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Copyright ©, 2020, Sasol Secunda Complex SLP Stakeholder Engagement November 2020

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Page 1: Secunda Complex SLP Stakeholder Engagement

Copyright ©, 2020, Sasol

Secunda Complex SLP Stakeholder Engagement

November 2020

Page 2: Secunda Complex SLP Stakeholder Engagement

2Copyright ©, 2020, Sasol

• Overview of Sasol

• Background information

• Social and Labour Plan (SLP) implementation update

• Requirement for the review of SLP’s

• Review of the Secunda Complex SLP for the period 1 July 2020 to 30 June 2025

• Conclusion

Presentation content outline

4

Page 3: Secunda Complex SLP Stakeholder Engagement

3Copyright ©, 2020, Sasol

➢ Sasol is a proudly South African based, global energy and chemicals company

➢ Sasol is internationally recognised for its innovative coal-to-liquid (CTL) and gas-to-liquid (GTL) technology

➢ Sasol’s CTL technology is used to produce more than a third of South Africa’s transportation fuels which is of

strategic importance to the country

➢ The coal for the CTL process is mined by Sasol Mining which operates an underground coal-mining complex

near Secunda in the Mpumalanga province

➢ Sasol Mining’s Secunda Complex has been operational for almost 50 years and annually produces

approximately 41 Mt of coal destined for the following markets:

➢ Domestic market: the majority of the coal mined in Secunda area is used as gasification feedstock in Sasol’s CTL

operations; and

➢ Export market: a small percentage, roughly 3,5 Mt is exported to European and Asian markets

4

Overview of Sasol

Page 4: Secunda Complex SLP Stakeholder Engagement

4Copyright ©, 2020, Sasol

• Sasol produce and commercialise a range of product streams including coal, oil and gas, commodity and specialised

chemicals, gaseous and liquid fuels and lower carbon electricity

Overview of Sasol

MINING

Coal

BASE CHEMICALS

FertilisersExplosivesPolymers Solvents

ENERGY

Liquid fuels

Petrol, diesel,

jet fuel

Liquefied petroleum

gas (LPG), propane

and butane

Illuminating

paraffin

Other fuels,

lubricants and fuel

oils

BitumenGTL fuel

products

Gas-to-power

electricity

Natural gas &

methane-rich gas

Speciality

gasesAmmonia

EXPLORATION AND

PRODUCTION

INTERNATIONAL

Natural gasCrude oil and

condensates

PERFORMANCE CHEMICALS

WaxOrganicsAdvanced materials

Inorganics, catalysts

and carbon

ENERGY

4

Page 5: Secunda Complex SLP Stakeholder Engagement

5Copyright ©, 2020, Sasol

Sasol team

Dr Sarel Booyens

King Nkambule

Nobom Hlatshwayo

Sasol Corporate Affairs

Mashudu Ndou

Andile Mbatha

Ntombi Macheke

Sasol Mining Rights

4

Page 6: Secunda Complex SLP Stakeholder Engagement

6Copyright ©, 2020, Sasol

Background

➢ Sasol Mining is the holder of three mining rights in the Mpumalanga province, with the associated Social

and Labour Plans (SLP)

➢ Mining rights are situated in the following municipalities:

➢ Govan Mbeki Local Municipality

➢ Lekwa Local Municipality

➢ Dipaleseng Local Municipality; and

➢ eMalahleni Municipality

➢ The SLP covers a period of five years

➢ must be reviewed every five years for the duration of the mining right; and

➢ the SLP addresses the development of employees and training offered to the community, local

economic development, employee housing and preferential procurement

➢ Sasol Mining SLP periods

➢ Secunda Complex ended on 30 June 2020

➢ Block IV ends 30 June 2022, review to commence January 2021

➢ Alexander ends 30 June 2023, review to commence January 2022

Page 7: Secunda Complex SLP Stakeholder Engagement

Social and Labour Plans progress update

Page 8: Secunda Complex SLP Stakeholder Engagement

8Copyright ©, 2020, Sasol

Background

A mining right holder must comply with the provisions of the Mineral and Petroleum Resources

