Annual report pursuant to Section 13 and 15(d)

AMAK PROPERTY AND EQUIPMENT

AMAK PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Line Items]

PLANT, PIPELINE AND EQUIPMENT

Plant, pipeline and equipment include the following at December 31:



	2018			2017
	(thousands of dollars)
Platinum catalyst	$	1,612		$	1,612
Catalyst	3,131			779
Land	5,428			5,428
Plant, pipeline and equipment	253,905			186,946
Construction in progress	4,343			50,996
Total plant, pipeline and equipment	268,419			245,761
Less accumulated depreciation	(73,762		)	(63,240		)
Net plant, pipeline and equipment	$	194,657		$	182,521

Plant, pipeline and equipment serve as collateral for our amended and restated loan agreement with a domestic bank (see Note 12).

Interest capitalized for construction for 2018, 2017 and 2016 was approximately $731,000, $937,000 and $450,000, respectively.

Labor capitalized for construction for 2018, 2017 and 2016 was approximately $2,307,000, $4,344,000 and $2,889,000, respectively.

Catalyst amortization relating to the platinum catalyst which is included in cost of sales was approximately $59,000, $25,000 and $98,000 for 2018, 2017 and 2016, respectively.

AMAK

Property, Plant and Equipment [Line Items]

PROPERTY AND EQUIPMENT

Property and Equipment

Property and equipment, net consisted of the following at:



	December 31,
	2018		2017
Buildings	191,041,157		191,041,157
Leasehold improvements	1,838,317		1,838,317
Heavy equipment	118,125,568		110,259,122
Motor vehicles	22,467,300		22,783,108
Civil works	15,662,671		15,582,921
Tailings dam	23,042,594		22,684,394
Plant and machinery	324,372,695		315,029,454
Mining assets – rehabilitation costs	98,894,826		98,894,826
Mining assets – underground development costs	267,128,896		254,832,012
Construction in progress	5,106,409		5,532,817

	1,067,680,433		1,038,478,128

Less accumulated depreciation, depletion and amortization	(432,824,358	)	(344,676,457	)

	634,856,075		693,801,671

Property and equipment serve as collateral for the SIDF loan agreement (see Note 10).

Depreciation, depletion and amortization expense related to property and equipment was approximately, SR88,000,000 and SR64,300,000 for years ended December 31, 2018 and 2017. During 2016, the mine was temporarily closed for renovation, therefore, no amortization or depletion was recorded on certain mining assets.