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, 2014
Environmental Remediation Obligations [Abstract]  
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS
NOTE 10 - ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS
We had environmental and mine closure liabilities of $310.3 million and $321.0 million at June 30, 2014 and December 31, 2013, respectively. The following is a summary of the obligations as of June 30, 2014 and December 31, 2013:
 
(In Millions)
 
June 30,
2014
 
December 31, 2013
Environmental
$
11.0

 
$
8.4

Mine closure
 
 
 
LTVSMC
22.4

 
22.0

Operating mines:
 
 
 
U.S. Iron Ore
137.5

 
152.2

Eastern Canadian Iron Ore
76.3

 
78.2

Asia Pacific Iron Ore
27.4

 
25.5

North American Coal
35.7

 
34.7

Total mine closure
299.3

 
312.6

Total environmental and mine closure obligations
310.3

 
321.0

Less current portion
5.6

 
11.3

Long term environmental and mine closure obligations
$
304.7

 
$
309.7


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 six months ended June 30, 2014 and for the year ended December 31, 2013:
 
(In Millions)
 
June 30,
2014
 
December 31,
2013 (1)
Asset retirement obligation at beginning of period
$
290.6

 
$
231.1

Accretion expense
7.2

 
18.1

Exchange rate changes
1.2

 
(3.4
)
Revision in estimated cash flows
(22.1
)
 
44.8

Asset retirement obligation at end of period
$
276.9

 
$
290.6

                                         
(1) 
Represents a 12-month rollforward of our asset retirement obligation at December 31, 2013.
The revisions in estimated cash flows recorded during the six months ended June 30, 2014 primarily were a result of the announced Empire Mine extension during the first quarter of 2014. As a result of the extension, a portion of the required storm water management systems are now expected to be implemented prior to closure of the mine.