RECLAMATION PROVISION AND OTHER LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2012

RECLAMATION PROVISION AND OTHER LIABILITIES

Schedule of reclamation provision and other liabilities

	As at December 31,
	2012	2011
Reclamation provision (note 6(a))	$101,753	$105,443
Long-term portion of capital lease obligations (note 13(a))	12,108	26,184
Pension benefits (note 6(b))	13,734	13,991
Other	140	370
Total	$127,735	$145,988

Reconciliation of the beginning and ending carrying amounts of the Company's asset retirement obligations

	2012		2011
Asset retirement obligations, beginning of year	$86,386		$91,641
Current year additions and changes in estimate, net	1,495		(8,398	)
Current year accretion	5,068		4,953
Liabilities settled	(254	)	–
Foreign exchange revaluation	1,655		(1,810	)
Reclassification from long-term to current	(4,630	)	–
Asset retirement obligations – long-term, end of year	$89,720		$86,386

Components of net pension plan expense

		Years Ended December 31,
		2012		2011		2010
Service cost – benefits earned during the year	$	650	$	996	$	981
Interest cost on projected benefit obligation		489		663		613
Amortization of net transition asset		169		171		164
Prior service cost		26		26		25
Loss due to settlement		2,921		–		–
Recognized net actuarial loss		340		245		–
Net pension benefits expense	$	4,595	$	2,101	$	1,783

Schedule of funded status of Executives plan

		2012			2011
Reconciliation of the market value of plan assets:
Fair value of plan assets, beginning of year	$	2,952		$	2,443
Agnico-Eagle's contribution		839			1,156
Benefit payments		(520	)		(578	)
Settlements		(961	)		–
Effect of exchange rate changes		63			(69	)
Fair value of plan assets, end of year		2,373			2,952
Reconciliation of projected benefit obligation:
Projected benefit obligation, beginning of year		14,370			12,041
Service cost		650			996
Interest cost		489			663
Net actuarial loss		675			1,704
Benefit payments		(520	)		(696	)
Settlements		(5,148	)		–
Effect of exchange rate changes		302			(338	)
Projected benefit obligation, end of year		10,818			14,370
Deficiency of plan assets compared with projected benefit obligation	$	(8,445	)	$	(11,418	)

Net pension amount recognized in the consolidated balance sheet and valuation assumptions

			As at December 31,
			2012		2011
Accrued employee benefit liability		$	5,008	$	7,292
Accumulated other comprehensive loss:
	Transition obligation		341		500
	Prior service cost		52		76
	Net actuarial loss		3,044		3,550
Net liability		$	8,445	$	11,418
Assumptions:
Weighted average discount rate – net periodic pension cost			4.45%		5.20%
Weighted average discount rate – projected benefit obligation			4.00%		4.45%
Weighted average rate of compensation increase			3.00%		3.00%
Estimated average remaining service life for the plan (in years)(i)			6.0		3.0

• Note:

  (i)

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

Components expected to be recognized in accumulated other comprehensive loss

• Executives Plan components expected to be recognized in accumulated other comprehensive loss in 2013:

Transition obligation	$170
Prior service cost	26
Net actuarial loss	327
	$523

Estimated benefit payments from Executives plan

Years ended December 31,:		Estimated Executives Plan Benefit Payments
2013	$	117
2014	$	116
2015	$	115
2016	$	114
2017	$	113
2018 – 2022	$	3,591

Goldex mine

Environmental remediation liability

Reconciliation of the beginning and ending carrying amounts of the environmental remediation liability

		2012			2011
Environmental remediation liability – long-term, beginning of year	$	19,057		$	–
Environmental remediation liability – current, beginning of year		26,069			–
Current year change in estimate		(36	)		51,736
Liabilities settled		(21,450	)		(7,616	)
Foreign exchange revaluation		579			1,006
Reclassification from long-term to current		(12,186	)		(26,069	)
Environmental remediation liability – long-term, end of year	$	12,033		$	19,057