Annual Report 2007 - Antofagasta plc

13 Property, Plant and EquipmentLand Buildings Wagons Assetsand and and Machinery, undermining infra- Railway rolling equipment construcpropertiesstructure track stock and others tion TotalUS$m US$m US$m US$m US$m US$m US$mCostAt 1 January 2006 454.7 1,076.4 38.0 70.9 838.8 189.7 2,668.5Acquisitions (see Note 30) 170.9 – – – 0.7 – 171.6Additions 8.0 4.5 – 2.5 13.0 511.0 539.0Reclassifications 2.5 56.9 1.6 3.3 152.4 (216.7) –Asset disposals (0.1) (2.8) – (2.4) (7.1) (2.0) (14.4)Disposal (see Note 31) (4.3) – – – (0.4) – (4.7)Foreign currency exchange difference 0.1 (3.0) – (0.4) (0.2) (0.1) (3.6)At 31 December 2006 and 1 January 2007 631.8 1,132.0 39.6 73.9 997.2 481.9 3,356.4Additions 0.3 1.1 – 17.4 34.8 412.4 466.0Reclassifications 0.9 19.5 6.0 5.6 130.4 (162.4) –Asset disposals (0.1) (3.2) (0.5) (1.7) (35.7) (1.0) (42.2)Foreign currency exchange difference (0.1) 5.8 – 2.0 1.4 0.3 9.4At 31 December 2007 632.8 1,155.2 45.1 97.2 1,128.1 731.2 3,789.6Accumulated depreciation and impairmentAt 1 January 2006 (103.9) (275.5) (6.4) (33.8) (424.9) (4.0) (848.5)Charge for the year (28.6) (43.8) 0.1 (6.0) (62.7) – (141.0)Reclassifications – (0.5) – – 0.5 – –Asset disposals – 0.1 – 1.5 4.6 – 6.2Foreign currency exchange difference – 0.4 – 0.1 0.1 – 0.6At 31 December 2006 and 1 January 2007 (132.5) (319.3) (6.3) (38.2) (482.4) (4.0) (982.7)Charge for the year (38.4) (47.1) (1.4) (7.2) (64.3) – (158.4)Asset disposals – 0.1 0.1 1.4 32.2 – 33.8Foreign currency exchange difference – (1.3) – (0.9) (0.3) – (2.5)At 31 December 2007 (170.9) (367.6) (7.6) (44.9) (514.8) (4.0) (1,109.8)Net book valueAt 31 December 2007 461.9 787.6 37.5 52.3 613.3 727.2 2,679.8At 31 December 2006 499.3 812.7 33.3 35.7 514.8 477.9 2,373.7Assets under finance leases included in the totals aboveNet book valueAt 31 December 2007 – – – – 1.1 – 1.1At 31 December 2006 – – – – 1.9 – 1.9The net book value of assets under concession at 31 December 2007 was US$67.0 million (2006 – US$63.0 million).The Group has pledged assets with a carrying value of US$32.0 million (2006 – US$27.0 million) as securityagainst bank loans provided to the Group.At 31 December 2007 the Group had entered into contractual commitments for the acquisition of property, plantand equipment amounting to US$432.6 million (2006 – US$385.7 million). Commitments at 31 December 2007included US$261.4 million relating to the Esperanza project; US$65.7 million relating to the Mauro tailings damproject and US$78.9 million relating to the plant expansion project at Los Pelambres.FINANCIAL STATEMENTSCompensation from insurance companies related to property, plant and equipment included in the consolidatedincome statement was US$2.3 million in 2007 (2006 – US$0.1 million).Antofagasta plc Annual Report and Financial Statements 2007 105