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Assets under construction (Tables)
12 Months Ended
Jun. 30, 2019
Assets under construction  
Schedule of assets under construction

 

 

 

Property
plant and
equipment
under
construction

 

Other
intangible
assets under
development

 

Exploration
and
evaluation
assets

 

Total

 

for the year ended 30 June

 

Rm

 

Rm

 

Rm

 

Rm

 

 

 

 

 

 

 

 

 

 

 

Balance as at 30 June 2018

 

163 783

 

1 125

 

453

 

165 361

 

Additions

 

52 786

 

289

 

67

 

53 142

 

to sustain existing operations

 

21 739

 

245

 

 

21 984

 

to expand operations

 

31 047

 

44

 

67

 

31 158

 

Net reclassification from/(to) other assets

 

(93

)

 

323

 

230

 

Finance costs capitalised

 

6 942

 

 

 

6 942

 

Net impairment of assets under construction

 

(3 973

)

 

(34

)

(4 007

)

Reclassification to disposal groups held for sale

 

(153

)

 

 

(153

)

Projects capitalised

 

(96 084

)

(816

)

 

(96 900

)

Translation of foreign operations

 

3 971

 

29

 

1

 

4 001

 

Disposals and scrapping*

 

(852

)

 

 

(852

)

 

 

 

 

 

 

 

 

 

 

Balance at 30 June 2019

 

126 327

 

627

 

810

 

127 764

 

 

 

 

 

 

 

 

 

 

 

 

*   Determining as to whether, and how much, cost incurred on a project is abnormal and needs to be scrapped, involves judgement.  The factors considered by management include the scale and complexity of the project, the technology being applied and input from experts.

 

 

 

 

Property
plant and
equipment
under
construction

 

Other
intangible
assets under
development

 

Exploration
and
evaluation
assets

 

Total

 

for the year ended 30 June

 

Rm

 

Rm

 

Rm

 

Rm

 

 

 

 

 

 

 

 

 

 

 

Balance as at 30 June 2017

 

129 124

 

1 245

 

365

 

130 734

 

Additions

 

51 871

 

321

 

614

 

52 806

 

to sustain existing operations

 

18 889

 

238

 

 

19 127

 

to expand operations

 

32 982

 

83

 

614

 

33 679

 

Net reclassification from/(to) other assets

 

42

 

(33

)

 

9

 

Finance costs capitalised

 

3 568

 

 

 

3 568

 

Net impairment of assets under construction

 

(1 478

)

 

(312

)

(1 790

)

Reduction in rehabilitation provision capitalised (note 31)

 

(341

)

 

(131

)

(472

)

Projects capitalised

 

(25 315

)

(454

)

 

(25 769

)

Translation of foreign operations

 

7 464

 

46

 

(35

)

7 475

 

Disposals and scrapping

 

(1 152

)

 

(48

)

(1 200

)

 

 

 

 

 

 

 

 

 

 

Balance at 30 June 2018

 

163 783

 

1 125

 

453

 

165 361

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

for the year ended 30 June

 

Rm

 

Rm

 

 

 

 

 

 

 

Business segmentation

 

 

 

 

 

   Mining

 

2 268

 

2 095

 

   Exploration and Production International

 

7 426

 

6 457

 

   Energy

 

7 698

 

5 993

 

   Base Chemicals

 

60 927

 

75 648

 

   Performance Chemicals

 

48 764

 

74 595

 

   Group Functions

 

681

 

573

 

 

 

 

 

 

 

Total operations

 

127 764

 

165 361

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

2017

 

for the year ended at 30 June

 

Rm

 

Rm

 

Rm

 

 

 

 

 

 

 

 

 

Additions to assets under construction (cash flow)

 

 

 

 

 

 

 

Current year additions

 

53 142

 

52 806

 

60 312

 

Adjustments for non-cash items

 

1 410

 

(171

)

(420

)

 

 

 

 

 

 

 

 

cash flow hedge accounting

 

 

1

 

(2

)

movement in environmental provisions capitalised

 

(537

)

(172

)

(418

)

movement in long-term debt

 

(13

)

 

 

LCCP investment incentives

 

1 960

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per the statement of cash flows*

 

54 552

 

52 635

 

59 892

 

 

 

 

 

 

 

 

 

 

Schedule of capital expenditure for assets under construction

 

 

 

2019

 

2018

 

 

 

Rm

 

Rm

 

 

 

 

 

 

 

Capital expenditure

 

 

 

 

 

Projects to sustain operations comprise of:

 

 

 

 

 

Secunda Synfuels Operations

 

10 315

 

8 608

 

Shutdown and major statutory maintenance

 

4 825

 

3 775

 

Renewals

 

1 880

 

1 481

 

Oxygen train 17 (Outside Battery Limits portion)

 

90

 

417

 

Sixth fine ash dam (environmental)

 

1 417

 

1 353

 

Volatile organic compounds abatement programme (environmental)

 

141

 

137

 

Coal tar filtration east project (safety)

 

329

 

294

 

Other environmental related expenditure

 

170

 

133

 

Other safety related expenditure

 

556

 

362

 

Other sustain

 

907

 

656

 

Mining (Secunda and Sasolburg)

 

2 894

 

3 720

 

Shondoni Colliery to maintain Middelbult Colliery operation

 

80

 

318

 

Impumelelo Colliery to maintain Brandspruit Colliery operation

 

157

 

258

 

Acquisition of mineral rights

 

 

650

 

Refurbishment of equipment

 

674

 

867

 

Mine geographical expansion

 

605

 

449

 

Other safety related expenditure

 

355

 

196

 

Other sustain

 

1 023

 

982

 

Other (in various locations)

 

8 758

 

6 797

 

Expenditure related to environmental obligations

 

590

 

476

 

Expenditure incurred relating to safety regulations

 

283

 

409

 

Other sustain

 

7 885

 

5 912

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditure cash flow*

 

21 967

 

19 125

 

 

 

 

 

 

 

 

*   Excludes finance costs capitalised to assets under construction.

 

 

 

 

 

 

 

 

2019

 

2018

 

 

 

 

 

 

 

Rm

 

Rm

 

 

 

 

 

 

 

 

 

 

 

Capital expenditure

 

 

 

 

 

 

 

 

 

Projects to expand operations comprise of:

 

Project location

 

Business segment

 

 

 

 

 

Lake Charles Chemicals Project

 

United States

 

Base and Performance Chemicals

 

30 289

 

30 100

 

China Ethoxylation plant

 

China

 

Performance Chemicals

 

489

 

398

 

Canadian shale gas asset

 

Canada

 

Exploration and Production International

 

141

 

101

 

High-density polyethylene plant

 

United States

 

Base Chemicals

 

 

265

 

Mozambique exploration and development

 

Mozambique

 

Exploration and Production International

 

221

 

1 002

 

Other projects to expand operations

 

Various

 

Various

 

1 445

 

1 644

 

 

 

 

 

 

 

 

 

 

 

Capital expenditure cash flow*

 

 

 

 

 

32 585

 

33 510

 

 

 

 

 

 

 

 

 

 

 

 

*Excludes finance costs capitalised to assets under construction.