pro's con's & conjecture, page-54

shadowboxer1, you are confusing amortisation with cash. The discussion has been about how much the project will cost, in capital terms, to completion. As note j makes clear, it is a capital cost. E & E is part of the project cost. When it is written off over the period of the mine it isn't a cash item at all. But it is a charge to the profit and loss account.

So they are included as capital now - that is why they end up in C1 when the mine is producing. If the company wrote them off now, they wouldn't appear in C1.