Development Act, 2002 (Act 28 of 2002) as amended (MPRDA) and the regulations

promulgated thereunder

On 27 March 2020, the Department of Mineral Resources and Energy (DMRE) published an

amendment to the MPRDA Regulations which requires holders of mining rights to provide the

community with progress on the implementation of SLPs

Must take place at least three times per year

Sasol Mining, in partnership with the local municipalities, implemented various community

local economic development projects (LED projects)

Local suppliers are used for the implementation of projects

Labour is sourced from local communities

Page 9: Secunda Complex SLP Stakeholder Engagement

9Copyright ©, 2020, Sasol

Summary of training provided

During the five-year period of the Secunda Complex SLP, from 1 July 2015 to 30 June 2020,

Sasol Mining implemented the commitments contained in the SLP

In addition to training and development opportunities provided to employees, Sasol Mining

also implemented various training initiatives for the community

Secunda SLP training summary FY16 to FY20

FY16 FY17 FY18 FY19 FY20

Internal External Internal External Internal External Internal External Internal ExternalTotal internalTotal

ExternalTotal

AET 34 24 44 22 48 25 54 35 56 30 236 136 372

Learnerships* 188 50 61 48 156 59 164 57 161 59 730 273 1003*

Internships 49 0 38 0 42 1 38 1 38 0 205 2 207

Bursaries 216 46 171 42 89 37 83 37 31 32 590 194 784

Portable

skills*37 57 57 33 48 232 232*

*Learnerships - Section 18.1 (full time appointed) reported as internal and Section 18.2 (no employment commitment reported as

external eventhough it is a totally new intake

*Portable skills - reflected as external as training is provided to employees exiting Sasol Mining as well as community members

Page 10: Secunda Complex SLP Stakeholder Engagement

10Copyright ©, 2020, Sasol

Lebohang storm water drains phase 1 and 2

• Lebohang had no storm water

drainage management system and is

prone to flooding

• Designed over all storm water

drainage system for this section of

Lebohang

• It benefited some of the poorest

people in the Lebohang

• It provided immediate relief to people

exposed to flooding during the rainy

season.

• A phased approach was adopted and

to date phase 1 and phase 2

completed

Page 11: Secunda Complex SLP Stakeholder Engagement

11Copyright ©, 2020, Sasol

eMbalenhle footbridges

• 18 foot bridges have been constructed

• Footbridges used to access health

services

• One bridge in eMbalenhle Ext 18

constructed over the Klip River

(Welas)

• The bridge is crossed approximately

40 000 times per week by community

members to access

• shops

• schools

• recreational facilities

• municipal services

• No drownings have occurred since

the construction of the Welas bridge.

Page 12: Secunda Complex SLP Stakeholder Engagement

12Copyright ©, 2020, Sasol

• Facility fully equipped and furnished at a

total cost of R11 million benefiting around

23 000 households

• 35 jobs created for local residents

• More than 1000 community members

attended opening

eMzinoni clinic upgrade

Page 13: Secunda Complex SLP Stakeholder Engagement

13Copyright ©, 2020, Sasol

Kinross Extension 25 water reservoir repairs

• Sasol Mining repaired a 5 million litre

reservoir supplying potable water to

Kinross Extension 25

• The town experienced an interrupted

water supply, as the reservoir leaked

and was not able to supply a

consistent flow of water to the town

• The repair work involved applying

special techniques for sealing water

leaks in concrete surfaces using an

internationally patented technology

developed in the South African

mining industry – originally designed

to prevent water seeping into mines

and flooding them

• During construction, a total of nine

local residents were employed

Page 14: Secunda Complex SLP Stakeholder Engagement

14Copyright ©, 2020, Sasol

Sewerage removal trucks – Charl Cilliers

• Two sewage removal trucks were supplied to Govan

Mbeki Municipality

• Enables the removal of sewage sludge from Charl

Cilliers town, where septic tanks and pit latrines are

still in use

• The truck will improve the general health and

wellbeing of communities as it can be used in the

broader Govan Mbeki Municipality

Page 15: Secunda Complex SLP Stakeholder Engagement

15Copyright ©, 2020, Sasol

Leandra fire station

• Sasol Mining constructed, furnished and equipped

the Leandra fire station (R10 million)

