5. Property used in business activities

5.1 Core Assets of NSM

+--------------------------+----------+---------------+---------------+
| Type of assets           | Ty       | Net book      | Net book      |
|                          | pe of po | value as at   | value as at   |
|                          | ssession | 31/12/2005    | 31/12/2004    |
|                          |          |               |               |
|                          |          | (Million      | (Million      |
|                          |          | Baht)         | Baht)         |
+--------------------------+----------+---------------+---------------+
| Land and land            | Owner    | 592.98        | 569.00        |
| improvements *           |          |               |               |
+--------------------------+----------+---------------+---------------+
| Building *               | Owner    | 3,018.48      | 3,259.69      |
+--------------------------+----------+---------------+---------------+
| Plant and machinery *    | Owner    | 12,971.08     | 11,485.99     |
+--------------------------+----------+---------------+---------------+
| Furniture and fixture    | Owner    | 5.79          | 7.70          |
+--------------------------+----------+---------------+---------------+
| Office equipment         | Owner    | 33.82         | 21.56         |
+--------------------------+----------+---------------+---------------+
| Vehicles                 | Owner    | 0.64          | 0.48          |
+--------------------------+----------+---------------+---------------+
| Construction in progress | Owner    | 9,757.79      | 9,100.14      |
| *^(&)**                  |          |               |               |
+--------------------------+----------+---------------+---------------+
| Total                    |          | 26,380.58     | 24,444.56     |
+--------------------------+----------+---------------+---------------+

  Notes: * The Company’s land, buildings, machinery and equipment and
  construction in progress pertaining to core facilities are
  collaterized for the MRA debt.

  ** There is suspended construction in progress represented in the
  “Direct Reduced Iron” plant (DRI) amounting to Baht 2,039.09 million,
  including in Construction in progress.

  5.2 Intangible Assets

+------------------------------+------------------+--------------------+
| Type of assets               | Net book value   |   Net book value   |
|                              | as at 31/12/2005 |   as at 31/12/2004 |
|                              |                  |                    |
|                              | (Million Baht)   |   (Million Baht)   |
+------------------------------+------------------+--------------------+
| Computer software            | 15.79            | 19.46              |
+------------------------------+------------------+--------------------+
| License*                     | 124.73           | 126.68             |
+------------------------------+------------------+--------------------+
| Deferred charges             | 0.55             | 0.55               |
+------------------------------+------------------+--------------------+
| Total                        | 141.07           | 146.69             |
+------------------------------+------------------+--------------------+

  Note *: The Company was granted a license from Inco Ltd On 23 January
  1996 to use know-how and trade secrets regarding design, construction
  and DRI plant including DRI production process. In addition, the
  Company was granted a license to use Consteel^(®) Process technique
  which was developed by Intersteel Technology Inc.

5.3 Investment Policy

  Presently, the Company has no capital investment policy. If there is
  in the future, the Company will adhere to the business plan, and it
  does not intend to invest in business not relevant to production and
  distribution of thin-slab steel.