Sasol has been informed by members of the eMbalenhle community of forming of cracks in the ground and structures near Extension 22. After undertaking an investigation, Sasol has established that the surface structures were built on an area where Sasol completed underground coal mining operations. This area is no longer operational and mining activity was completed before these structures were built.
The mining experts who conducted the investigation are compiling the necessary reports which will provide clarity on the exact cause of the cracks forming and to establish the role that mining activities played.
It must be noted that the construction of buildings on land where underground mining took place is strictly regulated. Although building plans of structures to be erected on such land must be approved by the local municipality, the Mine Health and Safety Act prescribes additional processes and approvals that local authorities should follow.
We are cooperating with the Govan Mbeki Municipality to establish the nature of the structures and their foundations, and whether the applicable building regulations and title deed restrictions dealing with the construction of these structures on undermined land were followed.
Furthermore, the Department of Mineral Resources and Energy has also been notified.
Notwithstanding this regrettable incident and inconvenience to some residents, Sasol Mining will continue to take reasonable measures to establish the cause of the incident and advise the local municipality on appropriate steps to take to address this matter.
We will keep all stakeholders updated as appropriate as this process unfolds.
Sasol may, in this document, make certain statements that are not historical facts that relate to analyses and other information which are based on forecasts of future results and estimates of amounts not yet determinable. These statements may also relate to our future prospects, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, statements regarding exchange rate fluctuations, volume growth, increases in market share, total shareholder return, executing our growth projects (including LCCP), oil and gas reserves and cost reductions, including in connection with our BPEP, RP and our business performance outlook. Words such as “believe”, “anticipate”, “expect”, “intend", “seek”, “will”, “plan”, “could”, “may”, “endeavour”, “target”, “forecast” and “project” and similar expressions are intended to identify such forward-looking statements, but are not the exclusive means of identifying such statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that the predictions, forecasts, projections and other forward-looking statements will not be achieved. If one or more of these risks materialise, or should underlying assumptions prove incorrect, our actual results may differ materially from those anticipated. You should understand that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors are discussed more fully in our most recent annual report on Form 20-F filed on 28 August 2018 and in other filings with the United States Securities and Exchange Commission. The list of factors discussed therein is not exhaustive; when relying on forward-looking statements to make investment decisions, you should carefully consider both these factors and other uncertainties and events. Forward-looking statements apply only as of the date on which they are made, and we do not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise.
Please note: One billion is defined as one thousand million. bbl – barrel, bscf – billion standard cubic feet, mmscf – million standard cubic feet, oil references brent crude, mmboe – million barrels oil equivalent. All references to years refer to the financial year 30 June. Any reference to a calendar year is prefaced by the word “calendar”.