briefing the portfolio committee on trade and industry on

A new era for Sasol

A new era for Sasol

Briefing the Portfolio Committee on Trade and Industry on Beneficiation

2 September 2014

A new era for Sasol 2

Presentation overview

1. Sasol today

2. Our beneficiation process, our products and downstream input

3. Sasol strategy - strongly aligned with the National Development Plan

4. Lessons learnt

Sasol forecourt, Secunda Lake Charles, Louisiana

A new era for Sasol

A new era for Sasol

Sasol today


Our global presence

Where we operate

This map is a broad indication of Sasol’s global presence and of its continuing operations, but is not location-specific.

Sasol has a presence in 37 countries across the world comprising a combination of exploration,

development, production, marketing and sales operations


A product of South Africa’s success

• An integrated energy and chemical company, with 64 years

experience in coal-to-liquids (CTL) and gas-to-liquids (GTL)

technology

• Global leader in GTL and CTL - world’s largest producer of

synthetic fuels

• Strong intellectual property portfolio (490 registered patent

families)

• Nurture and grow strategy - maintaining and enhancing SA

business and exploring growth opportunities in Africa

• Proudly flying the South African flag as we pursue growth

opportunities in the region and abroad

34 000 directly employed

R800m invested in

infrastructure

Listed on JSE (SOL)

and NYSE (SSL)

R95bn spent in South Africa

over last 5 years

SA capital spend – R19,8bn

(59%)**

* *For year ended 30 June 2013

A new era for Sasol

A new era for Sasol

Our beneficiation process, our products and downstream input


Explosives

Fertilisers

Innovative technology and an integrated value chain

– delivering real value through beneficiation

A proprietary version of Sasol’s low temperature

Fischer-Tropsch (FT) process using an advanced

cobalt catalyst, converts synthesis gas into waxes

and related petrochemical streams for producing and

marketing waxes and diesel.

The proprietary Sasol Advanced SyntholTM

Reactor (SAS) at the heart of the high

temperature version of Sasol’s FT process used

at Secunda, produces a synthetic form of crude

oil and chemical feedstock.

Lower-carbon electricity allows us to

cumulatively generate up to 69% of

our total internal electricity

requirements in South Africa.

1 2 3

Ex

plo

rati

on

an

d p

rod

uc

tio

n

Ma

rke

tin

g o

f p

rod

uc

ts

Coal-to-liquids (CTL) process

2

gasification

Co

al

Syngas syncrude

SASTM reactor

High temperature

Cru

de

oil

Gas engine

power plant 3 Our products

Fuel products:

GTL diesel

GTL naphtha

GTL kerosene

LPG

Chemical products:

Olefins

Polymers

Solvents

Surfactants

Co-monomers

Ammonia

Methanol

Crude tar acids

Sulphur

Fuel products:

Petrol

Diesel

Liquid Petroleum Gas

(LPG)

Illuminating paraffin

Bitumen

Fuel oil

Refine

and blend

Chemical

processes

Recovery and

beneficiation

Refine

and blend

Fuel

components

Chemical

components

Co-products

Fuel

components

Electricity

Gas-to-liquids (GTL) process

1

reforming

Na

tura

l g

as

Syngas

syn

cru

de

wax

Sasol SPDTM

process

Low temperature


Over the last 64 years we have delivered real

value through beneficiation

Our technology innnovation allowing us to reach new frontiers

Sasol Secunda

1950

Sasol is formed

to commercialise

coal-to-liquids

(CTL) technology

in South Africa

Completion of Sasol Two &

Three Synfuels and

Chemicals complex in

Secunda

2007

First international

GTL plant, Oryx,

starts production

in Qatar

2012

Sasolburg Gas

Engine Power

Plant online

Mozambique gas

engine power plant

- CTRG

1980

2014


Beneficiation resources into liquid fuels

3.5m tons of

chemicals

1000 MW of

electricity taking

pressure off the

national grid

8 billion litres

of liquid fuels results

in savings in foreign

exchange

Contributing to energy and supply security

• Supply more than 25% of South Africa’s liquid fuels from synthetic fuels

• Savings in foreign exchange generated from import replacement (petrol and

diesel)

• Being the first company in the world to get approval for fully synthetic jet fuel from

Secunda as a commercial jet fuel

• Sasol undertaking the first flight ever on synthetic jet fuel


Today, our fuels, chemicals and related products benefit

millions of people in South Africa and around the world

• hot-melt adhesives

• laundry detergents

• chip coatings

• printing inks

• household and industrial paints

• mobile phone circuit boards


An important input into the downstream sectors

Our chemicals and related products

• Bottles, domestic disinfectants, footwear and packaging. Polymers

• Aerosols, agricultural chemicals, cosmetics, fragrances, mining chemicals, packaging, paint and adhesives, pharmaceuticals, polishes, printing and plastics.

Solvents

• Detergents, cleaners, oil and gas recovery, paint and coatings, leather and metal processing, personal care products, lubricants, catalysts, high-performance abrasives and polymer additives.