• Toyota Land Cruiser response vehicle and

Mercedes Benz fire truck were provided

• This facility plays a key role in in the event of:

• motor vehicle accidents on the N17

• fires within the town

• fires in the surrounding rural areas

Page 16: Secunda Complex SLP Stakeholder Engagement

16Copyright ©, 2020, Sasol

• This project entailed the fencing of three water reservoirs, to

ensure the safety of the community

• Safety of children and animals ensured by the fencing

• Drinking water is now clean and free from contamination by

animals

Nthoroane and Greylingstad water reservoir fencing

Page 17: Secunda Complex SLP Stakeholder Engagement

17Copyright ©, 2020, Sasol

Upgrading of roads in Nthoroane

• Sasol Mining paved six roads within

Nthoroane near the town of Greylingstad

between March 2014 and August 2014 at a

cost of R10 million

• Local contractors were used to implement

the project

• 63 local people were employed during

construction

Page 18: Secunda Complex SLP Stakeholder Engagement

18Copyright ©, 2020, Sasol

eMbalenhle Extension 26 sewer upgrade

• 18 km of sewer lines with associated manholes investigated

• 8 km of sewer lines with associated manholes

replaced/upgraded

• Project commenced in September 2014 and completed on

12 December 2015

• A local based company was appointed to do the construction

and created 41 jobs for local residents

Page 19: Secunda Complex SLP Stakeholder Engagement

19Copyright ©, 2020, Sasol

Charl Cilliers multi purpose centre

• Charl Cilliers Multi purpose Centre

completed in 2018 at R11.6 million

• Centre equipped an furnished

• Municipal services, community

meetings, health services

• Ikusasa provide Youth centre at a

cost of R200 000 and a mobile

clinic valued at R2 million

Page 20: Secunda Complex SLP Stakeholder Engagement

20Copyright ©, 2020, Sasol

LED project update – Govan Mbeki Municipality

Sakhisizwe bridge

● Provides improved and safe accessibility

● Constructed at a total cost of R10.2m

Page 21: Secunda Complex SLP Stakeholder Engagement

21Copyright ©, 2020, Sasol

Lekwa electricity upgrades

• Lekwa electricity upgrade Phases 1 and 2 combined value of approximately R35.5 million

• Improved infrastructure and service delivery

• Increased capacity resulting in new town developments, thus promoting growth and job creation

Page 22: Secunda Complex SLP Stakeholder Engagement

22Copyright ©, 2020, Sasol

Energy efficient high mast lights

• Energy efficient lighting in eMzinoni, Leandra, Charl Cilliers and eMbalenhle

• 43 high mast lights retrofftted and completed in July 2019 (R7 million)

• Reduction in electricity usage

• Improved safety and security

• Energy efficient lighting in Kinross completed in November 2019 ( R4,5 million)

• Installed 11 new high mast lights

• Improved safety and security

Kinross before and after

Page 23: Secunda Complex SLP Stakeholder Engagement

23Copyright ©, 2020, Sasol

Greylingstad waste water treatment plant and sewerage reticulation upgrades

Greylingstad/Nthoroane/Willemsdal

• Waste water treatment plant repaired and upgraded

• Sewer pump stations constructed

• Sewer reticulation network installed

• Sizanani informal township converted to a formal services extension of Nthoroane

• Multi year project with estimated completion cost of around R100 million

Page 24: Secunda Complex SLP Stakeholder Engagement

24Copyright ©, 2020, Sasol

Charl Cilliers and eMbalenhle water provision

● Construction 41% complete

● Total project cost: R38 million

● Reliable water supply to Charl Cilliers and eMbalenhle

● Improved service delivery

● Refurbishment of reservoir at eMbalenhle Extension15

Water pipeline between Charl Cilliers

and eMbalenhleConstruction of potable water pump

station at eMbalenhle Ext 15 reservoir

Page 25: Secunda Complex SLP Stakeholder Engagement

25Copyright ©, 2020, Sasol

LED projects FY11 to FY15

SLP LED Project SLP Period BudgetActual amount

Govan Mbeki Municipality

Secunda Complex eMzinoni clinic FY11 to FY15 R4,200,000.00 R10,038,007.15

Secunda Complex Lebohang storm water phase 1 FY11 to FY15 R1,200,000.00 R1,302,767.65

