Annual Report 2007 - Antofagasta plc

Notes to the Financial Statements continued12 Intangible assetsTotal TotalConcession Exploration intangible intangibleright licences assets assets2007 2007 2007 2006US$m US$m US$m US$mCostBalance at the beginning of the year 101.3 115.0 216.3 105.1Acquisition (see Note 30) – – – 230.0Disposal (see Note 31) – – – (115.0)Foreign currency exchange difference 6.9 – 6.9 (3.8)Balance at the end of the year 108.2 115.0 223.2 216.3AmortisationBalance at the beginning of the year (11.0) – (11.0) (7.4)Charge for the year (3.8) – (3.8) (4.0)Foreign currency exchange difference (0.7) – (0.7) 0.4Balance at the end of the year (15.5) – (15.5) (11.0)Carrying amountBalance at the end of the year 92.7 115.0 207.7 205.3The concession right relates to the 30-year concession to operate the water rights and facilities in theAntofagasta Region of Chile which the Group’s wholly-owned subsidiary, Aguas de Antofagasta S.A., acquiredin December 2003. This intangible asset is being amortised on a straight-line basis over the life of theconcession (see Note 35).The exploration licences relate to the Group’s proportionate share of the full unencumbered value attributed tothe interest in exploration licences in the Reko Diq prospect in the Chagai Hills region of south-west Pakistanacquired on the purchase of Tethyan Copper Company Limited in 2006 (see Note 30(a)). This intangible assetwill be amortised in accordance with the Group’s policy for mining properties as set out in Note 2(i)(ii) when therelated mining properties enter into production.FINANCIAL STATEMENTS104Antofagasta plc Annual Report and Financial Statements 2007