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Reclamation and Remediation
12 Months Ended
Dec. 31, 2012
Reclamation and Remediation [Abstract]  
RECLAMATION AND REMEDIATION

NOTE 4    RECLAMATION AND REMEDIATION

 

The Company's mining and exploration activities are subject to various federal and state laws and regulations governing the protection of the environment. These laws and regulations are continually changing and are generally becoming more restrictive. The Company conducts its operations to protect public health and the environment and believes its operations are in compliance with applicable laws and regulations in all material respects. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures. Estimated future reclamation costs are based principally on legal and regulatory requirements.

 

The Company's reclamation and remediation expenses consisted of:

 

 

   Years Ended December 31, 
   2012 2011 2010 
 Reclamation $32 $61 $13 
 Accretion - operating    55  50  44 
 Accretion - non-operating  9  9  8 
   $96 $120 $65 

Reclamation expense decreased in 2012, primarily due to a final agreement on remediation requirements for the Midnite Mine site and land purchases around the Mt Leyshon mine in 2011 that did not occur in 2012.

 

At December 31, 2012 and 2011, $1,341 and $1,070, respectively, were accrued for reclamation obligations relating to mineral properties. In addition, the Company is involved in several matters concerning environmental obligations associated with former, primarily historic, mining activities. Generally, these matters concern developing and implementing remediation plans at the various sites involved. At December 31, 2012 and 2011, $198 and $170, respectively, were accrued for such obligations. These amounts are also included in Reclamation and remediation liabilities.

 

The following is a reconciliation of Reclamation and remediation liabilities:

 

 Balance January 1, 2011 $1,048  
 Additions, changes in estimates and other    176  
 Liabilities settled    (43)  
 Accretion expense    59  
 Balance December 31, 2011  1,240  
 Additions, changes in estimates and other    308  
 Liabilities settled    (73)  
 Accretion expense    64  
 Balance December 31, 2012 $1,539  

Additions to the reclamation liability in 2012 of $308 include $245 for currently or recently producing properties due mainly to increased water treatment costs at Yanacocha and $63 for historic mining operations primarily related to additional water management costs and assuming the United States government liability for Dawn with the receipt of $42 in a trust fund.

 

Additions to the reclamation liability in 2011 of $176 include $139 for currently or recently producing properties due mainly to increased water treatment costs and additional heap leach facilities at Yanacocha, an increase in the tailings area at Boddington, an expansion of the operating footprint at Batu Hijau and $37 for historic mining operations primarily related to additional water management costs.

 

The current portion of Reclamation and remediation liabilities of $82 and $71 at December 31, 2012 and 2011, respectively, are included in Other current liabilities (see Note 24).