Secunda Complex Charl Cilliers sewer trucks FY11 to FY15 R3,000,000.00 R2,891,437.47

Secunda Complex eMbalenhle Foot bridges phase 1 FY11 to FY15 R1,000,000.00 R1,285,321.07

Secunda Complex Leandra fire Station FY11 to FY15 R8,000,000.00 R10,204,510.21

Secunda Complex Kinross water reservoir FY11 to FY15 R1,500,000.00 R1,296,195.55

Total R27,018,239.10

Dipaleseng Municipality

Secunda Complex Nthoroane fencing FY11 to FY15 R500,000.00 R472,701.47

Secunda Complex Nthoroane road FY11 to FY15 R10,000,000.00 R10,374,270.24

Total R10,846,971.71

Total FY11 to FY15 R37,865,210.814

Page 26: Secunda Complex SLP Stakeholder Engagement

26Copyright ©, 2020, Sasol

LED projects FY16 to FY20

SLP LED Project SLP Period Budget Actual amount to date

Govan Mbeki Municipality Govan Mbeki MunicipalityGovan Mbeki

Municipality

Govan Mbeki

Municipality

Govan Mbeki

Municipality

Secunda Complex Lebohang storm water phase 2 FY16 to FY20 R5,300,000.00 R14,048,786.97

Secunda Complex eMbalenhle Foot bridges phase 2 FY16 to FY20 R1,200,000.00 R710,463.34

Secunda Complex eMbalenhle x25 sewer upgrade FY16 to FY20 R6,500,000.00 R8,158,206.12

Secunda Complex Sakhisizwe bridge FY16 to FY20 R4,000,000.00 R10,300,889.72

Secunda Complex Charl Cilliers multi purpose centre FY16 to FY20 R4,000,000.00 R13,007,877.02

Secunda Complex GMM energy efficient lighting FY16 to FY20 R6,000,000.00 R7,363,603.07

Block IV Kinross energy efficient lighting FY18 to FY22 R400,000.00 R3,840,909.69

Secunda Complex Charl Cilliers and eMbalenlhe water

connections

FY16 to FY20 R12,000,000.00R14,848,327.73

Alexander FY19 to FY23 R30,000,000.00

Total R72,279,063.66

Dipaleseng Municipality

Secunda Complex

Greylingstad waste water treatment plant

upgrade, Greylingstad, Willemsdal,

Nthoroane sewerage reticulation

FY16 to FY20 R45,000,000.00 R33,704,617.10

Lekwa Municipality

Secunda Complex Lekwa electricity upgrade Phase 1 FY16 to FY20 R17,300,000.00R33,520,589.93

Secunda Complex Lekwa electricity upgrade Phase 2 FY16 to FY20 R17,100,000.00

eMalahleni Municipality

Block IV Ogies Vulindlela bridge repairs FY18 to FY22 R3,000,000.00 R856,331.26

Total FY16 to FY20 R140,360,601.95

Total FY11 to FY20 R178,225,812.764

Page 27: Secunda Complex SLP Stakeholder Engagement

27Copyright ©, 2020, Sasol

Affordable housing - eMbalenhle and Secunda

• Policy to promote affordable home ownership for low

income employees

• Severe housing shortage of houses at the lower

income levels (gap market)

• Commenced with the implementation a number of

housing construction projects

• Embarked on an extensive communication process to

ensure that the target group is aware of the Housing

Project

• First time homeowners were delighted to take

ownership of their new houses.

