4. |
Property, plant and equipment and depreciation |
4.1 | General |
Property, plant and equipment is stated at cost, excluding the costs of An item of property, plant and equipment is derecognised upon disposal or when future economic benefits are no longer expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement in the year the asset is derecognised. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial The costs of adding to, replacing part of, or servicing an item, following a major inspection, are recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. |
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4.2 | Production stripping costs |
The capitalisation of Where the benefits of production stripping costs are realised in the form of inventory produced in the period, the production stripping costs are accounted for as part of the cost of producing those inventories. Where production stripping costs are incurred, resulting in the creation of mining flexibility and improved access to orebodies to be mined in the future, the costs are recognised as a
The stripping activity asset is initially measured at cost, which consists of the accumulation of costs directly incurred to perform the stripping activity that improves access to the identified component of the orebody and an allocation of directly attributable overhead costs. If incidental operations are occurring at the same time as the production stripping activity, but are not necessary for the production stripping activity to continue as planned, these costs are not included in the cost of the stripping activity asset. In the event that the costs of the stripping activity asset and the inventory produced are not separately identifiable, a relevant production measure is used to allocate the production stripping costs between the inventory produced and the stripping activity asset. The stripping activity asset is subsequently depreciated over the life of the identified component of the orebody that became more accessible as a result of the stripping activity. Based on Proven and Probable Reserves, the |
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4.3 | Prospecting, exploration, mine development and decommissioning assets |
Costs related to property acquisitions and mineral and surface rights related to exploration are capitalised and depreciated over a maximum period of 25 years. All exploration expenditures are expensed until they result in projects that are evaluated as being technically and commercially feasible and from which a future economic benefit stream is highly probable. Exploration expenditure incurred on greenfield sites where the company does not have any mineral deposits which are already being mined or developed, is expensed as incurred until a bankable feasibility study has been completed after which the expenditure is capitalised. Exploration expenditure incurred on brownfield sites, adjacent to any mineral deposits which are already being mined or developed, is expensed as incurred until the company has obtained sufficient information from all available sources to ameliorate the identified project risk areas and which indicates by means of a Exploration expenditure relating to extensions of mineral deposits which are already being mined or developed, including expenditure on the definition of mineralisation of such mineral deposits, is capitalised and depreciated on a Activities in relation to evaluating the technical feasibility and commercial viability of Mineral Resources are treated as forming part of exploration expenditures. Refer item 12.1 for the decommissioning assets accounting policy. Underground mine development includes all directly attributable development costs, including those incurred prior to the commencement of stoping, are capitalised when incurred. |
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4.4 | Depreciation |
Depreciation of the various types of assets is determined on the following bases: Mineral and prospecting rights Mineral Reserves, which are being depleted, are amortised over their estimated useful lives using the Land and buildings Land is not depreciated. Mine and industrial properties are depreciated to estimated residual values at the lesser of Plant, machinery and equipment Mining plant, machinery and equipment is depreciated over the lesser of its estimated useful life, estimated at between five and 25 years (being the remaining life of the mine), and the Industrial plant, machinery and equipment is depreciated on the Vehicles Vehicles are depreciated on the Furniture and fittings Furniture and fittings are depreciated on the Office equipment Office equipment is depreciated on the Computer hardware Computer hardware is depreciated on the Computer software Computer software is depreciated on the Capital Mining development assets Mining development assets are depreciated using the |