Sep 10, 2012
Stakeholder relations prioritised as Sasol recalibrates to post-Marikana worldBack
Africa|CoAL|Exploration|Lonmin|Projects|Resources|Sasol|Africa|South Africa|Marikana Mine|Chemicals|Energy|Environmental|Southern Africa
© Reuse this
The group expects to spend about 68% of its R32-billion capital expenditure (capex) budget on projects within South Africa during 2012/13, notwithstanding its major North American expansion aspirations. In 2011/12, the group also spent the bulk of its R29.2-billion capex on developments in its home market.
CEO David Constable reports that efforts to improve its lines of communication, including with “the CEO’s office”, predate the tragic August 16 events at Lonmin’s Marikana mine, in the North West province.
Sasol met with all of its trade unions on August 14, where discussions were held on the group’s strategy and ensuring “everyone’s voice is heard”.
The issue of stakeholder engagement had also been elevated to a key priority for the group’s 2013 financial year and had been accompanied by a change to one of the group’s core company values “from customer focused to stakeholder focused”.
“There’s a lot to be done. We understand that the country is facing major socioeconomic challenges . . . and we want to work in conjunction with all parties – government and our trade union colleagues – to make sure we are very well aligned and have open lines of communication,” Constable explained.
He said the relationships with unions were “very good”, but “extra focus” is being placed on improving communication.
“Our strategy in South Africa and Southern Africa is to protect and diversify our companies in-country and in the region and that means that we will continue to investment when it makes sense,” Constable asserts.
He adds that, while there was no current environmental solution to the development of a new coal-to-liquids plant, there were still growth opportunities in South Africa, some of which could be opened by the lifting of the moratorium on shale-gas exploration.
“Hopefully in the future, possibly with the crude gas another gas-to-liquids plant could be out there as well,” he adds.
Sasol, which supported the exploration moratorium and stepped back from involvement in an earlier Karoo basin shale-gas prospect, believes that, under a sound regulatory regime, it is in South Africa’s national interest to assess its shale-gas resources.
“So we are definitely interested in looking at opportunities in the Karoo, if it can be done in an environmentally-friendly fashion.”
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Updated 22 minutes ago Private equity will play a key role in developing Africa given the massive needs for capital on the continent, says Blackstone Group, which is focusing on infrastructure projects involving power generation and transmission. CEO Steve Schwarzman said he would continue...
Updated 28 minutes ago Egypt expects a planned economic zone near the Suez Canal to eventually make up about a third of Egypt's economy, the country's investment minister said on Thursday. Egypt plans to build an international industrial and logistics hub near the canal to attract foreign...
Updated 51 minutes ago South Africa has to secure the future of the local petroleum industry through policy protection, to prevent the market from being flooded by clean fuels imports. The deferment of a clean fuels policy last year had opened a gap for importers and the urgency to...
Recent Research Reports
Construction 2015: A review of South Africa’s construction sector
While the construction sector remains a sizeable economic contributor and employment provider, it has been in a slump for the past seven years, not being able to recover to the growth levels in the build-up to the 2010 FIFA World Cup – between 2004 and 2007 – when...
Liquid Fuels 2014: A review of South Africa's liquid fuels sector
Despite South Africa’s oil and gas deposits, its current fuel-refining capacity is insufficient to meet local demand for liquid fuel products, and the shortfall is being met through imported refined products. In recent years, the country has become increasingly...
Water 2014: A review of South Africa's water sector
As the world’s most valuable resource, water and its preservation are becoming increasingly important, with various industries noticing the scarcity of this resource. Without water, industrial activities and agricultural activities cannot take place – directly...
Defence 2014: A review of South Africa's defence industry
South Africa’s defence industry has sophisticated manufacturing capabilities and it has been at the forefront of many significant defence developments locally and internationally. The industry has a high level of State involvement in terms of acquisitions and...
Road and Rail 2014: A review of South Africa's road and rail infrastructure
The state of a country’s transport infrastructure is a key determinant of the performance and growth of its economy, as well as of the social and economic opportunities available to that country’s population. South Africa is investing substantially in its transport...
Real Economy Year Book 2014
There have been some improvements in global economic conditions over the past few months, with the US set to grow at a better pace in 2014 than has been the case in the years following the global economic crisis. Few economic commentators are anticipating a hard...
This Week's Magazine
The World Bank, the European Union, the African Development Bank (AfDB) and the government of Sweden have agreed to provide Zimbabwe and Zambia with $294-million for the repair of structural deformations on the Kariba dam wall and avert the possible collapse of the...
Executive chairperson of the Global Electricity Initiative (GEI) Philippe Joubert says energy utilities globally, together with the business community more generally, have come to terms with the science of climate change, particularly as extreme weather events begin...
JSE-listed Emira Property Fund reported distribution growth per participatory interest (PI) of 9% for the six months ended December 31, 2014.
Sub-Saharan Africa is still faced with the challenge of providing citizens access to electricity and an additional $450-billion will need to be invested to ensure that people in urban areas have access to electricity by 2040.
Consulting Engineers South Africa (Cesa) last month said it was dismayed that the Department of Water and Sanitation (DWS) was seconding 35 Cuban engineers on a two-year contract to share their expertise with South African engineers in the water sector.