Provisions

12 Months Ended

Dec. 31, 2020


25 .	PROVISIONS
25.1	Environmental rehabilitation costs		381.5			370.3
25.2	Silicosis settlement costs		18.3			21.2
	Other		3.1			4.2

	Total provisions		402.9			395.7
	Current portion of provisions		(23.6	)		(4.6	)

	Non-current portion of provisions		379.3			391.1

25.1	Environmental rehabilitation costs
	Balance at beginning of the year		370.3			289.6
	Changes in estimates 1		(5.1	)		79.5
	Interest expense		10.7			11.7
	Payments		(12.9	)		(10.7	)
	Translation adjustment		18.5			0.2

	Balance at end of the year 2		381.5			370.3
	Current portion of environmental rehabilitation costs		(19.6	)		—

	Non-current portion of environmental rehabilitation costs		361.9			370.3

	The provision is calculated using the following gross closure cost estimates:
	South Africa		43.9			45.9
	Ghana		104.4			105.6
	Australia		218.8			198.2
	Peru		97.4			86.2
	Chile		2.1			0.4

	Total gross closure cost estimates		466.6			436.3


	The provision is calculated using the following assumptions:	Inflation rate			Discount rate
	2020
	South Africa		4.8	%		10.8	%
	Ghana		2.2	%		6.7%-7.2	%
	Australia		2.5	%		2.5	%
	Peru		2.2	%		2.2	%
	Chile		2.2	%		2.2	%

	2019
	South Africa		5.4	%		10.3	%
	Ghana		2.5	%		7.7%-7.9	%
	Australia		2.5	%		1.2%-1.6	%
	Peru		2.5	%		3.0	%
	Chile		2.5	%		2.6	%

1	Changes in estimates are defined as changes in reserves and corresponding changes in life of mine as well as changes in laws and regulations governing environmental matters, closure cost estimates and discount rates.

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

•

Ghana - reclamation bonds underwritten by banks and restricted cash (refer note 18);

•

South Africa - contributions into environmental trust funds (refer note 18) and guarantees (refer note 34);

•

Australia - mine rehabilitation fund levy; and

•

Peru - bank guarantees (refer note 34).


		UNITED STATES DOLLAR
		2020		2019
25.2	Silicosis settlement costs 1
	Balance at the beginning of the year	21.2		25.1
	Changes in estimates	0.3		(1.6	)
	Unwinding of provision recognised as finance expense	1.5		1.3
	Payment	(3.5	)	(4.6	)
	Translation	(1.2	)	1.0

	Balance at end of the year	18.3		21.2
	Current portion of silicosis settlement costs	(4.0	)	(4.6	)

	Non-current portion of silicosis settlement costs	14.3		16.6