43.1. Provision for mine decommissioning costs

The provision as at the balance sheet date is created in relation to the opencast mining plant in Kopalnia Wapienia Czatkowice Sp. z o.o based on estimated costs of liquidating facilities and reclaiming land to the original condition after the completion of the exploitation process. The balance of the Mine Liquidation Fund (“FLZG”) which is created by Kopalnia Wapienia Czatkowice Sp. z o.o. at a certain percentage rate in relation to the mining fee, by transferring cash in the amount of the equivalent of the write-downs to a separate bank account, is recognised within the provision for mining plant decommissioning costs. As at 31 December 2022, the balance of the provision was PLN 4 million and referred solely to Kopalnia Wapienia Czatkowice Sp. z o.o.

On 31 December 2022, TAURON Group lost control over its subsidiary, TAURON Wydobycie S.A., as a result of the disposal transaction of 100% of the shares in TAURON Wydobycie S.A., as further described in Note 3 of consolidated financial statements. Therefore, bearing in mind that as a result of the sale of shares in TAURON Wydobycie S.A., the Group is no longer obliged to decommission the mining plants owned by TAURON Wydobycie S.A. The Group does not recognise provisions at the balance sheet date for the obligation to decommission the above mining plants. After meeting the conditions under IFRS 5 Non-current Assets Held for Sale and Discontinued Operations  the Group reclassified the financial assets of the Mine Liquidation Fund in the amount of PLN 57 million and the provision for mining plants liquidation costs of PLN 147 million to the disposable group classified as held for sale.

The following tables present the amount of appropriation to the MDF, the assets of the MDF and the balance of liabilities arising from future costs of mine decommissioning.

Financial assets of the Mine Decommissioning Fund

Provision for mine decommissioning costs