Society

 
  2008 2009 2010 2011
2012
Economic value added (R million)
         
Turnover 129 943 137 836 122 256 142 436
169 446
Less: purchased materials and services (76 472) (89 393) (74 061) (86 330)
(103 116)
Value added 53 471 48 443 48 195 56 106
66 330
Finance income 989 2 060 1 549 1 283
1 275
Wealth created 54 460 50 503 49 744 57 389
67 605
Employees 14 443 17 532 17 546 18 756
19 921
Providers of equity capital 6 877 7 260 5 806 7 040
10 274
Providers of debt 2 427 2 191 1 799 1 392
1 565
Governments – direct taxes 9 521 9 413 5 602 7 198
10 267
Reinvested in the group 21 192 14 107 18 991 23 003
25 578
Wealth distribution 54 460 50 503 49 744 57 389
67 605
Broad-based black economic empowerment (BBBEE)2
         
BEE verification certificate Level 6 Level 5 Level 4 Level 4
Level 4
Preferential procurement (score out of 20) 4,9 10,9 14,36 15,8
17,5
Preferential procurement (R value) from all suppliers R651 m R7,4 bn R11,8 bn R13,4 bn
R20,5 bn
Responsible Care®
         
Responsible Care® compliance 82% 85% 83% 86%
90%
Product stewardship3 75% 62% 71% 74%
82%
 
1 Corporate social investments: Our community affairs programme seeks to promote people-centred, needs-driven sustainable development of communities. During 2012, the group committed R345,9 million to socioeconomic development globally, with most of this (R332,3 million) invested in South Africa, our principal host country. Our key priorities are determined by regulatory, business and community needs and are focused on the following five areas: 
 
Education with the emphasis on improving school-based education in science, technology and literacy; facilitating access to higher education; enabling quality higher education; and developing critical and scarce work skills. 
Job creation, focusing on the sustainable creation of employment particularly for unskilled or marginalised groups such as women and youth. 
Health and welfare, with a priority emphasis on addressing key social challenges such as HIV/Aids, tuberculosis and malaria. 
Arts, culture and sport development with a focus on local talent development. 
Environment, by pro actively engaging communities to reduce their impact on the natural environment. 
   
  During the year, we invested R153 million in various education programmes (including R40,8 million in our corporate graduate scheme), as well as R157 million in job creation and skills development. In addition, we invested R20 million in health and welfare initiatives, R6,5 million in environmental initiatives and R3 million in arts, culture and sports development programmes. In addition, Sasol Mining has made investments of R4 million as part of their social and labour plans in accordance with the Mining Charter. 
   
2 Our BBBEE performance: We obtained a level 4 BEE verification certificate in September 2012. While our scores are relatively good on the pillars of equity ownership, enterprise development and socioeconomic development, we recognise that we need to improve our performance on management diversity, employment equity, skills development and preferential procurement. The new mining charter requires us to report calendar years. It also includes refinement and a number of new conditions. Sasol Mining scored 94% on the scorecard of the revised Broad-based Socioeconomic Empowerment Charter for the South African Mining and Minerals Industry (the Mining Charter). We therefore remain in compliance with the revised Mining Charter and will be compliant with the full requirements of the charter by 2014. In support of South Africa's Liquid Fuels Charter, broad-based BEE group Tshwarisano LFB Investment (Pty) Ltd. owns 25% of our liquid fuels production, distribution and marketing operations, housed in Sasol Oil (Pty) Ltd. As at 30 June 2012, Sasol Oil has established 404 retail fuel facilities, including 174 dealer-owned sites. In October 2007, Sasol Mining announced the formation of a black women-owned mining company called Ixia Coal (Pty) Ltd. and concluded the 20% BEE equity deal early in 2010. Sasol ChemCity hosts the BEE centre of excellence office and manages the Siyakha BEE Procurement Initiative Trust; it is responsible for all enterprise development activities, co-ordinates business development and incubation, manages an eco-industrial park and develops downstream chemical and energy businesses. To improve our performance on procurement and to support a more sustainable pool of broad-based BEE suppliers, we are working with industry bodies, stakeholders and suppliers to the industry to ensure that we receive valid broad-based BEE certificates. During 2012, preferential procurement, as defined by the Codes of Good Practice, was R20,5 billion and represented 62% of total measured procurement spend. We have significantly improved our contribution to emerging medium enterprises, qualifying small enterprises, and black- and women-owned enterprises. 
   
3 Product stewardship: In October 2011, we introduced a new chemical information management system (CIMS) designed to help Sasol with the implementation of product stewardship, focusing on lifecycle management and regulatory compliance throughout each stage on the lifecycle of our products. This system relies on representing the total inventory of chemicals in considering all products through the lifecycle, from source to waste, including procured chemicals such as cleaning products. During the reporting period, we continued to participate in various global initiatives on product stewardship: we have played a leadership role in promoting the safe use of chemicals through our involvement in the International Council of Chemical Associations' (ICCA) Chemicals Policy and Health Leadership Group aimed at reaching the strategic approach to international chemicals management (SAICM) 2020 goals; we contribute to the development of, and have adopted, the Globally Harmonised System of Classification and Labelling of Chemicals (GHS); and our experts have been advising the South African government representatives on the implementation of GHS through the South African Chemical and Allied Industries' Association (CAIA). We also participate in the UN subcommittee of Experts on the GHS, representing the South African Department of Trade and Industry and we have taken on the role of vice chair for a second biennium (2011 - 2012). All products exported to the European Union (EU) are in the process of being registered in compliance with EU regulations concerning registration, evaluation, and authorisation of chemicals (REACH). Full compliance might take up to 2018 according to the REACH time line for registration. 
 

Sasol ChemCity vision and purpose

Sasol ChemCity is Sasol’s enterprise development vehicle. The unit focuses on developing and supporting small and medium enterprises (SMEs) within the energy, chemical and related industries, thereby promoting business and economic growth. Sasol ChemCity’s value proposition to Sasol is to:
Manage enterprise development activities for the Sasol Group;
Be the Group’s BEE centre of excellence;
Manage funding for SME related innovation and technology development;
Manage the Siyakha Trust (supplier development funding vehicle);
Manage the ChemCity eco-industrial park; and
Develop SMEs in the chemical, energy and related industries.
 
Our portfolio encompasses:
Sustainability (e.g. water, waste and related resource management)
Green economy (e.g. energy focus)
Polymers (e.g. alternate building technologies)
Agriculture and liquid chemicals
Health and Beauty (e.g. cosmetics and related)
 
Based on the above, Sasol ChemCity reviewed its strategy with the intent to unlock further potential and value to Sasol. The review resulted in a re-focused mandate and charter and an associated structure change that will enable the organisation to deliver on its vision and strategic intent by 2020.

Sasol ChemCity’s strategic focus is to:
Support the delivery and execution of the Sasol strategy globally;
Identify and implement opportunities that support Sasol’s growth aspirations, in South Africa and internationally;
Facilitate the establishment of independent SMEs in the energy, chemical and related industries;
Identify and implement opportunities for enterprise development related to the Sasol value chain;
Establish and develop new and existing suppliers to enhance the competitiveness of Sasol’s supply chain; 
Promote the development and use of safe and affordable alternative and renewable energy products;
Create relevant economic development solutions within bottom of the pyramid communities to deliver sustainable job creation. 
 
Through our Siyakha Trust (supplier funding vehicle), Sasol ChemCity has made significant impact, notably through disbursing R28,2 million in loans to Sasol Suppliers. This has had a significant impact on operational effectiveness of suppliers. The total combined turnover of suppliers supported is in excess of R900 million.

