Quarterly report pursuant to Section 13 or 15(d)

ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS

v2.4.0.8
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS
 9 Months Ended
Sep. 30, 2013
Environmental Remediation Obligations [Abstract]  
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS
NOTE 11 - ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS
We had environmental and mine closure liabilities of $310.2 million and $265.1 million at September 30, 2013 and December 31, 2012, respectively. The following is a summary of the obligations as of September 30, 2013 and as of the year ended December 31, 2012:
 
(In Millions)
 
September 30,
2013
 
December 31, 2012
Environmental
$
8.4

 
$
15.7

Mine closure
 
 
 
LTVSMC
19.4

 
18.3

Operating mines:
 
 
 
U.S. Iron Ore
139.6

 
81.2

Eastern Canadian Iron Ore
76.6

 
88.9

Asia Pacific Iron Ore
26.2

 
22.4

North American Coal
40.0

 
38.6

Total mine closure
301.8

 
249.4

Total environmental and mine closure obligations
310.2

 
265.1

Less current portion
10.7

 
12.3

Long term environmental and mine closure obligations
$
299.5

 
$
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 nine months ended September 30, 2013 and the year ended December 31, 2012:
 
(In Millions)
 
September 30,
2013
 
December 31, 2012 (1)
Asset retirement obligation at beginning of period
$
231.1

 
$
194.9

Accretion expense
13.6

 
17.6

Exchange rate changes
2.8

 
0.3

Revision in estimated cash flows
35.2

 
18.2

Payments
(0.3
)
 
0.1

Asset retirement obligation at end of period
$
282.4

 
$
231.1

                                         
(1)
Represents a 12-month rollforward of our asset retirement obligation at December 31, 2012.
The revisions in estimated cash flows recorded during the nine months ended September 30, 2013 primarily include estimated asset retirement costs for one of our U.S. Iron Ore mines associated with required storm water management systems expected to be implemented subsequent to the closure of the mine.