Accounts Payable and Other Accrued Liabilities

9 Months Ended

Sep. 30, 2011

Accounts Payable and Other Accrued Liabilities

Accounts Payable and Other Accrued Liabilities

9.   Accounts Payable and Other Accrued Liabilities

The Company’s accounts payable and other accrued liabilities consist of the following:

	September 30,		December 31,
	2011		2010
	(in thousands)
Accounts payable and accruals	$	4,839	$	2,450
Accrued employee compensation and benefits	4,875		481
	$	9,714	$	2,931

Accounts payable and accruals at September 30, 2011 are primarily related to amounts due to contractors and suppliers in the amounts of $2.4 million, $1.1 million, $0.4 million and $0.9 million related to the Company’s Velardeña mine, El Quevar project, exploration and corporate administrative activities, respectively. Accounts payable and accruals at December 31, 2010 are primarily related to amounts due to contractors and suppliers in the amounts of $1.7 million, $0.4 million and $0.3 million related to the El Quevar project, exploration and corporate administrative activities, respectively.

Accrued employee compensation and benefits at September 30, 2011 consist of $0.3 million of accrued vacation payable, $0.8 million of bonuses payable, $0.9 million related to severance amounts payable related to the ECU acquisition and $2.9 million related to withholding taxes and benefits payable, of which $2.3 million is related to activities at the Velardeña mine. Accrued employee compensation and benefits at December 31, 2010 consist of $0.1 million of accrued vacation payable and $0.4 million related to withholding taxes and benefits payable.