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NOTE 34
COMMITMENTS FOR EXPENDITURE
2016
2015
$’000
$’000
a) Capital commitments
Capital expenditure contracted for at the reporting date
payable within one year:
Property, plant and equipment
8,705
7,002
Amounts contracted for construction projects classified as inventories
5,261
–
34
b) Lease commitments: Group as lessee
Operating leases
Commitments for minimum lease payments in relation to
non-cancellable operating leases are payable as follows:
Within one year
5,027
4,589
Later than one year but not later than five years
20,674
20,047
Later than five years
36,456
41,389
62,157
66,025
The Group leases port facilities under non-cancellable operating leases
expiring within five to fifteen years. The leases have varying terms,
escalation clauses and renewal rights. On renewal, the terms of the
leases are renegotiated. The Group leases office space and small items
of office equipment under operating leases.
Operating leases – Joint Ventures
The Bengalla Joint Venture leases property, plant and equipment.
The Group’s share of commitments for minimum lease payments in
relation to non-cancellable operating leases are payable as follows:
Within one year
5,765
–
Later than one year but not later than five years
7,732
–
Later than five years
732
–
14,229
–
For commitments relating to associates refer to note 10c.