The ChemCity Eco Industrial Park (CEIP) was launched in October 2011. The park is situated in the industrial hub of the Free State Province on a 172 hectare piece of land that has been earmarked by Sasol to house industries that will not only contribute to the economic development and growth of this area, but that will do so in a way that preserves our green environment and help establish a green culture in South Africa. This multi-million rand facility, located in the commercial heart of the Vaal area and in close proximity to our own operations, ushers in a new and revolutionary way to stimulate local economic development. Not only is it poised to be the first eco industrial park of its kind, offering its owners and tenants access to state of the art alternate building technologies but, being located in Sasolburg, it will also serve to encourage further investment into this area.

In FY12, Sasol ChemCity supported more than 100 thereby creating/saving in excess of 4 700 direct jobs. Since 2005, Sasol ChemCity has supported over 600 SMEs, therein creating over 10 000 direct jobs. 

Case study | Examples of SMMEs supported by ChemCity

eyeSlices® is a global first in cryogel polymer technology, a dermal delivery system that helps to reduce the appearance of puffiness, dark circles, wrinkles, tiredness and redness within minutes of use. ChemCity incubated eyeSlices focusing primarily on their professional/ salon range, and later, in 2008, assisted with their Retail Range. In October 2010, they became a supplier to Clicks stores in South Africa. Today, the company exports to Europe, Dubai, Japan and Australia.
Essel Products CC, incubated by ChemCity in 2005, currently has eight staff members in a home office, and 18 people running 25 independent franchises. We’ve provided Essel with technical, testing, product development and marketing support that has led to the company developing into a strong, competitive cosmetics company that exports to international markets. Essel won the prestigious South African Pharmaceutical and Cosmetic/ IFF award for best skin care range in 2009. 
Vergezocht Plant Oils (Pty) Limited was incubated by ChemCity in 2007. Their High Oleic Sunflower oil is currently retailing in South Africa at Woolworths, Spar, Checkers and Pick n Pay. At its inception, we helped create 12 jobs, and through our assistance with further brand development, technical assistance, and marketing, we’ve helped create nine new jobs at Vergezocht and the company has increased its sales by 100%. 
Spa Notions specialises in harvesting special brown seaweed, Ecklonia Maxima, which is sold as a raw material and is also an integral part of their Ecklon range. ChemCity has been assisting Spa Notions since 2007. The company currently employs three fulltime staff members and 25 staff members indirectly, and operates both nationally and internationally. 
Arrero Premium Car Perfume CC was established in 2010 and is in the start-up phase of its business life cycle. The company aims to provide luxury car perfumes which will be branded as Arrero or as customised luxury car manufacturer perfumes, branded accordingly. 

Case study | Examples of key Sasol ChemCity energy related initiatives

Biodiesel MMI, a section 21 company established in 2006, was awarded R2 million in 2010 from a funding agency to build an oil press and biodiesel plant for training and demonstration purposes. Sasol ChemCity assisted the company to secure a credible technology provider to construct and install the facilities on site. Sasol ChemCity provided technical assistance in developing the process layout, and helped secure the feedstock and markets for the product(s) and project management. Due to unforeseen circumstances, Biodiesel MMI was unable to get funding to cover the operational costs for the business. Sasol ChemCity is in the process of providing the necessary support to help secure the funds required by MMI, by ensuring a bankable business plan and applications with the relevant institutions for a grant. 
Earthwize Energy (Pty) Ltd was developed with the express purpose of recovering the latent energy inherent in many waste streams and, more specifically, converting the hydrocarbon type waste components in municipal solid waste (MSW) to a high energy liquid fuel, by using its proprietary vacuum pyrolysis technology. The technology has the capacity to profitably convert such waste materials as plastic, used tyres and waste oils to a light industrial fuel oil equivalent to a middle distillate cut from crude oil refining. In this instance the proposed project is specifically aimed at waste plastic. The business venture’s industrial profile reflects elements of both recycling and alternative energy (liquid fuels), imparting a distinctive environmental competitive advantage. This is further enhanced by the fact that the fuel is derived from waste – notably a waste (plastic) that generally presents considerable difficulties to recycle responsibly. Amongst the major municipalities in South Africa, Cape Town is the most advanced and aggressive in establishing recycling programs to significantly reduce the volume of waste going to landfill. For this and other reasons, Cape Town was chosen as the base for the first plant. Funding for the roll out of the Cape Town site has been tentatively obtained and the construction started in 2012. 

Case study | ChemCity supports industrial engineers in leveraging opportunities

Sasol ChemCity strives to provide a support platform and channel for industrial engineers to leverage opportunities to contribute their knowledge and skills ambitiously, with the goal of uplifting the greater South Africa. An inspiring example is Joe Tal, an entrepreneur who identified an opportunity to address the significant housing gap in South Africa, with a product he saw in Israel: Dynamic Shells, a system that uses a combination of steel and PVC panels to construct houses.

Importing the product was too costly; local manufacturing would be the only solution. Joe approached Sasol ChemCity, which assisted Joe with a business plan, financial model and branding to acquire funding for his venture, including equipment for local manufacturing. Venture Otto, an international plastic manufacturer, became a partner and a new company, Adventure Shells, was established. Adventure Shells bought and installed two extruder machines that would manufacture the PVC panels at their premises in Rosslyn.

Sasol ChemCity introduced Adventure Shells to Sasol Polymers, which provided material to start their trial runs and technical assistance with formulation and manufacturing. Today, Adventure Shells, with support from Sasol ChemCity, is ready to sell its first house and start contributing towards improving the living conditions of South Africans. 

Case study | Sasol ChemCity entrepreneurs jointly win SEDA award

ChemCity achieved a double win in the regional stage SEDA Small Business Stars Business Plan competition in 2012. Two of the entrepreneurs that Sasol incubated, from different industries and separate focus groups, shared first prize in this stage of the competition for their business plans, and went on to compete nationally.

Arrero™ Premium Car Perfume CC: supplies luxury car fragrances to the car and corporate gift industries. It is the first luxury car perfume brand in SA. Arrero™ offers customized corporate gift products providing an exclusive alternative to existing car fresheners.

ChemCity business analysts worked with Arrero™ and helped to create the business plan trademark search. Brand development and PowerPoint presentation for the Wits Business School which resulted in funding from Anglo Zimele. Further support came in the form of assistance with fund management and exhibiting at the Johannesburg motor show.

energyinnovation™: Pennine Energy Innovations (Pty) Ltd provides innovative energy and sanitation products in the renewables and environment economic space focusing on productive use of natural energy solar wind water and improving living standards throughout South Africa. They entered a product called SavvyLoo™, a semi-portable waterless toilet for rural areas and informal settlements. Savvyloo™ is aimed at providing a sanitation solution that would not contaminate drinking water in the areas. ChemCity helped with the overall business plan and financial model and assistance in obtaining funding from the Industrial Development Corporation (IDC) helped find a product development and testing partner as well as a potential manufacturing partner.

Arrero™ and energyinnovation™ won joint first place at the Gauteng Provisional SEDA Small Business Stars Winning entrepreneur. 

Case study | Sasol Inzalo Foundation

Sasol is a major role player in the South African economy, and currently the largest industrial taxpayer in South Africa. In September 2008 the Group announced South Africa’s single largest BEE equity transaction, Sasol Inzalo. This deal transferred 10% of Sasol into the hands of previously disadvantaged South Africans. An important part of the transaction was the allocation of 1,5% of Sasol’s shares to establish an education trust, the Sasol Inzalo Foundation (The Foundation). The Foundation was established to facilitate much needed skills development and to build capacity amongst historically disadvantaged communities in the critical areas of science, technology, engineering and mathematics (STEM). 
 

