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Property, plant and equipment | 12 Months Ended
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Jun. 30, 2018
Property, plant and equipment.. |
Property, plant and equipment | 17 Property, plant and equipment
|  |  |  | Building |  | Plant, |  |  |  |  |
|  |  |  | and |  | equipment |  | Mineral |  |  |
|  | Land |  | improvements |  | and vehicles |  | assets |  | Total |
for the year ended 30 June |  | Rm |  | Rm |  | Rm |  | Rm |  | Rm |
Carrying amount at 30 June 2017 |  | 1 357 |  | 7 851 |  | 117 699 |  | 31 866 |  | 158 773 |
Additions |  | 5 |  | 367 |  | 6 327 |  | 293 |  | 6 992 |
to sustain existing operations |  | 5 |  | 29 |  | 4 279 |  | 293 |  | 4 606 |
to expand operations |  | — |  | 338 |  | 2 048 |  | — |  | 2 386 |
Net reclassification from/(to) other assets |  | 3 |  | (171 | ) | 169 |  | (1 | ) | — |
Reduction in rehabilitation provisions capitalised (note 31) |  | — |  | (2 | ) | (85 | ) | (874 | ) | (961 | )
Disposal of business |  | — |  | — |  | (24 | ) | — |  | (24 | )
Projects capitalised |  | 1 268 |  | 928 |  | 19 990 |  | 3 130 |  | 25 316 |
Reclassification (to)/from held for sale |  | 15 |  | (6 | ) | (50 | ) | — |  | (41 | )
Translation of foreign operations |  | 113 |  | 151 |  | 1 512 |  | (137 | ) | 1 639 |
Disposals and scrapping |  | (17 | ) | (9 | ) | (428 | ) | (113 | ) | (567 | )
Current year depreciation charge |  | — |  | (572 | ) | (12 445 | ) | (3 030 | ) | (16 047 | )
Net impairment of property, plant and equipment |  | — |  | — |  | (5 329 | ) | (2 294 | ) | (7 623 | )
Carrying amount at 30 June 2018 |  | 2 744 |  | 8 537 |  | 127 336 |  | 28 840 |  | 167 457 |
|  |  |  | Building |  | Plant, |  |  |  |  |
|  |  |  | and |  | equipment |  | Mineral |  |  |
|  | Land |  | improvements |  | and vehicles |  | assets |  | Total |
for the year ended 30 June |  | Rm |  | Rm |  | Rm |  | Rm |  | Rm |
Carrying amount at 30 June 2016 |  | 1 329 |  | 6 522 |  | 113 274 |  | 33 929 |  | 155 054 |
Additions |  | — |  | 349 |  | 705 |  | 58 |  | 1 112 |
to sustain existing operations |  | — |  | 26 |  | 528 |  | 69 |  | 623 |
to expand operations |  | — |  | 323 |  | 177 |  | (11 | ) | 489 |
Net reclassification from/(to) other assets |  | — |  | 46 |  | (9 | ) | 2 |  | 39 |
Reduction in rehabilitation provisions capitalised (note 31) |  | — |  | (18 | ) | (94 | ) | (1 288 | ) | (1 400 | )
Disposal of business |  | — |  | (10 | ) | (43 | ) | — |  | (53 | )
Projects capitalised |  | — |  | 1 631 |  | 18 106 |  | 3 696 |  | 23 433 |
Reclassification from held for sale |  | 514 |  | 1 |  | — |  | — |  | 515 |
Translation of foreign operations |  | (58 | ) | (172 | ) | (2 064 | ) | (897 | ) | (3 191 | )
Disposals and scrapping |  | (362 | ) | (16 | ) | (363 | ) | (42 | ) | (783 | )
