66 2022 ANNUAL REPORT 16 PROVISIONS Rehabilitation provision (a) Withholding tax Other provisions (b) Total $’000 $’000 $’000 $’000 Opening balance 50,683 504 2,090 53,277 Provisions made - - 323 323 Provisions utilised - (504) (1,116) (1,620) Change in rehabilitation estimate 4,982 - - 4,982 Change in rehabilitation variables (8,841) - - (8,841) Unwinding of discount 857 - - 857 Closing balance 47,681 - 1,296 48,977 (a) Rehabilitation provision Mining activities within the Group are required by law to undertake rehabilitation as part of their ongoing operations. The rehabilitation provision represents the present value of rehabilitation costs, which are expected to be incurred when the rehabilitation work following the cessation of operations is expected to be completed. This provision has been created based on the Group’s internal estimates which are reviewed over time as the operation develops. The accretion of the effect of discounting on the provision is recognised as a financial expense. In addition, the rehabilitation obligation has been recognised as an intangible asset and has been amortised over the life of the mines on units of production basis. (b) Other provisions: Includes provision for MRF Levy and insurance payable at 30 June 2022. CONSOLIDATED 30 June 2022 30 June 2021 $’000 $’000 Current 1,296 1,116 Non-current 47,681 52,161 48,977 53,277 17 LEASE LIABILITIES Lease liabilities include electricity and gas power plants, vehicles and equipment. They have increased as a result of the construction and development of the King of the Hills. Lease liabilities expire between August 2022 and March 2032 and bear interest at rates between 2.3% and 8.4%. Ownership of the vehicles and equipment will revert to the Company at the end of the leases at no additional cost. The Company’s obligations under the leases are secured by the lessor’s title to the leased assets. The fair value of the lease liabilities approximates their carrying values. The following schedule outlines the total minimum loan payments due for the lease obligations over their remaining term: Future minimum lease payments Interest Present value of minimum lease payments 2022 2021 2022 2021 2022 2021 Year ended 30 June $’000 $’000 $’000 $’000 $’000 $’000 Less than one year 25,289 3,917 6,799 388 18,490 3,529 Between one and five years 102,863 7,760 21,259 1,136 81,604 6,624 128,152 11,677 28,058 1,524 100,094 10,153 Current 25,289 3,917 6,799 388 18,490 3,529 Non-current 102,863 7,760 21,259 1,136 81,604 6,624 128,152 11,677 28,058 1,524 100,094 10,153 Variable lease payments on right-of-use assets amounted to $27.287 million for the year. Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2022 (cont.)
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