Sasol Mining Obtains Conversion of its Old Order Mining Rights
The Department of Mineral Resources (DMR) granted approval for the conversion of Sasol Mining's old order mining rights in respect of the Secunda Complex, as well as those for the Mooikraal Operation situated near Sasolburg in the Free State.
Obtaining the conversion is the result of an intensive process, in close cooperation with the DMR, which commenced during 2006 and culminated in the formal signing of the conversions at the end of March 2010.
The approval is a significant milestone for Sasol Mining as the Ixia Coal Black Economic Empowerment transaction can now be fully implemented. As part of Sasol's transformation objective, the company set out to create one of the first black women owned and operated coal mining companies in South Africa. Ixia Coal is the result of this process and Sasol and our partners now have the exciting prospect of operationalising Ixia Coal.
Sasol Mining has already commenced with the implementation of several of the local economic development projects included in the relevant social and labour plans. With the formal approval of the conversions completed Sasol can now focus on the delivery of these projects to the benefit of the communities in which Sasol Mining operates.
The managing director of Sasol Mining, Herman Wenhold, said:
"The conversion of the old order mining rights of Sasol Mining to new order mining rights is a formal acknowledgement of the progress made on transformation in Sasol Mining and further signifies our firm commitment to continue the transformation journey we have started."
The DMR also granted Sasol Mining a new mining right in respect of small reserves situated within and adjacent to the existing Mooikraal Operation's mining area. Expanding the operations into these reserves will ensure that the Mooikraal reserves can be optimally exploited and will also increase the reserve base of the Mooikraal Operation.
Sasol Mining has been mining coal for almost 60 years. Mining commenced in the Free State during 1952 and coal has been mined in the Secunda area for more than 30 years. Sasol Mining supplies approximately 40 million tons per annum to Synfuels in Secunda and 1,7 million tons per annum to Infrachem in Sasolburg. In addition, Sasol Mining exports approximately 3,2 million tons to European and Asian markets. Coal is mined by five production operations within the Secunda Complex and one operation in the Free State.
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