiation

Line 9

operating costs, they may be reported and

The beneficiation process begins at the

deducted here.

Cost of Mining

primary crusher and ends with the pellet

Mining is considered to be all activity lead-

loadout from the kiln.

Line 5

ing up to and including dumping the crude

a) Labor. Include all costs associated with

Sales and Use Tax

ore into the primary crusher. It does not

labor in the beneficiation process as

This deduction is for all sales and use tax

include development costs.

defined above. Do not include the costs of

paid that is expensed, not capitalized.

a) Labor. Include all costs associated with

employer-paid benefits (i.e., insurances,

labor in the mining process as defined

pensions, Social Security taxes, worker’s

Statutory Deductions

above. Do not include the costs of

compensation insurance), which will be

Statutory deductions are deductions specifi-

employer-paid benefits (i.e., insurances,

reported on line 11.

cally allowed by M.S. 298 through Dec. 31,

pensions, Social Security taxes, worker’s

1989.

b) Supplies. Include the costs of expendable

compensation insurance), which will be

supplies allocated to the beneficiation

reported on line 11.

process as defined above.

Continued

Form M30-P - Production Cost Summary - 2016 Page 2

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