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Quarterly report pursuant to Section 13 or 15(d)

ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS

v3.7.0.1
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS
6 Months Ended
Jun. 30, 2017
Environmental Remediation Obligations [Abstract] Ìý
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS
NOTE 11 - ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS
We had environmental and mine closure liabilities of $214.1 million and $206.8 million at JuneÌý30, 2017 and DecemberÌý31, 2016, respectively. The following is a summary of the obligations as of JuneÌý30, 2017 and DecemberÌý31, 2016:
Ìý
(In Millions)
Ìý
JuneÌý30,
2017
Ìý
DecemberÌý31,
2016
Environmental
$
2.8

Ìý
$
2.8

Mine closure
Ìý
Ìý
Ìý
U.S. Iron Ore1
193.6

Ìý
187.8

Asia Pacific Iron Ore
17.7

Ìý
16.2

Total mine closure
211.3

Ìý
204.0

Total environmental and mine closure obligations
214.1

Ìý
206.8

Less current portion
12.2

Ìý
12.9

Long-term environmental and mine closure obligations
$
201.9

Ìý
$
193.9

Ìý
Ìý
Ìý
Ìý
1 U.S. Iron Ore includes our active operating mines, our indefinitely idled Empire mine and a closed mine formerly operating as LTVSMC.

Mine Closure
The accrued closure obligation for our active mining operations provides for contractual and legal obligations associated with the eventual closure of the mining operations. The accretion of the liability and amortization of the related asset is recognized over the estimated mine lives for each location.
The following represents a roll forward of our asset retirement obligation liability for the six months ended JuneÌý30, 2017 and for the year ended DecemberÌý31, 2016:
Ìý
(In Millions)
Ìý
JuneÌý30,
2017
Ìý
DecemberÌý31, 2016
Asset retirement obligation at beginning of period
$
204.0

Ìý
$
230.4

Accretion expense
7.1

Ìý
14.0

Remediation payments
(0.8
)
Ìý
(2.2
)
Exchange rate changes
1.0

Ìý
(0.2
)
Revision in estimated cash flows
—

Ìý
(38.0
)
Asset retirement obligation at end of period
$
211.3

Ìý
$
204.0


For the year ended DecemberÌý31, 2016, the revisions in estimated cash flows recorded during the yearÌýrelated primarily to revisions in the timing of the estimated cash flows related to two of our U.S. mines. The Empire mine asset retirement obligation was reducedÌý$29.6 millionÌýas a result of the further refinement of the timing of cash flows and a downward revision of estimated asset retirement costs related to technology associated with required storm water management systems expected to be implemented. Additionally, during 2016, a new economic reserve estimate was completed for United Taconite, increasing salable product reserves byÌý115 millionÌýlong tons and consequently significantly increasing the life-of-mine plan, resulting in aÌý$9.2 millionÌýdecrease in the asset retirement obligation.