Quarterly report pursuant to Section 13 or 15(d)

Asset Retirement and Reclamation Obligations

v2.4.1.9
Asset Retirement and Reclamation Obligations
3 Months Ended
Mar. 31, 2015
Asset Retirement and Reclamation Obligations  
Asset Retirement and Reclamation Obligations

14.Asset Retirement and Reclamation Obligations

 

Asset retirement obligations ("ARO") relate to the Lost Creek Project and Pathfinder and are equal to the present value of all estimated future costs required to remediate any environmental disturbances that exist as of the end of the period discounted at a risk-free rate. Included in this liability are the costs of closure, reclamation, demolition and stabilization of the mines, processing plants, infrastructure, aquifer restoration, waste dumps and ongoing post-closure environmental monitoring and maintenance costs.

 

At March 31, 2015, the total undiscounted amount of the future cash needs was estimated to be $24.8 million. The schedule of payments required to settle the ARO liability extends through 2033.

 

The restricted cash as discussed in note 7 is related to the surety bonds which provide security to the related governmental agencies on these obligations.

 

 

 

 

 

 

 

Three months ended 

 

Year ended

 

March 31, 2015

 

December 31, 2014

 

 

 

 

 

$

 

$

Beginning of year

23,445 

 

17,279 

Change in estimated liability

 -

 

5,669 

Accretion expense

126 

 

497 

 

 

 

 

End of period

23,571 

 

23,445