Annual report pursuant to Section 13 and 15(d)

AMAK ASSET RETIREMENT OBLIGATIONS

v3.20.1
AMAK ASSET RETIREMENT OBLIGATIONS
12 Months Ended
Dec. 31, 2019
AMAK  
Schedule of Equity Method Investments [Line Items]  
ASSET RETIREMENT OBLIGATIONS
Asset Retirement Obligations
During 2012, we recorded an ARO for deferred mine closure costs of approximately SR12,843,000. These deferred mine closure costs are being amortized over the estimated life of the mine. Amortization expense was approximately SR745,000, SR745,000, and SR1,117,000 for the years ended December 31, 2019, 2018, and 2017.
Deferred mine closure costs consisted of the following at:
 
 
 
 
December 31,
 
2019

 
2018

Cost
12,842,625

 
12,842,625

Accumulated amortization
(7,631,120
)
 
(6,886,626
)
 
5,211,505

 
5,955,999


A summary of changes in our provision for mine closure costs is as follows:
 
 
 
 
 
 
Years Ended December 31,
 
2019

 
2018

 
2017

Balance, beginning of year
16,063,136

 
15,519,938

 
14,995,109

Accretion expense
562,211

 
543,198

 
524,829

Balance, end of year
16,625,347

 
16,063,136

 
15,519,938


ARO costs may increase or decrease significantly in the future as a result of changes in regulations, changes in engineering designs and technology, permit modifications or updates, changes in mine plans, inflation or other factors and as actual reclamation spending occurs.