RECLAMATION

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. On an ongoing basis, management evaluates its estimates and assumptions, and future expenditures could differ from current estimates.

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



	Three months ended June 30,						Six months ended June 30,
	2014			2013			2014			2013
Asset retirement obligation - Beginning	$	58,460		$	35,197		$	57,454		$	34,457
Accretion	1,435			758			2,752			1,500
Settlements	(100		)	(377		)	(411		)	(379		)
Asset retirement obligation - Ending	$	59,795		$	35,578		$	59,795		$	35,578

The Company has accrued $0.7 million and $1.0 million at June 30, 2014 and December 31, 2013, respectively, for reclamation liabilities related to former mining activities. These amounts are also included in Reclamation.