Current year depreciation charge |  | — |  | (500 | ) | (11 521 | ) | (3 789 | ) | (15 810 | )
Net impairment of property, plant and equipment |  | (66 | ) | 18 |  | (292 | ) | 197 |  | (143 | )
Carrying amount at 30 June 2017 |  | 1 357 |  | 7 851 |  | 117 699 |  | 31 866 |  | 158 773 |
|  |  |  | Building |  | Plant, |  |  |  |  |
|  |  |  | and |  | equipment |  | Mineral |  |  |
|  | Land |  | improvements |  | and vehicles |  | assets |  | Total |
for the year ended 30 June |  | Rm |  | Rm |  | Rm |  | Rm |  | Rm |
2018 |  |  |  |  |  |  |  |  |  |  |
Cost |  | 3 036 |  | 15 652 |  | 239 262 |  | 70 386 |  | 328 336 |
Accumulated depreciation and impairment |  | (292 | ) | (7 115 | ) | (111 926 | ) | (41 546 | ) | (160 879 | )
|  | 2 744 |  | 8 537 |  | 127 336 |  | 28 840 |  | 167 457 |
2017 |  |  |  |  |  |  |  |  |  |  |
Cost |  | 1 630 |  | 14 231 |  | 215 017 |  | 67 880 |  | 298 758 |
Accumulated depreciation and impairment |  | (273 | ) | (6 380 | ) | (97 318 | ) | (36 014 | ) | (139 985 | )
|  | 1 357 |  | 7 851 |  | 117 699 |  | 31 866 |  | 158 773 |
2016 |  |  |  |  |  |  |  |  |  |  |
Cost |  | 1 559 |  | 12 846 |  | 207 102 |  | 70 143 |  | 291 650 |
Accumulated depreciation and impairment |  | (230 | ) | (6 324 | ) | (93 828 | ) | (36 214 | ) | (136 596 | )
|  | 1 329 |  | 6 522 |  | 113 274 |  | 33 929 |  | 155 054 |
|  | 2018 |  | 2017 |
|  | Rm |  | Rm |
Business segmentation |  |  |  |  |
 Mining |  | 22 584 |  | 21 715 |
 Exploration and Production International |  | 7 646 |  | 11 765 |
 Energy |  | 47 743 |  | 42 238 |
 Base Chemicals |  | 42 347 |  | 38 215 |
 Performance Chemicals |  | 43 801 |  | 41 367 |
 Group Functions |  | 3 336 |  | 3 473 |
Total operations |  | 167 457 |  | 158 773 |
|  | 2018 |  | 2017 |  | 2016 |
for the year ended 30 June |  | Rm |  | Rm |  | Rm |
Additions to property, plant and equipment (cash flow) |  |  |  |  |  |  |
Current year additions* |  | 6 992 |  | 1 112 |  | 6 545 |
Adjustments for non-cash items |  | (6 278 | ) | (722 | ) | (2 241 | )
movement in environmental provisions capitalised |  | (178 | ) | (324 | ) | (1 282 | )
movement in long-term debt* |  | (6 100 | ) | — |  | (821 | )
other non-cash movements |  | — |  | (398 | ) | (138 | )
Per the statement of cash flows |  | 714 |  | 390 |  | 4 304 |
| * |  | Additions to the current year include the Air Separation Unit at SSO R3,4 billion and the Lake Charles Chemical Project rail yard and wash bay leases of R1,8 billion that commenced during this year. In 2016, additions includes R4 160 million in respect of an agreement concluded with our Canadian shale gas partner, Progress Energy, to settle the outstanding funding commitment. R3 339 million was settled in 2016, with the remaining CAD75 million (R780 million) settled on 3 July 2018.
