20Property, plant and equipment

for the year ended 30 June	Land Rm		Building and improvements Rm		Plant, equipment and vehicles Rm		Mineral assets Rm		Total Rm
Carrying amount at 30 June 2019	4 202		15 434		185 235		28 678		233 549
Transfer of finance lease assets to right of use assets
on initial application of IFRS 16	(6	)	(1 475	)	(5 936	)	—		(7 417	)
Adjusted carrying amount at 1 July 2019	4 196		13 959		179 299		28 678		226 132
Additions	34		59		1 039		1 230		2 362
to sustain existing operations	34		42		825		1 230		2 131
to expand operations	—		17		214		—		231
Net reclassification (to)/from other assets	(11	)	(295	)	447		(4	)	137
Reduction in rehabilitation provisions
capitalised (note 35)	—		—		(23	)	(160	)	(183	)
Projects capitalised	920		3 035		120 616		3 378		127 949
Reclassification to held for sale (note 12)	(112	)	(2 350	)	(61 754	)	—		(64 216	)
Translation of foreign operations	842		2 091		23 761		230		26 924
Disposals and scrapping	(268	)	(6	)	(484	)	(18	)	(776	)
Current year depreciation charge	—		(720	)	(15 816	)	(3 291	)	(19 827	)
Net impairment of property,
plant and equipment (note 10)	(10	)	(3 819	)	(90 203	)	—		(94 032	)

Carrying amount at 30 June 2020	5 591		11 954		156 882		30 043		204 470

for the year ended 30 June	Land Rm		Building and improvements Rm		Plant, equipment and vehicles Rm		Mineral assets Rm		Total Rm
Carrying amount at 30 June 2018	2 744		8 537		127 336		28 840		167 457
Additions	6		395		959		1 360		2 720
to sustain existing operations	6		76		959		1 360		2 401
to expand operations	—		319		—		—		319
Net reclassification (to)/from other assets	(6	)	19		(97	)	(306	)	(390	)
Reduction in rehabilitation provisions
capitalised (note 35)	—		—		(1	)	—		(1	)
Projects capitalised	1 452		7 281		83 768		3 583		96 084
Reclassification to held for sale	(8	)	(57	)	(438	)	—		(503	)
Translation of foreign operations	36		4		(182	)	78		(64	)
Disposals and scrapping	(22	)	(90	)	(547	)	(49	)	(708	)
Current year depreciation charge	—		(643	)	(13 607	)	(3 285	)	(17 535	)
Net impairment of property, plant and
equipment	—		(12	)	(11 956	)	(1 543	)	(13 511	)
Carrying amount at 30 June 2019	4 202		15 434		185 235		28 678		233 549

Up to and including financial year 2019, Sasol recognised lease assets that were classified as finance leases under IAS 17 Leases as part of Property, Plant and Equipment. From financial year 2020 assets recognised under IFRS 16 Leases are disclosed separately in note 22, Right of use assets.

			Building		Plant,
			and		equipment		Mineral
	Land		improvements		and vehicles		assets		Total
for the year ended 30 June	Rm		Rm		Rm		Rm		Rm
2020
Cost	5 844		21 418		325 837		84 822		437 921
Accumulated depreciation and impairment	(253	)	(9 464	)	(168 955	)	(54 779	)	(233 451	)
	5 591		11 954		156 882		30 043		204 470

2019
Cost	4 403		23 034		316 548		74 769		418 754
Accumulated depreciation and impairment	(201	)	(7 600	)	(131 313	)	(46 091	)	(185 205	)

	4 202		15 434		185 235		28 678		233 549

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


							2020		2019
for the year ended 30 June							Rm		Rm

Business segmentation
Mining							23 787		23 540
Exploration and Production International							7 244		6 076
Energy							27 167		48 924
Base Chemicals							39 269		77 339
Performance Chemicals							103 781		74 313
Group Functions							3 222		3 357

Total operations							204 470		233 549


					2020		2019		2018
for the year ended 30 June					Rm		Rm		Rm

Additions to property, plant and equipment (cash flow)
Current year additions Adjustments for					2 362		2 720		6 992
non-cash items					(1 761	)	(1 491	)	(6 278	)
movement in environmental provisions capitalised					(1 761	)	(1 387	)	(178	)
movement in long-term debt*					—		(104	)	(6 100	)

Per the statement of cash flows					601		1 229		714

*2018, additions include the Air Separation Unit at SSO of R3,4 billion and the Lake Charles Chemical Project rail yard and wash bay leases of R1,8 billion that commenced during the year.

