Page 65 - Bauxite Resources Annual Report 2013

Notes to the Financial Statements cont.
17. INTERESTS IN JOINTLY CONTROLLED ENTITIES
(a) The Group has a 30% interest in the Bauxite Resource Joint Venture, whose principal activity is exploring the tenements
owned by BRL in the Darling Range of Western Australia (as specifically set out in the agreement) to support the
development of bauxite mining and the conduct of mining operations to supply bauxite to an alumina refinery under the
terms of the Agreement.
(b) The Group has a 10% interest in the Alumina Refinery Joint Venture, whose principal activity is to determine:
i. the feasibility of planning, developing, constructing and operating an Alumina Refinery; and
ii. if feasible, planning developing, constructing, operating and maintaining the Alumina Refinery.
In the event that a bankable feasibility study is completed and the participants agree to construct a refinery, 9% of the
capital expenditure will be met by BRL, however, it will be entitled to 30% of the alumina production and pay 30% of the
operating costs.
(c) The Group has a 50% interest in Bauxite Alumina Joint Venture Pty Ltd, a jointly controlled entity. This entity acts as the
Manager of the Joint Ventures in (a) and (b) above. The entity receives Management Fees for its services.
The Company has determined that the Bauxite Resource Joint Venture and the Alumina Refinery Joint Venture both meet the
definition of “joint operation” under IFRS 11. Accordingly the following amounts are included in the Group’s consolidated
financial statements representing the Group’s share of the assets liabilities, income and expenses of the Joint Ventures above:
Consolidated Group
2013 2012
$ $
Current assets 1,435,416 1,486,022
Non-current assets 173,377 175,806
Current liabilities 251,437 306,871
Income 34,061 47,610
Expenses 3,045,191 3,967,143
(d) The Group has entered into a Farm-in arrangement with HD Mining & Investment Pty Ltd (HDMI) to carry out exploration
on tenements, and if warranted, to develop and exploit the tenements and carry out mining operations for the purpose of
deriving production of Bauxite from them. HDMI has agreed to fund all costs to earn a 60% Participating Interest.
Share of expenditure commitments of jointly controlled entities
Exploration commitments
Payable within one year 820,816 1,153,644
Payable later than one year but not later than five years 1,628,870 3,203,896
2,449,686 4,357,540
The commitments above refer to granted tenements as at 30 June 2013. The commitments of the joint ventures are disclosed in note 21.
Annual Report 2013 Bauxite Resources 63