Anglo American Annual Report 2012

FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS15. PROPERTY, PLANT AND EQUIPMENTMiningpropertiesand leases (1)Land andbuildingsPlant andequipment Other (2) Total2012 2011Miningpropertiesand leases (1)Land andbuildingsPlant andequipment Other (2) TotalUS$ millionNet book valueAt 1 January 14,643 2,620 14,822 8,464 40,549 15,376 2,004 10,839 11,591 39,810Acquired throughbusiness combinations 7,307 420 395 790 8,912 – – – – –Additions 338 44 181 5,394 5,957 352 76 287 5,834 6,549Depreciation chargefor the year (3) (559) (200) (1,641) (44) (2,444) (414) (113) (1,501) (42) (2,070)Impairmentsand losses on transferto assets held for sale (4,009) (35) (352) (794) (5,190) – – (61) – (61)Disposal of assets (5) (4) (45) (12) (66) (2) (7) (39) (28) (76)Disposal and transferto assets held for sale (644) (148) (1,007) (155) (1,954) (39) (4) (13) (1) (57)Reclassifications (4) 558 346 2,149 (3,053) – 532 826 6,408 (7,929) (163)Currency movements (264) (47) (217) (147) (675) (1,162) (162) (1,098) (961) (3,383)At 31 December 17,365 2,996 14,285 10,443 45,089 14,643 2,620 14,822 8,464 40,549Cost 25,057 4,001 23,358 10,628 63,044 19,532 3,450 24,116 8,648 55,746Accumulateddepreciation (7,692) (1,005) (9,073) (185) (17,955) (4,889) (830) (9,294) (184) (15,197)(1)Includes amounts in relation to deferred stripping.(2)Includes $10,193 million (2011: $8,088 million) of assets in the course of construction, which are not depreciated.(3)Includes $2,258 million (2011: $1,947 million) of depreciation within operating profit, $70 million (2011: $84 million) of accelerated depreciation, a $35 million (2011: nil) depreciation chargearising due to the fair value uplift on the pre-existing 45% shareholding of De Beers (see note 5) and $81 million (2011: $39 million) of pre-commercial production depreciation which has beencapitalised. See note 2 for a split of depreciation, and amortisation for intangibles, by segment.(4)Relates mainly to amounts transferred from assets in the course of construction. In 2011 the net amount of $163 million relates to federal tax credits on qualifying capital projects in Brazil. Thesecredits have been reclassified, as appropriate, to reflect the expected realisation.Included in the additions above is $280 million (2011: $321 million) of net interest expense incurred on borrowings funding the construction of qualifyingassets which has been capitalised during the year.Assets held under finance leases relate to plant and equipment with a net book value of $27 million (2011: $25 million). Depreciation charges in the yearamounted to $7 million (2011: $9 million).The net book value of land and buildings comprises:US$ million 2012 2011Freehold 2,952 2,604Leasehold – long 41 8Leasehold – short (less than 50 years) 3 82,996 2,62016. ENVIRONMENTAL REHABILITATION TRUSTSThe Group makes contributions to controlled funds that were established to meet the cost of some of its restoration and environmental rehabilitation liabilities,primarily in South Africa. The funds comprise the following investments:US$ million 2012 2011Equity 150 146Bonds 151 130Cash 92 84393 360These assets are primarily rand denominated. Cash is held in short term fixed deposits or earns interest at floating inter-bank rates. Bonds earn interest ata weighted average fixed rate of 8% (2011: 6%) for an average period of five years (2011: four years). Equity investments are recorded at fair value throughprofit and loss while other assets are treated as loans and receivables.These funds are not available for the general purposes of the Group. All income from these assets is reinvested to meet specific environmental obligations.These obligations are included in provisions, see note 26.162 Anglo American plc Annual Report 2012