Anglo American Annual Report 2012

5. SPECIAL ITEMS AND REMEASUREMENTS continuedNon-operating special itemsIn May 2012 the Competition Commission approved the formation of a 50:50 joint venture between the Group and Lafarge combining their cement,aggregates, ready-mix concrete, asphalt and asphalt surfacing, maintenance services, and waste services businesses in the UK subject to a number ofconditions being met. In July 2012 the Group accepted the conditions of the Competition Commission and consequently the associated Tarmac QuarryMaterials assets were classified as held for sale and recognised at fair value less costs to sell. This resulted in a loss being recognised of $135 million.In December 2012 the Group agreed the sale of its 70% interest in the Amapá iron ore system. The net assets have been reclassified to held for sale andrecognised at fair value less costs to sell. This resulted in a loss being recognised of $404 million.The Group completed the sale of Scaw South Africa (Pty) Ltd (Scaw South Africa), an integrated steel maker, in November 2012. This resulted in a net cashinflow of $100 million, generating a loss on disposal of $21 million.The Group sold its 5.28% shareholding in Mondi in November 2012 for net proceeds of $273 million, realising a net fair value gain recycled from reservesof $27 million.The Kumba Envision Trust charge of $77 million relates to Kumba’s broad based employee share scheme provided solely for the benefit of non-managerialHistorically Disadvantaged South African employees who do not participate in other Kumba share schemes.Non-operating remeasurementThe non-operating remeasurement of $1,988 million (2011: nil) reflects the net gain of $2,017 million, after transaction costs, resulting from the remeasurementto fair value of the Group’s existing 45% shareholding held in De Beers at the date a controlling stake was acquired. This includes a $2.7 billion uplift ondepreciable assets which will unwind through operating remeasurements in the current and future years.Financing remeasurementsFinancing remeasurements reflect a net loss of $88 million (2011: net gain of $205 million) and relates to an embedded interest rate derivative, non-hedgederivatives relating to debt and other financing remeasurements.Special items and remeasurements taxSpecial items and remeasurements tax amounted to a credit of $1,110 million (2011: charge of $118 million). This relates to a credit for one-off tax items of$922 million (2011: credit of $137 million), a tax remeasurement charge of $189 million (2011: charge of $230 million) and a tax credit on special items andremeasurements of $377 million (2011: charge of $25 million).The total tax credit relating to subsidiaries and joint ventures of $1,113 million (2011: charge of $119 million) comprises a current tax charge of $8 million(2011: charge of $12 million) and a deferred tax credit of $1,121 million (2011: charge of $107 million).The credit relating to one-off tax items of $922 million (2011: credit of $137 million) relates principally to the net deferred tax credit of $960 million relating toMinas-Rio and a net deferred tax credit of $70 million relating to the reassessment of deferred tax assets as a result of changes in tax regimes within operatingsegments, partially offset by the write-off of the deferred tax asset in Amapá of $108 million following the decision to sell the system.The tax credit of $377 million on special items and remeasurements primarily arises on the impairments at Platinum and the reversal of the De Beersinventory uplift.Financial statements6. UNDERLYING EBITDAEarnings before interest, tax, depreciation and amortisation (underlying EBITDA) is operating profit before special items and remeasurements, depreciationand amortisation in subsidiaries and joint ventures and includes attributable share of underlying EBITDA of associates.US$ million 2012 2011Iron Ore and Manganese (1) 3,198 4,586Metallurgical Coal 877 1,577Thermal Coal 972 1,410Copper 2,179 2,750Nickel 50 84Platinum 580 1,672Diamonds 711 794Other Mining and Industrial (1) 485 540Exploration (206) (121)Corporate Activities and Unallocated Costs (160) 56Underlying EBITDA 8,686 13,348(1)In 2012 Amapá has been reclassified from Iron Ore and Manganese to Other Mining and Industrial to align with internal management reporting. Comparatives have been reclassified to align withcurrent year presentation.Underlying EBITDA is reconciled to operating profit, including attributable share of associates, before special items and remeasurements and to ‘Total profitfrom operations and associates’ as follows:US$ million 2012 2011Underlying EBITDA 8,686 13,348Depreciation and amortisation: subsidiaries and joint ventures (2,289) (1,967)Depreciation and amortisation: associates (233) (286)Operating profit, including associates, before special items and remeasurements 6,164 11,095Operating special items and remeasurements (7,093) (229)Non-operating special items and remeasurements 1,394 183Associates’ net special items and remeasurements (61) (1)Share of associates’ net finance costs, tax and non-controlling interests (266) (449)Total profit from operations and associates 138 10,599Anglo American plc Annual Report 2012 155