Port Waratah Coal Services Limited

Notes to the financial statementsfor the financial year ended 31 December 2011ConsolidatedCompany31-Dec-11 31-Dec-10 31-Dec-11 31-Dec-10$'000 $'000 $'000 $'000NOTE 12 CURRENT BORROWINGSBank loans - secured (i) 391,458 71,396 391,458 71,396(i) Bank loans are fully secured by a first ranking fixed and floating charge over all the assets and undertakings of the parent entity.Current borrowings represent amounts payable during the next financial year pursuant to PWCS’ 2005 and 2007 loan note facilities and 2010 loanfacilities. In December 2011, Management executed loan agreements totalling $230 million to fund the Project 145 expansion, with this financeapplication being oversubscribed. This facility is in place until December 2016 and is currently undrawn. As at 31 December 2011, PWCS has atotal of $356 million in undrawn loan facilities available. Management is currently involved in ongoing discussions with financiers in relation to currentand future funding requirements. Based on these discussions and previous PWCS financing activities, Management consider that the refinance of the2005 loan note facility $289 million bullet repayment due in December 2012 will be readily refinanced on market competitive terms and conditions.The remaining current borrowings of $102 million will be repaid from operating cashflows and undrawn facilities in place as at 31 December 2011.NOTE 13 CURRENT PROVISIONSProvision for restoration and rehabilitation 13,774 9,929 13,774 9,929Employee Benefits 19,901 18,785 19,901 18,78533,675 28,715 33,675 28,715NOTE 14 NON-CURRENT BORROWINGSBank loans - secured (i) 613,000 795,459 613,000 795,459Deferred borrowing costs (7,033) (5,260) (7,033) (5,260)Accumulated amortisation 1,880 1,129 1,880 1,129(5,153) (4,131) (5,153) (4,131)607,847 791,328 607,847 791,328(i) Bank loans are fully secured by a first ranking fixed and floating charge over all the assets and undertakings of the parent entity.The loans mature in December 2012, September 2014, March 2017 and December 2016 and bear a weighted average floating rate of interest as setout in Note 27.All loans are denominated in Australian dollars.NOTE 15 NON-CURRENT PROVISIONSProvision for restoration and rehabilitation 35,407 44,823 35,407 44,823Employee Benefits 2,064 1,563 2,064 1,56337,472 46,386 37,472 46,386Employee benefitsBalance at beginning of the year 20,349 21,896 20,349 21,896Additional employee provisions recognised 5,911 8,655 5,911 8,655Reductions arising from payments of employee provisions (4,295) (10,202) (4,295) (10,202)Balance at 31 December 201121,965 20,349 21,965 20,349Current (Note 13) 19,901 18,785 19,901 18,785Non-current (Note 15) 2,064 1,563 2,064 1,56321,965 20,349 21,965 20,349Provision for restoration and rehabilitationBalance at beginning of the year 54,752 44,192 54,752 44,192Unwinding of discount 3,820 3,560 3,820 3,560Provision movement for the year (9,391) 7,000 (9,391) 7,000Balance at 31 December 201149,181 54,752 49,181 54,752Current (Note 13) 13,774 9,929 13,774 9,929Non-current (Note 15) 35,407 44,823 35,407 44,82349,181 54,752 49,181 54,75231