Dedication across the board
Annual Report 2012

Consolidated Financial Statements

14. Abandonment and Site Restoration liabilities

The summary of changes in abandonment and site restoration liabilities during the years ended December 31 are as follows:

In thousands of US dollar 2012 2011
     
Abandonment and site restoration liability as at January 1, 8,713 4,543
Unwinding of discount (Note 22) 847 706
Additional provision 1,743 952
Change in estimates (239) 2,512
Abandonment and site restoration liability as at December 31 11,064 8,713

 

The long-term inflation and discount rates used to determine the abandonment and site restoration liabilities at December 31, 2012 were 7% and 10%, respectively (2011: 7% and 10%).