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Annual Report and Accounts 2011

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Notes to the Annual Financial Statements
For the year ended 30 June 2011

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14. Property, plant and equipment

US$ million Plant and
machinery
mining
assets3
Plant and
machinery
exploration
assets
Computer
and office
equipment
exploration
assets
Motor
vehicles
exploration
assets
Mineral
vehicles
exploration
assets4
Assets
under
construction
mining
assets5
Assets
advanced
to project
Alto Cuilo
Total
Cost
Balance at 1 July 2009 142.8 1.2 1.1 0.2 39.1 18.5 6.1 209.0
Exchange differences 1.3 (0.8) 0.4 0.3 1.2
Business combination1 95.4 71.3 6.4 173.1
Feasibility production revenue2 (14.4) (14.4)
Feasibility production expenditure2 22.2 22.2
Additions 19.1 0.1 6.3 25.5
Disposals (0.5) (6.4) (6.9)
Balance at 30 June 2010 258.1 1.2 1.2 0.2 117.4 31.6 409.7
Balance at 1 July 2010 258.1 1.2 1.2 0.2 117.4 31.6 409.7
Exchange differences 28.6 0.2 5.1 5.4 39.3
Impairment (reversed/raised) (note 9) 3.4 8.2 11.6
Additions 46.1 0.1 0.1 64.6 110.9
Disposals (3.0) (3.0)
Balance at 30 June 2011 333.2 1.4 1.3 0.3 130.7 101.6 568.5
Depreciation
Balance at 1 July 2009 18.4 (0.1) 0.2 0.1 8.0 5.6 32.2
Exchange differences 0.5 0.2 0.2 0.9
Disposals (0.3) (5.8) (6.1)
Provided in the year 11.0 0.2 0.5 11.7
Balance at 30 June 2010 29.6 (0.1) 0.4 0.1 8.7 38.7
Balance at 1 July 2010 29.6 (0.1) 0.4 0.1 8.7 38.7
Exchange differences 5.3 0.1 0.1 1.1 6.6
Reversal of impairment (note 9) 0.8 0.8 1.6
Disposals (2.1) (0.1) (2.2)
Provided in the year 21.8 0.1 0.2 0.3 22.4
Balance at 30 June 2011 55.4 0.1 0.6 0.1 10.9 67.1
Net book value
At 30 June 2010 228.5 1.3 0.8 0.1 108.7 31.6 371.0
At 30 June 2011 277.8 1.3 0.7 0.2 119.8 101.6 501.4

1. In the prior year, the Group capitalised pre-acquisition costs at Kimberley Underground. The expenditure incurred pre-completion was capitalised
on the basis that it was common practice under IFRS 3 (applicable prior to 1 July 2009) for transaction costs incurred in respect of business
combinations to be capitalised where the business combination has not completed by the balance sheet date and by analogy to IAS 11
(construction contracts) which permits costs incurred in respect of future activity to be capitalised where it is probable that those costs will
be recovered.

2. Feasibility production expenditure and revenue are in respect of the Williamson feasibility study as disclosed in note 1.24.

3. The mining assets are secured against the loan facilities disclosed in note 22(iv) and 22(v).

4. Mineral properties are in respect of various mines within the Group and the useful life, based on current life of mine plans, is disclosed in note 1.4.

5. Assets under construction include refurbishments of mining property, plant and equipment at the Cullinan, Kimberley Underground, Koffiefontein
and Williamson mines. The only contractual commitments the Group had at year end were in respect of assets under construction of
US$11.6 million (30 June 2010: US$0.3 million). Borrowing costs of US$3.5 million (30 June 2010: US$nil) have been capitalised to assets
under construction.