Reviewed condensed group financial statements and unreviewed production and sales volumes information for the year ended 31 December 2014

NOTES TO THE REVIEWED CONDENSED GROUP FINANCIAL STATEMENTSfor the year ended 31 December

    Year ended 31 December
    2014  
Reviewed  
Rm  
2013  
Audited  
Rm  

20.  

Contingent liabilities  

   
  Total contingent liabilities   7 999   2 066  
  – Grootegeluk Medupi expansion project (GMEP)  26   50  
  – DMC Iron Congo South Africa     84  
  – Total S.A.1   5 390    
  – Pending litigation claims2   445   328  
  – Operational guarantees   1 237   927  
  – Group’s share of contingent liabilities of equity-accounted investments   901   677  
 
1 Guarantee issued to Total S.A. in respect of the purchase price payable for the acquisition of Total Coal South Africa Proprietary Limited (TCSA).  
2 Pending litigation claims consist of legal cases with Exxaro as defendant. The outcome of these claims is uncertain and the amount of possible legal obligations that may be incurred can only be estimated at this stage.  
       
  Operational guarantees include guarantees to banks and other institutions in the normal course of business from which it is anticipated that no material liabilities will arise.  
       
  The timing and occurrence of any possible outflows of the contingent liabilities above are uncertain.      
       
  A policy regarding the water treatment liability as prescribed by the Mineral and Petroleum Resources Development Act of 2002 has been developed in 2014 and an estimate has been included as part of the rehabilitation provision in the current year.