SA rand
Figures in  million					2010	2009
1	Cost of sales
	Production costs (a)				2 274	2 334
	Amortisation and depreciation of mining properties, mine development costs and mine plant facilities				249	294
	Amortisation and depreciation of assets other than mining and mining related assets (b)				34	69
	Rehabilitation expenditure (c)				35	(46)
	Care and maintenance cost of restructured shafts				27	19
	Employment termination and restructuring costs (d)				71	10
	Share-based payments (e)				38	22
	Impairment of assets (f)				249	52
	Provision for post-retirement benefits				1	2
	Total cost of sales				2 978	2 756
	(a)	Production costs include mine production, transport and refinery costs, applicable general and administrative costs, movement in inventories and ore stockpiles, and ongoing environmental rehabilitation costs as well as transfers to and from deferred stripping. Ongoing employee termination costs are included, however employee termination costs associated with major restructuring and shaft closures are excluded. Production costs, analysed  by nature, consist of the following:
		Labour  costs, including contractors			1 512	1 410
		Stores and materials			545	549
		Water and electricity			281	210
		Insurance			47	55
		Transportation			68	68
		Changes in inventory			(14)	8
		Capitalisation of mine development costs			(239)	(234)
		By-products sales			(1)	(1)
		Royalty expense			5	–
		Other			70	269
		Total production cost			2 274	2 334
	(b)	Amortisation and depreciation of assets other than mining and mining related assets
		Other non-mining assets			2	–
		Intangible assets			30	24
		Amortisation of issue costs			2	45
		Total amortisation and depreciation			34	69
	(c)	For the assumptions used to calculate the rehabilitation costs, refer to note 3.4 of the Group financial statements.
	(d)	During the 2010 financial year, Brand 3, Harmony 2 and Merriespruit 3 shafts were closed and placed on care and maintenance. The closures contributed to employment termination and restructuring cost. The group also engaged in a voluntary retrenchment process during the year, resulting in additional retrenchment costs.
	(e)	Refer to note 27 for details on the share-based payments schemes operated by the company.
	(f)	Impairments were recognised during the year as a result of shaft closures discussed in 1(d) above as well as the revised business (life-of-mine) plans, which affected Merriespruit 1 shaft. Impairments recorded in the 2009 financial year relates mainly to revised business plans, which included increases in labour and electricity costs.
		Impairment tests were performed as required by IAS 36, Impairment of Assets, and as a result these impairments were recorded. For assumptions used to calculate the recoverable amount, refer to note 3.1 of the group financial statements.