Sasol in empowerment deal

JOHANNESBURG – South African synthetic fuels and chemicals firm, Sasol, said yesterday it had picked the country’s fourth biggest coal producer Eyesizwe for a deal to help it meet black empowerment targets.

The government’s Black Economic Empowerment programme is pressuring companies to boost the involvement of majority blacks in a mainstream economy still largely controlled by minority whites a decade after the fall of apartheid. Potential synergies between Sasol and Eyesizwe will be explored in the coal export and coal supply markets for power and steam generation, a statement said.However, there was no mention of Sasol taking a stake in black-owned Eyesizwe Coal Ltd, which produces around 25 million tonnes of coal per year.Most companies striking empowerment deals do so by selling a stake to a black-owned firm, but Sasol plans instead to involve Eyesizwe in its operations so that a transfer of skills can take place, the statement quoted Mining Minister Phumzile Mlambo-Ngcuka as saying.”The proposed deal will open up new business opportunities for Eyesizwe Coal and also pave the way for export markets,” the minister said.Empowerment is not only about equity ownership and financial leverage, Eyesizwe Chief Executive Sipho Nkosi said.Sasol, the world’s biggest producer of synthetic fuel from coal, markets chemicals and liquid fuels with 50 operations in the Americas, Australasia, Europe and Africa.Its Sasol Mining unit is the second largest coal producer in South Africa with 51 million tonnes per year.Sasol shares were up 0,55 per cent at R94,01 versus a 0,27 per cent fall in the all-share index.-Nampa-ReutersPotential synergies between Sasol and Eyesizwe will be explored in the coal export and coal supply markets for power and steam generation, a statement said.However, there was no mention of Sasol taking a stake in black-owned Eyesizwe Coal Ltd, which produces around 25 million tonnes of coal per year.Most companies striking empowerment deals do so by selling a stake to a black-owned firm, but Sasol plans instead to involve Eyesizwe in its operations so that a transfer of skills can take place, the statement quoted Mining Minister Phumzile Mlambo-Ngcuka as saying.”The proposed deal will open up new business opportunities for Eyesizwe Coal and also pave the way for export markets,” the minister said.Empowerment is not only about equity ownership and financial leverage, Eyesizwe Chief Executive Sipho Nkosi said.Sasol, the world’s biggest producer of synthetic fuel from coal, markets chemicals and liquid fuels with 50 operations in the Americas, Australasia, Europe and Africa.Its Sasol Mining unit is the second largest coal producer in South Africa with 51 million tonnes per year.Sasol shares were up 0,55 per cent at R94,01 versus a 0,27 per cent fall in the all-share index.-Nampa-Reuters