• Employees have the option to choose from a wide

variety of house designs, to suite their individual

needs and affordability

• The employment of locals is also promoted during

construction

• Project to promote home ownership will continue

Page 28: Secunda Complex SLP Stakeholder Engagement

Requirement for the review of Social and Labour Plans

Page 29: Secunda Complex SLP Stakeholder Engagement

29Copyright ©, 2020, Sasol

Review requirements

The 2018 Broad Based Black Economic Empowerment Charter for the Mining and Mineral Industry (Mining Charter)

was published on 27 September 2018

The Mining Charter Implementation Guidelines (Guideline) was published on 20 December 2018

The Mining Charter Implementation Guidelines determine that the holder of a mining right must review the approved

SLP every five years for the duration of the mining right

The review must be done in consultation with affected mine communities, adjacent communities, labour sending

areas, local or district municipalities and tribal authorities, where applicable

The review period should be initiated from the fourth year of the SLP and must be done in consultation with affected

mine communities, adjacent communities, labour sending areas, local or district municipalities and tribal authorities

On 27 March 2020, the DMRE published an amendment to the MPRDA Regulations which requires consultations

with interested and affected parties and allowing 30 days for parties to comment

Consultations must be conducted in accordance with the provisions of the public participation processes as required

by the Environmental Impact Assessment (NEMA) Regulations

Page 30: Secunda Complex SLP Stakeholder Engagement

30Copyright ©, 2020, Sasol

Review requirements for the SLP

Review of the Secunda Complex SLP with DMRE reference number MP 30/5/1/2/2/138 MR

Review process commenced during 2019

The announcement of the a lockdown period commencing on 27 March 2020 resulted in the

postponement of the consultation process

To meet regulatory requirements, the draft reviewed Secunda Complex SLP for the period 1 July 2020 to

30 June 2025 was submitted to the DMRE on 27 March 2020

The SLP submitted states that:

● the community LED projects will be confirmed, and

● the public participation process will recommence as soon as possible after the suspension of the

lockdown period

Sasol Mining is required to adhere to the new MPRDA Regulations and consultations must be conducted

in accordance with the provisions of the public participation processes as required by the Environmental

Impact Assessment Regulations

Public participation process will have to start from scratch due to the requirements of the new MPRDA

Regulations

Page 31: Secunda Complex SLP Stakeholder Engagement

31Copyright ©, 2020, Sasol

Review requirements in support of a mining right amendment

Sasol Mining acquired a number of small and isolated coal reserve areas

To enable Sasol Mining to mine the coal in these areas, the Secunda Complex mining right has

to be amended in terms of the provisions of the MPRDA,

The SLP was also amended to reflect the additional areas

The additional areas constitutes approximately 3,5% of the total Secunda Complex

Public participation has to recommence, (although all municipalities have been consulted on the

review process) once the moratorium on gatherings and the lockdown period is lifted

Page 32: Secunda Complex SLP Stakeholder Engagement

32Copyright ©, 2020, Sasol

Reviewed and amended Secunda Complex SLP Locality

Page 33: Secunda Complex SLP Stakeholder Engagement

Review of the Secunda Complex Social and Labour Plan

for the period 1 July 2020 to 30 June 2025

Page 34: Secunda Complex SLP Stakeholder Engagement

34Copyright ©, 2020, Sasol

Details of the SLP for the Secunda Complex

The SLP contains three broad sections:

● Human Resources Development

● Local economic development (LED)

● Downscaling and retrenchments

Human Resources Development covers the following:

• Adult Education and Training

• Learnerships

• Internships

• Bursaries

• Employment Equity

• Portable Skills

Page 35: Secunda Complex SLP Stakeholder Engagement

35Copyright ©, 2020, Sasol

Details of the SLP for the Secunda Complex

The SLP contains three broad sections:

● Human Resources Development

● Local economic development (LED)

● Downscaling and retrenchments

Human Resources Development covers the following:

• Adult Education and Training

• Learnerships

• Internships

• Bursaries

• Employment Equity

• Portable Skills

Page 36: Secunda Complex SLP Stakeholder Engagement

36Copyright ©, 2020, Sasol

Adult Education and Training

• Sasol Mining is committed to improve the education levels of employees, especially those with no schooling

by providing adult education and training (AET) programmes

• Over and above the training of employees, Sasol Mining also offers AET to community members from the host

areas

• The programme offers learners opportunities to be functionally literate and numerate (AET Levels 4 and 5)

• Sasol embarks on an extensive external advertising campaign in order to attract qualifying community

members

● Annual exhibitions are hosted within communities to attract interested prospective learners

● Advertisements for ABET are placed on all the public buildings within a municipal area

