Property, plant and equipment

12 Months Ended

Dec. 31, 2018

Disclosure of detailed information about property, plant and equipment [abstract]

Disclosure of detailed information about property, plant and equipment explanatory [Text Block]

Note 15

Property, plant and equipment

As of December 31, 2018 and December 31, 2017, the detail of property, plant and equipment is as follows:

15.1

Types of property, plant and equipment

Description of types of property, plant and equipment	12/31/2018 ThUS$			12/31/2017 ThUS$
Property, plant and equipment, net
Land		24,695			24,900
Buildings		238,808			230,319
Other property, plant and equipment		28,175			24,862
Transport equipment		2,892			3,257
Supplies and accessories		4,722			1,872
Office equipment		513			487
Network and communication equipment		692			1,050
Mining assets		11,501			16,237
IT equipment		4,980			3,401
Energy generating assets		6,117			7,861
Constructions in progress		207,830			165,054
Machinery, plant and equipment (1)		923,898			950,054
Total		1,454,823			1,429,354
Property, plant and equipment, gross
Land		24,695			24,900
Buildings		648,719			610,264
Other property, plant and equipment		245,731			244,831
Transport equipment		11,668			11,195
Supplies and accessories		24,456			19,498
Office equipment		11,377			11,105
Network and communication equipment		7,505			7,356
Mining assets		132,309			129,028
IT equipment		29,955			27,038
Energy generating assets		36,930			36,643
Constructions in progress		207,830			165,054
Machinery, plant and equipment		3,068,862			2,938,287
Total		4,450,037			4,225,199

Accumulated depreciation and value impairment of property, plant and equipment, total
Accumulated depreciation and impairment of buildings		(409,911	)		(379,945	)
Accumulated depreciation and impairment of other property, plant and equipment		(217,556	)		(219,969	)
Accumulated depreciation and impairment of transport equipment		(8,776	)		(7,938	)
Accumulated depreciation and impairment of supplies and accessories		(19,734	)		(17,626	)
Accumulated depreciation and impairment of office equipment		(10,864	)		(10,618	)
Accumulated depreciation and impairment of network and communication equipment		(6,813	)		(6,306	)
Accumulated depreciation and impairment of mining assets		(120,808	)		(112,791	)
Accumulated depreciation and impairment of IT equipment		(24,975	)		(23,637	)
Accumulated depreciation and impairment of energy generating assets		(30,813	)		(28,782	)
Accumulated depreciation and impairment of machinery, plant and equipment		(2,144,964	)		(1,988,233	)
Total		(2,995,214	)		(2,795,845	)

(1)

The detail of machinery, plant and equipment is as follows:

Description of classes of property, plant and equipment	12/31/2018 ThUS$		12/31/2017 ThUS$
Property, plant and equipment, net
Pumps		34,145		33,614
Conveyor belt		22,082		24,832
Crystallizer		27,112		15,519
Plant equipment		188,934		186,885
Water tanks		14,876		11,296
Filter		29,300		18,572
Facilities/electrical equipment		96,179		105,600
Other machinery, plant and equipment		71,964		72,812
Piping		98,498		113,641
Pond		250,045		275,731
Well		42,903		46,802
Parts		47,860		44,750
Total		923,898		950,054

* The net balance of other machinery, plant and equipment includes capitalized site closure expenses of ThUS$

12,967

as of December 31, 2018 and ThUS$

14,104

as of December 31, 2017.

15.2

Reconciliation of changes in property, plant and equipment by type:

Reconciliation of changes in property, plant and equipment by class as of December 31, 2018 and December 31, 2017:

Reconciliation of changes in property, plant and equipment by class as of December 31, 2018, gross amount	Land			Buildings			Other property, plant and equipment			Transport equipment			Supplies and accessories			Equipment office			Network and communication equipment			Mining assets		IT equipment			Energy generating assets		Assets under construction			Machinery, plant and equipment			Property, plant and equipment
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$		ThUS$			ThUS$		ThUS$			ThUS$			ThUS$

