Rev. Rul. 64-49

In response to inquiries regarding the ordinary treatment processes considered as mining for taxable years beginning after December 31, 1960, in the case of the minerals referred to below, the principles provided by Revenue Ruling 62-5, C.B. 1962-1, 88, will be applied for such years under section 613(c)(4) and (5) of the Internal Revenue Code of 1954 as amended and added by section 302 of Public Law 86-564, C.B. 1960-2, 681.

Revenue Ruling 62-5, which applies to taxable years beginning before January 1, 1961, allows, in the case of chemical grade limestone, crushed rock for road ballast, agricultural limestone, granite and other stone sold as broken or crushed rock or stone products, processes (other than "fine pulverization") applied to reduce those minerals in size, and separating or screening the material prior to fine pulverization, to be treated or ordinary treatment processes considered as mining. It also provides a definition of the term "fine pulverization" which is a treatment process not considered as mining.

The position taken herein was adopted after careful consideration of information submitted by representatives of this segment of the mining industry (including a description of the usual processes employed by its component members), the applicable provisions of the Code, the legislative history of section 302 of Public Law 86-564, and the past administrative practice of the Internal Revenue Service with respect to these minerals.

¹ Also released as Technical Information Release 536, dated Jan. 17, 1964.