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Secunda Complex SLP Stakeholder Engagement

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Secunda Complex SLP Stakeholder Engagement Secunda Complex SLP Stakeholder Engagement November 2020 Copyright ©, 2020, Sasol Presentation content outline • Overview of Sasol • Background information • Social and Labour Plan (SLP) implementation update • Requirement for the review of SLP’s • Review of the Secunda Complex SLP for the period 1 July 2020 to 30 June 2025 • Conclusion 4 Copyright ©, 2020, Sasol 2 Overview of Sasol ➢ Sasol is a proudly South African based, global energy and chemicals company ➢ Sasol is internationally recognised for its innovative coal-to-liquid (CTL) and gas-to-liquid (GTL) technology ➢ Sasol’s CTL technology is used to produce more than a third of South Africa’s transportation fuels which is of strategic importance to the country ➢ The coal for the CTL process is mined by Sasol Mining which operates an underground coal-mining complex near Secunda in the Mpumalanga province ➢ Sasol Mining’s Secunda Complex has been operational for almost 50 years and annually produces approximately 41 Mt of coal destined for the following markets: ➢ Domestic market: the majority of the coal mined in Secunda area is used as gasification feedstock in Sasol’s CTL operations; and ➢ Export market: a small percentage, roughly 3,5 Mt is exported to European and Asian markets 4 Copyright ©, 2020, Sasol 3 Overview of Sasol • Sasol produce and commercialise a range of product streams including coal, oil and gas, commodity and specialised chemicals, gaseous and liquid fuels and lower carbon electricity MINING EXPLORATION AND ENERGY PRODUCTION INTERNATIONAL Liquid fuels Illuminating Crude oil and Petrol, diesel, paraffin Coal Natural gas condensates jet fuel PERFORMANCE CHEMICALS Liquefied petroleum Other fuels, gas (LPG), propane lubricants and fuel and butane oils ENERGY Advanced materials Organics Inorganics, catalysts Wax and carbon GTL fuel Natural gas & BASE CHEMICALS Bitumen products methane-rich gas Speciality Gas-to-power Polymers Solvents Explosives Fertilisers Ammonia gases electricity 4 Copyright ©, 2020, Sasol 4 Sasol team Sasol Mining Rights Dr Sarel Booyens King Nkambule Nobom Hlatshwayo Sasol Corporate Affairs Mashudu Ndou Andile Mbatha Ntombi Macheke 4 Copyright ©, 2020, Sasol 5 Background ➢ Sasol Mining is the holder of three mining rights in the Mpumalanga province, with the associated Social and Labour Plans (SLP) ➢ Mining rights are situated in the following municipalities: ➢ Govan Mbeki Local Municipality ➢ Lekwa Local Municipality ➢ Dipaleseng Local Municipality; and ➢ eMalahleni Municipality ➢ The SLP covers a period of five years ➢ must be reviewed every five years for the duration of the mining right; and ➢ the SLP addresses the development of employees and training offered to the community, local economic development, employee housing and preferential procurement ➢ Sasol Mining SLP periods ➢ Secunda Complex ended on 30 June 2020 ➢ Block IV ends 30 June 2022, review to commence January 2021 ➢ Alexander ends 30 June 2023, review to commence January 2022 Copyright ©, 2020, Sasol 6 Social and Labour Plans progress update Background A mining right holder must comply with the provisions of the Mineral and Petroleum Resources Development Act, 2002 (Act 28 of 2002) as amended (MPRDA) and the regulations promulgated thereunder On 27 March 2020, the Department of Mineral Resources and Energy (DMRE) published an amendment to the MPRDA Regulations which requires holders of mining rights to provide the community with progress on the implementation of SLPs Must take place at least three times per year Sasol Mining, in partnership with the local municipalities, implemented various community local economic development projects (LED projects) Local suppliers are used for the implementation of projects Labour is sourced from local communities Copyright ©, 2020, Sasol 8 Summary of training provided During the five-year period of the Secunda Complex SLP, from 1 July 2015 to 30 June 2020, Sasol Mining implemented the commitments contained in the SLP In addition to training and development opportunities provided to employees, Sasol Mining also implemented various training initiatives for the community Secunda SLP training summary FY16 to FY20 FY16 FY17 FY18 FY19 FY20 Total Internal External Internal External Internal External Internal External Internal ExternalTotal internal Total External AET 34 24 44 22 48 25 54 35 56 30 236 136 372 Learnerships* 188 50 61 48 156 59 164 57 161 59 730 273 1003* Internships 49 0 38 0 42 1 38 1 38 0 205 2 207 Bursaries 216 46 171 42 89 37 83 37 31 32 590 194 784 Portable 37 57 57 33 48 232 232* skills* *Learnerships - Section 18.1 (full time appointed) reported as internal and Section 18.2 (no employment commitment reported as external eventhough it