Property, plant and equipment (Tables)

12 Months Ended

Jun. 30, 2019

Summary of Property, Plant and Equipment


	Land and buildings			Plant and equipment			Other mineral assets			Assets under construction			Exploration and evaluation			Total
	US$M			US$M			US$M			US$M			US$M			US$M
Net book value – 30 June 2019
At the beginning of the financial year		8,152			40,885			8,974			7,554			1,617			67,182
Additions ⁽¹⁾⁽²⁾		5			515			1,023			5,799			418			7,760
Depreciation for the year		(585	)		(4,885	)		(277	)		–			–			(5,747	)
Impairments, net of reversals ⁽³⁾		(9	)		(234	)		–			–			(7	)		(250	)
Disposals		(2	)		(40	)		(5	)		–			–			(47	)
Transferred to assets held for sale		–			–			–			(331	)		–			(331	)
Exchange variations taken to reserve		–			(1	)		–			–			–			(1	)
Transfers and other movements		324			1,934			(504	)		(1,873	)		(406	)		(525	)

At the end of the financial year		7,885			38,174			9,211			11,149			1,622			68,041

– Cost		12,825			92,090			13,681			11,149			2,404			132,149
– Accumulated depreciation and impairments		(4,940	)		(53,916	)		(4,470	)		–			(782	)		(64,108	)

Net book value – 30 June 2018
At the beginning of the financial year		8,547			49,427			15,557			5,536			1,430			80,497
Additions ⁽¹⁾⁽²⁾		(20	)		110			873			5,423			258			6,644
Depreciation for the year		(548	)		(6,467	)		(730	)		–			–			(7,745	)
Impairments, net of reversals ⁽³⁾		(9	)		(507	)		(260	)		–			(62	)		(838	)
Disposals		(7	)		(26	)		(36	)		(1	)		(9	)		(79	)
Transferred to assets held for sale		(21	)		(4,426	)		(5,563	)		(662	)		–			(10,672	)
Exchange variations taken to reserve		–			1			–			–			–			1
Transfers and other movements		210			2,773			(867	)		(2,742	)		–			(626	)

At the end of the financial year		8,152			40,885			8,974			7,554			1,617			67,182

– Cost		12,525			91,037			13,212			7,554			2,400			126,728
– Accumulated depreciation and impairments		(4,373	)		(50,152	)		(4,238	)		–			(783	)		(59,546	)

⁽¹⁾	Includes net foreign exchange gains/(losses) related to the closure and rehabilitation provisions. Refer to note 14 ‘Closure and rehabilitation provisions’.

⁽²⁾	Property, plant and equipment of US$ nil (2018: US$3 million; 2017: US$593 million) was acquired under finance lease. This is a non-cash investing transaction that has been excluded from the Consolidated Cash Flow Statement.

⁽³⁾	Includes impairment charges related to Onshore US assets of US$ nil (2018: US$520 million). Refer to note 27 ‘Discontinued operations’.

Summary of Principal Depreciation Methods and Rates Applied to Major Asset Categories

The table below summarises the principal depreciation methods and rates applied to major asset categories by the Group.


Category	Buildings	Plant and equipment	Mineral rights and petroleum interests	Capitalised exploration, evaluation and development expenditure
Typical depreciation methodology	SL	SL	UoP	UoP

Depreciation rate	25-50 years	3-30 years	Based on the rate of depletion of reserves	Based on the rate of depletion of reserves