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Quarterly report pursuant to Section 13 or 15(d)

Environmental and Mine Closure Obligations

 v2.3.0.11
Environmental and Mine Closure Obligations
6 Months Ended
Jun. 30, 2011
Environmental and Mine Closure Obligations Ìý
Environmental and Mine Closure Obligations

NOTE 10 – ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS

We had environmental and mine closure liabilities of $221.8 million and $199.1 million at JuneÌý30, 2011 and DecemberÌý31, 2010, respectively. The following is a summary of the obligations as of JuneÌý30, 2011 and DecemberÌý31, 2010:

Ìý

Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
Ìý ÌýÌý (In Millions) Ìý
Ìý ÌýÌý JuneÌý30,
2011
Ìý ÌýÌý DecemberÌý31,
2010
Ìý

Environmental

ÌýÌý ÌýÌý$ 13.7ÌýÌý ÌýÌý ÌýÌý ÌýÌý$ 13.7ÌýÌý ÌýÌý

Mine closure

ÌýÌý Ìý Ìý Ìý ÌýÌý Ìý Ìý Ìý

LTVSMC

ÌýÌý Ìý 17.6ÌýÌý ÌýÌý ÌýÌý Ìý 17.1ÌýÌý ÌýÌý

Operating mines:

ÌýÌý Ìý Ìý Ìý ÌýÌý Ìý Ìý Ìý

U.S. Iron Ore

ÌýÌý Ìý 65.9ÌýÌý ÌýÌý ÌýÌý Ìý 62.7ÌýÌý ÌýÌý

Eastern Canadian Iron Ore

ÌýÌý Ìý 66.2ÌýÌý ÌýÌý ÌýÌý Ìý 49.3ÌýÌý ÌýÌý

North American Coal

ÌýÌý Ìý 35.0ÌýÌý ÌýÌý ÌýÌý Ìý 34.7ÌýÌý ÌýÌý

Asia Pacific Iron Ore

ÌýÌý Ìý 16.7ÌýÌý ÌýÌý ÌýÌý Ìý 15.4ÌýÌý ÌýÌý

Other

ÌýÌý Ìý 6.7ÌýÌý ÌýÌý ÌýÌý Ìý 6.2ÌýÌý ÌýÌý
Ìý ÌýÌý Ìý Ìý Ìý ÌýÌý Ìý Ìý Ìý

Total mine closure

ÌýÌý Ìý 208.1ÌýÌý ÌýÌý ÌýÌý Ìý 185.4ÌýÌý ÌýÌý
Ìý ÌýÌý Ìý Ìý Ìý ÌýÌý Ìý Ìý Ìý

Total environmental and mine closure obligations

ÌýÌý Ìý 221.8ÌýÌý ÌýÌý ÌýÌý Ìý 199.1ÌýÌý ÌýÌý

Less current portion

ÌýÌý Ìý 14.3ÌýÌý ÌýÌý ÌýÌý Ìý 14.2ÌýÌý ÌýÌý
Ìý ÌýÌý Ìý Ìý Ìý ÌýÌý Ìý Ìý Ìý

Long-term environmental and mine closure obligations

ÌýÌý ÌýÌý$ ÌýÌýÌýÌý207.5ÌýÌý ÌýÌý ÌýÌý ÌýÌý$ ÌýÌýÌýÌý184.9ÌýÌý ÌýÌý
Ìý ÌýÌý Ìý Ìý Ìý ÌýÌý Ìý Ìý Ìý

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 six operating North American coal mines, our Asia Pacific operating iron ore mines, the coal mine at Sonoma and a closed operation formerly known as LTVSMC.

Ìý

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, 2011 and the year ended DecemberÌý31, 2010:

Ìý

Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
Ìý ÌýÌý (In Millions) Ìý
Ìý ÌýÌý JuneÌý30,
2011
Ìý ÌýÌý DecemberÌý31,
2010
(1)
Ìý

Asset retirement obligation at beginning of period

ÌýÌý ÌýÌý$ 168.3ÌýÌý ÌýÌý ÌýÌý ÌýÌý$ ÌýÌýÌýÌý103.9ÌýÌý ÌýÌý

Accretion expense

ÌýÌý Ìý 7.7ÌýÌý ÌýÌý ÌýÌý Ìý 13.1ÌýÌý ÌýÌý

Exchange rate changes

ÌýÌý Ìý 1.2ÌýÌý ÌýÌý ÌýÌý Ìý 2.5ÌýÌý ÌýÌý

Revision in estimated cash flows

ÌýÌý Ìý -ÌýÌý ÌýÌý ÌýÌý Ìý 1.0ÌýÌý ÌýÌý

Payments

ÌýÌý Ìý (0.7)Ìý ÌýÌý ÌýÌý Ìý (8.4)Ìý ÌýÌý

Acquired through business combinations

ÌýÌý Ìý 14.0ÌýÌý ÌýÌý ÌýÌý Ìý 56.2ÌýÌý ÌýÌý
Ìý ÌýÌý Ìý Ìý Ìý ÌýÌý Ìý Ìý Ìý

Asset retirement obligation at end of period

ÌýÌý ÌýÌý$ ÌýÌýÌýÌý190.5ÌýÌý ÌýÌý ÌýÌý ÌýÌý$ ÌýÌýÌýÌý168.3ÌýÌý ÌýÌý
Ìý ÌýÌý Ìý Ìý Ìý ÌýÌý Ìý Ìý Ìý

(1)ÌýÌýÌýÌýRepresents a 12-month rollforward of our asset retirement obligation at DecemberÌý31, 2010.

Ìý