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Quarterly report pursuant to Section 13 or 15(d)

ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS

v2.4.0.8
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS
6 Months Ended
Jun. 30, 2013
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 $248.0 million and $265.1 million at JuneÌý30, 2013 and DecemberÌý31, 2012, respectively. The following is a summary of the obligations as of JuneÌý30, 2013 and as of the year ended DecemberÌý31, 2012:
Ìý
(In Millions)
Ìý
JuneÌý30,
2013
Ìý
DecemberÌý31, 2012
Environmental
$
9.1

Ìý
$
15.7

Mine closure
Ìý
Ìý
Ìý
LTVSMC
19.1

Ìý
18.3

Operating mines:
Ìý
Ìý
Ìý
U.S. Iron Ore
85.1

Ìý
81.2

Eastern Canadian Iron Ore
75.0

Ìý
88.9

Asia Pacific Iron Ore
20.2

Ìý
22.4

North American Coal
39.5

Ìý
38.6

Total mine closure
238.9

Ìý
249.4

Total environmental and mine closure obligations
248.0

Ìý
265.1

Less current portion
12.2

Ìý
12.3

Long term environmental and mine closure obligations
$
235.8

Ìý
$
252.8


Mine Closure
Our mine closure obligations are for our four consolidated U.S. operating iron ore mines, our two Eastern Canadian operating iron ore mines, our Asia Pacific operating iron ore mine, our five operating North American coal mines and a closed operation formerly operating as LTVSMC.
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 rollforward of our asset retirement obligation liability related to our active mining locations for the six months ended JuneÌý30, 2013 and the year ended DecemberÌý31, 2012:
Ìý
(In Millions)
Ìý
Ìý
JuneÌý30,
2013
Ìý
DecemberÌý31, 2012
(1)
Asset retirement obligation at beginning of period
$
231.1

Ìý
$
194.9

Ìý
Accretion expense
9.0

Ìý
17.6

Ìý
Exchange rate changes
(2.9
)
Ìý
0.3

Ìý
Revision in estimated cash flows
(17.1
)
Ìý
18.2

Ìý
Payments
(0.3
)
Ìý
0.1

Ìý
Asset retirement obligation at end of period
$
219.8

Ìý
$
231.1

Ìý
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(1)
Represents a 12-month rollforward of our asset retirement obligation at December 31, 2012.