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Provision for Environmental Rehabilitation | 12 Months Ended
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Dec. 31, 2015
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, 2015 |  |  | December 31, 2014 |
Provision for environmental rehabilitation |  |  |  |  |  |  |  |
Opening balance |  |  | 300.1 |  |  |  | 269.2 |
Change in estimates |  |  | (6.2 | ) |  |  | 36.7 |
Liabilities settled |  |  | (9.8 | ) |  |  | (2.8 | )
Accretion of liability |  |  | 13.9 |  |  |  | 15.4 |
Foreign currency translation adjustment |  |  | (22.3 | ) |  |  | (18.4 | )
Closing balance |  |  | 275.7 |  |  |  | 300.1 |
* 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, 2015 |  |  | December 31, 2014 |
South Africa |  |  | 29.0 |  |  |  | 32.3 |
Ghana |  |  | 91.5 |  |  |  | 89.4 |
Australia |  |  | 186.0 |  |  |  | 212.7 |
Peru |  |  | 46.7 |  |  |  | 56.4 |
Total closure cost estimate 1 |  |  | 353.2 |  |  |  | 390.8 |
(1) | Includes discounting of $77.5 million in the year ended December 31, 2015 (December 31, 2014: $90.7 million) in order to reconcile the gross closure cost estimate of $353.2 million (December 31, 2014: $390.8 million) to the provision for environmental rehabilitation of $275.7 million (December 31, 2014: $300.1 million)

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- Definition The entire disclosure for an asset retirement obligation and the associated long-lived asset. An asset retirement obligation is a legal obligation associated with the disposal or retirement from service of a tangible long-lived asset that results from the acquisition, construction or development, or the normal operations of a long-lived asset, except for certain obligations of lessees. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6392692&loc=d3e7535-110849 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6392692&loc=d3e7569-110849 + Details
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