With the continued support of banks and Original Equipment Manufacturers (“OEM’s”), the group continued to replace plant, where appropriate, on a consistent basis. A positive consequence of the replacement policy, implemented since 2011, has resulted in excess of 95% of plant having operated for less than 20,000 hours.

Furthermore, the useful lives of various mining plant categories range from 12,000 to 36,000 hours depending on the category and brand of the plant item.

 

The book value of plant and equipment for continuing operations is R754.2 million down by  16.3% from R901.2 million as a result of additions of R275.2 million, depreciation amounting to R165.6 million, impairments of R4.8 million, disposals of R244.3 million and R7.5 million  classified as “held for sale”.

When reviewing the current economic useful lives and residual values of plant, management considers the following:

• replacement value

• reliable availability of spare parts

• market value

• maintenance history

• local and international demand

• operational application

• OEM support and their value perspective

• value in use.