|  | 2018 |  | 2017 |
for the year ended 30 June |  | Rm |  | Rm |
Leased assets |  |  |  |  |
Carrying value of capitalised leased assets (included in plant, equipment and vehicles) |  | 7 547 |  | 2 060 |
cost |  | 9 116 |  | 3 182 |
accumulated depreciation |  | (1 569 | ) | (1 122 | )
Capital commitments (excluding equity accounted investments) |  |  |  |  |
Capital commitments, excluding capitalised interest, include all projects for which specific board approval has been obtained. Projects still under investigation for which specific board approvals have not yet been obtained are excluded from the following: |  |  |  |  |
Authorised and contracted for |  | 179 172 |  | 154 739 |
Authorised but not yet contracted for |  | 40 687 |  | 61 673 |
Less expenditure to the end of year |  | (156 583 | ) | (125 676 | )
|  | 63 276 |  | 90 736 |
to sustain existing operations |  | 26 925 |  | 23 850 |
to expand operations |  | 36 351 |  | 66 886 |
Estimated expenditure |  |  |  |  |
Within one year |  | 38 150 |  | 59 236 |
One to five years |  | 25 126 |  | 31 500 |
|  | 63 276 |  | 90 736 |
Business segmentation |  |  |  |  |
 Mining |  | 2 640 |  | 3 099 |
 Exploration and Production International |  | 18 811 |  | 19 431 |
 Energy |  | 10 466 |  | 10 327 |
 Base Chemicals |  | 16 857 |  | 29 722 |
 Performance Chemicals |  | 14 148 |  | 27 396 |
 Group Functions |  | 354 |  | 761 |
Total operations |  | 63 276 |  | 90 736 |
Significant capital commitments at 30 June comprise of:
|  |  |  |  |  | 2018 |  | 2017 |
Project |  | Project location |  | Business segment |  | Rm |  | Rm |
Lake Charles Chemicals Project |  | United States |  | Base and Performance Chemicals |  | 15 433 |  | 46 051 |
Mozambique exploration and development |  | Mozambique |  | Exploration and Production International |  | 17 108 |  | 18 883 |
Sixth fine ash dam |  | Secunda |  | Energy |  | 3 720 |  | 5 072 |
Shutdown and major statutory maintenance |  | Various |  | Energy, Base and Performance Chemicals |  | 6 172 |  | 5 144 |
Renewal projects |  | Secunda |  | Energy, Base and Performance Chemicals |  | 3 060 |  | 2 242 |
China Ethoxylation plant |  | China |  | Performance Chemicals |  | 577 |  | 1 109 |
Air Liquide - air separation unit |  | Secunda |  | Energy, Base and Performance Chemicals |  | 470 |  | 886 |
Refurbishment of equipment |  | Secunda |  | Mining |  | 445 |  | 359 |
Mine geographical expansions |  | Secunda |  | Mining |  | 426 |  | 331 |
Impumelelo Colliery to maintain Brandspruit Colliery operation |  | Secunda |  | Mining |  | 357 |  | 622 |
High-density polyethylene plant |  | United States |  | Base Chemicals |  | — |  | 622 |
Shondoni Colliery to maintain Middelbult Colliery operation |  | Secunda |  | Mining |  | 79 |  | 557 |
Canadian shale gas asset |  | Canada |  | Exploration and Production International |  | 73 |  | 237 |
Coal tar filtration east and west project |  | Secunda |  | Energy, Base and Performance Chemicals |  | 779 |  | 706 |
Other capital commitments |  | Various |  | Various |  | 14 577 |  | 7 915 |
|  |  |  |  |  | 63 276 |  | 90 736 |
Accounting policies: Property, plant and equipment is stated at cost less accumulated depreciation and accumulated impairment losses. Land is not depreciated. When plant and equipment comprises major components with different useful lives, these components are accounted for as separate items. Depreciation of mineral assets on producing oil and gas properties is based on the units-of-production method calculated using estimated proved developed reserves. Life-of-mine coal assets are depreciated using the units-of-production method and is based on proved and probable reserves assigned to that specific mine (accessible reserves) or complex which benefits from the utilisation of those assets. Other coal mining assets are depreciated on the straight-line method over their estimated useful lives. Depreciation of property acquisition costs, capitalised as part of mineral assets in property, plant and equipment, is based on the units-of-production method calculated using estimated proved reserves. Property, plant and equipment, other than mineral assets, is depreciated to its estimated residual value on a straight- line basis over its expected useful life. Areas of judgement: The depreciation methods, estimated remaining useful lives and residual values are reviewed at least annually. The estimation of the useful lives of property, plant and equipment is based on historic performance as well as expectations about future use and therefore requires a significant degree of judgement to be applied by management. The following depreciation rates apply in the group:
Buildings and improvements |  | 1 – 17 | %
Retail convenience centres |  | 3 – 5 | %
Plant |  | 2 – 50 | %
Equipment |  | 3 – 67 | %
Vehicles |  | 5 – 33 | %
Mineral assets |  | Units of production over life of related reserve base |
Life-of-mine coal assets |  | Units of production over life of related reserve base |

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