Sasol Pleased With Govt Decision not to Proceed on Windfall Tax

08-07-2007

The South African Minister of Finance, Trevor Manuel, announced today that National Treasury would not proceed with a windfall tax on the profits earned by existing synthetic fuel producers.

Sasol warmly welcomes National Treasury's decision. "Our government's growth vision for the synthetic fuel sector is encouraging. We thank the Minister and the National Treasury team for the constructive manner in which this complex investigation was conducted. This is a win-win outcome for all," says Sasol chief executive Pat Davies

Commenting on the decision, Davies says: "We are enthusiastic about the role we can play in enhancing South Africa's energy security and have started the first phase of significantly expanding our existing synthetic fuels capacity in Secunda, South Africa. We also confirm that we are proceeding with a pre-feasibility study into a greenfields coal-to-liquids (CTL) facility in partnership with government." The pre-feasibility study of the project, known as Project Mafutha, is expected to be completed during 2008.

Sasol also notes government's aim to create a climate of certainty for the liquid fuels industry and lay a basis to ensure the success of growth projects like Mafutha. "We are one of the largest investors in this economy and believe that Project Mafutha could provide Sasol and our stakeholders with a further promising investment opportunity. We are optimistic that the proposed venture will meet both government's and Sasol's investment criteria. We look forward to partnering with government to sustainably address our country's energy needs," says Davies.