Today, the Commission for Conciliation, Mediation and Arbitration (CCMA) brought its mediation between Sasol and Solidarity, in relation to a dispute on Sasol Khanyisa, to a close. While the mediation did not lead to a resolution of Solidarity’s dispute, it did provide both parties with a constructive platform to share each other’s views and engage on the issues.
At the mediation, the team representing Sasol reaffirmed our position that transformation is, and will remain, a social, moral and business imperative for Sasol. Sasol Khanyisa represents a significant step Sasol is taking to bring about a more inclusive economy by affording an opportunity specifically to previously disadvantaged groups, as defined by the Department of Trade and Industry’s B-BBEE codes.
With regard to industry charters applicable to Sasol, the Mining Charter applies to Sasol Mining, while the Liquid Fuels Charter applies to Sasol’s liquid fuels Energy Business. Each of these Sasol businesses complies with the applicable Charters. Sasol’s Secunda and Sasolburg Operations, as well as the Chemical Business and gas operations, are housed in Sasol South Africa Limited. The Sasol Khanyisa transaction is also housed in Sasol South Africa Limited. There is no correlation between Sasol Khanyisa and the Mining Charter. The B-BBEE laws which govern the Sasol Khanyisa transaction take precedence over the Mining Charter.
Sasol is under no legal or other obligation to amend the Employee Share Ownership Plan structure of Sasol Khanyisa as the company is fully compliant with the applicable charters and B-BBEE laws. Further, the 2018 Mining Charter’s requirement regarding qualifying employees applies only to new, future mining rights applications. Should Sasol Mining apply for new mining licences in the future, we will take the appropriate steps to comply with the Mining Charter in that regard.
We participated in the CCMA’s mediation process and expressed sincere interest in finding an appropriate resolution. However, if Solidarity is, after the CCMA mediation, still of the view that Sasol Khanyisa is not in accordance with applicable laws and regulations, they would need to take their argument to the appropriate court for adjudication. Should this course of action be pursued, Sasol supports and encourages this on behalf of our employees that are represented by Solidarity. If the current B-BBEE laws are modified then we will most certainly comply with any changes in these laws.
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”.