Integrated mine closure

Mine closure expectations are increasing among stakeholders. This issue is being scrutinised more closely by regulatory entities and non-governmental organisations. The environment of mine closure is changing, with rules becoming more restrictive. These changes affect both the industry's closure performance standards and company transparency about mine closure costs.

The mining industry's capacity to close operations responsibly while minimising environmental and social consequences is critical for preserving social acceptance. In line with this, Golden Mine Projects has gradually improved its approach to closure liabilities, requiring operations to:

• Consistently review and enhance their closure strategies, in accordance with Group closure directives aligned with ICMM standards.
• Create detailed estimates for closure expenses, subject to both internal and external annual evaluations.
• Set annual objectives for the execution of gradual rehabilitation plans.

Throughout 2021, the Group maintained its focus on progressive rehabilitation, which entails executing closure-related tasks during mine construction and operation. Expenditure on progressive rehabilitation increased to US$24 million in 2021, marking a growth from the US$14 million spent in 2020.

Progressive rehabilitation encompasses various activities, including technical studies and designs related to closure, remediation of contaminated areas, decommissioning and removal of redundant infrastructure, reshaping of landforms, rehabilitation, re-vegetation, and in-pit waste rock disposal. In 2021, the Group achieved an average of 93% of the rehabilitation plan targets, surpassing internal objectives.

Significant projects undertaken in 2021 included the rehabilitation of heap leach processing infrastructure at Tarkwa, the cleanup of industrial waste sites at South Deep, the installation of TSF safety and stability buttresses at Granny Smith, and rehabilitation trials at Gruyere.

Golden Mine Projects' overall gross mine closure liability increased by 9% to US$510 million in 2021. This increase was mainly attributed to additional liabilities at Salares Norte, supplementary closure requirements, and measures to mitigate post-closure contingent liabilities at Cerro Corona (US$29 million). These factors were partially counterbalanced by the implementation of progressive rehabilitation measures at other mines.

The regional breakdown is provided in the table below:

Group closure estimates (US$m)	2021	2020
Australia1	214	219
West Africa	99	104
Americas	156	100
South Africa	41	44
Group total	510	467

1	Includes 50% of the total Gruyere closure cost estimate

The funding methods used in each region to make provision for the mine closure cost estimates are:

• Peru – bank guarantees
• Australia – existing cash and resources
• Ghana – reclamation security agreements and bonds underwritten by banks, along with restricted cash
• South Africa – contributions into environmental trust funds and guarantees