Opening balance		24,900			610,264			244,831			11,195			19,498			11,105			7,356			129,028		27,038			36,643		165,054			2,938,287			4,225,199
Changes
Additions		-			28			833			-			41			15			-			-		489			-		263,290			1,448			266,144
Disposals		-			(38	)		(7,811	)		(51	)		-			-			-			-		(10	)		-		(6,582	)		(1,666	)		(16,158	)
Increase (decrease) in foreign currency translation difference		(64	)		(134	)		(8	)		(3	)		(19	)		(6	)		-			-		(11	)		-		-			(153	)		(398	)
Reclassifications		-			38,746			10,330			529			4,889			268			150			3,281		2,100			75		(184,095	)		123,726			(1	)
Other increases (decreases) (*)		-			(147	)		(2,444	)		(2	)		47			(5	)		(1	)		-		349			212		(29,837	)		7,220			(24,608	)
Decreases for classification as held for sale (1)		(141	)		-			-			-			-			-			-			-		-			-		-			-			(141	)
Total changes		(205	)		38,455			900			473			4,958			272			149			3,281		2,917			287		42,776			130,575			224,838
Closing balance		24,695			648,719			245,731			11,668			24,456			11,377			7,505			132,309		29,955			36,930		207,830			3,068,862			4,450,037

Reconciliation of changes in property, plant and equipment by class as of December 31, 2018, accumulated depreciation	Land		Buildings			Other property, plant and equipment			Transport equipment			Supplies and accessories			Equipment office			Network and communication equipment			Mining assets			IT equipment			Energy generating assets			Assets under construction		Machinery, plant and equipment			Property, plant and equipment
	ThUS$		ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$		ThUS$			ThUS$

Opening balance		-		(379,945	)		(219,969	)		(7,938	)		(17,626	)		(10,618	)		(6,306	)		(112,791	)		(23,637	)		(28,782	)		-		(1,988,233	)		(2,795,845	)
Changes
Disposals		-		38			7,737			8			-			-			-			-			10			-			-		1,722			9,515
Depreciation expense		-		(29,829	)		(7,415	)		(880	)		(2,056	)		(271	)		(483	)		(8,017	)		(1,374	)		(2,026	)		-		(158,900	)		(211,251	)
Impairment		-		(437	)		-			-			-			-			-			-			-			(12	)		-		(941	)		(1,390	)
Increase (decrease) in foreign currency translation difference		-		41			4			1			12			3			-			-			(1	)		-			-		61			121
Reclassifications		-		106			(483	)		-			(87	)		(17	)		(28	)		-			90			1			-		419			1
Other increases (decreases) (*)		-		115			2,570			33			23			39			4			-			(63	)		6			-		908			3,635
Decreases for classification as held for sale (1)		-		-			-			-			-			-			-			-			-			-			-		-			-
Total changes		-		(29,966	)		2,413			(838	)		(2,108	)		(246	)		(507	)		(8,017	)		(1,338	)		(2,031	)		-		(156,731	)		(199,369	)
Closing balance		-		(409,911	)		(217,556	)		(8,776	)		(19,734	)		(10,864	)		(6,813	)		(120,808	)		(24,975	)		(30,813	)		-		(2,144,964	)		(2,995,214	)

Reconciliation of changes in property, plant and equipment by class as of December 31, 2018, net amount	Land			Buildings			Other property, plant and equipment			Transport equipment			Supplies and accessories			Equipment office			Network and communication equipment			Mining assets			IT equipment			Energy generating assets			Assets under construction			Machinery, plant and equipment			Property, plant and equipment
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$

Opening balance		24,900			230,319			24,862			3,257			1,872			487			1,050			16,237			3,401			7,861			165,054			950,054			1,429,354
Changes
Additions		-			28			833			-			41			15			-			-			489			-			263,290			1,448			266,144
Disposals		-			-			(74	)		(43	)		-			-			-			-			-			-			(6,582	)		56			(6,643	)
Depreciation expense		-			(29,829	)		(7,415	)		(880	)		(2,056	)		(271	)		(483	)		(8,017	)		(1,374	)		(2,026	)		-			(158,900	)		(211,251	)
Impairment		-			(437	)		-			-			-			-			-			-			-			(12	)		-			(941	)		(1,390	)
Increase (decrease) in foreign currency translation difference		(64	)		(93	)		(4	)		(2	)		(7	)		(3	)		-			-			(12	)		-			-			(92	)		(277	)
Reclassifications		-			38,852			9,847			529			4,802			251			122			3,281			2,190			76			(184,095	)		124,145			-
Other increases (decreases) (*)		-			(32	)		126			31			70			34			3			-			286			218			(29,837	)		8,128			(20,973	)
Decreases for classification as held for sale (1)		(141	)		-			-			-			-			-			-			-			-			-			-			-			(141	)
Total changes		(205	)		8,489			3,313			(365	)		2,850			26			(358	)		(4,736	)		1,579			(1,744	)		42,776			(26,156	)		25,469
Closing balance		24,695			238,808			28,175			2,892			4,722			513			692			11,501			4,980			6,117			207,830			923,898			1,454,823

