25	Retirement benefit obligations
	Pension and provident funds: The company contributes to several pension and provident funds governed by the Pension Funds Act, 1946 for its employees. The pension funds are multi-employer industry plans. The company’s liability is limited to its annually determined contributions.
	The provident funds are funded on the ‘‘money accumulative basis’’ with the member’s and employer’s contributions having been fixed in the constitution of the funds.
	Substantially all the company’s employees are covered by the above mentioned retirement benefit plans. Funds contributed by the company for the 2010 financial year amounted to R111 million (2009: R125 million).
	Post-retirement benefits other than pensions: Most of the supervisory and managerial workers in South Africa participate in the Minemed medical scheme, as well as other medical schemes. The company contributes to these schemes on behalf of current employees and retired employees who retired prior to 31 December 1996 (Minemed scheme). The annual contributions for these retired employees are fixed. The company’s contributions to these schemes on behalf of current employees amounted to R24 million for the 2010 financial year and R27 million for the 2009 financial year.
	Assumptions used to determine this liability include, a discount rate of 10.3%, a mortality rate according to the SA 1956/62 mortality table and a medical inflation rate of 8.1%. It is also assumed that all members will retire at the age of 60 and will remain on the current benefit option.
		SA rand
		2010	2009
	The liability is based on an actuarial valuation conducted during the financial year ended 30 June 2010, using the projected unit credit method. The next actuarial valuation will be performed on 30 June 2011.
	Present value of unfunded obligations	7	5
	Movement in the liability recognised in the balance sheet:
	Balance at beginning of year	5	3
	Contributions paid	(1)	(1)
	Interest cost	1	1
	Net actuarial loss recognised during the year	2	2
	Balance at end of year	7	5
	Net actuarial gain/(loss) for 2008, 2007 and 2006 financial years was Rnil.
	The principal actuarial assumptions used for accounting purposes were:
	Discount rate	10.30%	10.00%
	Healthcare inflation rate	8.14%	7.84%
	Normal retirement age	60	60
	The present value of the net liability of the defined benefit plan is as follows:
	Present value of defined benefit obligation	7	5
	Fair value of plan assets	–	–
	Net pension liability	7	5
	The present value of defined benefit obligation was R3 million in 2008, R4 million in 2007 and R4  million in 2006.
	The effect of a one percentage point increase (and decrease) in the assumed medical cost trend rates is as follows:
		1%	1%
		Increase/	Increase/
		decrease	decrease
	Effect on:
	Aggregate of service cost and interest cost	–	–
	Defined benefit obligation	1	1
	The company expects to contribute approximately R0.73  million to its benefit plan in 2011.