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Materials, energy and consumables used
12 Months Ended
Jun. 30, 2022
Materials, energy and consumables used  
Materials, energy and consumables used

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Materials, energy and consumables used*

    

2022

    

2021

    

2020

for the year ended 30 June

Rm

 Rm

 Rm

Cost of raw materials

 

103 599

 

71 016

 

78 030

Cost of energy and other consumables used in production process

 

23 392

 

14 354

 

12 079

 

126 991

 

85 370

 

90 109

*Increase relates mainly to the increase in feedstock, electricity and gas prices. Included in Materials, energy and consumables used is carbon taxes of R1,1 billion (2021: R1,2 billion; 2020: R0,6 billion)

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

Purchase commitments*

    

2022

    

2021

    

2020

for the year ended 30 June

Rm

Rm

Rm

Contractual obligations**

 

 

 

Within one year

 

50 642

 

28 603

 

23 782

One to five years

 

67 042

 

39 977

 

36 092

More than five years

 

81 240

 

73 283

 

80 131

198 924

141 863

140 005

*During the year a misstatement was identified in the calculation of the purchase commitment disclosure in relation to our long-term gas purchase agreements. Purchase commitments presented as R131 992 million have been revised by R9 871 million to R141 863 million for 2021. Purchase commitments for 2020 presented as R129 846 million have been revised by R10 159 million to R140 005 million. Management concluded that the revision is not material to the financial statements.

**The increase in purchase commitments is mainly due to the increase in the cost of raw material, the effect of the weakening exchange rate, as well as the inclusion of commitments with our new associate, ROMPCO (R25,4 billion).

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Materials, energy and consumables used* continued

The group enters into off-take agreements in the ordinary course of business, the most significant of which relates to oxygen supply agreements for Secunda Operations of R86 528 million (2021: R85 013 million) and ORYX GTL of R2 116 million (2021: R1 748 million) for a contracted minimum off-take gas volume. The Oxygen Train 17 oxygen supply agreement runs until 2037, with an option to renew the contract until 2050. The renewal option is not taken into account in the calculation of the commitments. The Oxygen Trains 1 - 16 arrangement is managed through various agreements, including the Gas Sales Agreement (GSA), Utilities Agreement and a suite of other contracts. In terms of the Utilities Agreement, Sasol is contractually bound to buy oxygen and other derivative gasses from Air Liquide annually, while Air Liquide is bound to buy utilities from Sasol for the same amount for 15 years.