PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2012

7. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consist of the following at December 31, (in thousands):

	2012			2011

Mining equipment and processing facilities	$	1,434,674		$	1,213,458
Land and mineral rights		303,725			176,357
Buildings, office equipment and improvements		208,351			183,712
Construction in progress		129,720			171,957
Mine development costs		285,393			229,036

Property, plant and equipment, at cost		2,361,863			1,974,520
Less accumulated depreciation, depletion and amortization		(832,293	)		(793,200	)

Total property, plant and equipment, net	$	1,529,570		$	1,181,320

Equipment leased by the ARLP Partnership under lease agreements which are determined to be capital leases are stated at an amount equal to the present value of the minimum lease payments during the lease term, less accumulated amortization. Equipment under capital leases totaling $22.8 million included in mining equipment and processing facilities is amortized on the straight-line method over the shorter of its useful life or the related lease term. The provision for amortization of leased properties is included in depreciation, depletion and amortization expense. Accumulated amortization related to the ARLP Partnership's capital leases was $3.8 million and $1.9 million as of December 31, 2012 and 2011, respectively, and amortization expense was $1.9 million, $0.8 million and $0.3 million for the years ended December 31, 2012, 2011 and 2010, respectively. For information regarding the impairment of assets at the Pontiki mine, please see Note 5.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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