| | | | | | |
| | | 2003 | | 2002 |
| | | | R000 | | R000 |
|
| 7. | Long term provisions |
| Provision for decommissioning costs |
| | - balance at beginning of year | | 9 025 | | 7 903 |
| | - present value of decommissioning asset capitalised
(note 1) | | 822 | | 61 |
| | - unwinding of discount
(note 9) | | 632 | | 553 |
| | - charged to operating costs
(note 9) | | 487 | | 508 |
| | |
| |
|
| | - balance at end of year | | 10 966 | | 9 025 |
| | |
| |
|
| Provision for restoration costs |
| | - balance at beginning of year | | 368 | | 276 |
| | - unwinding of discount
(note 9) | | 26 | | 19 |
| | - charged to operating costs
(note 9) | | 82 | | 73 |
| | |
| |
|
| | - balance at end of year | | 476 | | 368 |
| | |
| |
|
| Environmental rehabilitation obligation at year end | | 11 442 | | 9 393 |
| | |
| |
|
| Environmental rehabilitation obligation before funding | | 11 442 | | 9 393 |
| Less: Northam Platinum Restoration Trust Fund
(note
3) | | 10 462 | | 8 568 |
| | |
| |
|
| Net environmental obligation | | 980 | | 825 |
| | |
| |
|
| Future value of decommissioning obligation | | 42 435 | | 37 370 |
| Future value of restoration obligation | | 4 314 | | 4 070 |
| | |
| |
|
| Future value of rehabilitation obligation | | 46 749 | | 41 440 |
| | |
| |
|
|
The future value of the environmental rehabilitation obligation will be paid over to the Northam Platinum Restoration Trust Fund
(note
3) over the remaining life of the mine which is currently estimated at 20 years.
The present value of the enviromental restoration obligation is determined by applying a pre-tax discount rate of 10% over the remaining life of the mine.
| | | | |
