ANNUAL%20REPORT%202015%20eng

Notes to Consolidated Financial Statements
28 PROVISIONS
2015 2014
USD’000 USD’000
Accrued reclamation obligations 13,567 12,995
Others 1,500 1,500
15,067 14,495
Less: Current portion (1,500) (1,500)
13,567 12,995
The accrual for reclamation costs has been determined based on management’s best estimates. The
estimate of the associated costs may be subject to change in the near term when the reclamation on
the land from current mining activities becomes apparent in future periods. At the end of each reporting
period, the Group reassessed the estimated costs and adjusted the accrued reclamation obligations, where
necessary. The Group’s management believes that the accrued reclamation obligations at 31 December
2015 are adequate and appropriate. The accrual is based on estimates and therefore, the ultimate liability
may exceed or be less than such estimates. The movement of the accrued reclamation cost is as follows:
2015 2014
USD’000 USD’000
At 1 January 12,995 10,118
Increase for reassessment of estimated costs (Note 13(c)) 454 3,467
Accretion expense (Note 6(a)) 854 808
Exchange adjustments (736) (1,398)
At 31 December 13,567 12,995
Accrued reclamation costs change during the years ended 31 December 2015 and 2014 result from the
reassessment of estimated costs.
Annual Report 2015
179