Quarterly report pursuant to Section 13 or 15(d)

Environmental and Mine Closure Obligations

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Environmental and Mine Closure Obligations
 6 Months Ended
Jun. 30, 2011
Environmental and Mine Closure Obligations  
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 June 30, 2011 and December 31, 2010, respectively. The following is a summary of the obligations as of June 30, 2011 and December 31, 2010:

 

                 
     (In Millions)  
     June 30,
2011		      December 31,
2010		  

Environmental

      $ 13.7           $ 13.7     

Mine closure

                  

LTVSMC

      17.6           17.1     

Operating mines:

                  

U.S. Iron Ore

      65.9           62.7     

Eastern Canadian Iron Ore

      66.2           49.3     

North American Coal

      35.0           34.7     

Asia Pacific Iron Ore

      16.7           15.4     

Other

      6.7           6.2     
                   

Total mine closure

      208.1           185.4     
                   

Total environmental and mine closure obligations

      221.8           199.1     

Less current portion

      14.3           14.2     
                   

Long-term environmental and mine closure obligations

      $     207.5           $     184.9     
                   

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.

 

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 June 30, 2011 and the year ended December 31, 2010:

 

                 
     (In Millions)  
     June 30,
2011		      December 31,
2010 (1) 		 

Asset retirement obligation at beginning of period

      $ 168.3           $     103.9     

Accretion expense

      7.7           13.1     

Exchange rate changes

      1.2           2.5     

Revision in estimated cash flows

      -           1.0     

Payments

      (0.7)          (8.4)    

Acquired through business combinations

      14.0           56.2     
                   

Asset retirement obligation at end of period

      $     190.5           $     168.3     
                   

(1)    Represents a 12-month rollforward of our asset retirement obligation at December 31, 2010.