13.3 Provisions

		Group
		Environmental rehabilitation
	Note	Restoration Rm	Decommis- sioning Rm	Residual impact Rm	Other site closure costs Rm	Total Rm
At 31 December 2019
At beginning of the year		2 516	451	975	80	4 022
Charge to operating expenses	6.1.3	(244)	52	301	18	127
– Additional provision		374	56	403	19	852
– Unused amounts reversed		(618)	(4)	(102)	(1)	(725)
Unwinding of discount rate on rehabilitation costs	12.1.2	228	47	139		414
Provisions capitalised to property, plant and equipment	10.1.3		(4)			(4)
Utilised during the year		(58)			(15)	(73)
Reclassification to non-current liabilities held-for-sale		(4)		(69)		(73)
Loss of control of subsidiary	8.3	(6)	(2)	(1)		(9)
Total provisions at end of the year		2 432	544	1 345	83	4 404
– Current provision		66		11	22	99
– Non-current provision		2 366	544	1 334	61	4 305

		Group
		Environmental rehabilitation
	Note	Restoration Rm	Decommis- sioning Rm	Residual impact Rm	Other site closure costs Rm	Total Rm
At 31 December 2018
At beginning of the year		2 473	450	956	80	3 959
Charge to operating expenses	6.1.3	(133)	(29)	(32)		(194)
– Additional provision		35		45		80
– Unused amounts reversed		(168)	(29)	(77)		(274)
Unwinding of discount rate on rehabilitation costs	12.1.2	219	42	124	23	408
Provisions capitalised to property, plant and equipment	10.1.3		(12)			(12)
Utilised during the year		(35)			(23)	(58)
Reclassification to non-current liabilities held-for-sale		(8)		(73)		(81)
Total provisions at end of the year		2 516	451	975	80	4 022
– Current provision		46			24	70
– Non-current provision		2 470	451	975	56	3 952

			Company
		Environmental rehabilitation
	Note	Restoration Rm	Other site closure costs Rm	Total Rm
At 31 December 2019
At beginning of the year		36	2	38
Charge to operating expenses	6.1.3	(2)	(1)	(3)
– Unused amounts reversed		(2)	(1)	(3)
Unwinding of discount rate on rehabilitation costs	12.1.2	3		3
Utilised during the year			(1)	(1)
Total provisions at end of the year		37		37
– Non-current provision		37		37

At 31 December 2018
At beginning of the year		34	11	45
Charge to operating expenses	6.1.3	(1)		(1)
– Unused amounts reversed		(1)		(1)
Unwinding of discount rate on rehabilitation costs	12.1.2	3		3
Utilised during the year			(9)	(9)
Total provisions at end of the year		36	2	38
– Current provision			2	2
– Non-current provision		36		36

Funding

The FPR contains funding requirements in the form of financial guarantees as well as trust funds. Exxaro has financial guarantees per mine which are ceded to the DMR, as well as environmental trust funds.

			Group
At 31 December		Note	2019 Rm	2018 Rm
Estimated unscheduled restoration and decommissioning closure costs			(7 065)	(6 536)
Estimated unscheduled post-closure residual impact costs			(2 475)	(2 666)
Total environmental provisions			(4 321)	(3 942)
–	Present value of unscheduled restoration and decommissioning costs discounted over LOM		(2 976)	(2 967)
–	Present value of unscheduled post-closure residual impact costs discounted over LOM and five years of rehabilitation		(1 345)	(975)
Environmental rehabilitation funds in trust		10.2.2	2 039	1 783
Financial guarantees ceded to the DMR		13.4	3 994	2 971
Current funding excess			1 712	812

Exxaro report selector 2019

Integrated report 2019

Annual financial statements

ESG report

Consolidated mrr reserves report

Tax report

CHAPTER 1: THE YEAR IN BRIEF

CHAPTER 2: REPORTS

CHAPTER 3: SEGMENTAL REPORTING

CHAPTER 4: FINANCIAL STATEMENTS

CHAPTER 5: EARNINGS

CHAPTER 6: OPERATIONAL PERFORMANCE AND WORKING CAPITAL

CHAPTER 7: TAXATION

CHAPTER 8: BUSINESS ENVIRONMENT AND PORTFOLIO CHANGES

CHAPTER 9: ASSOCIATES AND JOINT ARRANGEMENTS

CHAPTER 10: ASSETS

CHAPTER 11: LEASES

CHAPTER 12: FUNDING

CHAPTER 13: PROVISIONS AND CONTINGENCIES

CHAPTER 14: PEOPLE

CHAPTER 15: RELATED PARTIES

CHAPTER 16: FINANCIAL INSTRUMENTS

CHAPTER 17: SUBSIDIARIES

CHAPTER 18: COMPLIANCE

CHAPTER 19: ANNEXURES

CHAPTER 20: ACRONYMS

13.3 Provisions