| Operational review Pages | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | |
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| South African energy cluster |
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| Business segment contributions to South African energy cluster |
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| South African energy cluster financial highlights |
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2007 |
2006 |
%
change |
| Turnover |
Rm |
77 019 |
67 111 |
15 |
| Operating profit |
Rm |
21 775 |
18 684 |
17 |
| Effect of capital items |
Rm |
291 |
(73) |
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| Contribution to: |
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| group operating profit |
% |
85 |
109 |
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| group profit |
Rm |
14 090 |
12 323 |
14 |
| Cash flow from operations |
Rm |
23 024 |
21 040 |
9 |
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| South African energy cluster operational highlights |
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Operating profit growth of R3,1 billion (17%). |
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Continuous safety improvement. |
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Employment equity and BEE procurement progressing well. |
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20% Synfuels capacity growth on track. |
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| “Expanding our production capacity in the domestic market is fundamental to Sasol’s future and South Africa’s future energy security.” |
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 Benny Mokaba, executive director
South African energy cluster. |
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A cluster growth strategy has been developed encompassing
mining life extension, synfuels and gas growth, and faster
marketing expansion. In addition, a shared service platform has
been established at the Secunda complex with the objective of
centralising back office support, and increasing focus on
production and growth activities.
With the South African economy on a steady growth path, demand
for liquid fuels is expected to grow in the years ahead. To meet
this growing demand, expanding our production capacity in the
domestic market is fundamental to Sasol’s future and South Africa’s
future energy security.
Plans are underway to increase Sasol Synfuels’ capacity by 20% over
the next nine years. Three-quarters of this additional capacity at
Secunda will use natural gas feedstock, with its more benign effect
on the environment, and the balance will be based on exploiting our
fine coal reserves.
In close cooperation with the South African Government, we
are exploring the feasibility of another sizeable inland coal-toliquids
(CTL) refinery to serve the country’s economic heartland
around Gauteng. We call this initiative Project Mafutha (meaning
“oil”). At this stage, a synfuels plant with a capacity of around
80 000 barrels a day is envisaged. We have set up a dedicated
team and earmarked significant funds to carry out a pre-feasibility
study to pursue this opportunity.
If feasible, the plant will increase the alternative fuel supply to the
South African economy, helping to secure greater self-reliance in
the supply of South Africa’s future energy requirements. The project
will involve the creation of a new town, similar to the creation of
Sasolburg in the 1950s and Secunda in the 1980s. Apart from its
obvious strategic importance, we estimate that the plant, the
residential area and all its supporting utilities will add around one
percent to the country’s GDP and create thousands of new jobs.
Three potential sites with abundant coal reserves are being
considered. These are in the Free State, Limpopo and
Mpumalanga provinces. |
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