by Richard Gleeson
Northern News Services

NNSL (Apr 24/98) - The city's two gold mines are asking for big breaks on their 1998 municipal and school tax bills.

Miramar Con Mine wants its tax bill cut in half, from $1.1 million to $524,064. Royal Oak has requested a 40 per cent cut for every month the price of gold is below $350 an ounce US.

The information was revealed in a memo to the financial, legislative and administrative committee Tuesday. The committee referred the issue back to administration for more information.

Since the city does not have the authority to cut individual property taxes, Giant has requested its relief in the form of a grant.

Miramar is also requesting a grant as a more immediate solution than an assessment appeal, which it has filed.

In its notice of appeal, Miramar argues its autoclave, which it installed in 1991, should not be assessed as an improvement.

"The current tax assessment unfairly penalizes the mine for installing assets that benefit the environment, therefore these assets should be exempt from taxation," stated Miramar in its appeal.

Miramar pegged the assessed value of the autoclave and associated buildings, machinery and equipment at $18 million.

Relief on power bills

The city hall memo also indicated both mines have asked the NWT Power Corporation for cuts to their power bills. Royal Oak has asked for the same break on its power bill it asked of the city -- the 40 per cent break tied to the price of gold. Miramar is hoping to cut its power bill by entering into a partnership agreement with the Power Corp. for the Bluefish hydro plant.

According to a city hall report, if the Power Corp. agreed to Royal Oak's request, to make up for the lost revenue, it would have increased Yellowknife rates by about 16 per cent.

Because of the depressed gold market, both mines have made production cutbacks. Miramar laid off 120 employees between Christmas and New Years. Prior to that, Royal Oak laid of 26 employees.