(*) The net balance of other increases (decreases) corresponds to all those items that are reclassified to or from property, plant and equipment. They can have the following origin:1) work in progress which is expensed to profit or loss, forming part of operating costs or other expenses per function, as appropriate; 2) the variation representing the purchase and use of materials and spare parts; 3) projects corresponding mainly to exploration expenditures and ground studies that are reclassified to the item other non-current financial assets; 4) software that is reclassified to Intangibles.

(1) Any property, plant and equipment (disposal group) that, at the closing date of the financial statements, is subject to a commitment for sale or where the sales process has been initiated and where the sale is expected to occur within twelve months of that date, is classified by the Company as non-current assets held for sale.

These assets or disposal groups are valued at the lower of carrying amount or the estimated sales value less the costs to sell and stop being amortized from the moment they are classified as non-current assets held for sale.

Reconciliation of changes in property, plant and equipment by class as of December 31, 2017, gross amount	Land			Buildings			Other property, plant and equipment			Transport equipment			Supplies and accessories		Equipment office			Network and communication equipment			Mining assets			IT equipment			Energy generating assets		Assets under construction			Machinery, plant and equipment			Property, plant and equipment
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$		ThUS$			ThUS$			ThUS$			ThUS$			ThUS$		ThUS$			ThUS$			ThUS$

Opening balance		32,702			582,082			253,555			10,819			18,259		17,731			7,522			158,514			20,316			34,812		170,710			2,833,819			4,140,841
Changes
Additions		-			189			541			-			115		42			12			-			899			122		149,133			10,747			161,800
Disposals		-			(59	)		(11,623	)		(321	)		-		(23	)		-			(30,082	)		(57	)		-		-			(3,374	)		(45,539	)
Increase (decrease) in foreign currency translation difference		45			103			3			1			-		-			-			-			(2	)		-		1			118			269
Reclassifications		-			23,336			8,255			696			1,044		172			123			596			122			1,709		(135,988	)		99,744			(191	)
Other increases (decreases) (*)		(7,436	)		4,669			(5,900	)		-			80		(6,817	)		(301	)		-			5,760			-		(18,802	)		(2,767	)		(31,514	)
Decreases for classification as held for sale (1)		(411	)		(56	)		-			-			-		-			-			-			-			-		-			-			(467	)
Total changes		(7,802	)		28,182			(8,724	)		376			1,239		(6,626	)		(166	)		(29,486	)		6,722			1,831		(5,656	)		104,468			84,358
Closing balance		24,900			610,264			244,831			11,195			19,498		11,105			7,356			129,028			27,038			36,643		165,054			2,938,287			4,225,199

Reconciliation of changes in property, plant and equipment by class as of December 31, 2017, accumulated depreciation	Land			Buildings			Other property, plant and equipment			Transport equipment			Supplies and accessories			Equipment office			Network and communication equipment			Mining assets			IT equipment			Energy generating assets			Assets under construction			Machinery, plant and equipment			Property, plant and equipment
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$