Bursaries 

The Foundation awards bursaries to undergraduate university students in science and engineering at South African universities. While most access bursary schemes provide partial bursaries only, the Sasol Inzalo Foundation bursaries are full cost bursaries. Bursars also receive comprehensive financial, academic and psycho-social support. We currently have 236 students on the programme in various stages of study. The profile of selected students matches the national demographic profile closely. The Bursary programme provides the opportunity for research that looks at how students make a successful transition from school to university, achieve success at university and later move successfully into the workplace. 
 

Education Fellowships 

The Foundation Fellowship programme is designed to provide an opportunity for South Africans to study full-time towards post-graduate qualifications, to put them on the road towards a career in education research. It is for Masters or PhD degrees in STEM education, on topics of interest to the Foundation, and offered at South African institutions. In 2012, four fellows received their Masters degrees. There are currently 13 PhD and six Masters fellows. 
 

Science Fellowships

The Foundation facilitates much needed skills development and building capacity amongst historically disadvantaged communities in the critical areas of science, technology, engineering and mathematics (STEM). The Sasol Inzalo Foundation has hence implemented a Science fellowship programme, which recruits and supports Chemistry Honours, Masters and PhD students at traditionally black universities. Support will also be provided to the Universities. There are currently 30 Honours and 8 Masters fellows on the program. 
 

Schools Improvement for STEM excellence, focusing on Technical High Schools

The purpose of this programme is to create an environment of excellence that effectively prepares learners for post school success in technical careers. It sets performance goals for matric results, admission to institutions and success at the next stage of post-school education. The programme starts with building an all-inclusive framework for excellence in technical high schools and developing a school improvement model which can be replicated across other technical high schools both provincially and nationally. The first school in the programme is the John Orr Technical High School in Johannesburg, which currently has 45 teachers and 816 learners. 
 

Teacher development

In view of this dire shortage of Maths and Science teachers who can teach these critical subjects with competence in South African schools, the Sasol Inzalo Foundation has embarked on a venture that seeks to address this challenge through innovative teacher training initiatives that will not only yield good quality teachers but will also have the potential wider systemic impact. The strategy and plans to achieve this will be implemented in 2013. 
 

Abaholi Learner Support programme and Saturday School

The Foundation took over the funding of an existing Saturday School programme. Our first year was spent studying the workings of the Saturday School, without changing the model. In the second year we used what we learnt in the first year to refocus the programme. We are aiming for 100% matric success, 100% university entrance and university success for 100 matriculants per year. The results for 2011 were: 100% passes with 97% bachelors. There are currently 174 learners in the programme, which now includes vacation programmes in addition to Saturday classes for Grades 10 to 12. 
 

Workbook development

It is a well-known fact that one of the major impediments towards delivery of good quality education in many South African schools is the endemic lack of learning resources for learners. The Sasol Inzalo Foundation has responded to this challenge by partnering with DBE and Siyavula to develop good quality, enriched workbooks for Natural Sciences and Technology. These workbooks will be distributed to all the public schools nationwide, putting a valuable learning resource in the hands of every learner who needs it. Grade 4 – 6 workbooks will be delivered towards the end of 2012, in time for the roll-out of the new CAPS curriculum in these grades in 2013. Workbooks for Grades 7 to 9 and 10 to 12 will follow in subsequent years. 
 

School Leadership and Principal Development and Whole-school development

Quality Science, Mathematics and Technology education can only happen in the context of a well-functioning school; good school leadership is required to create an environment conducive to effective teaching and learning. Hence the Foundation also supports school leadership development.

In 2009/10, the Foundation sponsored principals in the Umlambo Foundation’s School Leadership programme and in the whole-school development programme in 2010/11, and we shall continue to sponsor the ensuing school development initiatives for the foreseeable future. There are currently 37 schools where interventions are taking place across the country.

This involvement has created the platform for the first longitudinal study in South Africa giving a long-term understanding of the effect that school leadership development programmes have on South African public schools, and by extension, their effect on creating environments conducive to effective STEM education. Ten school leadership development programmes are participating in the study, in which data will be collected from the programme participants as well as from the schools they lead. In the first large scale data collection, 56 schools have been visited and data collected from them; when the study reaches full scale in 2013 data will be collected from about 400 programme participants and a sample of 100 schools annually. 

Case study | Fast Track - creating employment at the bottom of the pyramid

Sasol recognises that inclusive economic growth is critical for creating shared value in communities. A high priority is promoting the development of skills and economic opportunity among the youth. Unemployment in South Africa increased by 1,3% in the first quarter 2012, from 23,9% in the fourth quarter of 2011 to 25,2%, impressing the need to encourage new economic activity that leads to sustainable income generation.

To stimulate new business as a means to create jobs, Sasol partnered with the University Of Cape Town Graduate School Of Business (UCT GBS) to develop an entrepreneurial development programme in Mpumalanga. The programme focuses on developing skills and building capacity, critical elements in establishing new start-ups and enabling their enduring success. The result of this collaboration saw the launch of Fast Track in 2006 as a competition based challenge for potential entrepreneurs.

The initiative is aimed at training entrepreneurs in the Gert Sibande District, Mpumalanga, between the ages of 18 and 35 years, on starting their own businesses. Potential candidates are identified through various channels, such as taxi ranks, libraries and municipal offices and included individuals interested in starting their own businesses or in the process of establishing their businesses.

Each round of the challenge involves in the region of 400 applications being received, each outlining a proposed business idea. From this pool, the best plans are selected for training, and a select number of entrepreneurs are chosen to receive funding and mentorship to establish their businesses. The selected candidates undertake an intensive 10 days of training, consisting of three modules, aimed at equipping them with a foundation to run their businesses successfully. They then submit assignments on each course within the respective modules. The UCT GBS has been instrumental in developing the course material.

The candidates are mentored and given coaching sessions by Sasol Community Affairs Practitioners and Sasol ChemCity, the enterprise development division of Sasol. These sessions are done via electronic consultation and with quarterly visits from the mentors.

The initial group of eight entrepreneurs selected for funding, opened various businesses across Mpumalanga, ranging from marketing and graphic design, a boutique fashion shop, to mining supplies and civil engineering services. All are still in business today. A leading example is Sphepo Dynamic Engineering, owned by Mxolisi Nkosi, which is now a thriving civil engineering and construction services business in Witbank.

The next group of trained and funded entrepreneurs, in 2009, established businesses including an internet café, printing services, catering, vending machine supply and services, and IT service business, setup in various towns across the district.

An example is the entrepreneur Tshepo Mabusa who established TIT Communications, an IT services business targeting co-operatives, non-governmental organisations and the SMME sector. Mabusa was awarded the Best Young and Upcoming Entrepreneur in 2009 by the eMalahleni Municipality.

Fast Track has enabled these entrepreneurs to establish businesses that allow them to form good networks internally and externally.

The third group, enrolled in 2011, saw 83 of the best business ideas and plans selected for training, and nine selected for funding and mentorship commencing in July 2012. A wide variety of businesses have been established: protective clothing manufacturing; pharmacy; wheel alignment; rigging and training; occupational health and safety consulting; IT services and product marketing and distribution; brick manufacturing; security academy; and heavy load truck cleaning services.

These businesses are in their infancy and are currently being assisted by Sasol and UCT GBS for further development.

Since the start of the programme, over 1 200 applications have been received and 23 entrepreneurs have successfully been funded and mentored. Between the first and second wave of entrepreneurs, 27 new direct jobs were created as a result of these new businesses.

