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9. PROPERTY, PLANT AND EQUIPMENT
 12 Months Ended
Dec. 31, 2017
Property, plant and equipment [abstract]  
PROPERTY, PLANT AND EQUIPMENT

                          Consolidated
  Land   Buildings and Infrastructure   Machinery, equipment and facilities   Furniture and fixtures   Construction
in progress		   Other (*)   Total
Balance at December 31, 2015   263,539       2,689,241        11,072,244        38,730      3,199,386         563,086      17,826,226
Cost   263,539       3,429,573        18,601,088      182,830      3,199,386         811,080      26,487,496
Accumulated depreciation           (740,332)        (7,528,844)    (144,100)           (247,994)       (8,661,270)
Balance at December 31, 2015   263,539       2,689,241        11,072,244        38,730      3,199,386         563,086      17,826,226
Effect of foreign exchange differences   (13,348)           (38,538)           (149,908)           (915)            (8,345)           (2,973)              (214,027)
Acquisitions              4                 100             205,488             867      1,412,685           16,987            1,636,131
Capitalized interest (notes 24 and 29)                       215,794                   215,794
Write-off (note 23)        (144)             (2,723)             (10,423)             (77)          (41,093)         (20,785)                (75,245)
Depreciation (note 22)           (116,760)        (1,096,668)        (5,822)             (34,929)           (1,254,179)
Transfers to other asset categories     14,951          298,121          2,318,728             444     (2,502,615)       (129,629)    
Transfers to intangible assets                        (16,538)                    (16,538)
Acquisition control - CGPAR                       7,377             189                    575                   8,141
Goodwill - Aquisition control CGPAR                     57,889                             57,889
Transfer of Metalic - Held for sale        (373)           (13,466)             (30,440)           (208)               (261)              (269)                (45,017)
Others                  (296)               (4,657)             (45)             1,851              (149)                  (3,296)
Balance at December 31, 2016   264,629       2,815,679        12,369,630        33,163      2,260,864         391,914      18,135,879
Cost   264,629       3,637,903        20,712,371      173,821      2,260,864         676,529      27,726,117
Accumulated depreciation           (822,224)        (8,342,741)    (140,658)           (284,615)       (9,590,238)
Balance at December 31, 2016   264,629       2,815,679        12,369,630        33,163      2,260,864         391,914      18,135,879
Effect of foreign exchange differences       8,702            21,737               72,811             593             3,076                265               107,184
Acquisitions       8,241              1,196               91,251          1,171         951,796           10,091            1,063,746
Capitalized interest (notes 24 and 29)                         91,957                     91,957
Write-off (note 23)          653            30,634             (30,383)             (37)            (2,536)         (26,388)                (28,057)
Depreciation (note 22)           (156,580)        (1,174,852)        (5,656)             (43,105)           (1,380,193)
Transfers to other asset categories     (2,485)            84,281             659,119          3,869        (805,207)           60,423    
Transfers to intangible assets                        (26,183)                    (26,183)
Others                     (1,656)                 2,168                  (6)                      506
Balance at December 31, 2017   279,740       2,796,947        11,985,920        33,103      2,475,935         393,194      17,964,839
Cost   279,740       3,819,929        21,674,362      164,152      2,475,935         669,096      29,083,214
Accumulated depreciation        (1,022,982)        (9,688,442)    (131,049)           (275,902)     (11,118,375)
Balance at December 31, 2017   279,740       2,796,947        11,985,920        33,103      2,475,935         393,194      17,964,839

 

(*) Refer basically to railway assets such as courtyards, tracks and leasehold improvements, vehicles, hardware, mines, ore deposits, and spare part inventories.

 

The breakdown of the projects that comprise construction in progress is as follows:

 

 

 

               Consolidated
Project description   Start date   Completion date   12/31/2017   12/31/2016
Logistics                
 Current investments to maintain current operations at their full capacity.                 106,956   103,284
                  106,956   103,284
Mining                 
 Expansion of Casa de Pedra Mine capacity production.    2007   2020 (1)       750,999   689,160
 Expansion of TECAR export capacity.    2009   2022 (2)       275,811   253,545
 Current investments to maintain current operations at their full capacity.                 408,522   261,056
               1,435,332   1,203,761
Steel                
 Supply of 16 torpedo’s cars for operation in the steel industry.    2008   2019           99,483   91,779
  Current investments to maintain current operations at their full capacity.         (3)       228,029   307,448
                  327,512   399,227
                 
Cement                 554,865   529,631
  Construction of cement plants.    2011   2020 (4)         51,270   24,961
  Current investments to maintain current operations at their full capacity.                 606,135   554,592
                 
Total Construction in Progress              2,475,935   2,260,864

 

 

(1) Estimated completion date of the Central Plant Step 1;

(2) Estimated completion date of phase 60 Mtpa;

(3) Refers substantially to the reforming of batteries for coke ovens and reuse of the carbochemical cooling waters;

(4) Refers substantially to the acquisition of new Integrated Cement Plants

 

 

The average estimated useful lives are as follows (in years):   

 

      Consolidated
  12/31/2017   12/31/2016
Buildings 39   41
Machinery, equipment and facilities 21   18
Furniture and fixtures 12   12
Other 17   14

 

9.a) Capitalized Interest

 

As of December 31, 2017, the Company capitalized borrowing costs amounting to R$91,957 in consolidated financial statement (as of December 31, 2016, R$215,794). These costs are basically estimated for the cement and mining projects, mainly relating to: new integrated cement plant; and (ii) Casa de Pedra (MG) expansion and TECAR (RJ), see notes 24 and 29.

 

The rates used to capitalize borrowing costs are as follows:

 

Rates 12/31/2017   12/31/2016
Unspecified projects 8.63%   10.48%