	2019
for the year ended 30 June	Rm
Leased assets
Carrying value of capitalised leased assets (included in plant, equipment and vehicles)	7 423
cost	9 316
accumulated depreciation	(1 893	)

Sasol applied the modified retrospective transition approach for the adoption of IFRS 16 Leases. Comparative information is not restated and continues to be presented as previously reported under IAS 17 Leases.

20Property, plant and equipment continued

	2020		2019
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	260 620		212 848
Authorised but not yet contracted for	21 136		43 097
Less expenditure to the end of year	(249 806	)	(195 850	)
	31 950		60 095

to sustain existing operations	26 305		29 654
to expand operations	5 645		30 441
Estimated expenditure
Within one year	15 578		32 194
One to five years	16 372		27 901

	31 950		60 095

Business segmentation
Mining	2 352		2 372
Exploration and Production International	3 597		19 795
Energy	9 237		10 390
Base Chemicals	11 013		16 504
Performance Chemicals	5 326		10 434
Group Functions	425		600

Total operations	31 950		60 095

Significant capital commitments at 30 June comprise of:

			2020	2019
Project	Project location Business segment		Rm	Rm
Lake Charles Chemicals Project*	United States	Base and Performance Chemicals	1 297	11 856
Dispersal drum dryers	United States	Base and Performance Chemicals	944	—
Mozambique exploration and	Mozambique	Exploration and Production International	3 353	17 375
development
Sixth fine ash dam	Secunda	Energy	1 573	2 302
Shutdown and major statutory maintenance	Various	Energy, Base and Performance Chemicals	3 247	5 949
Renewal projects	Secunda and Sasolburg	Energy, Base and Performance Chemicals	1 702	4 578
Renewal projects	Germany	Base and Performance Chemicals
Mulalo project	Secunda	Energy, Base and Performance Chemicals	256	—
Boiler automation	Secunda	Energy, Base and Performance Chemicals	1 329	1 329
Environmental projects	Secunda	Energy, Base and Performance Chemicals	299	—
Steam Station 2 NOx Abatement	Sasolburg	Base and Performance Chemicals	1 007	—
Ammonia storage facility	Sasolburg	Base Chemicals	900	1 168
Steam Station 1 Air Quality Compliance	Sasolburg	Base and Performance Chemicals	650	—
Mozambique drilling campaign and infield compression	Mozambique	Exploration and Production International	1 405	577
Clean fuels II: To meet legislated fuel specifications	Secunda	Energy	93	915
Network development	Various	Energy	1 375	418
Specialised stonework equipment	Secunda	Mining
Laboratory expansion	Germany	Base and Performance Chemicals	290	—
Road and rail automation system	Secunda	Base and Performance Chemicals	320	—
China Ethoxylation plant	China	Performance Chemicals	351	—
Refurbishment of equipment	Secunda	Mining	126	—
Natcos to Multi Product Pipeline project	Durban	Energy	—	135
Natcos tank programme	Durban	Energy	812	409
Etame field development	Gabon	Exploration and Production International	110	—
Mine geographical expansions	Secunda	Mining	131	—
Natref air quality compliance projects	Sasolburg	Energy	113	380
Impumelelo Colliery to maintain Brandspruit Colliery operation	Secunda	Mining	478	406
Coal tar filtration east and west project	Secunda	Energy, Base and Performance Chemicals	252	353
Other capital commitments	Various	Various	176	220
			138	356
			9 223	11 369
			31 950	60 095

*The LCCP capital commitment excludes the remaining contingency of US$113 million. The approved amount for the LCCP is US$12,9 billion with the overall cost estimate tracking US$12,8 billion.

20Property, plant and equipment continued

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 %, units of production over life of related reserve base Retail
convenience centres	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	Units of production over life of related reserve base