The most recent contingent of entrepreneurs will receive seed capital and assistance from Sasol ChemCity and then be mentored to grow their businesses.

Fast Track has proven to be a model of how skills development can build capacity to stimulate job creation. Ambition and creativity are inherent in all entrepreneurs, and this initiative provides an equal opportunity to aspiring business owners, regardless of background.

Case study | Sasol Mobile Lab - taking science to the edge

The Sasol Mobile Lab is one of two based at the Osizweni Education and Development Centre, the Sasol education flagship initiative for maths, science and technology, outside Secunda. Staffed by two experienced science teachers, the lab visits schools across the province of Mpumalanga, demonstrating science experiments to Grade 12 pupils. The learners, for the first time, see demonstrations and conduct experiments relevant to their matric exams.

In 2011 the Sasol mobile lab taught a total of 5 611 learners in 73 high schools. The mobile teachers spend about eight hours at a school and can cater for up to 95 students at one time.

The mobile lab is equipped with state of the art PASCO equipment. PASCO is the global leader in developing technology-based solutions for hands-on science, serving educators and students in more than 100 countries around the world.

The Hiace van that transports the lab equipment has the capacity to demonstrate eleven experiments. They are: Electric Circuits Experiments, Conservation of Linear Momentum, Conservation of Mechanical Energy, Newton’s 2nd Law of Motion, Motion experiments, Waves Experiments, Rates of chemical reactions, Test for saturation, Preparation of esters, Chemical Equilibrium, Electrochemical cells. The Osizweni teachers also conduct exam preparation and revision.

The mobile lab is an inspirational initiative in promoting science education.

Case study | Community Affairs: Investing in Communities

Our community affairs programmes promote people-centred, needs-driven and sustainable development of communities.

Our community engagement focuses on strengthening the ability of communities to thrive, by supporting civil society, government and private sector role players in plans to catalyse growth, strengthen development and foster dignity.

Many of the communities where we operate have multiple social and development related challenges and require expert and long-term support to address the impacts of intergenerational poverty, and development lags. It demands a commitment beyond financial assistance.

Our commitment to build local content through our value chain involves skills development; local supplier and enterprise development; increasing local procurement; supplying products and services to rural and isolated communities through Integrated Energy Centres and addressing socio-economic and environmental challenges to community and business development. Regulatory, business and social changes are requiring Sasol to adopt a more host “country” focus than “fence-line” focus in South Africa, Mozambique, Qatar and other countries Sasol operates in.

We have invested in creating value for communities through supporting strategic economic drivers, skills and capacity development and by involving communities more in our value chain. Employees are encouraged to be involved in the development of communities through the Sasol Change Reaction programme.

Central to our community engagement strategy are the following principles:
Community involvement and ownership
Strengthen community leadership
Targeted impacts driven interventions
Addressing key community priorities
Strategic research informed interventions
Monitoring and evaluation
Building capacity through partnership
 
We have channelled the majority of our social investments into five priority areas:
Education, with a particular focus on science, technology and literacy;
Job creation - promote the sustainable creation of employment, particularly for unskilled or marginalised groups such as women and youth; 
Health and welfare, with a priority emphasis on key social challenges such as HIV/Aids; TB and malaria; 
Arts, culture and sport development with a particular emphasis on identifying opportunities for uplifting the quality of life of communities and talent development; and 
The environment, by recognising our own impact on communities and the environment proactively engaging communities and investing in projects, to mitigate against climate such as education; provisioning on renewable energy resources to communities; optimising water use and loss in communities. 
 
Sasol maintains a significant social development plan in Mozambique where we invested USD 538 288 in community development projects in 2012.

While most of our social investments are undertaken in Southern Africa, community-based initiatives are undertaken by our USA and European operations, according to the particular needs and opportunities in their communities. 
 

Strategy Drivers

Case study | Community investment: Going Global

The ethos of our citizenship is applied to our operations globally. Investment plans are designed to address local priorities. We have vibrant programmes in the US and Mozambique and are developing programmes in Qatar, Canada and in other new markets. 
 

Qatar

In June 2012 the South African Wheel Chair Basketball team toured Qatar in a pre-Olympic training session. This tour has created excitement in Qatar and had the full support of both the host country and the South African governments. The sports’ men were involved in a range of activities in schools and communities. The “Definitely Able Campaign” raised awareness regarding the issues impacting the disabled. 
 

Mozambique

Sasol has been involved in building and equipping schools and clinics, initiating social, economic and environmental programmes and providing basic infrastructure for potable water. The Mabote Vocational Training School was built by Sasol in a remote area of Mabote District in Inhambane Province. In turn, safe accessible water is essential for human settlements, agriculture and other economic activities.

Plans are underway to enhance local procurement and to initiate a supplier development programme. Our skills development focus in country aims to provide on the job training and mentorship for Mozambican nationals entering the Oil and Gas sector and partnerships are being set up to enable professional development pipeline for engineers in Mozambique.

The Gas reticulation pilot project has commenced, enabling the delivery of energy for household use to 100 families, in three Districts – Vilanculo, Inhassoro and Govuro – over a three-year period. Access to energy has a transforming impact on communities. 
 

Sasol United States

Partners In Education – In the community nearest our manufacturing facility in Louisiana, the company serves as a partner in education, with two elementary schools. These two schools benefit annually from donations, field trips, tutoring, a "lunch-buddy" programme (where employees mentor at-risk students), presentations from our scientists and engineers, volunteer judges and readers, and projects to encourage good grades and good attendance.

Sasol Second Saturday Science Shows (5S Project) – The Children's Museum, which serves the community in which our Louisiana facility is located, presents a science show on the second Saturday of every month. The science show is provided by Sasol Volunteers who donate their time to teach children about chemistry, physics and environmental science. The shows are provided at no cost and all expenses for supplies are donated by Sasol.

Sasol Teachers' Institute – Each year teachers spend a week at the chemical plant in Louisiana learning about the "world of work" from a manufacturing perspective. Because many people in the area work for industry, industry contractors and industry vendors, this information is crucial for helping teachers to prepare our future workforce. During the institute, teachers shadow employees, participate in tours, learn about our products and processes, engage in hands on chemistry activities, learn about our safety and environmental performance and even take sample entry-level employment tests. Teachers are impressed by what they learn and complete the institute with a far better perception of area industry and more information for preparing students for the "world of work."

McNeese State University – With annual monetary donations and employee participation on numerous boards and organisations, Sasol North America is actively engaged with our local university.

United Way – Sasol Volunteers are very involved in the annual United Way campaign in Southwest Louisiana, which provides funds to more than 50 area non-profit organizations to help house the homeless, feed the hungry, serve the elderly and educate our "at risk" population. Each year, Sasol volunteers serve these many organizations by donating items to the homeless shelters, teaching people how to read, serving on boards and much more.

Rebuilding Together – each year Sasol partners with an organisation to rebuild one local home in the community near our chemical plant in Louisiana. The recipient is qualified by the organisation and must own their own home but be unable to conduct the necessary repairs on their own due to financial and physical constraints. Each year more than 20 employees give a total of 250+ man-hours to help rebuild a home for someone in need. These rebuilds are particularly important following hurricanes and other natural disasters. The company provides a co-funding such initiatives with employees therefore the non-profit often doubles or triples with donations and "at-cost" items. 

Case study | Opening up a new world through education

upIn building the school and offering it to the Mangungumeta community, Sasol is responding to the Government`s appeal to companies investing in Mozambique to contribute to the fight against illiteracy and absolute poverty.down
Joaquim Chissano, former President of Mozambique, quoted at the opening of Mangungumenta Primary School, February 2004. 
 
