Rand Water | Integrated Annual Report 2025

Consolidated Annual Financial Statements for the year ended 30 June 2025

NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS

18. Provisions (continued)

Reconciliation of provisions - Rand Water - 2025

Reversed during the year

Change in discount factor

Opening balance

Figures in Rand thousands Environmental rehabilitation

Additions

Total

130 524

5 978

-

(2 606)

133 896

Legal proceedings

1 789

-

(750) (750)

-

1 039

132 313

5 978

(2 606)

134 935

Reconciliation of provisions - Rand Water - 2024

Reversed during the year

Change in discount factor

Opening balance

Figures in Rand thousands Environmental rehabilitation

Additions

Total

116 244

5 928

8 351

130 524

Legal proceedings

1 814

-

(25) (25)

-

1 789

118 058

5 928

8 351

132 313

The rehabilitation cost relates to the Group's Panfontein sludge waste disposal site. The Group has a present obligation to undertake restoration, rehabilitation and environmental remediation at the end of the site's useful life. During the current financial year, monthly provisions totalling the annual amount of R5.98 million were recognised as an estimate. A review of the overall remaining useful life towards year end resulted in a decrease in the initial estimated amount of R2.61 million calculated using the pre tax discount and reflecting the specific risks associated with the obligation. The rehabilitation costs will be funded through the sale of a portion of the Zwartkopjes farmland pledged as security, at the end of its useful life. (Refer to Note 4). Most earth structures at Panfontein are assessed to be in fair condition. However, the drying beds are currently being overutilized due to reduced capacity and processing bottlenecks, resulting in overtopping. Several projects have been proposed and initiated to renew earth structures and refurbishment of the blending pond at Panfontein. The projects are estimated to be completed between December 2025 and June 2029 respectively. Included in the current liabilities are amounts claimed from the Group arising from contractual obligations. Provisions relating to litigations against the Group amount to R1.0 million (2024: R1.8 million).

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Rand Water | Integrated Annual Report 2025