XML 65 R24.htm IDEA: XBRL DOCUMENT v3.8.0.1
Provisions
 12 Months Ended
Dec. 31, 2017
Statement [Line Items]  
Provisions [text block]
18.

Provisions


      Decommis-                          
      sioning,                          
      restoration     Deferred     Restricted              
      and similar     share units     share units 1              
      liabilities     (note 23a )   (note 23a )   Other     Total  
  Balance, January 1, 2017 $ 177,296   $ 3,933   $ 11,052   $ 1,788   $ 194,069  
  Net additional provisions made   6,485     868     7,327     202     14,882  
  Amounts used   (69 )   (638 )   (5,491 )   (937 )   (7,135 )
  Unwinding of discount (note 5f)   4,159     -     -     -     4,159  
  Effect of change in discount rate   2,658     -     -     -     2,658  
  Effect of foreign exchange   9,512     346     1,194     95     11,147  
  Effect of change in share price   -     2,114     5,327     287     7,728  
                                 
  Balance, December 31, 2017 $ 200,041   $ 6,623   $ 19,409   $ 1,435   $ 227,508  

  1 Certain amounts relating to the Arizona segment are capitalized.

Provisions are reflected in the consolidated balance sheets as follows:

  Current (note 13) $ 2,344   $ 6,623   $ 17,119   $ 1,284   $ 27,370  
  Non-current   197,697     -     2,290     151     200,138  
                                 
    $ 200,041   $ 6,623   $ 19,409   $ 1,435   $ 227,508  
      Decommis-                          
      sioning,                          
      restoration     Deferred     Restricted              
      and similar     share units     share units              
      liabilities     (note 23a )   (note 23a ) 1   Other     Total  
  Balance, January 1, 2016 $   147,035   $ 2,803   $ 4,388   $   -   $ 154,226  
  Net additional provisions made   30,038     1,018     6,348     1,922     39,326  
  Amounts used   (894 )   (1,078 )   (2,736 )   (430 )   (5,138 )
  Unwinding of discount (note 5f)   2,586     -     -     -     2,586  
  Effect of change in discount rate   (4,189 )   -     -     -     (4,189 )
  Effect of foreign exchange   2,720     97     (47 )   20     2,790  
  Effect of change in share price   -     1,093     3,099     276     4,468  
                                 
  Balance, December 31, 2016 $   177,296   $ 3,933   $ 11,052   $ 1,788   $ 194,069  

1 Certain amounts relating to the Arizona segment are capitalized.

Provisions are reflected in the consolidated balance sheets as follows:


  Current (note 13) $   1,054   $ 3,933   $ 8,451   $ 929   $ 14,367  
  Non-current   176,242     -     2,601     859     179,702  
                                 
    $   177,296   $ 3,933   $ 11,052   $ 1,788   $ 194,069  

Decommissioning, restoration and similar liabilities are remeasured at each reporting date to reflect changes in discount rates, which can significantly affect the liabilities.

Decommissioning, restoration and similar liabilities

The Group's decommissioning, restoration and similar liabilities relate to the rehabilitation and closure of currently operating mines and metallurgical plants, development-phase properties and closed properties. The amount of the provision has been recorded based on estimates and assumptions that management believes are reasonable; however, actual decommissioning and restoration costs may differ from expectations.

During the year ended December 31, 2017 additional provisions were recognized as a result of an increased pit footprint, as per mine plan, at the Constancia operation.

During the year ended December 31, 2016 additional provisions were recognized as a result of an increased pit footprint, as per mine plan, at the Constancia operation and an updated closure plan for a site in the Manitoba business unit. In addition, updates to certain closure plans in Manitoba resulted in increases in expected cash outflows.

The Group's decommissioning and restoration liabilities relate mainly to its Manitoba operations. Management anticipates that significant decommissioning and restoration activities will take place near the time closure of the mining and processing facilities, anticipated to occur from 2020 for Flin Flon operations and up to 2028 for Snow Lake operations (including the Lalor mine). However, these provisions also reflect estimated post-closure cash flows that extend to 2099 for ongoing monitoring and water treatment requirements. Management anticipates most decommissioning and restoration activities for the Constancia operation will occur from 2035 to 2040.

These estimates have been discounted to their present value at rates ranging from 1.43% to 2.74% per annum (2016 - 0.63% to 3.07%), using pre-tax risk-free interest rates that reflect the estimated maturity of each specific liability.