Land and assets under construction are stated at cost and are not depreciated. Buildings, including certain non-mining residential buildings, and all other items of property, plant and equipment are reflected at cost less accumulated depreciation and accumulated impairment losses. The cherry trees qualify as bearer plants under the definition of IAS 41 Agriculture and are therefore accounted for under the requirements of IAS 16 Property, Plant and Equipment. The cherry trees are classified as immature until the produce can be commercially harvested, at which point depreciation commences. Immature cherry trees are measured at accumulated cost.
Depreciation is charged on a systematic basis over the estimated useful lives of the assets after taking into account the estimated residual values of the assets. Useful life is either the period of time over which the asset is expected to be used or the number of production or similar units expected to be obtained from the use of the asset.
Items of property, plant and equipment are capitalised in components where components have a different useful life to the main item of property, plant and equipment to which the component can be logically assigned.
An asset’s residual value and useful life is reviewed, and adjusted if appropriate, at the end of each reporting period.
The estimated useful lives of items of property, plant and equipment are:
| Units of measure |
Coal | Energy | Ferrous | Other | ||||||||
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||
| Mineral properties | Years | 1 to 25 | 1 to 25 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Residential buildings | Years | 1 to 40 | 1 to 40 | |||||||||
| Buildings and infrastructure | Years | 1 to 40 | 1 to 40 | 26.3 and 26.4 |
26.3 and 26.4 |
10 to 20 | 10 to 20 | 20 to 25 | 20 to 25 | |||
| Machinery, plant and equipment | Years | 1 to 40 | 1 to 40 | 3 to 26.4 | 3 to 26.4 | 5 to 25 | 5 to 25 | 1 to 20 | 1 to 20 | |||
| Hours ('000) | 13 to 120 | 13 to 50 | ||||||||||
| Tonnes (Mt) | 1 300 | 1 300 | ||||||||||
| Site preparation and mining development | Years | 1 to 25 | 1 to 25 | |||||||||
| Tonnes (Mt) | 72.7 | |||||||||||
| Bearer plants (mature) | Years | 7 | 7 | |||||||||
The carrying amount of an item of property, plant and equipment is derecognised on disposal, or when no future economic benefits are expected from its use or disposal.
Exploration and evaluation costs are expensed until management (as determined per project) concludes that future economic benefits (as determined per project) are more likely than not of being realised. In evaluating if expenditure meets the criteria to be capitalised, several sources of information depending on the level of exploration, are utilised. While the criteria for determining capitalisation is based on the probability of future economic benefits, the information that management uses to make that determination depends on the level of exploration.
Development expenditure is accumulated separately for each area in which economically recoverable resources (as determined per project) have been identified. Such expenditure comprises costs directly attributable to the construction of an asset and the related infrastructure, including the cost of material, direct labour and an appropriate proportion of production overheads. Development costs are capitalised once approval for such development is obtained from management (as determined per project). On completion of development, all assets included in assets under construction are reclassified to the appropriate asset class of property, plant and equipment to which it relates.
The depreciable amounts of assets are allocated on a systematic basis over their useful lives. In determining the depreciable amount, management makes assumptions in respect of the residual value of assets based on the expected estimated amount that the entity would currently obtain from disposal of the asset, after deducting the estimated costs of disposal. If an asset is expected to be abandoned the residual value is estimated at nil. In determining the useful life of assets, management considers the expected usage of assets, expected physical wear and tear, legal or similar limits of assets such as mineral rights, as well as obsolescence.
Management makes estimates of Coal Resources and Coal Reserves in accordance with the SAMREC Code (2009) for South African properties and the Joint Ore Reserves Committee (JORC) Code (2012) for Australian properties. Such estimates relate to the category for the resource (measured, indicated or inferred), the quantum and the grade.
| Group | |||||||||||
| At 31 December 2023 | Note | Land Rm |
Mineral properties Rm |
Residential land and buildings Rm |
Buildings and infra- structure Rm |
Machinery, plant and equipment Rm |
Site preparation and mining development Rm |
Bearer plants Rm | Assets under construction Rm |
Total Rm |
|
| Gross carrying amount | |||||||||||
| At beginning of the year | 526 | 1 109 | 784 | 9 984 | 38 092 | 656 | 2 | 1 172 | 52 325 | ||
| Additions | 487 | 1 021 | 20 | 969 | 2 497 | ||||||
| Changes in decommissioning assets | 13.3 | 12 | (10) | 2 | |||||||
| Borrowing costs capitalised | 12.1.2 | 17 | 17 | ||||||||
| Transfer to intangible assets | 10.2.3 | (930) | (24) | (954) | |||||||
