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Unformatted text preview: et of accumulated depreciation, depletion and
amortization and accumulated impairment losses. The initial cost of an asset comprises its purchase price or
construction cost, any costs directly attributable to bringing the asset into operation, the estimate of
reclamation and remediation and, for qualifying assets, capitalized borrowing costs.
Costs to acquire mineral properties are capitalized and represent the property’s fair value at the time it was
acquired, either as an individual asset purchase or as part of a business combination.
Interest expense attributable to the cost of developing mining properties and to constructing new facilities is
capitalized until assets are ready for their intended use.
Acquired or capitalized exploration and evaluation costs may be included within mineral interests in
development and operating properties or pre-development properties depending upon the nature of the
property to which the costs relate. Repairs and maintenance costs are expensed as incurred. However,
expenditures on major maintenance rebuilds or overhauls are capitalized when it is probable that the
expenditures will extend the productive capacity or useful life of an asset.
(a) Asset categories
The Company categorizes property, plant and equipment based on the type of asset and/or the stage of
operation or development of the property.
Land, plant and equipment includes land, mobile and stationary equipment, and refining and processing
facilities for all properties regardless of their stage of development or operation.
Mineral interests consist of: Development and operating properties which include capitalized development and stripping costs, cost
of assets under construction, exploration and evaluation costs and mineral interests for those
properties currently in operation, for which development has commenced, or for which proven and
probable reserves have been declared; and KINROSS GOLD 2012 ANNUAL REPORT FS15 Pre-development properties which include exploration and evaluation costs and mineral interests for
those properties for which development has not commenced. (b) Depreciation, depletion and amortization
For plant and other facilities, stripping costs, reclamati...
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This document was uploaded on 03/30/2014.
- Spring '14