Ann: Half Year Report and Appendix 4D, page-60

Blythefan has explained the whole D&A very well.

I might also add that when the mineable resources have all gone and haul roads, rompads, waste dumps, pits, buildings, and so on have no purpose the whole lot needs to be rehabilitated. That requires a lot of work that includes lots of heavy earth moving equipment, a lot of fuel and a lot of people.


There are three ways a company can relinquish its rehabilitation obligations:
1. Get stuck in, spend the money and do the rehabilitation to the standards required on the government
2. Sell the project, along with the environmental liabilities to someone else. Obviously the value of the project is reduced by the anticipated rehabilitation cost, if the project is depleted then there is no economic basis for a sale
3. Walk away from the project, drop the tenements. Receivership generally work in this case or ASIC deregistration. This is when the state government steps in and using the MRF will undertake the rehabilitation works. This is what Mustpow is concerned about.

I personally think that the board of AGO will make the correct decision before insolvency occurs so that an orderly administration process sees employees and small creditors get paid out. I am unsure if or how the TLB might be able to get its hands on the rehabilitation provisions.