Update and Review of the Sigma Colliery: Mooikraal Shaft SLP - November 2020
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Update and Review of the Sigma Colliery:
Mooikraal Shaft SLP
November 2020
Copyright ©, 2020, Sasol
Presentation Content Outline
• Overview of Sasol
• Background Information
• Social and Labour Plan (SLP) implementation update
• Requirements for the review of SLP’s
• Review of the Sigma Colliery: Mooikraal Shaft for the period 1 July 2020 to 30 June 2025
• Conclusion
2
Copyright ©, 2019, Sasol
Overview of Sasol
• Sasol is a proudly South African based, global energy and chemical based company
• Sasol is internationally recognized 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 commenced with mining in the Sasolburg area 70 years ago and the
Secunda complex has been operational for almost 50 years and annually produces
approximately 41 Mt of coal destined for the following markets:
• Around 1,2 Mt coal is mined at the Sigma Colliery: Mooikraal Shaft annually
which is used for electricity and steam generation
• The coal mined in Secunda area is used as gasification feedstock in Sasol’s CTL
operations; and
• Roughly 3,5 Mt is exported to European and Asian markets annually
3
Copyright ©, 2019, Sasol
Overview of Sasol
We 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
MINING EXPLORATION AND ENERGY
PRODUCTION
INTERNATIONAL
Liquid fuels Illuminating
Crude oil and Petrol, diesel, paraffin
Coal Natural gas jet fuel
condensates
PERFORMANCE CHEMICALS
Liquefied petroleum Other fuels,
gas (LPG), propane lubricants and fuel
and butane oils
ENERGY
Advanced materials
Organics Inorganics, catalysts Wax
and carbon
GTL fuel Natural gas &
Bitumen products methane-rich gas
BASE CHEMICALS
Speciality Gas-to-power
Polymers Solvents Explosives Fertilisers Ammonia electricity
gases
4
Copyright ©, 2019, Sasol
Sasol Team
Sasol Mining Rights Department
• Dr Sarel Booyens
• Nobom Hlatshwayo
• Solomon Tshili
Corporate Affairs Department
• Zimbini Zwane
• Paul Lempe
• Siyabonga Mboniswa
5
Copyright ©, 2019, Sasol
Background Information
• Sasol Mining (Pty) Ltd is the holder of Mining Right No 176/2012 MR with the associated
Social and Labour Plan (SLP) in respect of the Sigma Colliery: Mooikraal Shaft
(Mooikraal)
• The Mooikraal mining right is situated in the following municipalities:
• The shaft complex and associated infrastructure is located in the Ngwathe
Municipality
• Some infrastructure is situated in the Metsimaholo Municipality and the majority of
Mooikraal employees resides in the Metsimaholo 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.
• The Mooikraal SLP has reached the end of the five year cycle on 30 June 2020 and has
therefore been revised for submission to the DMRE for approval, once the public
participation process is completed
6
Copyright ©, 2019, Sasol
Background continued
• The Mooikraal Colliery was established in 2008, to replace the now defunct Sigma Colliery
• The Mooikraal Colliery is a very small part of the Sasol Mining Business, as it produces less
than 1,5 Mt of Sasol Mining’s annual production
• To ensure that the Mooikraal Colliery remains economically viable, it is seen as a shaft
complex with support services such as top management, human resources management,
mine planning, procurement, mine community development and financial services are
provided centrally by Sasol Mining, from the Secunda Complex
7
Copyright ©, 2019, Sasol
Social and Labour Plan progress update Copyright ©, 2019, 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
9
Copyright ©, 2019, Sasol
Summary of training provided
• During the five year period of the Mooikraal 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
Mooikraal SLP training summary FY16 to FY20
FY16 FY17 FY18 FY19 FY20
Total Total
Int Ext Int Ext Int Ext Int Ext Int Ext Total
internal External
AET 6 14 13 19 16 15 20 13 23 25 78 86 164
Learnerships 8 1 4 1 6 2 9 2 11 1 38 7 45
Internships 1 0 2 0 4 0 2 0 0 0 9 0 9
Bursaries 4 5 5 5 6 7 6 3 0 0 21 20 41
Portable
22 24 24 51 0 121 121
skills*
*Portable skills - reflected as external as training is provided to employees exiting Sasol Mining as well as
community members. FY20 intake could not take place as colleges were still closed in terms of COVID-19
Lockdown Regulations
10
Copyright ©, 2019, SasolSigma Mooikraal Community LED Projects (2008 – 2020)
Amount Jobs created /
No Project Town Timeline Beneficiaries
(Rm) anticipated
Parys 2008-2012
1 Provision of B3 Printers 1,05 6 30
(Ngwathe) completed
Establishment of Sisonke Zamdela 2008-2012
2 1,7 13 65
bricks and blocks (Metsimaholo) completed
Upgrading of Khanya Koppies 2012–2014
3 5,4 20 17000
Community Health Centre (Ngwathe) completed
DMRE Free State Youth in 2015
