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Provision for Environmental Rehabilitation (Tables)
 12 Months Ended
Jun. 30, 2019
Provision For Environmental Rehabilitation [Abstract]  
Disclosure of Rates Used in Calculation of Provision
The following rates were used in the calculation of the provision:
 
2019
2018
2017
 
%
%
%
 
 
 
 
South African operations
 
 
 
Inflation rate
5.25
5.50
6.50
Discount rates
 
 
 
- 12 months
6.50
6.70
7.50
- one to five years
6.85
7.00
7.60
- six to nine years
8.50
8.20
8.40
- ten years or more
9.60
8.60
9.10
 
 
 
 
PNG operations:
 
 
 
Inflation rate
5.00
6.00
6.60
Discount rate
6.25
6.25
6.25
 
 
 
 
Reconciliation of the Total Liability for Environmental Rehabilitation
The following is a reconciliation of the total provision for environmental rehabilitation:
 
SA rand
Figures in million
2019

2018

 
 
 
Balance at beginning of year
3 309

2 638

Change in estimate - Balance sheet1
(439
)
(175
)
Change in estimate - Income statement
33

67

Utilisation of provision
(86
)
(94
)
Time value of money and inflation component of rehabilitation costs
208

191

Acquisitions2
—

663

Transfer 3
37

—

Translation
(8
)
19

 
 
 
Balance at end of year
3 054

3 309

1 The biggest contributor was Moab Khotsong, where a decrease of R240 million was recognised following on alignment of the methodology and other assumptions including rates.
2 The 2018 acquisition relates to the Moab Khotsong operations (refer to note 12).
3 Refer to note 28 for details.
The following is a reconciliation of the total provision for the silicosis settlement:
 
SA rand
Figures in million
2019

2018

 
 
 
Balance at beginning of year
925

917

Change in estimate
(62
)
(68
)
Time value of money and inflation component
79

76

 
 
 
Balance at end of year
942

925
Disclosure of Future Net Undiscounted Obligation
While the ultimate amount of rehabilitation costs to be incurred in the future is uncertain, the group has estimated that, based on current environmental and regulatory requirements, the total undiscounted cost for the operations, in the current monetary terms, is as follows:
 
SA rand
Figures in million
2019

2018

 
 
 
Future net undiscounted obligation
 
 
 
 
 
Ultimate estimated rehabilitation cost
4 139

4 338

Amounts invested in environmental trust funds (refer to note 16)
(3 273
)
(3 238
)
 
 
 
Total future net undiscounted obligation
866

1 100