9 Tangible assets

 
Figures in million Mine development costs Mine infra-structure Mineral rights and dumps Assets under construction Land and buildings Total
SA Rands            
Cost            
Balance at 1 January 2010 21,403 3,990 545 1,083 265 27,286
Additions            
– project capital 340 (18) 87 409
– stay-in-business capital 2,389 305 2,694
Transfers and other movements (1) (214) 48 (166)
Balance at 31 December 2010 23,918 4,325 545 1,170 265 30,223
Accumulated amortisation            
Balance at 1 January 2010 10,745 2,115 241 45 13,146
Amortisation for the year (notes 2, 6 and 28) 2,221 186 26 17 2,450
Impairments (note 4(2) 117 (3) 329 443
Transfers and other movements (1) (57) (59) (116)
Balance at 31 December 2010 13,026 2,239 267 329 62 15,923
Net book value at 31 December 2010 10,892 2,086 278 841 203 14,300
Cost            
Balance at 1 January 2011 23,918 4,325 545 1,170 265 30,223
Additions            
– project capital 271 33 518 822
– stay-in-business capital 2,625 436 14 3,075
Transfers and other movements (1) (180) (119) (299)
Balance at 31 December 2011 26,634 4,675 545 1,688 279 33,821
Accumulated amortisation            
Balance at 1 January 2011 13,026 2,239 267 329 62 15,923
Amortisation for the year (notes 2, 6 and 28) 2,243 178 30 16 2,467
Impairments (note 4(2) 62 26 88
Transfers and other movements (1) (95) (55) (150)
Balance at 31 December 2011 15,236 2,388 297 329 78 18,328
Net book value at 31 December 2011 11,398 2,287 248 1,359 201 15,493

Included in land and buildings are assets held under finance leases with a net book value of R177m (2010: R185m).

The majority of the leased assets are pledged as security for the related finance lease.

No assets are encumbered by project finance.

  • (2)Impairments include the following:

    TauTona VCR shaft pillar and ore pass – mine development costs and mine infrastructure

    Due to a change in the mine plan resulting from safety-related concerns following seismic activity, the VCR shaft pillar and ore pass development has been abandoned and will not generate future cash flows. An impairment loss of R61m (2010: nil) was recognised in the income statement.

    Savuka – mine development costs

    Due to a change in the mine plan, the Savuka assets have been abandoned and will not generate future cash flows. An impairment loss of R2m (2010: R114m) was recognised in the income statement.

    Below 120 level at TauTona – assets under construction

    In 2010, due to a change in the mine plan resulting from safety-related concerns following seismic activity, the below 120 level development has been abandoned and will not generate future cash flows. An impairment loss of R329m was recognised in the income statement.

    Tau Lekoa – assets held for sale

    In 2010, following the classification of Tau Lekoa as held for sale, an impairment loss of R58m was recognised to reduce the carrying amount of the disposal group to fair value less cost to sell.

    Other

    Impairment of various minor tangible assets and equipment R25m (2010: nil).

  • The impairment calculation methodology is included in group note 15.