Skip to main content

16. Investments in associates

US$ million 2008 2007
At 1 January 3,341 4,780
Net income from associates(1) 1,113 107
Dividends received(2) (599) (327)
Transfer from subsidiary – 393
Transfer to assets held for sale – (74)
Transfer to financial asset investments – (606)
Actuarial loss on post retirement benefits (7) (6)
Movement on cash flow hedge reserve 4 12
Movement on available for sale reserve – 10
Other equity movements 4 31
Acquired 9 2
Disposed – (957)
Other capital distributions – (32)
Repayments of capitalised loans(3) – (44)
Reversal of impairment – 1
Currency movements (253) 51
At 31 December(4) 3,612 3,341
(1)
Includes amounts in respect of discontinued operations of nil (2007: $90 million loss).
(2)
Dividends received include nil (2007: $52 million) relating to discontinued operations. In addition $10 million (2007: nil) was received from associates classified as held for sale.
(3)
Excludes $43 million (2007: $43 million) redemption by De Beers of preference shares included within financial asset investments.
(4)
The fair value of investments in Tongaat-Hulett and Hulamin at 31 December 2008 are $350 million (2007: $667 million) and $137 million (2007: $292 million) respectively based on the closing share prices. With effect from 30 June 2007 the Group began accounting for these investments as associates under the equity method.

The Group's total investments in associates comprise:

US$ million 2008 2007
Equity 3,279 2,968
Loans(1) 333 373
Total investments in associates 3,612 3,341
(1)
The Group's total investments in associates include long term debt which in substance forms part of the Group's investment. These loans are not repayable in the foreseeable future.

The Group's share of the summarised financial information of associates is as follows:

US$ million 2008 2007
Total non-current assets 5,224 5,734
Total current assets 3,003 1,864
Total current liabilities (1,267) (1,254)
Total non-current liabilities (3,348) (3,003)
Group's share of associates' net assets 3,612 3,341
Revenue 6,653 5,089
Operating costs (4,775) (4,482)
Net profit on disposals 18 24
Net finance costs (147) (85)
Financing remeasurements (15) (4)
Income tax expense (606) (303)
Minority interests (15) (42)
Group's share of associates' net income – continuing operations 1,113 197
Revenue – 1,053
Operating costs – (1,072)
Net profit on disposals – 7
Net finance costs – (30)
Financing remeasurements – 13
Income tax expense – (51)
Minority interests – (10)
Group's share of associates' net income – discontinued operations – (90)
Group's share of associates' net income – total Group 1,113 107

Segmental information is provided for primary and secondary reporting segments as follows:

  Net income Aggregate investment
US$ million 2008 2007 2008 2007
By business segment
Platinum 13 38 57 57
Diamonds 47 (229) 1,623 1,802
Ferrous Metals and Industries 724 198 1,121 778
Coal 329 190 809 702
Industrial Minerals – – 2 2
Total continuing operations 1,113 197 3,612 3,341
Gold – (92) – –
Paper and Packaging – 2 – –
Total discontinued operations – (90) – –
Total Group 1,113 107 3,612 3,341
  Aggregate investment
US$ million 2008 2007
By geographical segment South Africa 2,264 1,704
Rest of Africa 187 677
Europe (56) 98
North America 22 36
South America 686 641
Australia and Asia 509 185
  3,612 3,341

The Group's share of associates' contingent liabilities incurred jointly by investors is $166 million (2007: $190 million).

Details of principal associates are set out in note 40.

Back to the top