Capitalized stripping costs related to the development of the open pit are expected to be $212 million (cash) in 2013.
Mongolia (Boroo & Gatsuurt)
At Boroo, 2013 sustaining capital expenditures are expected to be $10 million primarily for raising the tailings dam at Boroo ($6 million), and maintenance rebuilds and overhauls.
Growth capital for the Gatsuurt deposit is forecast at $1 million, related to environmental studies.
2013 Corporate Administration and Community Investment
Corporate and administration expenses for 2013 are forecast at $45 million, which includes $7 million for business development activities.
Total community investments for 2013 are forecast at $27.5 million, which includes $7.5 million for donations and sustainable development projects in the various communities in which Centerra operates and $20 million for strategic community investment projects. Note that these costs are not included in cash operating cost per ounce.
2013 Depreciation, Depletion and Amortization
Depreciation, depletion and amortization expenses included in costs of sales expense for 2013 are forecast to be approximately $218 million. Changes in DD&A are a result of increases or decreases to certain of the Company's capital assets.
---------------------------------------------------------------------------- 2013 2012 2011 DD&A DD&A DD&A(In millions) Forecast Actual Actual----------------------------------------------------------------------------Kumtor----------------------------------------------------------------------------Mine equipment $ 95 $ 87 $ 69----------------------------------------------------------------------------Less DD&A capitalized to stripping costs (1) (77) (59) (14)----------------------------------------------------------------------------Stripping costs amortized 291 117 32----------------------------------------------------------------------------Other mining assets 1 1 5----------------------------------------------------------------------------Mill assets 6 4 8----------------------------------------------------------------------------Administration assets and other 12 3 10----------------------------------------------------------------------------Inventory movement (non-cash) (127) (32) (22)----------------------------------------------------------------------------Subtotal for Kumtor $ 201 $ 121 $ 88--------------------------------------------------------------------------------------------------------------------------------------------------------Boroo----------------------------------------------------------------------------Mine equipment $ 1 $ 1 $ 2----------------------------------------------------------------------------Less DD&A capitalized to stripping costs - (1) -----------------------------------------------------------------------------Stripping costs amortized 2 9 -----------------------------------------------------------------------------Mine development and other mining assets 1 1 1----------------------------------------------------------------------------Mill assets 6 4 1----------------------------------------------------------------------------Administration assets and other 6 8 3----------------------------------------------------------------------------Inventory movement (non-cash) 1 (1) 3----------------------------------------------------------------------------Subtotal for Boroo $ 17 $ 21 $ 10--------------------------------------------------------------------------------------------------------------------------------------------------------Consolidated Total $ 218 $ 142 $ 98----------------------------------------------------------------------------(1) Use of the Company's mining fleet for stripping activities results in a portion of the depreciation related to the mine fleet to be allocated to capitalized stripping costs. In 2012, $2 million of depreciation was expensed as mine standby costs, $7 million of depreciation was expensed as abnormal ice unload costs, and $51 million of depreciation was allocated to capitalized stripping costs.
