Exxaro Resources Limited
Annual Financial Statements 2022
| Group | ||||||||
| Environmental rehabilitation | ||||||||
| Note | Restoration Rm |
Decommis- sioning Rm |
Residual impact Rm |
Other site closure cost Rm |
Other1 Rm |
Total Rm |
||
| At 31 December 2022 | ||||||||
| At beginning of the year | 1 479 | 350 | 407 | 56 | 10 | 2 302 | ||
| Charge/(reversal) to operating expenses | 6.1.3 | 81 | (72) | 385 | 80 | 474 | ||
| – Additional provisions | 116 | 390 | 80 | 586 | ||||
| – Unused amounts reversed | (35) | (72) | (5) | (112) | ||||
| Unwinding of discount rate on rehabilitation costs | 12.1.2 | 148 | 37 | 43 | 228 | |||
| Provisions capitalised to property, plant and equipment | 10.1.3 | (10) | (10) | |||||
| Utilised during the year | (15) | (3) | (18) | (6) | (42) | |||
| Utilised not yet paid | (11) | (11) | ||||||
| Total provisions at end of the year | 1 682 | 305 | 832 | 118 | 4 | 2 941 | ||
| Non-current | 1 565 | 305 | 800 | 92 | 2 762 | |||
| Current | 117 | 32 | 26 | 4 | 179 | |||
| 1 | Relates to a constructive obligation created with certain BEE minorities within the Cennergi group to receive distributions in proportion to their percentage interest prior to their in-substance share options being exercised. |
| Group | ||||||||
| Environmental rehabilitation | ||||||||
| Note | Restoration Rm |
Decommis- sioning Rm |
Residual impact Rm |
Other site closure cost Rm |
Other1 Rm |
Total Rm |
||
| At 31 December 2021 | ||||||||
| At beginning of the year | 1 420 | 295 | 323 | 79 | 14 | 2 131 | ||
| (Reversal)/charge to operating expenses | 6.1.3 | (46) | (11) | 63 | (1) | (1) | 4 | |
| – Additional provisions | 122 | 10 | 109 | 241 | ||||
| – Unused amounts reversed | (168) | (21) | (46) | (1) | (1) | (237) | ||
| Unwinding of discount rate on rehabilitation costs | 12.1.2 | 161 | 36 | 44 | 1 | 242 | ||
| Provisions capitalised to property, plant and equipment | 10.1.3 | 32 | 32 | |||||
| Utilised during the year | (14) | (6) | (24) | (4) | (48) | |||
| Reclassification to non-current liabilities held-for-sale | (42) | (2) | (17) | 2 | (59) | |||
| Total provisions at end of the year | 1 479 | 350 | 407 | 56 | 10 | 2 302 | ||
| Non-current | 1 408 | 350 | 398 | 43 | 2 | 2 201 | ||
| Current | 71 | 9 | 13 | 8 | 101 | |||
| 1 | Relates to a constructive obligation created with certain BEE minorities within the Cennergi group to receive distributions in proportion to their percentage interest prior to their in-substance share options being exercised. |
| Company | ||||
| Environmental rehabilitation |
||||
| Note | Restoration Rm |
Total Rm |
||
| At 31 December 2022 | ||||
| At beginning of the year | 39 | 39 | ||
| Charge to operating expenses | 6.1.3 | 7 | 7 | |
| – Unused amounts reversed | 7 | 7 | ||
| Unwinding of discount rate on rehabilitation costs | 12.1.2 | 3 | 3 | |
| Total provisions at end of the year | 49 | 49 | ||
| Non-current | 49 | 49 | ||
| Company | ||||
| Environmental rehabilitation |
||||
| Note | Restoration Rm |
Total Rm |
||
| At 31 December 2021 | ||||
| At beginning of the year | 37 | 37 | ||
| Reversal 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 | |
| Total provisions at end of the year | 39 | 39 | ||
| Non-current | 39 | 39 | ||
The FPR:2015 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 DMRE, as well as environmental trust funds.
The current funding excess compared to the present values of the environmental provisions is demonstrated as follows:
| Group | |||
| At 31 December | Note | 2022 Rm |
2021 Rm |
| Total environmental provisions | (2 819) | (2 236) | |
|---|---|---|---|
| Present value of unscheduled restoration and decommissioning costs discounted over LoM | (1 987) | (1 829) | |
| Present value of unscheduled post-closure residual impact costs discounted over LoM and five years of rehabilitation | (832) | (407) | |
| Environmental rehabilitation funds in trust1 | 10.3.2 | 2 286 | 2 267 |
| Financial guarantees ceded to the DMRE | 13.4.1 | 3 606 | 3 606 |
| Current funding excess | 3 073 | 3 637 | |
| 1 | Includes both the environmental rehabilitation funds classified as financial assets at FVPL and financial assets at amortised cost. |
The table below demonstrates the undiscounted environmental rehabilitation cost in the event of immediate closure:
| Group | |||
| At 31 December | 2022 Rm |
2021 Rm |
|
| Estimated unscheduled restoration and decommissioning closure costs | (7 105) | (6 404) | |
|---|---|---|---|
| Estimated unscheduled post-closure residual impact cost | (1 322) | (1 177) | |
Report Index