Annual Report 2007

Note 3 - Net operating costs

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Note		 2007
US$m		 2006
US$m
Raw materials and consumables 6,096 3,207
Amortisation of intangible assets 12 114 27
Depreciation of property, plant & equipment 13 2,001 1,482
Employment costs 4 3,827 2,459
Repairs and maintenance 1,393 1,257
Shipping costs 1,874 1,149
Other freight costs 509 333
Decrease/(increase) in inventories 110 (139)
Royalties 1,093 1,004
Amounts charged by jointly controlled entities mainly for toll processing 1,362 1,196
Other external costs 2,346 1,936
Provisions 27 308 60
Research and development 69 15
Costs included above qualifying for capitalisation (78) (69)
Other operating income (274) (267)
Net operating costs (excluding items shown separately) 20,750 13,650

Notes Expand
  1. Total net operating costs includes the impact of Alcan for the period 24 October 2007 to 31 December 2007, totalling US$3,691 million.
  2. Information on auditors' remuneration is included in note 44.

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