is a totally new intake *Portable skills - reflected as external as training is provided to employees exiting Sasol Mining as well as community members Copyright ©, 2020, Sasol 9 Lebohang storm water drains phase 1 and 2 • Lebohang had no storm water drainage management system and is prone to flooding • Designed over all storm water drainage system for this section of Lebohang • It benefited some of the poorest people in the Lebohang • It provided immediate relief to people exposed to flooding during the rainy season. • A phased approach was adopted and to date phase 1 and phase 2 completed Copyright ©, 2020, Sasol 10 eMbalenhle footbridges • 18 foot bridges have been constructed • Footbridges used to access health services • One bridge in eMbalenhle Ext 18 constructed over the Klip River (Welas) • The bridge is crossed approximately 40 000 times per week by community members to access • shops • schools • recreational facilities • municipal services • No drownings have occurred since the construction of the Welas bridge. Copyright ©, 2020, Sasol 11 eMzinoni clinic upgrade • Facility fully equipped and furnished at a total cost of R11 million benefiting around 23 000 households • 35 jobs created for local residents • More than 1000 community members attended opening Copyright ©, 2020, Sasol 12 Kinross Extension 25 water reservoir repairs • Sasol Mining repaired a 5 million litre reservoir supplying potable water to Kinross Extension 25 • The town experienced an interrupted water supply, as the reservoir leaked and was not able to supply a consistent flow of water to the town • The repair work involved applying special techniques for sealing water leaks in concrete surfaces using an internationally patented technology developed in the South African mining industry – originally designed to prevent water seeping into mines and flooding them • During construction, a total of nine local residents were employed Copyright ©, 2020, Sasol 13 Sewerage removal trucks – Charl Cilliers • Two sewage removal trucks were supplied to Govan Mbeki Municipality • Enables the removal of sewage sludge from Charl Cilliers town, where septic tanks and pit latrines are still in use • The truck will improve the general health and wellbeing of communities as it can be used in the broader Govan Mbeki Municipality Copyright ©, 2020, Sasol 14 Leandra fire station • Sasol Mining constructed, furnished and equipped the Leandra fire station (R10 million) • Toyota Land Cruiser response vehicle and Mercedes Benz fire truck were provided • This facility plays a key role in in the event of: • motor vehicle accidents on the N17 • fires within the town • fires in the surrounding rural areas Copyright ©, 2020, Sasol 15 Nthoroane and Greylingstad water reservoir fencing • This project entailed the fencing of three water reservoirs, to ensure the safety of the community • Safety of children and animals ensured by the fencing • Drinking water is now clean and free from contamination by animals Copyright ©, 2020, Sasol 16 Upgrading of roads in Nthoroane • Sasol Mining paved six roads within Nthoroane near the town of Greylingstad between March 2014 and August 2014 at a cost of R10 million • Local contractors were used to implement the project • 63 local people were employed during construction Copyright ©, 2020, Sasol 17 eMbalenhle Extension 26 sewer upgrade • 18 km of sewer lines with associated manholes investigated • 8 km of sewer lines with associated manholes replaced/upgraded • Project commenced in September 2014 and completed on 12 December 2015 • A local based company was appointed to do the construction and created 41 jobs for local residents Copyright ©, 2020, Sasol 18 Charl Cilliers multi purpose centre • Charl Cilliers Multi purpose Centre completed in 2018 at R11.6 million • Centre equipped an furnished • Municipal services, community meetings, health services • Ikusasa provide Youth centre at a cost of R200 000 and a mobile clinic valued at R2 million Copyright ©, 2020, Sasol 19 LED project update – Govan Mbeki Municipality Sakhisizwe bridge ● Provides improved and safe accessibility ● Constructed at a total cost of R10.2m Copyright ©, 2020, Sasol 20 Lekwa electricity upgrades • Lekwa electricity upgrade Phases 1 and 2 combined value of approximately R35.5 million • Improved infrastructure and service delivery • Increased capacity resulting in new town developments, thus promoting growth and job creation Copyright ©, 2020, Sasol 21 Energy efficient high mast lights • Energy efficient lighting in eMzinoni, Leandra, Charl Cilliers and eMbalenhle • 43 high mast lights retrofftted and completed in July 2019 (R7 million) • Reduction in electricity usage • Improved safety and security • Energy efficient lighting in Kinross completed in November 2019 ( R4,5 million) • Installed 11 new high mast lights • Improved safety
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