intangible assets other than goodwill acquired by the group have finite useful lives 598001

Lonmin Plc (2010)

1 Statement on accounting policies [extract]

Intangible assets

Intangible assets, other than goodwill, acquired by the Group have finite useful lives and are measured at cost less accumulated amortisation and accumulated impairment losses. Where amortisation is charged on these assets, the expense is taken to the income statement through operating costs.

Amortisation of mineral rights is provided on a units of production basis over the remaining life of mine to residual value (20 to 40 years).

All other intangible assets are amortised over their useful economic lives subject to a maximum of 20 years and are tested for impairment at each reporting date when there is an indication of a possible impairment.

Property, plant and equipment [extract]

Depreciation

Depreciation is provided on a straight-line or units of production basis as appropriate over their expected useful lives or the remaining life of mine, if shorter, to residual value. The life of mine is based on proven and probable reserves. The expected useful lives of the major categories of property, plant and equipment are as follows:

	Method	Rate
Shafts and underground	Units of production	2.5%-5.0% per annum	(20-40 years)
Metallurgical	Straight line	2.5%-7.1% per annum	(14-40 years)
Infrastructure	Straight line	2.5%-2.9% per annum	(35-40 years)
Other plant and equipment	Straight line	2.5%-50.0% per annum	(2-40 years)

No depreciation is provided on surface mining land which has a continuing value and capital work in progress.Residual values and useful lives are re-assessed annually and if necessary changes are accounted for prospectively.