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ASSET RETIREMENT OBLIGATIONS | 12 Months Ended
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Dec. 31, 2017
ASSET RETIREMENT OBLIGATIONS |
ASSET RETIREMENT OBLIGATIONS | NOTE 8 ASSET RETIREMENT OBLIGATIONS The Company is responsible for reclamation of certain past and future disturbances at its properties. The most significant properties subject to these obligations are the Tonkin property in Nevada, the El Gallo 1 mine in Mexico, and the Timmins properties in Canada. The Final Plan for Permanent Closure (“FPPC”) and the Amended Plan of Operations for the Tonkin property was approved by the Nevada Division of Environmental Protection (“NDEP”) and by the Bureau of Land Management (“BLM”) pursuant to the Finding of No Significant Impact in March 2012 and September 2015, respectively. Subsequently, on October 3, 2015, the BLM requested an updated bonding requirement in the amount of $3.6 million, which is covered by the Company’s surety bond facility. The Company assumed a reclamation obligation of $11.2 million related to the Black Fox Complex as a part of the acquisition of the Black Fox Complex (see Note 19 for additional details regarding the acquisition). The amount of the reclamation obligation is based on the 2017 Closure Cost Update approved by the Ministry of Northern Development and Mines (“MNDM”) which is based on the 2010 Closure Plan Amendment also approved by the MNDM. The Company is currently in the process of filing an amended Closure Plan with the MNDM in 2018, approval of which is anticipated in the fourth quarter of 2018. The Company also assumed the $16.5 million (C$20.5) million bonding requirement with the MNDM as a part of the acquisition, which is covered by the Company’s surety bond facility. The Company accrued $0.1 million related to disturbances at the Gold Bar project in the fourth quarter. This amount is expected to increase quarterly as the project undergoes development through 2018. This obligation is covered by the Company’s surety bond facility. Under current Mexican regulations, surety bonding of projected reclamation costs is not required. The Company’s reclamation expenses consisted of the following:
|  | Year ended December 31,
|  | 2017 |  | 2016 |  | 2015
Reclamation Adjustment reflecting updated estimates |  | $ | 1,426 |  | $ | 89 |  | $ | —
Reclamation Accretion |  |  | 635 |  |  | 506 |  |  | 429
Total |  | $ | 2,061 |  | $ | 595 |  | $ | 429
The Company’s asset retirement obligations for years ended December 31, 2017 and 2016 are as follows:
|  | 2017 |  | 2016
Asset retirement obligation liability, beginning of the period |  | $ | 9,843 |  | $ | 7,784
Settlements |  |  | (126) |  |  | (66)
Accretion of liability |  |  | 635 |  |  | 506
Acquisitions and divestitures |  |  | 11,803 |  |  | —
Adjustment reflecting updated estimates |  |  | 2,561 |  |  | 1,619
Foreign exchange revaluation |  |  | 6 |  |  | —
Asset retirement obligation liability, ending balance |  | $ | 24,722 |  | $ | 9,843
Current portion |  |  | (646) |  |  | (537)
Non-current portion |  | $ | 24,076 |  | $ | 9,306

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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 -URI http://asc.fasb.org/subtopic&trid=2175671 + Details
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- References No definition available. + Details
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