Many schools in Mozambique have limited resources and little infrastructure, but with the Government’s focus on education, it is a situation that is quickly changing. Sasol is helping to promote a culture of learning and open up a whole new world through education by building new schools, upgrading existing school facilities and providing computers, books and libraries.

And the burgeoning numbers at Mangungumeta Primary School near the Central Processing Facility (CPF) show just how keen children and their parents are to embrace learning. The decision to build the school in the Mangungumeta community resulted from Sasol’s contacts with communities living near the gas fields who identified the facility as their most pressing need. In 2004, we delivered three classrooms and also provided desks, ablution facilities, a library and teaching aids. Employees at the CPF became involved by contributing books. We also built and furnished houses for the teachers – a move which has helped to attract and retain teachers and built morale, not just among the teachers, but also, interestingly enough, among the children. In addition, we drilled a water borehole in the school grounds.

The school which initially had 150 pupils now has 850 pupils and four extra classrooms have been added. Classes at the school, like so many others in Mozambique, are given in two sessions – with children attending either the morning or afternoon session. Adults now also attend literacy classes in the evenings.

To date, Sasol has built and equipped seven primary schools, two secondary schools and one Technical and Vocational school.

Case study | Changing Amelia Samba's life

It is an image well recognised in Africa – a woman or girl walking with a bucket of water balanced on her head. While it may be a way of life for many, the image speaks of the daily burden and difficulty of accessing water. Recognising that clean water and sanitation are among the most powerful drivers for human development, Sasol prioritised the provision of boreholes, thus making a positive difference to the lives of thousands of people like Amelia Samba, who lives near the Pande natural gas field.

Amelia lives in a typical homestead of ten to twelve huts built in a circle. For Amelia and her family, getting clean water is no longer a burden, thanks to a borehole drilled by Sasol around nine years ago. The borehole operates with a hand-pump and villagers pump water into an upturned cool drink bottle serving as a funnel, filling plastic 20-litre containers. The borehole water is clean and does not need to be boiled to be consumed.

Amelia says that all the families who live in the immediate vicinity also use the borehole. Apart from the water being used for drinking, it is also used for washing, cooking and irrigating the lettuce, onions and carrots in the vegetable patch around the homestead. The borehole has made a big difference, she says. Previously she and her family had to walk about six kilometres to reach the nearest borehole, and even carrying a container on her head and one in each hand still amounted to only 180 litres per trip. Compare this with the average water consumption per person in the USA of 303 – 378 litres per day (according to the US Geological Survey).

But Amelia was luckier than the community in the Machanga district, who had to walk 25 kilometres to reach the Save River to get water. The Save River is used for bathing and washing cooking utensils, so the water is not clean. In addition, collecting water can be extremely dangerous because of the lions and leopards which lurk at the side of the river and the crocodiles and hippos in the river.

Now the challenges of collecting water are a thing of the past, thanks to the Sasol borehole. Each family living near the boreholes pays an amount of between 5 to 25 meticais (less than US$1) a month to contribute towards the upkeep of the boreholes. It is a small amount, but an important principle, giving people like Amelia a sense of ownership. 

Case study | Integrated Energy Centres

Sasol has made a significant contribution towards the sustainable development of rural communities through its sponsorship of Integrated Energy Centres (IeCs). IECs are vehicles used by the Department of Energy (DOE) to bring affordable and sustainable energy services and information closer to poor communities. Underlying this is a strong social responsibility aimed at poverty alleviation, job creation and capacity building.

An IeC is a cooperative that is owned and managed by local community members, including women and youth. The centre retails in illuminating paraffin, candles, LPG, petrol and diesel, and provides energy-related training and advisory services. IeCs thus contribute to the South African Government’s Integrated Sustainable Rural Development Programme (ISRDP).

Sasol Oil committed to build one IeC in each of South Africa’s nine provinces. This involves sponsoring the establishment costs, including feasibility studies, EIAs, construction of the facility, supply of products, and equipping and training staff training. To date Sasol has successfully built and launched five operational IeCs: Caba Mdeni in the Eastern Cape; Laxey in the Northern Cape; Mutale in Limpopo; Makgobistad in the North-West Province; and Qunu in Eastern Cape.

All five IeCs are sustaining themselves and together retail more than three million litres of petrol and diesel per annum. They have created 50 permanent jobs and a further 80 jobs from related business activities that take place around the IeCs including bakeries, vegetable tunnels, and catering. Other positive spin-offs from the IeCs include electrification of various villages located within 30km of the IeC, and the installation of a Vodacom network tower. In addition, pensioners are able to receive their payouts from IeC ATMs and no longer have to travel long distances. Matriculants write their supplementary exams at the IeC, and computers are available for students to use for school projects and gain access to career and job opportunities. Furthermore, a youth foundation is hosted at the IeC. Standard Bank, through the IeC in Mutale, have launched the Community Investment Fund (CIF) to boost economic development in Mutale.

The following IeCs are currently being established: QwaQwa in the Free State; and Ulundi and Nkandla in KwaZulu Natal.

In the process Sasol’s reputation and brand has been significantly enhanced in these rural areas. The IeCs have delivered in many respects: ensuring that communities utilise energy in a safe and sustainable manner; ensuring easy and affordable access to energy services by rural communities; raising awareness regarding energy use; improving lifestyle of the rural communities within which the IeCs are located (not only in their energy use, but also their health and safety); and in developing sustainable small and medium enterprises, as well as the local economies of the areas within which the IeCs are located 

Case study | Sasol's BBBEE scorecard

The Sasol BBBEE scorecard is included in our level 4 BBBEE contributor certificate available on our website.

We obtained a level 4 BEE verification certificate in September 2012. While our scores are relatively good on the pillars of equity ownership, management control, enterprise development and socioeconomic development, we recognise that we need to improve our performance on employment equity, skills development, and preferential procurement.

To improve our performance on procurement and to support a more sustainable pool of broad-based BEE suppliers, we are working with industry bodies, stakeholders and suppliers to the industry to ensure that we receive valid broad-based BEE certificates. During 2012, preferential procurement, as defined by the Codes of Good Practice, was R20,5 billion and represented 62% of total measured procurement spend. We have significantly improved our contribution to emerging medium enterprises, qualifying small enterprises, and black and women owned enterprises.

Case study | Sasol's prospering flagship educational project in Mozambique

Launched in 2010, Sasol’s flagship educational project, the Technical and Vocational School in Mabote (a district in Inhambane province) meets the Government’s priority of the sustainable expansion of post-primary systems.

In the district of Mabote, before the building of the Mabote School, there were 42 schools, only one of which was a secondary school. The illiteracy rate in the district was 54%1. Built and equipped by Sasol at a cost of US$2,5 million, pupils at the school receive education and practical skills training in agriculture, carpentry and building.

With capacity for 300 students and boarding facilities for around 180, the school has computer rooms for 40 users, a library, conference rooms, six well-equipped classrooms, fully equipped workshops and housing for teachers. The school has a tractor, pickup truck, borehole and water purification system, an electricity generator and a rainwater capture system in all buildings. There is also a soccer field and a basketball court.

The school, inaugurated by President Armando Guebuza in 2010, received its first intake of pupils in the same year. Pupils are taught in Portuguese, but also learn English in addition to subjects like maths and computer skills. The school is open to pupils who have completed grade 7 and is attended mainly by children from areas through which the Sasol pipeline passes. Currently, there are 129 boys and 42 girls attending the school, across the disciplines of agriculture, building and carpentry. There are currently two grades in each subject, with twelve teachers in all. Pupils are not allocated to specific vocational areas, but are free to choose the area they prefer.