Opening balance		-			(344,497	)		(227,138	)		(7,464	)		(16,486	)		(14,089	)		(5,836	)		(133,871	)		(19,950	)		(26,621	)		-			(1,812,179	)		(2,608,131	)
Changes
Disposals		-			58			11,622			312			-			3			-			30,083			25			-			-			3,210			45,313
Depreciation expense		-			(33,306	)		(6,759	)		(730	)		(1,047	)		(357	)		(665	)		(10,638	)		(909	)		(2,184	)		-			(170,565	)		(227,160	)
Impairment		-			-			-			-			-			-			-			-			-			-			-			(5,205	)		(5,205	)
Increase (decrease) in foreign currency translation difference		-			-
-		(35	)		(3	)		(2	)		-			-			-			-			(11	)		-			-			(58	)		(109	)
Reclassifications		-			(62	)		38			(32	)		(110	)		(69	)		(25	)		-			(46	)		26			-			344			64
Other increases (decreases) (*)		-			(2,102	)		2,271			(22	)		17			3,894			220			1,635			(2,746	)		(3	)		-			(3,780	)		(616	)
Decreases for classification as held for sale (1)		-			(1	)		-			-			-			-			-			-			-			-			-			-			(1	)
Total changes		-			(35,448	)		7,169			(474	)		(1,140	)		3,471			(470	)		21,080			(3,687	)		(2,161	)		-			(176,054	)		(187,714	)
Closing balance		-			(379,945	)		(219,969	)		(7,938	)		(17,626	)		(10,618	)		(6,306	)		(112,791	)		(23,637	)		(28,782	)		-			(1,988,233	)		(2,795,845	)

Reconciliation of changes in property, plant and equipment by class as of December 31, 2017, net amount	Land			Buildings			Other property, plant and equipment			Transport equipment			Supplies and accessories			Equipment office			Network and communication equipment			Mining assets			IT equipment			Energy generating assets			Assets under construction			Machinery, plant and equipment			Property, plant and equipment
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$

Opening balance		32,702			237,585			26,417			3,355			1,773			3,642			1,686			24,643			366			8,191			170,710			1,021,640			1,532,710
Changes
Additions		-			189			541			-			115			42			12			-			899			122			149,133			10,747			161,800
Disposals		-			(1	)		(1	)		(9	)		-			(20	)		-			1			(32	)		-			-			(164	)		(226	)
Depreciation expense		-			(33,306	)		(6,759	)		(730	)		(1,047	)		(357	)		(665	)		(10,638	)		(909	)		(2,184	)		-			(170,565	)		(227,160	)
Impairment		-			-			-			-			-			-			-			-			-			-			-			(5,205	)		(5,205	)
Increase (decrease) in foreign currency translation difference		45			68			-			(1	)		-			-			-			-			(13	)		-			1			60			160
Reclassifications		-			23,274			8,293			664			934			103			98			596			76			1,735			(135,988	)		100,088			(127	)
Other increases (decreases) (*)		(7,436	)		2,567			(3,629	)		(22	)		97			(2,923	)		(81	)		1,635			3,014			(3	)		(18,802	)		(6,547	)		(32,130	)
Decreases for classification as held for sale (1)		(411	)		(57	)		-			-			-			-			-			-			-			-			-			-			(468	)
Total changes		(7,802	)		(7,266	)		(1,555	)		(98	)		99			(3,155	)		(636	)		(8,406	)		3,035			(330	)		(5,656	)		(71,586	)		(103,356	)
Closing balance		24,900			230,319			24,862			3,257			1,872			487			1,050			16,237			3,401			7,861			165,054			950,054			1,429,354

(*) The net balance of other increases (decreases) corresponds to all those items that are reclassified to or from property, plant and equipment, They can have the following origin:1) work in progress which is expensed to profit or loss, forming part of operating costs or other expenses per function, as appropriate; 2) the variation representing the purchase and use of materials and spare parts; 3) projects corresponding mainly to exploration expenditures and ground studies that are reclassified to the item other non-current financial assets; 4) assets for retirement obligations and 5) software that is reclassified to Intangibles.

15.3

Detail of property, plant and equipment pledged as guarantee

There are no restrictions in title or guarantees for compliance with obligations that affect property, plant and equipment.

15.4

Impairment of assets

As indicated in Note 3.28 to the financial statements, the recoverable amount of property, plant and equipment is measured provided that there is an indication that the asset could be impaired. As of December 31, 2018, impairment of ThUS$

1,390

was recorded, while impairment of ThUS$

5,205

was recorded as of December 31, 2017.

15.5

Additional Information

Capitalized interest

As of December 31, 2018, capitalized interest totaled ThUS$

5,021

, while for the period January to December 2017, this item totaled ThUS$

4,382

No borrowing costs are capitalized for periods beyond the normal period for acquiring, constructing or installing an asset such as delays, interruptions or temporary suspension of projects due to technical, financial or other problems that render the asset unusable.