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Leases and other commitments
12 Months Ended
Jun. 30, 2019
Leases and other commitments  
Leases and other commitments

 

37Leases and other commitments

 

Operating leases — Minimum future lease payments

 

The group leases buildings under long-term non-cancellable operating lease agreements and also rents offices and other equipment under operating leases that are cancellable at various short-term notice periods by either party.

 

 

 

 

2019

 

2018

 

for the year ended 30 June

 

Rm

 

Rm

 

 

 

 

 

 

 

Property, plant and equipment

 

 

 

 

 

Within one year

 

2 276

 

2 068

 

One to five years

 

6 089

 

5 863

 

More than five years

 

15 716

 

15 344

 

 

 

 

 

 

 

Total minimum future lease payments

 

24 081

 

23 275

 

 

 

 

 

 

 

 

Included in operating leases is the following:

 

·

The lease for the Sasol Corporate office building. The lease term is 20 years with an option to extend for a further five years. This is a significant lease for the group.

 

·

The rental of a rail cars for our North American Operations. The lease period varies from 12 to 18 years with an option to extend for a further six years.

 

These leasing arrangements do not impose any significant restrictions on the group or its subsidiaries.

The group has contingent rentals in respect of operating leases that are linked to market related data such as inflation.

 

Finance leases — minimum future lease payments

 

The group leases buildings and other equipment under long-term non-cancellable finance lease agreements. These lease agreements contain terms of renewal and escalation clauses but exclude purchase options.

 

 

 

 

2019

 

2018

 

for the year ended 30 June

 

Rm

 

Rm

 

 

 

 

 

 

 

Within one year

 

1 207

 

1 171

 

One to five years

 

4 135

 

3 975

 

More than five years

 

20 138

 

19 586

 

Less amounts representing finance charges

 

(17 710

)

(17 108

)

 

 

 

 

 

 

Total minimum future lease payments

 

7 770

 

7 624

 

 

 

 

 

 

 

 

The group has contingent rentals in respect of finance leases.

 

Other commitments

 

 

 

 

2019

 

2018

 

for the year ended 30 June

 

Rm

 

Rm

 

 

 

 

 

 

 

Water reticulation for Secunda Synfuels Operations

 

 

 

 

 

Within one year

 

173

 

171

 

One to five years

 

713

 

847

 

More than five years

 

1 416

 

1 798

 

 

 

 

 

 

 

 

 

2 302

 

2 816

 

 

 

 

 

 

 

 

The water reticulation commitments of Secunda Synfuels Operations relate to a long-term water supply agreement. The rental payments are determined based on the quantity of water consumed over the 20 year period of the agreement.