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Materials, energy and consumables used
12 Months Ended
Jun. 30, 2020
Materials, energy and consumables used  
Materials, energy and consumables used

4Materials, energy and consumables used*

 

for the year ended 30 June

 

2020
Rm

 

2019
Rm

 

2018
Rm

 

Cost of raw materials

 

78 030

 

79 774

 

66 928

 

Cost of energy and other consumables used in production process

 

12 079

 

10 815

 

9 678

 

 

 

90 109

 

90 589

 

76 606

 

 

 

*Materials, energy and consumables used at our North American operations increased with 34,9% year-on-year, while these costs from the rest of the world decreased 5,4%.

 

The cost increase in the North American operations relates mainly to utilities and raw material cost associated with the increased volumes due to the LCCP ramp-up.

 

Costs relating to items that are consumed in the manufacturing process, including changes in inventories and distribution costs up until the point of sale.

 

Other commitments

 

for the year ended 30 June

 

2020
Rm

 

2019
Rm

 

Secunda Synfuels Operations

 

1 386

 

173

 

Within one year One to five years

 

6 444

 

713

 

More than five years

 

31 108

 

1 416

 

 

 

38 938

 

2 302

 

 

 

 

 

 

 

 

Other commitments relate to the Oxygen Train 17 oxygen supply agreement and the water reticulation long-term water supply agreement. The increase in the current year relates to the Oxygen Train 17 payments which consist of an oxygen supply and fixed management fee component. The contract period runs to 2037, with an option to renew the contract to 2050. The renewal option is not taken into account in the calculation of the commitments. The water reticulation payments are determined based on the quantity of water consumed over the 20 year period of the agreement.