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14. Tangible assets



US$ million
Mining
properties
and leases
Land and
buildings

Plant and
equipment


Other(1)


Total
Cost
At 1 January 2008 12,652 2,256 12,902 5,363 33,173
Additions 436 47 357 4,886 5,726
Acquired through business combinations 6,341 73 436 508 7,358
Transfer to assets held for sale (66) (16) (118) (200)
Fair value adjustment 3 50 53
Disposal of assets (5) (14) (182) (44) (245)
Disposal of businesses (52) (1) (78) (131)
Reclassifications(2) 418 216 2,048 (2,682)
Currency movements (2,600) (389) (2,702) (1,466) (7,157)
At 31 December 2008 17,124 2,175 12,663 6,615 38,577
Accumulated depreciation
At 1 January 2008 2,652 653 6,126 208 9,639
Charge for the year 353 84 964 104 1,505
Impairments 123 19 114 256
Transfer to assets held for sale (42) (65) (107)
Disposal of assets (2) (8) (166) (19) (195)
Disposal of businesses (12) (29) (41)
Currency movements (511) (114) (1,281) (119) (2,025)
At 31 December 2008 2,561 634 5,663 174 9,032
Net book value
At 31 December 2008 14,563 1,541 7,000 6,441 29,545
At 31 December 2007 10,000 1,603 6,776 5,155 23,534
(1)
Other tangible assets include $6,050 million of assets in the course of construction, which are not depreciated.
(2)
Relates mainly to amounts transferred from assets in the course of construction.


US$ million

Mining
properties
and leases
Land and
buildings


Plant and
equipment

Other(1)


Total
Cost
At 1 January 2007 9,250 3,833 19,400 3,481 35,964
Additions 98 56 379 3,596 4,129
Acquired through business
combinations
2,855 21 53 34 2,963
Transfer to assets held for sale (89) (19) (67) (152) (327)
Disposal of assets (12) (29) (273) (20) (334)
Disposal and demerger of businesses(2) (1,836) (8,003) (692) (10,531)
Reclassifications(3) 228 116 817 (1,094) 67
Currency movements 322 114 596 210 1,242
At 31 December 2007 12,652 2,256 12,902 5,363 33,173
Accumulated depreciation
At 1 January 2007 2,136 1,151 8,901 278 12,466
Charge for the year (4) 323 114 1,139 51 1,627
Impairments(5) 162 2 31 8 203
Transfer to assets held for sale (30) (10) (33) (2) (75)
Disposal of assets (7) (13) (245) (18) (283)
Disposal and demerger of businesses(2) (627) (3,948) (153) (4,728)
Reclassifications (23) 23
Currency movements 68 36 304 21 429
At 31 December 2007 2,652 653 6,126 208 9,639
Net book value
At 31 December 2007 10,000 1,603 6,776 5,155 23,534
At 31 December 2006 7,114 2,682 10,499 3,203 23,498
(1)
Other tangible assets includes $4,850 million of assets in the course of construction, which are not depreciated.
(2)
Includes cost of $9,242 million and accumulated depreciation of $4,381 million relating to the demerger of Mondi.
(3)
Relates mainly to amounts transferred from assets in the course of construction and reclassification of asset values upon finalisation of Peace River Coal acquisition accounting.
(4)
Includes amounts in respect of discontinued operations of $231 million.
(5)
Includes amounts in respect of discontinued operations of $5 million.

Included in the additions above is $215 million (2007: $42 million) of interest expense incurred on borrowings funding the construction of qualifying assets which has been capitalised during the year.

The net book value and depreciation charges relating to assets held under finance leases comprise:

  2008 2007
US$ million Net book
value
Depreciation Net book
value
Depreciation
Mining properties and leases 12 2 18 2
Land and buildings 34 24 44 13
Plant and equipment 19 5 17 3
Other 1 1
  66 31 80 18

The net book value of land and buildings comprises:

US$ million 2008 2007
Freehold 1,492 1,536
Leasehold – long 39 51
Leasehold – short (less than 50 years) 10 16
  1,541 1,603

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