Cameco Annual Report 2011


Table of Contents

19. Provisions

  Reclamation Waste Disposal Total
Balance at January 1, 2011 $344,426  $40,541  $384,967 
Provisions made during the period 167,957  6,891  174,848 
Provisions used during the period (18,498) (13,950) (32,448)
Provisions reversed during the period –  (8,927) (8,927)
Unwinding of discount 12,266  1,161  13,427 
Impact of foreign exchange 2,615  –  2,615 
Balance at December 31, 2011 $508,766  $25,716  $534,482 
Current $9,979  $4,878  $14,857 
Non-current 498,787  20,838  519,625 
  $508,766  $25,716  $534,482 
  1. (a) Reclamation Provision

    Cameco's estimates of future decommissioning obligations are based on reclamation standards that satisfy regulatory requirements. Elements of uncertainty in estimating these amounts include potential changes in regulatory requirements, decommissioning and reclamation alternatives and amounts to be recovered from other parties.

    Cameco estimates total future decommissioning and reclamation costs for its existing operating assets to be $576,976,170. The expected timing of these outflows is based on life of mine plans with the majority of expenditures expected to occur after 2017. These estimates are reviewed by Cameco technical personnel as required by regulatory agencies or more frequently as circumstances warrant. In connection with future decommissioning and reclamation costs, Cameco has provided financial assurances of $664,214,040 in the form of letters of credit to satisfy current regulatory requirements.

    The reclamation provision relates to the following segments:

      2011 2010
    Uranium $381,967 $262,159
    Fuel Services 126,799 82,267
    Total $508,766 $344,426
  2. (b) Waste Disposal

    The Fuel Services division consists of the Blind River Refinery, Port Hope Conversion Facility and Cameco Fuel Manufacturing. The refining, conversion and manufacturing processes generate certain uranium contaminated waste. These include contaminated combustible material (paper, rags, gloves, etc.), and contaminated non-combustible material (metal parts, soil from excavations, building and roofing materials, spent uranium concentrate drums, etc.). These materials can in some instances be recycled or reprocessed. A provision for waste disposal costs in respect of these materials is recognized when they are generated.

    Cameco estimates total future costs related to existing waste disposal to be $26,794,900. The expected timing of these outflows is expected to occur within the next 5 years.