RECLAMATION PROVISION AND OTHER LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2011

RECLAMATION PROVISION AND OTHER LIABILITIES

Schedule of reclamation provision and other liabilities

	2011		2010
Reclamation and closure costs (note 6(a))	$	105,443	$	91,641
Long-term portion of capital lease obligations (note 13(a))		26,184		38,019
Pension benefits (note 6(c))		13,991		11,307
Goldex mine government grant and other (note 6(b))		370		4,569
Total	$	145,988	$	145,536

Reconciliation of the beginning and ending carrying amounts of the asset retirement obligations

	2011			2010
Asset retirement obligations, beginning of year	$	91,641		$	62,847
Current year additions and changes in estimate, net		9,653			23,058
Current year accretion		4,953			3,176
Liabilities settled		—			(277	)
Foreign exchange revaluation		(804	)		2,837
Asset retirement obligations and environmental remediation liabilities, end of year	$	105,443		$	91,641

Components of net pension plan expense

	2011		2010		2009
Service cost — benefits earned during the year	$	996	$	981	$	509
Interest cost on projected benefit obligation		663		613		448
Amortization of net transition asset, past service liability and net experience gains		171		164		148
Prior service cost		26		25		23
Recognized net actuarial loss (gain)		245		—		(142	)
Net pension plan expense	$	2,101	$	1,783	$	986

Net pension amount recognized in the consolidated balance sheet

	2011		2010
Accrued employee benefit liability	$	7,292	$	6,634
Accumulated other comprehensive income:
Initial transition obligation		500		681
Past service liability		76		104
Net experience losses		3,550		2,179
Net liability	$	11,418	$	9,598

Components of expected recognition in 2012 of amounts in accumulated other comprehensive income

Transition obligation	$	166
Past service cost		25
Net actuarial loss		704
	$	895

Schedule of funded status of Employees plan and Executives plan

	2011			2010
Reconciliation of the market value of plan assets
Fair value of plan assets, beginning of year	$	2,443		$	1,635
Agnico-Eagle's contribution		1,156			1,397
Benefit payments		(578	)		(699	)
Effect of exchange rate changes		(69	)		110
Fair value of plan assets, end of year		2,952			2,443
Reconciliation of projected benefit obligation
Projected benefit obligation, beginning of year		12,041			7,998
Service cost		996			981
Interest cost		663			613
Actuarial losses		1,704			2,718
Benefit payments		(696	)		(812	)
Effect of exchange rate changes		(338	)		543
Projected benefit obligation, end of year		14,370			12,041
Deficiency of plan assets compared with projected benefit obligation	$	(11,418	)	$	(9,598	)
Comprised of:
Unamortized transition liability	$	(500	)	$	(681	)
Unamortized net experience loss		(3,626	)		(2,283	)
Accrued liabilities		(7,292	)		(6,634	)
	$	(11,418	)	$	(9,598	)
Weighted average discount rate — net periodic pension cost		5.20	%		7.00	%
Weighted average discount rate — projected benefit obligation		4.45	%		5.20	%
Weighted average expected long-term rate of return		n/a			n/a
Weighted average rate of compensation increase		3.00	%		3.00	%
Estimated average remaining service life for the plan (in years)(i)		3.0			4.0

• • (i)

    Estimated average remaining service life for the Executives Plan was developed for individual senior officers.

Estimated benefits paid from each pension plan

2012	$	415
2013	$	472
2014	$	469
2015	$	465
2016	$	461
2017 – 2021	$	2,229