PUBLIC LAW 86-664-JUNE 30, 1960
[74 S T A T.
" (B) if paragraph (5)(B) does not apply, ball clay, bentonite, china clay, sagger clay, and clay used or sold for use for purposes dependent on its refractory properties." (2) Paragraph (5) is amended to read as follows: "(5) 5 percent— " (A) gravel, mollusk shells (including clam shells and oyster shells), peat, pumice, sand, scoria, shale, and stone, except stone described in paragraph (6); " (B) clay used, or sold for use, in the manufacture of building or paving brick, drainage and roofing tile, sewer pipe, flower pots, and kindred products; and " (C) if from brine wells—bromine, calcium chloride, and magnesium chloride." (3) Paragraph (6) is amended by striking "refractory and fire clay,". (b)
TREATMENT PROCESSES CONSIDERED AS MINING.—Subsection (c)
"^ section 613 of the Internal Revenue Code of 1954 (relating to the definition of gross income from property) is amended as follows: (l) By amending paragraph (2) to read as follows: "(2) MINING.—The term 'mining' includes not merely the extraction of the ores or minerals from the ground but also the treatment processes considered as mining described in paragraph (4) (and the treatment processes necessary or incidental thereto), and so much of the transportation of ores or minerals (whether or not by common carrier) from the point of extraction from the ground to the plants or mills in which such treatment processes are applied thereto as is not in excess of 50 miles unless the Secretary or his delegate finds that the physical and other requirements are such that the ore or mineral must be transported a greater distance to such plants or mills." (2) By striking out paragraph (4) and inserting in lieu thereof the following new paragraphs: "(4)
26 USC 611.
following treatment processes where applied by the mine owner or operator shall be considered as mining to the extent they are applied to the ore or mineral in respect of which he is entitled to a deduction for depletion under section 611: " (A) I n the case of coal—cleaning, breaking, sizing, dust allaying, treating to prevent freezing, and loading for shipment; " (B) in the case of sulfur recovered by the Frasch process— cleaning, pumping to vats, cooling, breaking, and loading for shipment; '^(C) in the case of iron ore, bauxite, ball and sagger clay, rock asphalt, and ores or minerals which are customarily sold in the form of a crude mineral product—sorting, concentrating, sintering, and substantially equivalent processes to bring to shipping grade and form, and loading for shipment; " (D) in the case of lead, zinc, copper, gold, silver, uranium, or fluorspar ores, potash, and ores or minerals which are not customarily sold in the form of the crude mineral product— crushing, grinding, and beneficiation by concentration (gravity, flotation, amalgamation, electrostatic, or magnetic), cyanidation, leaching, crystallization, precipitation (but not including electrolytic deposition, roasting, thermal or electric smelting, or refining), or by substantially equivalent processes or combination of processes used in the separation or extraction of the product or products from the ore or the mineral or minerals from other material from the mine or other natural deposit;