Sasol Implements Second Phase of BEE in South Africa
Sasol Mining, the wholly-owned subsidiary of Sasol Ltd., announced the formation of a black-women controlled coal mining company called Ixia Coal (Pty) Ltd. In a transaction valued at almost R1.9 billion, Ixia Coal will acquire 20% of Sasol Mining’s shareholding through the issue of new shares. Ixia Coal is a venture with Women Investment Portfolio Holdings Ltd. (WIPHOLD) and Mining Women Investments (Pty) Ltd., a newly established company comprising women drawn from the areas where Sasol Mining has operations and coal reserves.
Heralding the second phase of Sasol Mining’s broad-based black economic empowerment (BEE) strategy, this transaction enables Sasol Mining to achieve compliance with the Mining Charter’s ownership requirements.
The first phase of Sasol Mining’s BEE strategy was the creation of Igoda Coal (Pty) Ltd., a coal export venture with Eyesizwe Coal announced in March 2006. Now, with the formation of Ixia Coal, Sasol Mining’s BEE ownership component will increase to an estimated 26% (calculated on attributable units of production) well before the 2014 deadline.
“This transaction not only achieves compliance with the Mining Charter, but also promotes women in mining,” said Sasol Executive Director, South African Energy Businesses, Dr. Benny Mokaba. “We want to create lasting empowerment by providing opportunities for our country’s women to enter and benefit from the traditionally male-dominated mining industry. Our focus will be on developing relevant skills and building capacity among historically disadvantaged women.”
Sasol Mining will also benefit from the proposed 10% BEE transaction, which if approved by shareholders, will be implemented in 2008 and will take Sasol Mining beyond compliance with the Mining Charter’s ownership requirements. Sasol Mining Holdings will have a 49% ownership in Ixia Coal. The other 51% will be owned by WIPCoal Investments. WIPHOLD will be the majority shareholder in WIPCoal Investments, with 60% shareholding. The other 40% shares will be owned by Mining Women Investments. Ixia Coal will be independently controlled and separate from Sasol Mining.