SA rand   US dollar
20092010Figures in million20102009


Provision for environmental rehabilitation

   The group’s mining and exploration activities are subject to extensive environmental laws and regulations. These laws and regulations are continually changing and generally becoming more restrictive. The group has made, and expects to make in the future, expenditures to comply with such 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:  
   Provision raised for future rehabilitation  
1 5231 530 Balance at beginning of year198196
(294)(45) Disposal of assets(6)(32)
20756 Change in estimate – Balance sheet727
328 Change in estimate – Income statement4
128 Additions to assets17
120118 Time value of money and inflation component of rehabilitation costs (a)1613
(29)(4) Translation2(6)
1 5301 811 Balance at end of year238198
(119) Disposal groups classified as held for sale(16)
1 5301 692 Total provision for environmental rehabilitation222198
    (a)Includes both continuing and discontinued operations. During the financial year 2010 the group recognised time value of money credit adjustments of R17 million relating to both the sale of Big Bell and reclassification of Mount Magnet to held for sale.  
   While the ultimate amount of rehabilitation costs to be incurred in the future is uncertain, the group has estimated that, based on current environmental and regulatory requirements, the total cost for the mines, in current monetary terms, is approximately R2 644 million (US$346.6 million) (2009: R2 203 million (US$285.4 million)). Refer to note 3.4 for the estimations and judgements used in the calculations.  
    Included in the charge to the income statement is an amount of R26 million (US$3 million) (2009: R33 million (US$4 million)) relating to the time value of money.  
   Future net obligations  
2 2032 644 Ultimate estimated rehabilitation cost347285
(1 597)(1 702) Amounts invested in environmental trust funds (Refer to note 19)(223)(207)
606942 Total future net obligations12478
   The group intends to finance the ultimate rehabilitation costs from the money invested in environmental trust funds, ongoing contributions, as well as the proceeds on sale of assets and gold from plant clean-up at the time of mine closure. The group has guarantees in place relating to the environmental liabilities. Refer to notes 19 and 36.