While Sasol has handed the school over to the local educational authorities and to Government who pay the teachers’ salaries, the Mabote School exemplifies a new model in which a private company assists with administration. This is in keeping with another of Government’s educational priorities: to grow programme management capacity.

The Mabote School’s Administrator, who is paid by Sasol, is involved in the day-to-day running and management of the school. “I feel I’m doing something really positive here,” he comments. “We’ve not just transformed what was previously open bushveld, we’re also transforming lives.”

With often a year between rains, the nearby communities are grateful for the chance to use the borehole, situated on the school grounds. This is helping to integrate the school into community life.

The children are also involved in the daily running of the school. They clean their dormitories, wash their own clothes and cook on weekends. The school also has a herd of goats, ducks and 300 chickens. The chicken coops, are situated near crops, including beans, cowpeas, groundnuts, sorghum and cashew trees. In terms of food, the school is able to supply many of its own needs.

A third grade will be added in 2013, after the first intake of pupils has qualified. The school will monitor and assist these graduates to access the job market.
1 2008 figures, referenced at www.malariaconsortium.org

Liquid Fuels Charter

Charter for the South African Petroleum and Liquid Fuels Industry on Empowering Historically Disadvantaged South Africans in the Petroleum and Liquid Fuels Industry (‘the Charter’).

The Charter was signed in 2002 by all oil companies, with a commitment to facilitate empowerment in the industry by delivering targets outlined in the table below. 
 
Element Charter Explanation/ Definition Means of Measurement
     
Ownership
The 25% ownership and control of all facets of the industry that the parties to this Charter are seeking to bring about over a ten year period means HDSA’s owning in total, by the end of that period, not less than 25% of the aggregate value of the equity of the various entities that hold the operating assets of the South African oil industry. The parties to the Charter agree that the measurement of the extent of the achievement of this target of 25% of the aggregate value of the equity will be based on the asset values as per the audited accounts of the entities concerned. Legal and effective black shareholding, through voting rights, rights to economic interest and sustainability
Control
Control of a business entity can be achieved in a number of ways; (a) a majority shareholding position, i.e. 50% + 1 share; (b) an effective controlling shareholding; (c) a majority of a board of directors; and/or (d) a shareholders agreement.  Percentage of black people in directorship positions (both executive & non-executive) 
Supportive Culture
Appointment of managers who will understand the spirit and background under which these policies were conceived in order to create a supportive & enabling environment for business success. Undertaking to foster a supportive culture with regard to all aspects of this Charter when dealing with HDSA’s and incorporating and driving a process of transformation and a change of culture.  Qualitative analysis of criteria which facilitate the creation of a transformative business environment

We have EE and SD forum members and culture ambassadors  
Capacity Building/ Skills Development
Building skills of employees and reporting annually on progress as well as interfacing with statutory bodies such as SETA  Quantitative analysis of skills spend on black employees, learnership opportunities for black employees training opportunities for black employees  
Sustainability
Medium to long-term viability and adaptability through a presence across all facets of the liquid fuels value chain; ventures with prospects of long term profitability, and requisite levels of skills and access to technology.  Analysis of financial indicators and ratios 
Employment Equity
Focus on HDSA’s when identifying candidates for overseas placement and training; identifying a talent pool and fast tracking it; ensuring inclusiveness of gender; implementing mentorship programmes and setting and publishing demanding targets  Quantitative analysis of Employment Equity reports submitted to the Department of Labour  
Financing
Implementation of internal and external financing mechanisms for giving HDSA companies access to equity ownership within the South African context; engaging in viable, strategic partnerships with HDSA companies  Debt schedules of BEE participants
Preferential Procurement
Supportive procurement policies to facilitate and leverage the growth of HDSA companies, including supplies (e.g. crude), products and all other goods and services; accordance of preferred supplier status to HDSA companies.  Analysis of BEE procurement spend and criteria for the selection of BEE suppliers 
Terms of Credit to HDSA Companies
Preferential Payment Terms for Suppliers Quantification of the effective benefit of preferential payment terms to BEE suppliers  
Synfuels Supply
Accommodation of HDSA companies as synfuels suppliers, despite the fact that some may lack the facilities to fully comply with Synfuels Supply agreements  Analysis of BEE ownership percentage 
Access and Ownership of Joint Facilities
Access to ownership opportunities by BEE participants Analysis of BEE ownership percentage 
Refining Capacity
Access to ownership opportunities by BEE participants Analysis of BEE ownership percentage 
Retailing/Wholesaling
Access to ownership opportunities by BEE participants Analysis of BEE ownership percentage 

Meeting the Petroleum and Liquid Fuels Charter Objectives (Sasol Oil)

In support of South Africa’s Liquid Fuels Charter, broad-based BEE group Tshwarisano LFB Investment (Pty) Ltd owns 25% of our liquid fuels production, distribution and marketing operations, housed in Sasol Oil (Pty) Ltd. As at 30 June 2011, Sasol Oil has established 406 retail fuel facilities, including 174 dealer-owned sites.

The South African Petroleum and Liquid Fuels Industry stakeholders signed the Charter to provide a framework for driving the empowerment of historically disadvantaged South Africans in the liquid fuels industry during November 2000.

The South African Petroleum Industry Association (SAPIA) and the Ministerial Compliance Committee have been established by the Department of Energy, to monitor, support and report on progress of the Charter. All Oil companies are represented in these committees. The signatories of the Charter including Sasol Oil committed to facilitate empowerment in the industry by delivering targets as outlined in the Charter (see table below for details). Following is a summary of Sasol Oil’s progress towards meeting the Charter’s objectives and targets: 
 
Ownership
Progress
Sasol Oil has fully complied with the ownership element, effective from 1 of July 2006 Sasol Oil sold 25% of its shares to Tshwarisano LFB (Pty) Ltd, a broad based black economic empowerment consortium comprising of 150 000 direct shareholders and 2,8 million beneficiaries was a benchmark for the industry. The demographics of this empowerment group include 54% women ownership, substantial rural representation, 3% youth and 2% disabled.

In structuring this empowerment transaction, it was ensured that all aspects of the Charter were adhered to including participation of Tshwarisano throughout Sasol Oil’s value chain. Consequently, Tshwarisano is participating in the sourcing of crude and fuels components, refining and blending, in-bound logistics and retailing and direct sales to end users. The value of this transaction amounted to R1 450 billion, making it the biggest BEE transaction in the liquid fuels industry. 
Control
Progress
Our BEE partners who are 100% black, fully own and control Tshwarisano, which in turn has an effective 25% shareholding in Sasol Oil. Tshwarisano has appointed three directors to Sasol Oil board of directors with full voting rights. To ensure that effective control by historically disadvantaged South African (HDSA) is maintained, Sasol Oil board has transformed from zero black representation to 75% black representation and 25% women board members to date. In addition, 16% of the board is made up of black executive directors amplifying the importance of operational involvement of HDSA. In terms of control, Sasol Oil is fully compliant with the Charter from both the perspective of black representation and voting rights as well as operational involvement of HDSA. 
Supportive Culture
Progress
Various interventions have been implemented to ensure that an enabling empowerment environment is created within Sasol Oil. Black Economic Empowerment targets are monitored and pursued as part of Sasol Oil’s overall balance scorecard and BEE Working Group Committee meetings are held on monthly basis whereby all Sasol Oil business units are represented. In addition, a quarterly BEE Committee, chaired by the Managing Director with most members of the Executive Committee represented , provide an oversight role in the governance and implementation of all Sasol Oil BEE initiatives.

