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Provisions (Tables)
 12 Months Ended
Dec. 31, 2020
Text block [abstract]  
Schedule of Provisions
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
 
 
  
 
  
 
 
 
 
 
 
 
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).
Schedule of Assumption in Provision Calculation
 
  
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
% 
 
  
 
  
 
 
 
 
 
 
 
Summary of Silicosis Settlement Costs
 
 
 
 
 
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