2011 Annual Report (3 April 2012) - Grange Resources

2011 ANNUAL REPORT
81
(e)
Contingent Liabilities
Bank Guarantees
Bank guarantees have been provided on the Group’s behalf to
secure, on demand by the Minister for Mines and Energy for the
State of Queensland, any sum to a maximum aggregate amount
of $1,262,659 (2010: $1,262,659), in relation to the rehabilitation
of the Highway Reward project.
A Bank guarantee has been provided by Grange Resources
(Tasmania) Pty Ltd, held by the Tasmanian Government, as
required under Environmental Management and Pollution Control
Act 1994 (EMPCA) for the amount of $2,777,575 (December
2010: $2,648,718). This amount is to guarantee the rehabilitation
responsibilities under the mining lease at Savage River.
A Bank guarantee has been provided by Grange Resources
(Tasmania) Pty Ltd, held by the National Australia Bank, as
required under the Goldamere Agreement and applicable Deeds
of Variation, for the amount of $2,800,000 (December 2010:
$2,800,000). This amount is a guarantee against the purchase
price outstanding with the Tasmanian government as specified in
the Goldamere Agreement.
Refer to Note 41 for bank guarantees provided by the parent
entity. No material losses are anticipated in respect of any of the
above contingent liabilities.
Other Contingent Liabilities
On 2 January 2009, Grange completed the legal acquisition of
Ever Green Resources Co., Ltd. The Commissioner of State
Revenue in Tasmania informed the Company during the year
ended 31 December 2011 that no land rich duty obligations arose
from this transaction.
Refer to Note 41 for other contingent liabilities of the parent entity.
(f) Contingent Assets
The Group did not have any contingent assets at the Balance
Date.
NOTE 35. RELATED PARTY TRANSACTIONS
a) Ultimate parent
Grange Resources Limited is the ultimate Australian holding
company of the Group.
b) Transactions with related parties
Sales of iron ore of $245.8 million were made with related parties
during the year ended 31 December 2011(6 month period ended
31 December 2010: $124.2 million).
c) Outstanding balances arising from sales of
goods and services
31 December 31 December
2011 2010
$’000 $’000
Trade receivables (sales of iron ore)
Related parties 20,048 30,166
Other receivables
Related parties 36 -
20,084 30,166
NOTE 36. SUBSIDIARIES
The consolidated financial statement incorporate the assets,
liabilities and results of the following subsidiaries in accordance
with the accounting policy described in Note 1.
Percentage of equity interest held by the Group
31 December 31 December
2011 2010
Name % %
Ever Green Resources Co., Limited (1) 100 100
Grange Tasmania Holdings Pty Ltd 100 100
Beviron Pty Ltd 100 100
Grange Resources (Tasmania) Pty Ltd 100 100
Grange Capital Pty Ltd 100 100
Grange Administrative Services Pty Ltd
(formerly Tribune Development Pty Ltd) 100 100
Barrack Mines Pty Ltd 100 100
Bamine Pty Ltd 100 100
BML Holdings Pty Ltd 100 100
Horseshoe Gold Mine Pty Ltd 100 100
Grange Resources (Southdown) Pty Ltd 100 100
Southdown Project Management
Company Pty Ltd 100 100
Murchison Copper Mines Pty Ltd (2) - -
Grange Developments Sdn Bhd (3) 100 100
Grange Minerals Sdn Bhd (4) - -
EG Mineral Resources Sdn Bhd (4) - -
(1) Ever Green Resources Co., Limited is incorporated in Hong Kong.
The Company received confirmation from the Australian Securities
and Investments Commission of its registration as a foreign company
under the Corporations Act 2001 on 28 January 2011.
(2) The Group completed the sale of its 79.34% interest in Murchison
Copper Mines Pty Ltd to Horseshoe Metals Limited in July 2010.
(3) Grange Developments Sdn Bhd is incorporated in Malaysia.
(4) The Group completed the sale of Grange Minerals Sdn Bhd and EG
Mineral Resources Sdn Bhd in July 2011. The Group accounted for
the divestment of its interests in these subsidiaries during the year
ended 30 June 2010 due to an effective loss of control arising from
the satisfaction of conditions precedent to the completion of the sale.
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