ANNUAL%20REPORT%202015%20eng

Notes to Consolidated Financial Statements
13 PROPERTY, PLANT AND EQUIPMENT, NET (Continued)
Note:
(a)
(b)
(c)
(d)
(e)
Majority part of the Group’s property, plant and equipment are located in Mongolia.
Mining properties as at 31 December 2015 include stripping activity assets carrying book value of USD225,233,000
(2014: USD223,451,000) and application fee for the mining rights of USD770,000 (2014: USD627,000) in relation to
the Group’s mine deposits.
The addition of mining properties for the year ended 31 December 2015 include the increase in reclamation
provision of USD454,000 (2014: increase in reclamation provision of USD3,467,000) (see Note 28).
As at 31 December 2015, certain of the Group’s borrowings were secured by the Group’s coal handling and
preparation plant-modules I and II, power plant and water supply infrastructure assets-phase I with net book values
of USD91,100,000, USD23,519,000 and USD2,532,000, respectively (31 December 2014: USD105,290,000,
USD27,629,000 and USD3,008,000, respectively) (see Note 23).
As at 31 December 2015, the Group is in the process of applying for the ownership certificates for certain of its
buildings. The aggregate carrying value of such properties of the Group as at 31 December 2015 is approximately
USD6,467,000. The Directors are of the opinion that the Group is entitled to lawfully occupy or use of these
properties.
14 CONSTRUCTION IN PROGRESS
2015 2014
USD’000 USD’000
At 1 January 58,421 148,371
Additions 184 6,314
Transfer to property, plant and equipment (Note 13) — (86,855)
Transfer to intangible assets (Note 16) — (4,909)
Disposal (443) —
Exchange adjustments (2,998) (4,500)
At 31 December 55,164 58,421
The construction in progress is mainly related to water supply facility and other mining related machinery and
equipment.
Annual Report 2015
157