● Trade union partnerships are encouraged

● Other mediums such as radio and community newspapers are also utilised

● The numbers selected within communities are determined by the number of employees selected internall,y as it is

important to accelerate their functionality at work

● The numbers selected from communities are referred for placement tests to establish their levels

● Oral interviews are also conducted

Page 37: Secunda Complex SLP Stakeholder Engagement

37Copyright ©, 2020, Sasol

Adult Education and Training

• Sasol Mining has an in-house AET facility, located in Secunda and has programme approval with relevant licensing

authorities

• The facility can accommodate up to 70 learners at a time

• The AET facility uses professional educators to facilitate the classes

• Cost considerations for the use of the centre to ensure that numbers are aligned to the requirements for the delivery

of the programme

Period FY21 FY22 FY23 FY24 FY25 Total

Internal 40 35 30 25 25 155

External 20 15 15 15 15 80

Page 38: Secunda Complex SLP Stakeholder Engagement

38Copyright ©, 2020, Sasol

• Sasol Mining Technical Training (T2), based in Secunda, is the primary training provider for Sasol Mining

• T2 makes use of secondary providers to train on the various learnership programmes

• The objectives of the learnerships are:

● To provide a skills pipeline for positions within the hard-to-fill vacancies category, particularly the electro mechanics,

diesel mechanics and learner miners

● To provide a skills pipeline to support the Sasol Mining’ Employment Equity (EE) plan

● To mitigate the impact of the shortage of skills within the company and South Africa

● To meet current and future demand for skilled artisans and miners

Learnerships

Page 39: Secunda Complex SLP Stakeholder Engagement

39Copyright ©, 2020, Sasol

Selection process for learner miners 18.1 and 18.2

• Artisans are still categorized as scarce skills in the country and Sasol is committed to the fulfillment of skills development in

line with the Mining Qualifications Authority (MQA)

• 18.1 learners are those employed and 18.2 are learners recruited with no commitment to employ; all are being prepared to

become skilled artisans

• Structured information sessions are conducted during the annual exhibition sessions

• During the exhibitions, prospective candidates complete training opportunity forms

• HR follows up by conducting oral interviews to establish interest

• Learners who had performed well in Mathematics and Physical Science, are considered

Period FY21 FY22 FY23 FY24 FY25 Total

Appointed (18.1) 80 80 80 80 80 400

No employment

commitment (18.1)13 13 13 13 13 65

Total 465

Page 40: Secunda Complex SLP Stakeholder Engagement

40Copyright ©, 2020, Sasol

Internships

• The Internship programme is aimed at providing practical work experience within the Sasol Mining environment to

students or recent graduates

• Objectives:

● To provide students and recent graduates with practical experience

● To provide a transition between theoretical studies and the practical work environment

● To develop and entrench a work culture, desired workplace values and enhance participants’ performance when

they are appointed

● To attract non-Sasol bursars to Sasol Mining on completion of their studies

• To ensure that Sasol mining has sufficient and qualified artisans and learner miners, an internship progamme is in

place to address the challenge of hard-to-fill vacancies

• External internships have no commitment of employment

Period FY21 FY22 FY23 FY24 FY25 Total

Internal 40 40 40 40 40 200

External 2 2 2 2 2 10

Page 41: Secunda Complex SLP Stakeholder Engagement

41Copyright ©, 2020, Sasol

• The Sasol Group has an extensive programme to supply bursaries and support to the communities throughout the

country

• Sasol creates relationships with schools within the immediate Gert Sibande District and the Mpumalanga Province, to

target students in grade 10 to 12 to create an awareness of a career in mining

• Sasol Mining also advertises within the Mpumalanga region for prospective bursary holders to attract students within the

Mpumalanga region

• Bursary recipients study full time and the bursary continues until the student graduates as stipulated by the Sasol

bursary agreement

• Career expo’s like Techno X and the Osizweni science week are intended to promote bursaries and careers in

engineering and mining-specific disciplines

• Sasol Mining also provides bursaries to its employees through a Study Aid programme, enabling them to further their

tertiary education.

