Asset Retirement Obligation

12 Months Ended

Dec. 31, 2012

Asset Retirement Obligation Disclosure [Abstract]

ASSET RETIREMENT OBLIGATION

The following summary sets forth the annual changes to the Company’s asset retirement obligation in 2012, 2011 and 2010:



(In thousands)	Stillwater Mine		East Boulder Mine		Total
Balance at December 31, 2009	$	5,755	$	454	$	6,209
Accretion expense	498		40		538
Balance at December 31, 2010	$	6,253	$	494	$	6,747
Accretion expense	541		43		584
Balance at December 31, 2011	$	6,794	$	537	$	7,331
Accretion expense	587		47		634
Balance at December 31, 2012	$	7,381	$	584	$	7,965

No adjustments were made to the asset retirement obligations in 2012, 2011 and 2010. The Company estimates the mine life of the Stillwater Mine and the East Boulder Mine to the year 2031 and 2078, respectively.

At December 31, 2012, the Company had posted surety bonds with the State of Montana in the amount of $33.3 million to satisfy the current financial guarantee requirements determined by the regulatory agencies. The final updated environmental impact statement (EIS) was completed during the second quarter of 2012 and the Company is expecting the review process to extend through the second quarter of 2013 and anticipates these financial guarantee requirements may increase.

- Definition

The entire disclosure for an asset retirement obligation and the associated long-lived asset. An asset retirement obligation is a legal obligation associated with the disposal or retirement from service of a tangible long-lived asset that results from the acquisition, construction or development, or the normal operations of a long-lived asset, except for certain obligations of lessees.

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