| 2.3.8 | Property, plant and equipment - |
Property, plant and equipment is stated at cost, net of accumulated depreciation and/or accumulated impairment losses, if any. Such cost includes the cost of replacing component parts of the property, plant and equipment and borrowing costs for long-term construction projects if the recognition criteria are met. The capitalized value of a finance lease is also included within property, plant and equipment. When significant parts of plant and equipment are required to be replaced at intervals, the Group recognizes such parts as individual assets with specific useful lives and depreciated them separately based on their specific useful lives. Likewise, when major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in profit or loss as incurred.
The present value of the expected cost for the decommissioning of an asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met. Refer to significant accounting judgments, estimates and assumptions (note 3) and decommissioning provisions (note 13).
Depreciation of assets is determined using the straight-line method over the estimated useful lives of such assets as follows:
| Years | |
| Buildings and other constructions: | |
| Administrative facilities | Between 35 and 48 |
| Main production structures | Between 30 and 49 |
| Minor production structures | Between 20 and 35 |
| Machinery and equipment: | |
| Mills and horizontal furnaces | Between 42 and 49 |
| Vertical furnaces, crushers and grinders | Between 23 and 36 |
| Electricity facilities and other minors | Between 12 and 35 |
| Furniture and fixtures | 10 |
| Transportation units: | |
| Heavy units | Between 11 and 21 |
| Light units | Between 8 and 11 |
| Computer equipment | 4 |
| Tools | Between 5 and 10 |
The asset’s residual value, useful lives and methods of depreciation are reviewed at each reporting period, and adjusted prospectively if appropriate.
An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the consolidated statement of profit or loss when the asset is derecognized.