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Property, plant and equipment (Tables)

12 Months Ended

Dec. 31, 2017

Property, plant and equipment [abstract]

Schedule of property, plant and equipment

(a)

The composition and movement in this caption as of the date of the consolidated statements of financial position is presented below:

	Mining concessions (b)		Mine development costs (b)		Land	Buildings and other construction		Machinery, equipment and related spare parts		Furniture and accessories		Transportation units		Computer equipment and tools		Mine rehabilitation costs	Capitalized interests	Works in progress and units in transit		Total
	S/(000)		S/(000)		S/(000)	S/(000)		S/(000)		S/(000)		S/(000)		S/(000)		S/(000)	S/(000)	S/(000)		S/(000)

Cost
As of January 1, 2016	79,217		125,127		219,240	436,670		986,642		31,097		125,286		53,014		4,575	61,595	890,746		3,013,209
Additions	484		4,944		44	—		13,297		109		2,651		1,803		1,488	—	82,362		107,182
Capitalized interests (d)	—		—		—	—		—		—		—		—		—	3,309	—		3,309
Disposals	—		—		—	—		(13,661	)	(9	)	(7,020	)	(18	)	—	—	(871	)	(21,579	)
Transfers	136		1,473		61	240,992		515,631		19		502		1,307		—	—	(758,749	)	1,372
Assets held for distribution	(3,029	)	(89,959	)	—	(20,114	)	(65,525	)	(703	)	(1,711	)	(2,605	)	—	—	(28,835	)	(212,481	)
As of December 31, 2016	76,808		41,585		219,345	657,548		1,436,384		30,513		119,708		53,501		6,063	64,904	184,653		2,891,012
Additions	—		2,260		9,186	232		12,696		88		10,511		1,350		—	—	32,280		68,603
Disposals	—		—		—	(1,171	)	(614	)	(17	)	(8,213	)	(178	)	—	—	(397	)	(10,590	)
Transfers, note 11	—		1,402		27	20,328		142,593		817		312		3,740		26	—	(173,664	)	(4,419	)

As of December 31, 2017	76,808		45,247		228,558	676,937		1,591,059		31,401		122,318		58,413		6,089	64,904	42,872		2,944,606

Accumulated depreciation
As of January 1, 2016	12,233		9,457		—	52,366		229,014		26,605		57,983		37,296		1,432	14	—		426,400
Additions	72		296		—	17,194		76,322		852		11,104		3,572		—	1,403	—		110,815
Disposals	—		—		—	—		(4,613	)	(3	)	(2,866	)	(7	)	—	—	—		(7,489	)
Assets held for distribution	(186	)	—		—	(615	)	(3,805	)	(250	)	(1,511	)	(1,389	)	—	—	—		(7,756	)
As of December 31, 2016	12,119		9,753		—	68,945		296,918		27,204		64,710		39,472		1,432	1,417	—		521,970
Additions	—		506		—	17,482		85,937		728		12,966		3,629		2	1,519	—		122,769
Disposals	—		—		—	(633	)	(221	)	(17	)	(4,697	)	(335	)	—	—	—		(5,903	)
Transfers, note 11	—		(509	)	—	—		—		—		—		—		—	—	—		(509	)
As of December 31, 2017	12,119		9,750		—	85,794		382,634		27,915		72,979		42,766		1,434	2,936	—		638,327

Impairment mining assets (b)
As of December 31, 2016	41,213		24,048		258	13,837		12,166		168		26		400		3,143	—	735		95,994
Additions, note 1.2	1,645		—		—	—		—		33		—		54		—	—	—		1,732
As of December 31, 2017	42,858		24,048		258	13,837		12,166		201		26		454		3,143	—	735		97,726

Net book value

As of December 31, 2017	21,831		11,449		228,300	577,306		1,196,259		3,285		49,313		15,193		1,512	61,968	42,137		2,208,553

As of December 31, 2016	23,476		7,784		219,087	574,766		1,127,300		3,141		54,972		13,629		1,488	63,487	183,918		2,273,048
Assets held for distribution as of December 31, 2016	2,843		89,959		—	19,499		61,720		453		200		1,216		—	—	28,835		204,725

(b)

Mining concessions mainly include net acquisition costs of S/15,367,000 related to coal concessions acquired through a purchase option executed from 2011 to 2013. The caption also includes some concessions acquired by the Group for exploration activities related to the cement business.

In previous years management recognized a full impairment charge of approximately S/95,994,000, related to the total net book value of a closed zinc mining unit which includes concession costs, development costs and related facilities and equipments. From this amount, S/41,213,000 corresponds to concessions costs. According to the management’s expectation the recovery amount of this zinc mining unit is zero.

As of December 31, 2017, the Group has recognized an impairment on the brine project. As a consequence the Group wrote-off the concessions and other related assets for S/1,732,000. See note 1.2.

(c)

There were no additions under finance leases during the years 2017 and 2016.

(d)

During 2016 the Group capitalized borrowing costs for S/3,309,000 mainly related with the expansion of the cement plant located in Piura. The rate used to determine the amount of borrowings costs eligible for capitalization was approximately 5.00 percent as of December 31, 2016, which is the effective rate of the only borrowing the Group has as of such date. The amount of borrowing costs eligible for capitalization is determined by applying the capitalization rate to the capital expenditures incurred on qualifying assets. Since September 2015, a part of this project is operating. In February 2016, a significant part of this cement plant was launched to operations, and the Group ceased to capitalize borrowing costs.

(e)

The Group has assessed the recoverable amount of its remnant long-term assets and did not find an impairment of these assets as of December 31, 2017.

(f)

Work in progress included in property, plant and equipment as of December 31, 2017 amounted to S/42,137,000 (2016: S/183,918,000) and is mainly related to complementary facilities of the cement plants.

(g)

As of December 31, 2017, the Group maintains accounts payable related to the acquisition of property, plant and equipment totaling S/5,368,000 (S/7,870,000 as of December 31, 2016).