CHAPTER 13:Provisions and contingencies

• 13.3PROVISIONS

		Group
		Environmental rehabilitation
At 31 December 2023	Note	Restoration  Rm	Decommis-  ioning  Rm	Residual  impact  Rm		Other site closure  cost  Rm		Other1 Rm		Total  Rm
At beginning of the year		1 682	305	832		118		4		2 941
Charge/(reversal) to operating expenses	6.1.3	10	(81)	122		19				70
Unwinding of discount rate on rehabilitation costs	12.1.2	178	32	24		10				244
Provisions capitalised to property, plant and equipment	10.1.3		2							2
Utilised during the year		(47)		(3)		(20)		(2)		(72)
Total provisions at end of the year		1 823	258	975		127		2		3 185
Non-current		1 692	257	908		106				2 963
Current		131	1	67		21		2		222

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
At 31 December 2023	Note	Restoration  Rm	Decommis-  ioning  Rm	Residual  impact  Rm		Other site closure  cost  Rm		Other1 Rm		Total  Rm
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
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
		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.

		Company
		Environmental rehabilitation
At 31 December 2023	Note	Restoration  Rm		Total  Rm
At beginning of the year		49		49
Reversal to operating expenses	6.1.3	(1)		(1)
Unwinding of discount rate on rehabilitation costs	12.1.2	5		5
Total provisions at end of the year		53		53
Non-current		53		53

		Company
		Environmental rehabilitation
At 31 December 2023	Note	Restoration  Rm		Total  Rm
At beginning of the year		39		39
Charge to operating expenses	6.1.3	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

Funding

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	2023 Rm	2022 Rm
Total environmental provisions		(3 056)	(2 819)
Present value of unscheduled restoration and decommissioning costs discounted over LoM		(2 081)	(1 987)
Present value of unscheduled post-closure residual impact costs discounted over LoM and five years of rehabilitation		(975)	(832)
Environmental rehabilitation funds in trust1	10.3.2	2 530	2 286
Financial guarantees ceded to the DMRE	13.4.1	3 552	3 606
Current funding excess		3 026	3 073

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	2023 Rm	2022 Rm
Estimated unscheduled restoration and decommissioning closure costs	(7 576)	(7 105)
Estimated unscheduled post-closure residual impact cost	(1 751)	(1 322)