*Includes intangible assets under construction.


			Building	Plant,		Assets
			and	equipment	Mineral	under
	Land		improvements	and vehicles	assets	construction*	Total
for the year ended 30 June	Rm		Rm	Rm	Rm	Rm	Rm
Carrying amount at 30 June 2020		5 591	11 954	152 255	30 043	27 802	227 645
Additions		18	4	1 063	43	14 894	16 022
to sustain existing operations		18	—	948	43	13 792	14 801
to expand operations		—	4	115	–	1 102	1 221
Net reclassification (to)/from other assets		(2)	56	(750)	20	722	46
Reduction in rehabilitation provisions capitalised		—	(4)	(55)	(1 401)	(965)	(2 425)
Establishment of joint operation¹		325	1 097	28 079	–	62	29 563
Disposal of business²		(1 399)	(632)	(4 544)	(1)	(31)	(6 607)
Finance costs capitalised		—	—	–	–	880	880
Projects capitalised		73	837	11 918	2 654	(15 952)	(470)
Reclassification from/(to) held for sale (note 11)		98	349	(711)	(981)	(444)	(1 689)
Translation of foreign operations		(775)	(1 457)	(18 327)	98	(573)	(21 034)
Disposals and scrapping		(2)	(19)	(184)	(49)	(203)	(457)
Current year depreciation charge		—	(537)	(11 080)	(3 303)	–	(14 920)
Net impairment of property, plant and equipment (note 9)		(56)	(94)	(28 678)	353	(58)	(28 533)
Carrying amount at 30 June 2021		3 871	11 554	128 986	27 476	26 134	198 021

* Includes intangible assets under construction.

1Refer to note 10 for details.

2Relates mainly to the disposal of our 50% equity interest in Gemini HDPE LLC.

19	Property, plant and equipment continued


			Building	Plant,		Assets
			and	equipment	Mineral	under
	Land		improvements	and vehicles	assets	construction	Total
for the year ended 30 June	Rm		Rm	Rm	Rm	Rm	Rm
2022
Cost		4 357	21 466	356 420	49 388	30 622	462 253
Accumulated depreciation and impairment		(347)	(10 345)	(205 845)	(24 408)	—	(240 945)
		4 010	11 121	150 575	24 980	30 622	221 308
2021
Cost		4 145	20 462	334 432	47 606	26 134	432 779
Accumulated depreciation and impairment		(274)	(8 908)	(205 446)	(20 130)	—	(234 758)
		3 871	11 554	128 986	27 476	26 134	198 021
2020
Cost		5 844	21 418	325 837	84 822	27 802	465 723
Accumulated depreciation and impairment		(253)	(9 464)	(173 582)	(54 779)	—	(238 078)
		5 591	11 954	152 255	30 043	27 802	227 645


	2022	2021	2020
for the year ended 30 June	Rm	Rm	Rm
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT (CASH FLOW)
Current year additions	22 613	16 022	38 092
Adjustments for non-cash items	(20)	(77)	(2 947)
movement in environmental provisions capitalised	(20)	(77)	(2 947)

Per the statement of cash flows	22 593	15 945	35 145


	2022		2021
for the year ended 30 June	Rm		Rm
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		41 892	33 196
Authorised but not yet contracted for		35 830	33 297
Less expenditure to the end of year		(32 438)	(26 605)
		45 284	39 888

to sustain existing operations		30 805	25 591
to expand operations		14 479	14 297
ESTIMATED EXPENDITURE
Within one year		27 719	21 393
One to five years		17 565	18 495
		45 284	39 888

19Property, plant and equipment continued

Significant capital commitments and expenditure at 30 June comprise mainly of:

Capital commitments

Capital expenditure

2022

2021

2022

2021

Project

Project location

Business segment

Projects to sustain operations

Shutdown and major statutory maintenance

Various

7 963

6 439

6 082

2 583

Environmental projects

Various

3 449

3 033

1 520

1 806

Clean fuels II

Various

Fuels

2 632

1 483

893

237

Projects to expand operations

Environmental projects

South Africa

Fuels

640

—

Mozambique exploration and development

Mozambique

Gas

11 448

10 786

1 377

234

Lake Charles Chemical Project

United States

Chemicals America

—

798

684

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 the impact of climate change and therefore requires a significant degree of judgement to be applied by management. The remaining useful lives of property, plant and equipment have been reassessed considering the group's targeted reduction in GHG emissions and remain appropriate.

The following depreciation rates apply in the group:



Buildings and improvements	1 - 17%, units of production over life of related reserve base
Retail convenience centres (included in buildings and improvements)	3 – 5	%
Plant	2 – 50	%
Equipment	3 – 91	%
Vehicles	5 – 33	%
Mineral assets	Units of production over life of related reserve base
Life-of-mine coal assets (included in mineral assets)	Units of production over life of related reserve base

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.

19	Property, plant and equipment continued

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.

ASSETS UNDER CONSTRUCTION

Assets under construction include land and expenditure capitalised for work in progress in respect of activities to develop, expand or enhance items of property, plant and equipment. The cost of self-constructed assets includes expenditure on materials, direct labour and an allocated proportion of project overheads. Cost also includes the estimated costs of dismantling and removing the assets and site rehabilitation costs to the extent that they relate to the construction of the asset as well as gains or losses on qualifying cash flow hedges attributable to that asset. When regular major inspections are a condition of continuing to operate an item of property, plant and equipment, and plant shutdown costs will be incurred, an estimate of these shutdown costs are included in the carrying value of the asset at initial recognition. Land acquired, as well as costs capitalised for work in progress in respect of activities to develop, expand or enhance items of property, plant and equipment are classified as part of assets under construction.

Finance expenses in respect of specific and general borrowings are capitalised against qualifying assets as part of assets under construction. Where funds are borrowed specifically for the purpose of acquiring or constructing a qualifying asset, the amount of finance expenses eligible for capitalisation on that asset is the actual finance expenses incurred on the borrowing during the period less any investment income on the temporary investment of those borrowings.

Where funds are made available from general borrowings and used for the purpose of acquiring or constructing qualifying assets, the amount of finance expenses eligible for capitalisation is determined by applying a capitalisation rate to the expenditures on these assets. The capitalisation rate of 4,6% (2020 – 4,9)% is calculated as the weighted average of the interest rates applicable to the borrowings of the group that are outstanding during the period, including borrowings made specifically for the purpose of obtaining qualifying assets once the specific qualifying asset is ready for its intended use. The amount of finance expenses capitalised will not exceed the amount of borrowing costs incurred.