• Sasol’s objective is to develop and grow employee’s knowledge in their current positions

Bursaries

Period FY21 FY22 FY23 FY24 FY25 Total

Internal 80 80 80 80 80 400

External 35 35 35 35 35 175

Page 42: Secunda Complex SLP Stakeholder Engagement

42Copyright ©, 2020, Sasol

Portable Skills

• Portable skills training is designed to equip affected employees with skills that can be used outside the mining

industry in the event of mine closure and retrenchment as well as those employees who leave Sasol Mining due to

retirement or being physically unable to perform underground work

• The selection criteria for employees to participate in portable skills training are:

● Less than 10 years from retirement with no formal skills

● Individual unable to perform work underground at the mine and who cannot be redeployed elsewhere

● The selection of employees to participate in the programme is done by the Human Resources Department, in

consultation with representative trade unions

● All the training is paid for by Sasol Mining and if necessary, training is outsourced to a specialist service provider

Period FY21 FY22 FY23 FY24 FY25 Total

Target 45 40 40 40 40 205

Page 43: Secunda Complex SLP Stakeholder Engagement

43Copyright ©, 2020, Sasol

Portable Skills: Selection process for communities

• Any unemployed person from the applicable local community may participate in the Portable Skills Program. The minimum

age for external candidates is 18 years

• The eligible target population for external candidates is unemployed persons from the local area

• Prospective candidates will be considered after the final confirmation of internal intake as priority is given to internal

candidates

Possible candidates are sourced through the following methods:

● Word of mouth

● Structured information sessions with training opportunity forms

● Advertisements/notices

● Recruitment via HR and union partnerships

Page 44: Secunda Complex SLP Stakeholder Engagement

44Copyright ©, 2020, Sasol

Benefits to the communities from all the educational training programmes

• Improvement in the levels of education especially, those with no formal schooling

• Upskilling of learners in the categories deemed to be scarce skills

• Accredited qualifications at the end of each level

• Enabling communities to apply for jobs in Sasol and other industries within the surrounding areas

• Opening up opportunities for learners who may not necessarily have the financial means to study further

• Supporting schools with career guidance

• Employees leaving the employment of Sasol Mining, such as retirement, medical or retrenchment can utilise the skills

acquired to enable them to sustain themselves beyond their service at the mine

Page 45: Secunda Complex SLP Stakeholder Engagement

45Copyright ©, 2020, Sasol

Employment Equity five year targets in terms of the Mining Charter 2018

Management Level Target FY21 Target FY22 Target FY23 Target FY24 Target FY25

Top Management 66,7% 66,7% 66,7% 66,7% 66,7%

Females (20%) 44,4% 44,4% 44,4% 44,4% 44,4%

Executive Management (50%) 53,8% 53,8% 53,8% 53,8% 53,8%

Females (20%) 15,4% 15,4% 15,4% 15,4% 15,4%

Senior Management (60%) 46,1% 50% 53,9% 57,8% 57,8%

Females (25%) 15,7% 18,4% 21,05% 23,7% 23,7%

Middle Management (60%) 59,4% 59,4% 59,6% 59,6% 59,6%

Females (25%) 24,2% 24,2% 24,7% 24,7% 24,7%

Junior Management (70%) 65.7% 69.7% 69,7% 69,7% 69,7%

Females (30%) 21,8% 24,4% 27,6% 30,0% 30,0%

People with disabilities 0.15% 0.27% 0.67% 1.08% 1.50%

Core and critical skills 84.49% 85.00% 85.00% 85.00% 85.00%

Page 46: Secunda Complex SLP Stakeholder Engagement

46Copyright ©, 2020, Sasol

Mine Community Development

• Mine Community refers to communities where mining takes place as well as labour sending areas

• The primary objective of mine community development is to contribute meaning ful towards community development, both in

terms of size and impact, in keeping with the principles of the social license to operate

• All Local Economic Development (LED) projects are developed in partnership with key community stakeholders and are

concentrated in municipal areas where Sasol Mining has the largest footprint

• The Secunda Complex mining area incorporates a total of four local municipalities, namely the Govan Mbeki Municipality,

Lekwa Municipality, Dipaleseng Municipality as well as the eMalahleni Municipality

• LED projects are identified in partnership with municipalities and communities through the IDP processes

