Eastern Platinum Limited (Eastplats) provides disclosures in relation to its financial provision for environmental rehabilitation in its annual financial statements and its Annual Information Form (AIF).1
The information which is publicly available for Eastplats is as follows:
- The estimated figures for environmental rehabilitation obligations, and the funds and guarantees available to meet those obligations.
- That environmental rehabilitation obligations “have been estimated by appropriately qualified external persons.”2
- The basic assumptions used in the calculation of the environmental rehabilitation provision, and the accounting treatment of the rehabilitation obligations.
- That cash and financial guarantees are the financial vehicles used to provide for future rehabilitation obligations.
- One consolidated figure for financial provision for environmental rehabilitation in the annual financial statements.
While Eastplats’ disclosures are in line with those of its peers, they do not, however, provide stakeholders with:
- clear, understandable, comparable information about the type and extent of environmental damage covered by these estimated liabilities;
- the methods and experts used to calculate the estimated liabilities;
- sufficient information to enable external verification that the estimated liabilities have been accurately calculated;
- clear, understandable explanations for why the estimates and funds set aside for financial provision for environmental rehabilitation fluctuate from year to year; and
- information about the way in which the funds set aside for rehabilitation are managed and protected.
In its response to the CER’s letter requesting further information and clarity, Eastplats provided detailed information about the independent experts who calculate rehabilitation costs, as well as information about the process followed to determine the amounts of financial provision required.
In relation to making their assessments publicly available, Eastplats stated that its “website address [sic] this requirement”. However no such information appears on Eastplats’ website.
- An Annual Information Form (AIF) is required to be filed in terms of the listing requirements of the Toronto Stock Exchange.
- Eastern Platinum 2016 consolidated financial statements, at note 4 v (ii).