Mechel PAO | CIK:0001302362 |

Filed: 4/5/2018

Entity registrant name: Mechel PAO (CIK: 0001302362)

Generator: Donnelley Financial Solutions

SEC filing page: http://www.sec.gov/Archives/edgar/data/1302362/000119312518108703/0001193125-18-108703-index.htm

XBRL Instance: http://www.sec.gov/Archives/edgar/data/1302362/000119312518108703/mtl-20171231.xml

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16.	Property, plant and equipment

 

		Land				Buildings and constructions				Operating machinery and equipment				Transportation vehicles				Other equipment				Construction- in-progress				Mining plant and equipment				Railway Ulak-Elga				Total
Cost
At December 31, 2014			3,122				73,577				114,942				30,902				1,299				102,538				14,109				—				340,489
Additions			—				417				1,052				508				29				4,249				719				—				6,974
Change in rehabilitation provision			—				49				—				—				—				—				232				—				281
Transfers			59				4,886				1,607				171				24				(78,565	)			14				71,804				—
Disposals			(10	)			(474	)			(3,196	)			(1,170	)			(156	)			(1,378	)			(156	)			—				(6,540	)
Exchange differences			142				(190	)			(174	)			(12	)			40				(8	)			—				—				(202	)
At December 31, 2015			3,313				78,265				114,231				30,399				1,236				26,836				14,918				71,804				341,002
Additions			—				504				1,428				549				25				5,027				542				—				8,075
Change in rehabilitation provision			—				346				—				—				—				—				(212	)			—				134
Transfers			1				2,435				2,610				180				(209	)			(8,393	)			389				2,987				—
Disposals			(75	)			(3,050	)			(3,266	)			(1,717	)			(169	)			(2,330	)			(536	)			—				(11,143	)
Exchange differences			(190	)			(841	)			(675	)			(120	)			(61	)			(6	)			(1	)			—				(1,894	)
At December 31, 2016			3,049				77,659				114,328				29,291				822				21,134				15,100				74,791				336,174
Additions			6				363				1,531				3,124				45				5,767				1,576				0				12,412
Change in rehabilitation provision			0				141				0				0				0				0				(58	)			0				83
Transfers			0				2,934				3,360				190				148				(7,011	)			362				17				0
Disposals			(12	)			(432	)			(1,713	)			(1,795	)			(28	)			(245	)			(3	)			0				(4,228	)
Exchange differences			52				148				132				21				9				0				0				0				362
At December 31, 2017			3,095				80,813				117,638				30,831				996				19,645				16,977				74,808				344,803
Depreciation and impairment
At December 31, 2014			(130	)			(30,910	)			(67,122	)			(13,808	)			(979	)			(17	)			(3,224	)			—				(116,190	)
Depreciation charge			—				(5,008	)			(5,627	)			(2,745	)			(56	)			—				(218	)			(334	)			(13,988	)
Disposals			9				396				2,619				1,092				146				16				54				—				4,332
Reversal of impairment/ (impairment)			67				(485	)			1,331				6				(4	)			(931	)			—				—				(16	)
Exchange differences			(5	)			430				280				39				(40	)			—				—				—				704
At December 31, 2015			(59	)			(35,577	)			(68,519	)			(15,416	)			(933	)			(932	)			(3,388	)			(334	)			(125,158	)
Depreciation charge			—				(3,774	)			(7,760	)			(2,613	)			(50	)			—				(133	)			(247	)			(14,577	)
Disposals			—				3,160				3,045				1,272				198				238				437				—				8,350
Reversal of impairment/ (impairment)			(224	)			(260	)			(215	)			(98	)			—				(887	)			(16	)			—				(1,700	)
Exchange differences			32				546				550				86				52				(1	)			(1	)			—				1,264
At December 31, 2016			(251	)			(35,905	)			(72,899	)			(16,769	)			(733	)			(1,582	)			(3,101	)			(581	)			(131,821	)
Depreciation charge			0				(3,747	)			(7,315	)			(2,222	)			(72	)			0				(245	)			(235	)			(13,836	)
Disposals			0				302				1,611				1,720				22				127				1				7				3,790
Impairment			(37	)			(876	)			(2,174	)			(454	)			(5	)			(278	)			(1,067	)			0				(4,891	)
Exchange differences			(4	)			(49	)			(95	)			(13	)			(9	)			0				0				0				(170	)
At December 31, 2017			(292	)			(40,275	)			(80,872	)			(17,738	)			(797	)			(1,733	)			(4,412	)			(809	)			(146,928	)
Net book value
At December 31, 2014			2,992				42,667				47,820				17,094				320				102,521				10,885				—				224,299
At December 31, 2015			3,254				42,688				45,712				14,983				303				25,904				11,530				71,470				215,844
At December 31, 2016			2,798				41,754				41,429				12,522				89				19,552				11,999				74,210				204,353
At December 31, 2017			2,803				40,538				36,766				13,093				199				17,912				12,565				73,999				197,875

 

According to the results of the impairment analysis of non-current assets, impairment losses of RUB 4,891 million, RUB 1,700 million and RUB 16 million were recognized by the Group for the years ended December 31, 2017, 2016 and 2015, respectively (Note 18).

Assets under construction

As of December 31, 2017 and 2016, construction-in-progress included advances issued for acquisition of property, plant and equipment in the amounts of RUB 342 million and RUB 430 million, respectively.

Property pledged to the banks as security

Certain property, plant and equipment assets have been pledged to secure bank loans and borrowings granted to the Group:

 

		December 31, 2017				December 31, 2016
Net book value			121,926				117,047

Finance leases

The Group leases operating machinery and equipment and transportation vehicles under a number of finance lease agreements. At the end of the term of the lease, the Group obtains ownership of the assets or has an option to purchase leased assets at a bargain price.

 

		December 31, 2017				December 31, 2016
Net book value — operating machinery and equipment			1,516				2,825
Net book value — transportation vehicles			9,690				9,265

Additions of operating machinery and equipment and transportation vehicles under finance lease during the year ended December 31, 2017 amounted to RUB 2,295 million (2016: RUB 386 million).

Capitalised borrowing costs

The amount of borrowing costs capitalised during the year ended December 31, 2017 was RUB 621 million (2016: RUB 1,015 million, 2015: RUB 1,954 million). The rate used to determine the amount of borrowing costs eligible for capitalisation was 9.70% (2016: 10.28%, 2015: 15.02 %), which is the average rate of the eligible borrowings.