RECLAMATION PROVISION AND OTHER LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2013

RECLAMATION PROVISION AND OTHER LIABILITIES

Schedule of reclamation provision and other liabilities

	As at December 31,
	2013		2012
Reclamation provision (note 6(a))	$	150,849	$	101,753
Long-term portion of capital lease obligations (note 13(a))		11,843		12,108
Pension benefits (note 6(b))		15,278		13,734
Other		266		140
Total	$	178,236	$	127,735

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

	2013			2012
Asset retirement obligations – long-term, beginning of year	$	89,720		$	86,386
Asset retirement obligations – current, beginning of year		4,630			–
Current year additions and changes in estimate, net		44,898			1,495
Current year accretion		4,624			5,068
Liabilities settled		(853	)		(254	)
Foreign exchange revaluation		(3,678	)		1,655
Reclassification from long-term to current, end of year		(1,029	)		(4,630	)
Asset retirement obligations – long-term, end of year	$	138,312		$	89,720

Components of net pension plan expense relating to the Executives Plan

	Year Ended December 31,
	2013		2012		2011
Service cost – benefits earned during the year	$	457	$	650	$	996
Interest cost on projected benefit obligation		431		489		663
Amortization of net transition asset		164		169		171
Prior service cost		25		26		26
Loss due to settlement		–		2,921		–
Recognized net actuarial loss		379		340		245
Net pension benefits expense	$	1,456	$	4,595	$	2,101

Schedule of funded status of Executives plan

	2013			2012
Reconciliation of the market value of plan assets:
Fair value of plan assets, beginning of year	$	2,373		$	2,952
Agnico Eagle's contribution		374			839
Benefit payments		(244	)		(520	)
Settlements		–			(961	)
Effect of exchange rate changes		(157	)		63
Fair value of plan assets, end of year		2,346			2,373
Reconciliation of projected benefit obligation:
Projected benefit obligation, beginning of year		10,818			14,370
Service cost		456			650
Interest cost		431			489
Net actuarial loss		573			675
Benefit payments		(244	)		(520	)
Settlements		–			(5,148	)
Effect of exchange rate changes		(736	)		302
Projected benefit obligation, end of year		11,298			10,818
Deficiency of plan assets compared with projected benefit obligation	$	(8,952	)	$	(8,445	)

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

		As at December 31,
		2013		2012
Accrued employee benefit liability		$	5,733	$	5,008
Accumulated other comprehensive loss:
	Transition obligation		159		341
	Prior service cost		24		52
	Net actuarial loss		3,036		3,044
Net liability		$	8,952	$	8,445
Assumptions:
Weighted average discount rate – net periodic pension cost			4.00%		4.45%
Weighted average discount rate – projected benefit obligation			4.90%		4.00%
Weighted average rate of compensation increase			3.00%		3.00%
Estimated average remaining service life for the plan (in years)(i)			5.0		6.0

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

Transition obligation	$	159
Prior service cost		24
Net actuarial loss		476
	$	659

Estimated benefit payments from Executives plan

Year ended December 31,:	Estimated Executives Plan Benefit Payments
2014	$	109
2015	$	107
2016	$	105
2017	$	103
2018	$	102
2019 – 2023	$	5,295

Goldex mine

Environmental remediation liability

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

	2013			2012
Environmental remediation liability – long-term, beginning of year	$	12,033		$	19,057
Environmental remediation liability – current, beginning of year		12,186			26,069
Current year additions and changes in estimate, net		1,005			(36	)
Liabilities settled		(9,045	)		(21,450	)
Foreign exchange revaluation		(1,219	)		579
Reclassification from long-term to current, end of year		(2,423	)		(12,186	)
Environmental remediation liability – long-term, end of year	$	12,537		$	12,033