H1 FY21 Finance and Cost Analysis
CLOSURE & REHABILITATION PROVISIONS
EIII
SOUTH32
Discount rate assumptions updated to reflect
changes to long term outlook for risk free rates
Combined with a weaker US dollar
and changes to our closure cost estimates
to increase provisions by US$568M
73% of the increase relates
to South Africa Energy Coal and our
long life Worsley Alumina operation
Closure and rehabilitation
provisions by operation
H1 FY21
FY20
(South32 share)
US$M
US$M
South Africa Energy Coal
875
739
Worsley Alumina
737
402
Profit and loss impact
(+US$81M)
Cannington
233
167
Hillside Aluminium (a)
197
175
55
42
7
23
Illawarra Metallurgical Coal
193
118
Americas
Cerro Matoso
116
97
Australia
Mozal Aluminium
50
54
Brazil Alumina (non-operated)
41
44
Hermosa
30
28
Southern
Africa
Eagle Downs Metallurgical Coal
7
6
Total
2,479
1,830
Discount
Notes:
a.
Includes the Bayside aluminium smelter.
Balance sheet impact
19%
40%
■Foreign exchange
■ Discount rate
41%
Balance
sheet25
(+US$568M)
■ Other
Americas
Australia
Southern
Africa
FY20
release
(C&R unwind)26
Discount
rate change
Foreign
exchange
Increase
during year
Balance
sheet
H1 FY21
SLIDE 36View entire presentation