Annual report pursuant to Section 13 and 15(d)

AMAK Asset Retirement Obligations

AMAK Asset Retirement Obligations
12 Months Ended
Dec. 31, 2020
Schedule of Equity Method Investments [Line Items]  
AMAK 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 SR362,000, SR541,000, and SR745,000 for the nine months ended September 30, 2020 and the years ended December 31, 2019 and 2018.
Deferred mine closure costs consisted of the following at:
September 30, December 31,
2020 2019
Cost 12,842,625  12,842,625 
Accumulated amortization (7,993,376) (7,631,120)
4,849,249  5,211,505 
A summary of changes in our provision for mine closure costs is as follows:
September 30, December 31,
2020 2019 2018
Balance, beginning of period 16,625,347  16,063,136  15,519,938 
Accretion expense 405,558  562,211  543,198 
Balance, end of period 17,030,905  16,625,347  16,063,136 
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.