Olefins and Surfactants

• Adhesives, bitumen modification, construction board, cosmetics, packaging, pharmaceuticals, polymer processing and rubber, candles. Wax

• Customers in Southern and Central Africa. Nitro

Organics Wax Inorganics


Downstream support

• Sasol Polymers Technical Centre • Technical support

• Market development support

• Facilitating new businesses

• Sasol Fuels Testing Facility • State of the art facility

• One of only a few in the world and the only in Southern Africa

Technical support to downstream sectors

A new era for Sasol

A new era for Sasol

Our successful beneficiation initiatives – allowing us to contribute to the National Development Plan


Our strategy closely aligned with South African

government’s strategic imperatives

Supporting the country’s long-term objectives

NDP imperatives

1. Job creation

2. Infrastructure

3. Environmental sustainability

4. Intra-regional trade in Southern Africa

5. Beneficiation of mineral resources and

driving opportunities that improve balance

of payments

Sasol strategy

Investing in our South African business

to create and retain jobs

Investing in community infrastructure in

and around our facilities

Developing low-carbon power generation

options focused on natural gas

Investing across the region, particularly

in Mozambique

Applying technology innovation to

beneficiate low value feedstock


NDP imperative

# 1 Job creation

Investing in our South African business to create and retain jobs

• 34 000 employed directly

• 11 500 people indirectly employed through our retail network of 373 Sasol service

stations across South Africa

• 15 000 additional employment opportunities created each year on annual maintenance

shutdowns at our Synfuels plant in Secunda

• 20 000 temporary employment opportunities created between February 2009 and June

2014, during the construction periods of our various mega-projects in Sasolburg

Sasol Convenience Centre Sasol Secunda Gas-to-power plant, Sasolburg


NDP imperative

# 2 Infrastructure

R800m being invested in infrastructure in and around our communities

Govan Mbeki, Mpumalanga

• Purchasing of sewer trucks for Charl Cilliers

• Construction of Leandra fire station and provision of basic equipment

• Construction of a multi-purpose centre in Charl Cilliers and Lebohang storm water drains

• Construction of eMbalenhle foot bridges and installation of public lights

• Upgrading of eMbalenhle Extension 25 sewage plant

• Upgrading of eMzinoni and eMbalenhle stadiums

• Osizweni skills and youth development Centre

Metsimaholo, Free State

• Upgrading of Nthoroane infrastructure (roads and sewage plant)

• Upgrading of the waste water treatment plant

• Upgrading of clinic in Ngwathe (Koppies)

• Installing Themba Kubheka water connections in Deneysville

• Establishment of Sisonke bricks and block manufacturing in Sasolburg

• Boithjorisong – skills and youth development centre

• TechnoX (science exhibition for schools) and VENT (arts)


NDP imperative

# 3 Environment

Growing responsibly and sustainably

R2bn spent per annum for the last 10 years in ensuring environmental sustainability

• Carbon mitigation

• More than 10mtpa mitigated through introduction of natural gas

• R1.5bn Sasolburg 140MW-capacity gas to power plant

• Environmental Sustainability

• R7,5bn to support Secunda’s environmental sustainability:

• replacement of tar tanks and separators;

• the volatile organic compound abatement project; and

• the coal tar filtration east project.

• Voluntarily committed to reducing the greenhouse gas (GHG) emissions intensity of all

our existing operations by 15% by 2020 from a 2005 baseline


NDP imperative

# 4 Intra-regional trade

Investing across the region especially in Mozambique

• 2014 marks the 10th anniversary of our natural gas project in Mozambique.

• R2 billion loop line - 128km of pipeline – increasing pipeline capacity to monetise 25

MGJ/a directed to Mozambican electricity markets

• Together with our partners invested more than R21 billion in developing and producing

natural gas in Mozambique.

• Together with our partners we established a viable gas industry

• Today the industry is poised to play an increasingly important role in the domestic

energy mix and regional socio-economic development

Central Processing Facility, Mozambique Gas drilling rig, Temane - Mozambique


NDP imperative

# 5 Beneficiation of mineral resources

Enhancing our existing asset base while driving growth in the region

South Africa

Botswana

Namibia

• Exploring upstream opportunities

• R1.7bn exploration programme offshore

KwaZulu-Natal and West Coast

• R13bn expansion of hard wax facilities

• R1bn ethylene purification plant

• R1bn limestone ammonium nitrate

granulation plant

• R1.5bn140MW gas-to-power plant

• R1,3bn in the C3 stabilisation project

• R14bn Secunda growth

• R14bn coal mine replacement

• US$ 246 million gas-fired electricity

generation plant Mozambique

• R2bn loop line


Sasol’s commitment to South Africa remains

unequivocal

Over the last 5 years more than R95bn spent in South Africa

• Our Southern Africa 2050 strategy will ensure that we remain a leading industrial

company in the country, headquartered in Johannesburg

• Our international shale gas experience can also benefit South Africa

• We are exploring growth opportunities in the region, which will contribute to socio-

economic development

• We continue to leverage our home-grown technology • contributing to the National Development Plan

• flying the South African flag abroad

Ethylene Purification Unit 5, Sasolburg Artist's impression of Sasol’s new global headquarters, Sandton

A new era for Sasol

A new era for Sasol

Lessons learnt


So what have we learnt?

• Continuous investment in R&D – leading technology

• Partnerships – government, technology companies, academic institutions

• Enabling regulatory framework

• Capital investment

• Access to feedstock – upstream (coal, gas, oil)

• Infrastructure and utilities

• Significant investment in skills development

• Energy security

• Protect balance of payments

• Job creation

A new era for Sasol

A new era for Sasol

Thank you

briefing the portfolio committee on trade and industry on

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