RU

INTEGRATED REPORT 2016

Property, plant and equipment

  Buildings Mining assets Plant and equipment Transport Assets under construction Other Land Total
Cost                
Balance at 1 January 2015 549,757 550,587 1,056,032 195,426 553,090 25,742 5,049 2,935,683
Additions 66 - 345 7,431 338,988 279 2,838 349,947
Changes in estimates added to property, plant and equipment (Note 16) - 68,730 - - - - - 68,730
Commissioning of assets and transfers 83,245 141,353 27,839 5,315 (258,916) 1,148 16 -
Disposals (6,651) (2,634) (24,689) (7,218) (6,742) (591) (16) (48,541)
Effect of translation to presentation currency (137,501) (126,204) (242,487) (45,480) (137,892) (6,000) (1,616) (697,180)
Balance at 31 December 2015 488,916 631,832 817,040 155,474 488,528 20,578 6,271 2,608,639
                 
Additions 74 - 1,558 139 323,884 - - 325,655
Changes in estimates added to property, plant and equipment (Note 16) 634 46,676 - - - - - 47,310
Commissioning of assets and transfers 105,932 1,915 157,932 17,116 (289,752) (3,735) 74 (10,518)
Disposals (4,000) (996) (18,445) (2,468) (6,678) (226) (14) (32,827)
Effect of translation to presentation currency 110,991 123,964 185,732 32,530 101,110 3,347 1,270 558,944
Balance at 31 December 2016 702,547 803,391 1,143,817 202,791 617,092 19,964 7,601 3,497,203
                 
Accumulated depreciation                
Balance at 1 January 2015 125,435 212,866 596,982 84,555 7,568 9,169 - 1,036,575
Depreciation charge 19,177 43,325 90,833 14,403 - 1,591 - 169,329
Disposals (1,613) (839) (16,841) (6,628) - (230) - (26,151)
Transfers (864) 64,096 (63,232) - - - - -
(Reversal of impairment)/impairment (427) (21,539) 1,706 - (5,430) - - (25,690)
Effect of translation to presentation currency (30,822) (34,884) (139,242) (20,553) (589) (2,308) - (228,398)
Balance at 31 December 2015 110,886 263,025 470,206 71,777 1,549 8,222 - 925,665
                 
Depreciation charge 21,910 50,332 69,785 11,968 - 959 - 154,954
Disposals (1,590) (398) (15,129) (2,095) - (83) - (19,295)
Transfers 11,456 (82,315) 61,371 (1,829) 1,516 (716) - (10,517)
(Reversal of impairment)/impairment (1,229) 4,663 (5,347) 512 4,592 - - 3,191
Effect of translation to presentation currency 26,601 42,234 112,320 15,191 1,101 1,605 - 199,054
Balance at 31 December 2016 168,034 277,541 693,206 95,524 8,758 9,987 - 1,253,050
                 
Net Book Value                
                 
Balance at 1 January 2015 424,322 337,721 459,050 110,871 545,522 16,573 5,049 1,899,108
Balance at 31 December 2015 378,030 368,807 346,834 83,697 486,979 12,356 6,271 1,682,974
Balance at 31 December 2016 534,513 525,850 450,611 107,267 608,334 9,977 7,601 2,244,153

In 2016 and 2015, the Group changed the classification between groups of fixed assets due to the changes to approach of classification of assets as Mining assets.

Allocation of depreciation charge for the period 2016 2015
Cost of sales (Note 22) 130,724 144,932
Distribution costs (Note 23) 10,719 13,162
General and administrative expenses (Note 24) 6,784 7,731
Other expenses (Note 25) 885 -
Capitalised within assets under construction 5,842 3,504
Total 154,954 169,329

Fully depreciated assets still in use

As at 31 December 2016 and 31 December 2015 the gross carrying value of fully depreciated property, plant and equipment still in use was US$ 385,964 and US$ 301,321, respectively.

Property,plant and equipment impairment due to the accident at Solikamsk-2

In 2015, due to decision to continue mining at Solikamsk-2, the Group reversed the impairment of fixed assets and construction in progress in amount US$ 27,248. In 2016 the Group reversed the impairment of fixed assets and construction in progress of US$ 582 (Note 25).

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