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10. PROPERTY, PLANT AND EQUIPMENT
 12 Months Ended
Dec. 31, 2018
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, 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
Translation adjustment       7,730            11,653               86,553             543             4,275             4,605               115,359
Acquisitions          622              1,259             144,499          1,574      1,158,788           21,152            1,327,894
Capitalized interest (notes 25 and 30)                         71,611                     71,611
Write-off and estimated losses, net of reversal (note 24)               (9,768)             (21,468)               (6)            (4,348)           (2,655)                (38,245)
Depreciation (note 23)           (134,534)        (1,043,188)        (5,394)             (22,456)           (1,205,572)
Transfers to other asset categories              30,031             685,005             891        (424,443)       (291,484)                             
Write-off - sale of subsidiary LLC        (238)           (16,950)           (145,958)           (181)            (6,070)         (21,829)              (191,226)
Transfers to intangible assets                       5,559                (1,752)                       3,807
Others                     (9,651)                 8,440              (392)                  (1,603)
Balance as of December 31, 2018   287,854       2,678,638        11,687,271        30,530      3,282,436           80,135      18,046,864
Cost   287,854       3,751,429        22,426,782      165,331      3,282,436         355,768      30,269,600
Accumulated depreciation        (1,072,791)      (10,739,511)    (134,801)           (275,633)     (12,222,736)
Balance as of December 31, 2018   287,854       2,678,638        11,687,271        30,530      3,282,436           80,135      18,046,864

 

(*) 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 comprising construction in progress is as follows:

               

 

 

Consolidated

    Project description   Start date   Completion date   12/31/2018   12/31/2017
Logistics                    
    Current investments for maintenance of current operations.                                            89,595   106,956
                                              89,595   106,956
Mining                        
      Expansion of Casa de Pedra Mine capacity production.      2007   2020 (1) 844,194   750,999
      Expansion of TECAR export capacity.      2009   2022 (2) 289,298   275,811
      Current investments for maintenance of current operations.                                            725,616   408,522
                                              1,859,108   1,435,332
Steel                       
     Supply of 16 torpedo’s cars for operation in the steel industry   2008   2020      94,920   99,483
      Current investments for maintenance of current operations.                                       (3) 558,922   228,029
                                              653,842   327,512
Cement                       
       Construction of cement plants.      2011   2023 (4) 585,163   554,865
      Current investments for maintenance of current operations.                                            94,728   51,270
                                              679,891   606,135
Construction in progress           3,282,436   2,475,935

 

 

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

(2) Estimated completion date of phase 60 Mtpa;

(3) Refers substantially to the technological modernization of the UPV's continuous running machines;

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

 

 

 

 

The average estimated useful lives are as follows, in years:

 

      Consolidated
  12/31/2018   12/31/2017
Buildings 38   39
Machinery, equipment and facilities 22   21
Furniture and fixtures 11   12
Others 15   17

 

 

 

10.a) Capitalized Interest

 

As of December 31, 2018, the Company capitalized borrowing costs amounting to R$71,611 in consolidated (as of December 31, 2017, R$91,957 in consolidated). These costs are basically estimated for the mining projects, mainly relating to the expansion of Casa de Pedra (MG) and TECAR (RJ), see notes 25 and 30.

 

The rates used to capitalize borrowing costs are as follows:

 

Rates   12/31/2018   12/31/2017
Unspecified projects   6.31%   8.63%