PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2013

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT

6. PROPERTY, PLANT AND EQUIPMENT

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

	2013		2012
Mining equipment and processing facilities	$	1,583,329	$	1,434,674
Land and mineral rights	369,347		303,725
Buildings, office equipment and improvements	226,672		208,351
Construction and mine development in progress	194,221		162,331
Mine development costs	272,303		252,782
Property, plant and equipment, at cost	2,645,872		2,361,863
Less accumulated depreciation, depletion and amortization	(1,031,493)		(832,293)
Total property, plant and equipment, net	$	1,614,379	$	1,529,570

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 $5.8 million and $3.8 million as of December 31, 2013 and 2012, respectively, and amortization expense was $2.0 million, $1.9 million and $0.8 million for the years ended December 31, 2013, 2012 and 2011, respectively.  For information regarding the impairment of assets at the Pontiki mine, please see Note 4.