Additionally we have formed an EE and SD forum, which has identified barriers to transformation as well as developed affirmative action measures. The forum will continue to review, monitor progress and make recommendations /advise the organisation on EE and SD. 
Capacity Building/ Skills Development
Progress
Future interventions
Building skills of employees and other stakeholders has been the continuous focus for Sasol Oil. Programmes such as Women in Leadership, Leadership in Oil & Energy and Accelerated Leadership programme have been introduced to target black high potential for the fast track training which includes international exposure for candidates. Sasol Oil has a Capacity creation programme whereby we recruit underrepresented groups and people with disabilities into super numary positions. The candidates are middle management level employees, They have access to all Sasol training and development opportunities.   A learnership programme is available in the operation environments and is registered with the CHIETA
Terms of Credit to HDSA Companies
Progress
Future interventions
There have been substantial enterprise development initiatives especially with reset to supporting emerging black companies with favourable discounts, preferential allocation of products, credit terms as well as coaching and mentoring. A number of custom-made support interventions are being reviewed to ensure that emerging qualifying black companies are appropriately supported.
Synfuels Supply and wholesaling
Progress
Sasol Oil is the only oil company that has ensured that black enterprises purchase on wholesale (ex refinery) basis. In the past only oil companies who owned refineries could buy on wholesale basis. After signing the Charter, Sasol Oil provided access and opportunity for emerging black companies to purchase on the same basis as established companies. This intervention has provided most of what is called “non-refinery wholesalers” an opportunity to compete on a sustainable basis. Opportunities have been provided to emerging black enterprises to benefit from product supply at wholesale prices as opposed to dealing with them on commercial basis. 
Sustainability
Progress
Sasol Oil played a pivotal role in the establishment of Exel Petroleum in 1997, which operated successfully as a liquid fuels marketing company up to 2004 when it was merged with Sasol Oil. The merger was informed by the realisation that Exel’s operations would be exposed when the industry is de-regulated, hence Exel’s shareholders comprises more than 40% of the Tshwarisano Consortium. Today, Tshwarisano, which includes former Exel’s shareholders, owns 25% equity in all parts of Sasol Oil’s value chain. This has enhanced their sustainability by cushioning them from the vulnerability of being exposed only to volatile parts of the business. Tshwarisano has in addition used all its dividends to pay a substantial amount of its debt making it in line to meet its ten-year commitment to pay off all its debt. 
Employment Equity
Progress
Future interventions
Sasol Oil’s diversity for all designated groups (Africans, Coloureds, Indians and White Females) is 89,7% as at March 2012. For Level 7 and above diversity was at 87,3%. Diversity at Middle Management (Level 6C to 4) was 58,3% of which 83 employees (61%) are Africans.  The main focus and challenge for the ensuing years is increasing the representation of women in general and African women in particular. Though Sasol Oil is performing well and leading the Sasol Group of Companies there is still a gap with regard to women representation across all levels. 
Financing
Progress
Future interventions
Access to finance is one of the challenges faced by BEE companies and is the major function of the sustainability of empowerment transactions. In realising the importance of financial facilitation of particularly broad based groups, who by nature are capital constrained, Sasol Oil contributed R100 million to the Sasol Black Empowerment Fund, whose sole mandate was to ensure that the Charter’s commitments are met. To date, most of this money has been used to facilitate the Tshwarisano transaction, particularly funding the participation of broad based groups in Tshwarisano. Financial mechanisms were put in place to ensure compliance with this element of the Charter.  Further funding will be targeted to enhance our procurement and capacity building initiatives. 
Preferential Procurement
Progress
Future interventions
Good progress is being made in this area - out of the total controllable spend of R 1,5 billion, 43% is spent with black suppliers. Impressive progress is being made in the challenging area of crude and product procurement. Of the total spot crude being procured, 33% is sourced from black suppliers. Overall BEE procurement spent is progressing according to plans and compares favourably when benchmarked against other oil companies.  Additional interventions, such as supplier development and facilitating the transformation of white suppliers are being pursued. 
Access and Ownership of Joint Facilities
Progress
Future interventions
The objective of this element of the Charter is to encourage oil companies to accommodate emerging black companies in facilities such as depots, single buoy mooring (SBM) etc. Sasol Oil only owns two depots concentrated in Gauteng and does not have a national footprint of facilities of this nature. As a result, there have been limited opportunities to effect this intervention.  As the opportunities of growing the network of depots are pursued, empowerment and the accommodation of emerging black enterprises will be considered. 
Refining Capacity
Progress
Tshwarisano, our BEE partner, owns 25% of Sasol Oil’s proportional share in the Natref refinery which produces 12% of the total South African petroleum demand. In addition, Thswarisano benefits from Synfuels production through the refinery margin it receives from all petroleum products produced at Sasol Oil Secunda Operations. Our BEE partners are fully involved in the manufacturing and refining of all Sasol Oil’s products 
Retailing
Progress
Future interventions
Out of Sasol Oil’s retail network of franchised Sasol Convenient Centres (SCC), Exel Service Stations and dealer owned sites 45% are operated by black dealers and 14% operated by women dealers. In terms of the new programme of targeting black dealers, 100% of the new sites are allocated to black dealers and 66% to women. Sasol Oil currently has 399 outlets.  More intervention initiatives to increase the participation of black women in particular are being investigated, including setting up a fund to assist with equity contribution 

The Mining Charter

Supporting empowerment charters

In October 2007, Sasol Mining announced the formation of a black woman-owned mining company called Ixia Coal and funding arrangements were concluded for the 20% BEE equity participation of historically disadvantaged South Africans in Sasol Mining, excluding 35% of the export business. Sasol Mining engaged with the Department of Mineral Resources (DMR) with the aim to obtain approval of the Black Economic Empowerment (BEE) contribution of the Inzalo Employee Share Ownership Scheme (ESOP). The DMR, during May 2012, confirmed that the ESOP contributes 26% towards Sasol Mining’s BEE ownership status. Sasol Mining’s BEE participation has been calculated to be in excess of 40%. This is a major achievement as the granting of new mining rights is dependent on a minimum of 26% BEE ownership.

The Mining Charter requires us to report in calendar years. It also includes refinement and a number of new conditions. A disaggregation of targets requires that we perform against all elements rather than the high level target. For example, the assessment of historically disadvantaged South Africans at management level has been broken down into each level. To achieve the 40% target in top management, by 2014, may be a challenge. There is also still uncertainty around issues such as how multinational suppliers, from which Sasol Mining procures goods and services, must spend the required 0,5% on local economic development. The beneficiation element became effective in 2012, but does not carry a score.

For 2011, Sasol Mining scored 93% on the Mining Charter Scorecard. This score was verified by an independent auditor, Empowerdex. Sasol Mining therefore remains in compliance with the Mining Charter and will be compliant with the full requirements of the Mining Charter by 2014. The necessary programmes have been implemented to allow Sasol Mining to meet and exceed the minimum targets of the Mining Charter. 
 

The Mining Charter

Sasol Mining continued to work tirelessly towards achieving the requirements set out by the Broad-Based Socio-Economic Charter for the Mining Industry (Mining Charter). Programmes are run across the company to meet the aims of transformation, with a further emphasis on those in Sasol Mining to meet the requirements and spirit of the Mining Charter. Sasol Mining supports the Mining Charter’s efforts and regards this as key to the future of mining in South Africa. The table below outlines the manner in which Sasol Mining is working towards achieving the goals of the Revised Mining Charter scorecard. 
 
Current status
Target
Reporting
A report on Mining Charter compliance was submitted to the DMR on 30 March 2011.  Submit a report on Mining Charter compliance by March of every year based on the results obtained in the previous calendar year. 
Ownership
Sasol Mining has concluded the Ixia Coal transaction which provides Sasol Mining with 20% BEE equity ownership, excluding 35% of the export business.

