Annual Report 2011 - QuamIR

Notes to the Consolidated Financial StatementsFor the year ended 31 March 201118. Mining RightsGroupHK$’000CostBalance at 1 April 2009, 31 March 2010 and 1 April 2010 –Acquired on acquisition of subsidiaries (Note 37(a)) 139,861Effect of foreign currency exchange differences 5,162Balance at 31 March 2011 145,023Accumulated amortizationBalance at 1 April 2009, 31 March 2010 and 1 April 2010 –Charged for the year 793Effect of foreign currency exchange differences 19Balance at 31 March 2011 812Carrying valueBalance at 31 March 2011 144,211Balance at 31 March 2010 –Mining rights were acquired through the acquisition of Favour South Limited during the year ended 31March 2011 as set out in note 37(a).The mining rights are amortized on a unit of production basis over the estimated economic reserve ofthe mine. Effective amortization rate for the year approximate to 0.6%.The mining rights will be expired in May 2012. In the opinion of the directors, after obtaining opinionfrom its legal counsel, the Group will be entitled to renew the mining rights upon the expiration atminimal costs.Annual Report 201189