Page 47: Secunda Complex SLP Stakeholder Engagement

47Copyright ©, 2020, Sasol

Implementation of LED projects

• All the projects being implemented within the host and labour sending communities, Sasol Mining ensures that labour is

recruited locally

• Prospective employees on the project are drawn from the database of the Department of Labour in consultation with the

municipality where the project is being implemented

• A Community Liaison Officer (CLO) is appointed to serve as a conduit between the community, the managing the contractor

and Sasol Mining

● Process to appoint a CLO:

● Advertisements in newspapers

● Shortlisting of candidates based on responses received

● Representative panel conducts interviews

• A Project Steering Committee is established to manage the interaction between the community and the project to guide the

project during implementation

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Proposed community local economic development (LED) projects

Project FY21 FY22 FY23 FY24 FY25 Total

Dipaleseng

Greylingstad waste water

treatment works and reticulationR5,416,000 R5,416,000

Nthoroane Ext 2 development and

potable water supplyR15,111,425 R33,198,048 R9,690, 527 R58,000,000

Govan Mbeki

Drug rehabilitation centre R10,000,000 R15,000,000 R25,000,000

Electricity upgrades R17,000,000 R10,000,000 R27,000,000

Holfontein resettlement R8,000,000 R8,000,000

Lekwa

Rural water provision R4,100,000 R4,100,000

Lekwa sewer system upgrade R9,000,000 R10,000,000 R19,000,000

eMalahleni

Agro processing hub – Kriel area R3,000,000 R3,000,000

LED total R5,416,000 R22,100,000 R47,111,425 R52,198,048 R22,690,527 R149,246,000

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Inclusive procurement

• In line with the requirements of the Mining Charter 2018, Sasol is required to ensure that procurement of goods and

services as it relates to the projects on mine and LED projects are also accessed by the historically disadvantaged

emerging contractors

• In cases whereby we are unable to source a qualified contractor locally, Sasol Mining sources from the district and

provincially

• Selection of contractors is based on the understanding of the scope of work

• In a case where a contractor has been sourced from the district or provincially, 30% of the contract value must, as far as

possible, be ring-fenced for the benefit of the emerging contractors who are locally based

• Emerging contractors are expected to comply with legislation, namely: SARS, CIPC, Safety and Engineering Standards as

approved by ECSA

• The requirement of a vendor number has been relaxed and roadshows are organised by the supply chain department, to

ensure that locally based contractors get an equal opportunity to apply.

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Inclusive Procurement targets for mining goods aligned with the Mining Charter

Category 2020 2021 2022 2023 2024 2025

50% +1 HDP owned and controlled 4,2% 7,35% 10,5% 21% 21% 21%

50% +1 Women and Youth owned and

controlled1% 1,75% 2,5% 5% 5% 5%

25% + 1 HDP ownership and minimum

DTI B-BBEE Level 4 status8,8% 15,4% 22% 44% 44% 44%

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Inclusive Procurement targets for services aligned with the Mining Charter

Category 2020 2021 2022 2023 2024 2025

50% +1 HDP owned and

controlled50% 50% 50% 50% 50% 50%

50% +1 Women owned and

controlled15% 15% 15% 15% 15% 15%

50% +1 Youth owned and

controlled5% 5% 5% 5% 5% 5%

25% +1 HDP ownership and

minimum DTI B-BBEE Level 4

status

10% 10% 10% 10% 10% 10%

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Conclusion

• Sasol Mining is committed to improve the skills levels of its employees and the local community

• LED projects aim to improve the lives of local communities

• Opportunities exist for local jobs and services providers

• Nurturing and strengthening skills development initiatives for self employment and employability in other sectors, and

beyond the life of mine

• Proactive and constructive engagement with stakeholders to ensure that we maximise benefits to the communities

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Conclusion

Comments to be submitted no later than 22 December 2020

● By email [email protected]

● Hard copies of the SLP and comments registers at the following public libraries:

● Secunda

● eMbalenhle

● Bethal

● eMzinoni

● Kinross

● Evander

● Leandra

● Lebohang

● Balfour, Nthoroane

● Standerton

● Sakhile

● Kriel

● The SLP is also available at the offices of Sasol Mining, Mining Rights and Properties, Uno Building, Paul Kruger Street,

Trichardt

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