The Department of Mineral Resources has confirmed that Sasol Mining’s participating in the Sasol Inzalo transaction, contributes 26% towards Sasol Mining’s BEE ownership. 
26% meaningful economic participation by 2014 (Achieved >40%)

26% full shareholder rights by 2014 (Achieved >40%).
Housing and living conditions
Sasol Mining has regular discussions with stakeholders regarding measures to improve housing and living conditions.

Going forward, Brandspruit hostel will be the only hostel.

Plans to upgrade a number of hostel rooms into family units has been put on hold pending the outcomes of investigations into the needs and preferences of employees and options available. Maintenance and upgrading on existing units are continuing.

Sasol Mining promotes employee home ownership 
Occupancy rate of one person per room (a reduction of 29,5 from the baseline has been achieved).

Family units established. 

Plans to construct housing units well advanced.
Procurement and enterprise development
Procurement from BEE entities is ahead of the targets set in the Mining Charter.

The provision that multinational suppliers (MNSs) must contribute a minimum of 0,5% of annual income generated from local companies’ spend on capital goods into a social development fund lacks guidelines. Actions have been taken to allow multinationals to contribute to the Sasol Social Trust and as soon as this has been finalized, contributions can be accepted. Until such a points will be lost. 
40% procurement spent on capital goods from BEE entity by 2014 (currently 61,3%).

70% procurement spent on services from BEE entity by 2014 (currently 57,3%).

50% procurement spent on consumable goods from BEE entity by 2014 (currently 47,1%).

0,5% of annual spend on procurement from multinational suppliers contributed to a social fund. 
Employment equity
A plan for meeting and exceeding the new targets for historically Disadvantaged South Africans (HDSA) participation in management has been developed and is being implemented.  40% HDSA representation at top management level by 2014 (currently 25%).

40% HDSA representation at senior management level by 2014 (currently 40%).

40% HDSA representation at middle management level by 2014 (currently 44%).

40% HDSA representation at junior management level by 2014 (currently 40%).

40% HDSA representation at core skills (all levels) by 2014 (currently 81%). 
Human resources development
Sasol Mining’s spend on Human Resources Development (HRD) as a percentage of its annual payroll, excluding the mandatory skills development levy, has been calculated to be at more than 5%.  5% of annual turnover, excluding the mandatory skills levy, to be spent on HRD by 2014 (currently 9%). 
Mine community development
Sasol Mining contributes to the formulation of Integrated Development Plans in the areas in which we operate.

The implementation of Local Economic Development (LED) projects takes place in accordance with commitments contained in the respective Social and Labour Plans (SLP). New projects for the next 5 years have been identified in cooperation with the local municipalities and was submitted to the DMR for approval. 
Up-to-date project implementation. (Projects are on target and an amount of R7,07m was spend during 2011). 
Sustainable development and growth
Sasol Mining is implementing its approved environmental management plans and programmes through its ISO 1400 environmental management system.

Sasol Mining is committed to ensuring a safe working environment for all its employees.

Sasol Mining is utilising South African based research facilities for analysis of all its samples across the mining value chain. 
Implementation of approved EMPs (currently compliant).

Implementation of the tripartite action plan on health and safety (currently compliant).

100% of samples in South African facilities (currently compliant). 
Beneficiation
Sasol, through its Coal-to-Liquids (CTL) process, is a major beneficiator of coal in South Africa.

Approximately 42Mtpa of coal is supplied to Sasol Synfuels which beneficiates the coal into more than 150 products.

Sasol Mining is well positioned to qualify for an offset. 
The beneficiation strategy and its modalities of implementation outline the requirements per commodity extracted in South Africa. 
Mining Charter Scorecard
A duly completed Scorecard for the amended Broad Based Socio-Economic Empowerment Charter for the South African Mining Industry for the period 1 January 2011 to 31 December 2011 is available at (insert Url) 
 
 
Current status
Target
Reporting
We report our progress annually towards achieving our commitments to the Mining Charter in its annual report. 
Continue reporting in annual reports.
Ownership
We have concluded the Ixia Coal transaction which provides Sasol Mining with 20% BEE equity ownership. 
Sasol Mining is also participating, to the tune of R1,2 billion, in the Sasol Inzalo transaction which provides Sasol Mining with a further 14,2% BEE ownership 
26% meaningful economic participation by 2014 (currently 34,2%) 
26% full shareholder rights by 2014 (currently 34,2%)
Housing and living conditions
Sasol Mining has regular discussions with stakeholders regarding measures to improve housing and living conditions 
Going forward, Brandspruit hostel will be the only hostel.
Plans to upgrade a number of hostel rooms into family units has been put on hold pending the outcomes of investigations into the needs and preferences of employees and options available. 
Sasol Mining promotes employee home ownership
Occupancy rate of one person per room (currently baseline established) 
Family units established (currently baseline established) 
Procurement and enterprise development
Procurement from BEE entities is ahead of the targets set in the Revised mining Charter 
The provision that multinational suppliers (MNSs) must contribute a minimum of 0,5% of annual income generated from local companies into a social development fund lacks guidelines. We have not therefore been able to ensure that this provision has been met. 
40% procurement spend on capital goods from BEE entity by 2014 (currently 54%) 
70% procurement spend on services from BEE entity by 2014 (currently 54%) 
50% procurement spend on consumable goods from BEE entity by 2014 (currently 39%) 
0,5% of annual spend on procurement from multinational suppliers contributed to a social fund 
Employment equity
A plan for meeting and exceeding the new targets for historically Disadvantaged South Africans (HDSA) participation in management has been developed and is being implemented 
40% HDSA representation at top management level by 2014 (currently 20%) 
40% HDSA representation at senior management level by 2014 (currently 42,86%) 
40% HDSA representation at middle management level by 2014 (currently 44,03%) 
40% HDSA representation at junior management level by 2014 (currently 51,47%) 
40% HDSA representation at core skills (all levels) by 2014 (currently 31,01%) 
Human resources development
Sasol Mining’s spend on Human Resources Development (HRD) as a percentage of its annual payroll, excluding the mandatory skills development levy, has been calculated to be at more than 5%
3% of annual turnover, excluding the mandatory skills levy, to be spent on HRD
Mine community development
Sasol Mining contributes to the formulation of Integrated Development Plans in the areas in which we operate 
Our implementation of Local Economic Development (LED) projects takes place in accordance with our commitments contained in the respective Social and Labour Plan (SLP) 
Up-to-date project implementation (currently 80% of our projects have been implemented according to schedule) 
Sustainable development and growth
Sasol Mining is implementing its approved environmental management plans to ensure the ISO 1400 management system has been implemented. 
Sasol Mining is committed to ensuring a safe working environment for all its employees. 
Sasol Mining is utilising South African based research facilities for analysis of all its samples across the mining value chain.
Implementation of approved EMPs (currently compliant) 
Implementation of the tripartite action plan on health and safety (currently compliant) 
100% of samples in South African facilities (currently compliant) 
Beneficiation
Sasol, through its Coal-to-Liquids (CTL) process, is a major beneficiator of coal in South Africa. 
Approximately 40Mtpa of coal is supplied to Sasol Synfuels which beneficiates the coal into more than 150 products. 
Sasol Mining is well positioned to qualify for an offset
The beneficiation strategy and its modalities of implementation outline the requirements per commodity extracted in South Africa 
Mining Charter Scorecard
A duly completed Scorecard for the amended Broad Based Socio-Economic Empowerment Charter for the South African Mining Industry is available online