Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 111
Other
Rm
Total
Rm
33 Long-term provisions
Balance at beginning of year
Capitalised to property, plant and equipment*
Reduction in rehabilitation provision capitalised
Transfer to held for sale liabilities**
Per the income statement
51
–
–
–
(22)
412
(31)
(674)
(22)
–
–
313
(1)
–
703
(32)
(674)
Notional interest
Utilised during year (cash flow)
Foreign exchange differences recognised in income statement
Translation of foreign operations
664
(271)
(1 495)
(541)
–
–
1
(1)
4
(117)
(18)
(109)
668
(388)
(1 512)
(651)
Balance at end of year
16 196
additional provisions and changes to existing provisions
reversal of unutilised amounts
effect of change in discount rate
*
29
1 064
–
–
–
312
22 905
(2 425)
77
(1 310)
(3)
21 790
(2 425)
77
(1 310)
(293)
1 136
17 361
Decrease in rehabilitation provision capitalised in 2021 relates to a reassessment of the provision based on discount rates and cost estimates.
** Relates to rehabilitation provisions of the Canadian shale gas assets classified as held for sale, refer note 12 and the Gabon oil producing assets that
were disposed of during the year.
2021
Rm
2020
Rm
1 197
5 287
10 877
1 048
5 324
16 533
17 361
(1 197)
22 905
(1 048)
Long-term provisions
16 164
21 857
Estimated undiscounted obligation*
92 109
96 033
for the year ended 30 June
Note
Expected timing of future cash flows
Within one year
One to five years
More than five years
Short-term portion
34
* Decrease relates mainly to Canada which was classified as held for sale at 30 June 2021 and the Gabon oil producing assets that were disposed of
during the year.
Environmental provisions
In accordance with the group’s published environmental policy and applicable legislation, a provision for rehabilitation is recognised
when the obligation arises, representing the estimated actual cash flows in the period in which the obligation is settled.
The environmental obligation includes estimated costs for the rehabilitation of coal mining, oil, gas and petrochemical sites. The
amount provided is calculated based on currently available facts and applicable legislation.
SASOL LIMITED GROUP
CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June
Sharebased
payments
Rm
NOTES TO THE FINANCIAL STATEMENTS
Environmental
Rm
SASOL LIMITED COMPANY
PROVISIONS
OTHER
The total environmental provision at 30 June 2021 amounted to R16 196 million (2020 – R21 790 million). In line with the requirements
of the legislation of South Africa, the utilisation of certain investments is restricted for mining rehabilitation purposes. These
investments amounted to R676 million (2020 – R661 million). In addition, indemnities of R2 190 million (2020 – R2 190 million) are in
place.
109
Sasol Annual Financial Statements 2021