able assessment of the existence or other-
wise of economically recoverable reserves, 
and active and significant operations in, or in 
relation to, the area of interest are 
continuing.
Exploration expenditure is written off when it 
fails to meet at least one of the conditions 
outlined above or an area of interest is aban-
doned. The carrying value of exploration and 
evaluation assets is assessed in accordance with 
AASB 6 Exploration for and Evaluation of Mineral 
Resources and the Group’s impairment policy 
(Note 2f). 
Feasibility expenditure
Feasibility expenditure represents costs related 
to the preparation and completion of a feasi-
bility study to enable a development decision to 
be made in relation to an area of interest and 
capitalised as incurred.
At the commencement of production, all past 
exploration, evaluation and feasibility expendi -
ture in respect of an area of interest that has 
been capitalised is transferred to mine proper-
ties where it is amortised over the life of the area 
of interest to which it relates on a unit-of-
production basis.
p . Mine properties
Mine properties represents the accumulated 
exploration, evaluation, land and development 
expenditure incurred by or on behalf of the 
Group in relation to areas of interest in which 
mining of a mineral resource has commenced.
When further development expenditure is 
incurred in respect of a mine property after 
commencement of production, such expendi-
ture is carried forward as part of the mine prop-
erty only when substantial future economic 
benefits are thereby established, otherwise such 
expenditure is classified as part of the cost of 
production.
Amortisation of costs is provided on the units-
of-production method with separate calcula -
tions being made for each area of interest. The 
units-of-production basis results in an amortisa-
tion charge proportional to the depletion of the 
estimated recoverable reserves. In some circum-
stances, where conversion of resources into 
reserves is expected, some elements of 
resources may be included. Development and 
land expenditure still to be incurred in relation to 
the current reserves are included in the amorti-
sation calculation. Where the life of the assets 
are shorter than the mine life their costs are 
amortised based on the useful life of the assets.
The estimated recoverable reserves and life of 
each mine and the remaining useful life of each 
class of asset are reassessed at least annually. 
Where there is a change in the reserves during a 
six month period, depreciation and amortisation 
rates are adjusted prospectively from the begin-
ning of that reporting period.
q . Investment in associates
The Group’s investment in an associate is 
accounted for using the equity method. An 
associate is an entity in which the Group has 
significant influence.
Under the equity method, the investment in  
the associate is carried on the statement of 
financial position at cost plus post-acquisition 
changes in the Group’s share of net assets of the 
associate.
The income statement reflects the Group’s share 
of the results of operations of the associate. The 
Group recognises its share of any changes and 
discloses this, when applicable, in the statement 
of changes of equity. Unrealised gains and losses 
resulting from transactions between the Group 
and the associate are eliminated to the extent of 
the interest in the associate.
The Group’s share of profit of an associate is 
included in the income statement. This is the 
profit attributable to equity holders of the