Wesizwe Platinum Limited (Wesizwe) discloses most of the information regarding its financial provision for environmental rehabilitation in its annual financial statements.
The information which is publicly available is:
- The estimated figures for environmental rehabilitation obligations, and the funds and guarantees available to meet those obligations.
- The basic assumptions used in the calculation of the environmental rehabilitation provision, and the accounting treatment of the rehabilitation obligations.
- That financial guarantees and restricted cash deposits 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.
Wesizwe’s disclosures are limited. It makes no mention of who is responsible for calculating its environmental rehabilitation costs. It does not 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.
Wesizwe did not respond to the CER’s letter requesting further information and clarity.