Quarterly report pursuant to Section 13 or 15(d)

ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS

v3.4.0.3
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS
 3 Months Ended
Mar. 31, 2016
Environmental Remediation Obligations [Abstract]  
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS
NOTE 11 - ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS
We had environmental and mine closure liabilities of $216.9 million and $234.0 million at March 31, 2016 and December 31, 2015, respectively. The following is a summary of the obligations as of March 31, 2016 and December 31, 2015:
 
(In Millions)
 
March 31,
2016
 
December 31,
2015
Environmental
$
3.5

 
$
3.6

Mine closure
 
 
 
LTVSMC
24.5

 
24.1

Operating mines:
 
 
 
U.S. Iron Ore
171.4

 
189.9

Asia Pacific Iron Ore
17.5

 
16.4

Total mine closure
213.4

 
230.4

Total environmental and mine closure obligations
216.9

 
234.0

Less current portion
2.6

 
2.8

Long term environmental and mine closure obligations
$
214.3

 
$
231.2


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 rollforward of our asset retirement obligation liability related to our active mining locations for the three months ended March 31, 2016 and for the year ended December 31, 2015:
 
(In Millions)
 
March 31,
2016
 
December 31,
2015 (1)
Asset retirement obligation at beginning of period
$
206.3

 
$
142.4

Accretion expense
2.5

 
6.5

Exchange rate changes
0.9

 
(1.1
)
Revision in estimated cash flows
(20.8
)
 
58.5

Asset retirement obligation at end of period
$
188.9

 
$
206.3

(1) Represents a 12-month rollforward of our asset retirement obligation at December 31, 2015.

The revisions in the estimated cash flows recorded during the three months ended March 31, 2016 relate primarily to revisions of the timing of the estimated cash flows related to one of our U.S. mines. For the year ended December 31, 2015, the revisions in estimated cash flows recorded during the year related primarily to revisions in the timing of the estimated cash flows and the technology associated with required storm water management systems expected to be implemented subsequent to the indefinite idling of one of our U.S. Iron Ore mines.