Skip to main content

15. Environmental rehabilitation trusts

The Group makes voluntary contributions to controlled funds that were established to meet the cost of some of its restoration and environmental rehabilitation liabilities, primarily in South Africa.

US$ million 2008 2007
At 1 January 252 197
Contributions made 36 37
Interest earned 16 12
Transfer to assets held for sale (2)
Currency movements (60) 8
At 31 December 244 252

The funds comprise the following investments:

US$ million 2008 2007
Equity 23 19
Bonds 82 85
Cash 139 148
  244 252

These assets are primarily rand denominated. Cash is held in short term fixed deposits or earns interest at floating inter-bank rates and bonds earn interest at a weighted average fixed rate of 9% (2007: 11%) and are fixed for an average period of 10.2 years (2007: 9.5 years). These assets are recorded 'at fair value through profit and loss'.

These funds are not available for the general purposes of the Group. All income from these assets is reinvested to meet specific environmental obligations. These obligations are included in environmental rehabilitation costs under non-current provisions (see note 25).

Back to the top