| Transfer from right-of-use assets | 11.3 | 1 | 1 | ||||||||
| Disposals | (9) | (1 119) | (40) | (1 168) | |||||||
| Transfer from equity reserves1 | 2 | 2 | |||||||||
| Transfer between classes | 192 | 503 | 48 | (743) | |||||||
| Exchange differences on translation | 11 | 11 | |||||||||
| At end of the year | 537 | 1 109 | 784 | 10 666 | 37 558 | 724 | 2 | 1 353 | 52 733 | ||
| Accumulated depreciation | |||||||||||
| At beginning of the year | (627) | (240) | (2 056) | (11 557) | (278) | (1) | (14 759) | ||||
| Charges for the year | 6.1.3 | (43) | (26) | (437) | (1 901) | (76) | (2 483) | ||||
| Transfer to intangible assets | 10.2.3 | 749 | 749 | ||||||||
| Disposals | 9 | 1 097 | 1 106 | ||||||||
| At end of the year | (670) | (266) | (2 484) | (11 612) | (354) | (1) | (15 387) | ||||
| Accumulated impairment | |||||||||||
| At beginning of the year | (32) | (87) | (1) | (120) | |||||||
| At end of the year | (32) | (87) | (1) | (120) | |||||||
| Net carrying amount at end of the year | 537 | 439 | 518 | 8 150 | 25 859 | 370 | 1 | 1 352 | 37 226 | ||
| 1 | Relates to hedging gains and losses and cost of hedging. |
| Group | |||||||||||
| At 31 December 2022 | Note | Land Rm |
Mineral properties Rm |
Residential land and buildings Rm |
Buildings and infra- structure Rm |
Machinery, plant and equipment Rm |
Site preparation and mining development Rm |
Bearer plants Rm |
Assets under construction Rm |
Total Rm |
|
| Gross carrying amount | |||||||||||
| At beginning of the year | 527 | 1 108 | 784 | 8 490 | 32 930 | 685 | 2 | 6 388 | 50 914 | ||
| Additions | 480 | 566 | 538 | 1 584 | |||||||
| Changes in decommissioning assets | 13.3 | (4) | (6) | (10) | |||||||
| Borrowing costs capitalised | 12.1.2 | 82 | 82 | ||||||||
| Disposal of subsidiary | (2) | (2) | |||||||||
| Disposals | (63) | (143) | (29) | (7) | (242) | ||||||
| Transfer between classes | 1 | 1 081 | 4 747 | (5 829) | |||||||
| Exchange differences on translation | (1) | (1) | |||||||||
| At end of the year | 526 | 1 109 | 784 | 9 984 | 38 092 | 656 | 2 | 1 172 | 52 325 | ||
| Accumulated depreciation | |||||||||||
| At beginning of the year | (579) | (214) | (1 646) | (9 792) | (211) | (1) | (12 443) | ||||
| Charges for the year | 6.1.3 | (48) | (26) | (426) | (1 884) | (73) | (2 457) | ||||
| Disposal of subsidiary | 2 | 2 | |||||||||
| Disposals | 16 | 117 | 6 | 139 | |||||||
| At end of the year | (627) | (240) | (2 056) | (11 557) | (278) | (1) | (14 759) | ||||
| Accumulated impairment | |||||||||||
| At beginning of the year | (32) | (87) | (1) | (120) | |||||||
| At end of the year | (32) | (87) | (1) | (120) | |||||||
| Net carrying amount at end of the year | 526 | 482 | 544 | 7 896 | 26 448 | 378 | 1 | 1 171 | 37 446 | ||
| Company | ||||||
| At 31 December 2023 | Note | Buildings and infra- structure Rm |
Machinery, plant and equipment Rm |
Assets under construction Rm |
Total Rm |
|
| Gross carrying amount | ||||||
| At beginning of the year | 1 | 972 | 145 | 1 118 | ||
| Additions | 20 | 20 | ||||
| Disposals | (76) | (40) | (116) | |||
| Transfer to intangible assets | 10.2.3 | (930) | (24) | (954) | ||
| Transfer between classes | 94 | (94) | ||||
| At end of the year | 1 | 60 | 7 | 68 | ||
| Accumulated depreciation | ||||||
| At beginning of the year | (722) | (722) | ||||
| Charges for the year | 6.1.3 | (137) | (137) | |||
| Disposals | 78 | 78 | ||||
| Transfer to intangible assets | 10.2.3 | 749 | 749 | |||
| At end of the year | (32) | (32) | ||||
| Net carrying amount at end of the year | 1 | 28 | 7 | 36 | ||
| Company | ||||||
| At 31 December 2022 | Note | Buildings and infra- structure Rm |
Machinery, plant and equipment Rm |
Assets under construction Rm |
Total Rm |
|
| Gross carrying amount | ||||||
| At beginning of the year | 1 | 878 | 237 | 1 116 | ||
| Additions | 14 | 8 | 22 | |||
| Disposals | (20) | (20) | ||||
| Transfer between classes | 100 | (100) | ||||
| At end of the year | 1 | 972 | 145 | 1 118 | ||
| Accumulated depreciation | ||||||
| At beginning of the year | (608) | (608) | ||||
| Charges for the year | 6.1.3 | (125) | (125) | |||
| Disposals | 11 | 11 | ||||
| At end of the year | (722) | (722) | ||||
| Net carrying amount at end of the year | 1 | 250 | 145 | 396 | ||
| Group | Company | ||||
| At 31 December | 2023 Rm |
2022 Rm |
2023 Rm |
2022 Rm |
|
| Contracted | 4 115 | 3 749 | 1 | 7 | |
|---|---|---|---|---|---|
| Contracted for the group (owner-controlled) | 2 115 | 1 614 | 1 | 7 | |
| Share of capital commitments of associates1 | 1 973 | 2 040 | |||
| Share of capital commitments of joint ventures2 | 27 | 95 | |||
| Authorised, but not contracted | 2 287 | 2 322 | 179 | 67 | |
| Authorised but not contracted (owner-controlled) | 2 287 | 2 322 | 179 | 67 | |
| 1 | 31 December 2022 has been restated to include an amount of R1 173 million relating to Black Mountain. |
| 2 | The share of capital commitments of equity-accounted investments line item has been represented to disclose the amounts on a disaggregated basis between associates and joint ventures. The share of capital commitments relating to Mafube was restated as it was not previously included in the aggregate amounts disclosed. |
Capital expenditure will be financed from available cash resources, funds generated from operations and available borrowing capacity.
IR