Reclamation and Mine Closure

12 Months Ended

Dec. 31, 2013

Asset Retirement Obligation Disclosure [Abstract]

RECLAMATION AND MINE CLOSURE

RECLAMATION AND MINE CLOSURE

Reclamation and mine closure costs are based principally on legal and regulatory requirements. Management estimates costs associated with reclamation of mining properties as well as remediation costs for inactive properties. The Company uses assumptions about future costs, mineral prices, mineral processing recovery rates, production levels, capital costs and reclamation costs. Such assumptions are based on the Company’s current mining plan and the best available information for making such estimates. The sum of the expected costs by year is discounted, using the Company's credit-adjusted risk-free interest rate. On an ongoing basis, management evaluates its estimates and assumptions; however, future expenditures could differ from those based on such estimates and assumptions.

Changes to the Company’s asset retirement obligations are as follows (in thousands):

	Years ended December 31,
	2013			2012
Asset retirement obligation - Beginning	$	34,457		$	32,714
Accretion	3,442			2,911
Additions and changes in estimates	20,236			(1,073		)
Settlements	(681		)	(95		)
Asset retirement obligation - Ending	$	57,454		$	34,457

During the year ended December 31, 2013, Rochester and Kensington submitted updated reclamation plans to state and federal agencies based on new regulations, mine plans, and cost estimates. As a result of the new reclamation plans, the Company increased asset retirement obligations by $20.2 million in 2013. The Company did not have a similar change to the reclamation plans in the year ended December 31, 2012.

The Company has accrued $1.0 million and $0.9 million at December 31, 2013 and December 31, 2012, respectively, for reclamation liabilities related to former mining activities. These amounts are also included in Reclamation and mine closure in the Consolidated Balance Sheets.