note 16. intangible assets
(a) Reconciliation of carrying amount at the beginning and end of the period
|At 1 July - Net of accumulated amortisation||25.6||16.6|
|Additions – Kayelekera Mining Lease||-||10|
|At 30 June - Net of accumulated amortisation||24.6||25.6|
|At 30 June |
|Net carrying amount of non current intangible assets||24.6||25.6|
Amortisation of US$1.0M (2009: US$1.0M) is included in costs of sales in the Income Statement.
(b) Movements in intangible assets
Movements in each group of intangible asset during the financial year are set out below:
|Consolidated - 2010|
|Carrying amount at 1 July 2009||4.5||11.1||10.0||25.6|
|Carrying amount at 30 June 2010||4.3||10.3||10.0||24.6|
|Consolidated - 2009|
|Carrying amount at 1 July 2008||4.7||11.9||-||16.6|
|Carrying amount at 30 June 2009||4.5||11.1||10.0||25.6|
(c) Description of the Group’s intangible assets
(i) Right to supply of power
LHUPL has entered into a contract with NamPower in Namibia for the right to access power at LHM. In order to obtain this right, the power line connection to the mine was funded by LHM. However, ownership of the power line rests with NamPower. The amount funded is being amortised over a period of 13.75 years on a straight-line basis.
(ii) Right to supply of water
LHUPL has entered into a contract with NamWater in Namibia for the right to access water at LHM. In order to obtain this right, the water pipeline connection to the mine was funded by LHM. However, ownership of the pipeline rests with NamWater. The amount funded is being amortised over a period of 13.75 years on a straight-line basis.
(iii) Kayelekera Mining Lease
In exchange for the Mining Lease, Paladin Energy Minerals NL and PAL have entered into a Development Agreement with the Government of Malawi for the development of the Garnet Halliday Karonga Water Supply Project and other social development projects. In terms of the Development Agreement PAL has committed to spend US$10M on agreed community infrastructure projects. This amount has been recognised as an intangible asset and is being amortised over the life of the mine estimated to be 9 years on a straight-line basis (refer to