Quarterly report pursuant to Section 13 or 15(d)

Asset Retirement and Reclamation Obligations

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Asset Retirement and Reclamation Obligations
3 Months Ended
Mar. 31, 2014
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement and Reclamation Obligations
15.
Asset Retirement and Reclamation Obligations
 
Asset retirement obligations ("ARO") for the Lost Creek Project 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, using discount rates ranging from 0.3% to 3.8%. 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, 2014, the total undiscounted amount of the future cash needs was estimated to be $17.7 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 and letters of credit which provide security to the related governmental agencies on these obligations.
 
 
Three months ended
Year ended
 
 
March 31, 2014
December 31, 2013
 
 
$
$
 
 
 
 
 
 
 
 
 
Beginning of year
 
 
17,279
 
 
957
 
Liabilities incurred
 
 
-
 
 
10,639
 
Assumed in Pathfinder Mining Corporation purchase
 
 
-
 
 
5,656
 
Accretion expense
 
 
39
 
 
27
 
 
 
 
 
 
 
 
 
End of period
 
 
17,318
 
 
17,279