Provision For Environmental Rehabilitation

12 Months Ended

Dec. 31, 2013

Provision For Environmental Rehabilitation

17.

PROVISION FOR ENVIRONMENTAL REHABILITATION

The Group has made, and expects to make in the future, expenditures to comply with environmental laws and regulations, but cannot predict the full amount of such future expenditures. Estimated future reclamation costs are based principally on legal and regulatory requirements. The following is a reconciliation of the total liability for environmental rehabilitation:


	December 31, 2013			December 31, 2012
Provision for environmental rehabilitation
Opening balance		373.6			336.9
Addition to liabilities - continuing operations		10.3			6.3
Addition to liabilities - discontinued operations		—			11.8
Liabilities settled - continuing operations		(2.5	)		(2.7	)
Accretion of liability - continuing operations		10.4			13.9
Accretion of liability - discontinued operations		2.2			14.3
Yilgarn South asset purchase		55.0			—
Spin-off of Sibanye Gold		(154.9	)		—
Foreign currency translation adjustment		(24.9	)		(6.9	)

Balance at close		269.2			373.6

* South African, Ghanaian, Australian and Peruvian mining companies are required by law to undertake rehabilitation works as part of their ongoing operations. These environmental rehabilitation costs are funded as follows:

- Ghana - secured cash deposits (refer note 14) and reclamation bonds underwritten by banks to secure estimated costs of rehabilitation,

- South Africa - contributions into environmental trust funds (refer note 14) and guarantees,

- Australia - unconditional bank-guaranteed performance bonds to secure the estimated costs, and

- Peru - guarantees with annual deposits for proper compliance with the Mine Closure Plan.

The provision is calculated using the following undiscounted closure cost estimates:


	December 31, 2013		December 31, 2012
South Africa		33.3		246.6
Ghana		83.3		79.3
Australia		196.6		125.1
Peru		42.0		41.4

Total closure cost estimate		355.2		492.4