4 Welkom 0.04 n/a 200
Mining Conference completed
Sewing machines and
2015
5 equipment to Sedibeng TVET Vanderbijlpark 0.04 80 2000
completed
College
6 Refenkgotso sewer pump Refenkghotso 2014-2015
1,2 8 3500
station upgrade (Metsimaholo) completed
Sowing machines and
7 Sasolburg 2017
equipment to Flavius Mareka 0.05 80 2000
(Metsimaholo) completed
TVET
Vredefort 2018-2020
8 Multipurpose center 10 10 10000
(Ngwathe) (Completed)
Refenkgotso 2017-2018
9 Upgrade of gravel roads 7,5 30 15000
(Metsimaholo) (Completed)
Parys 2019-2020
10 Construction of a clinic 5.5 30 15000
(Ngwathe) (In processes)
Total 32,48
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Copyright ©, 2019, SasolKoppies clinic upgrade
• Khanya Community Health Centre only health
care facility in the area and serves approximately
20 000 households
• The CMC served three times the number of
patients it was designed for
• Construction commenced during January 2014
and the CMC was expanded by upgrading and/or
adding:
• a pharmacy meeting legislative requirements
• additional consulting rooms
• a purposely built TB unit
• a mini-operation theatre to perform small
surgical procedures
• a kitchen sufficient to service the staff and
CMC requirements
• staff resting area
• water tank to ensure 24 hour per day water
supply
• upgrading of the sewer system to meet the
demand of the enlarged CMC New theatre and recovery ward
• equipment and furniture to ensure the CMC
can function optimally
12
Copyright ©, 2019, SasolRefengkgotso sewer pump station upgrade
• Pump station not fully operational
• Community of Refenkgotso faced immense
challenges with raw sewerage in streets
• Spilled sewage also posed a health risk as well as
polluting the Vaal dam
• Replaced and refurbished pumps, Archimedes
screw and associated equipment at a value of R1,2
million
• Improved community health and basic living After status
conditions as no raw sewage are present in the
roads
Before status
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Copyright ©, 2019, SasolRefenkgotso roads upgrade
• Upgrade of road in Refengkgotso (R6,5
million)
Road under
• Two local based black owned contractors construction
were appointed for the construction of the
roads.
• The project was divided into two distinct
sections:
• a section of the road is tarred (black
top)
• a section of the road is paved
(pavers) Completed tar
road
• Construction commenced in July 2017 and
the project was completed by March 2018
• Project contributes significantly to
improved road access for the local
residents to specific areas such as the
cemetery
Completed paved
road
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Copyright ©, 2019, SasolVredefort multi-purpose centre (Mokwallo)
• Facility to accommodate community
gatherings
• Improved service delivery
• Improved access to health care
• Construction completed in September
2020 at a cost of R10m
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Copyright ©, 2019, SasolRequirements for review of Social and Labour Plans Copyright ©, 2019, 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
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Copyright ©, 2019, SasolReview requirements for the SLP
• Review of the Mooikraal SLP with DMRE reference number FS 30/5/1/2/2/221 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 Mooikraal 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
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Copyright ©, 2019, SasolMooikraal Colliery locality
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Copyright ©, 2019, SasolReview of the Mooikraal SLP for the period 1 July 2020 to 30 June 2025 Copyright ©, 2019, Sasol
Details of Social and Labour Plan for the Mooikraal
Complex
• SLP contains three broad sections:
• Human Resources Development
• Local economic development (LED)
• Downscaling and retrenchments
• Human Resources Development cover the following:
• Adult Education and Training
• Learnerships
• Bursaries
• Employment Equity
• Portable Skills
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Copyright ©, 2019, SasolHuman Resources Development Copyright ©, 2019, 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 earners the opportunity to be functionally literate and numerate
(AET Levels 4 and 5)
• Sasol Mining has an accredited AET facility and has programme approval with relevant
licensing authorities
• The AET facility uses professional educators to facilitate the classes
Period FY21 FY22 FY23 FY24 FY25 Total
Internal 7 7 7 7 7 35
External 5 5 5 5 5 25
Total 60
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Copyright ©, 2019, SasolAdult Education and Training
• 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
• Placing adverts on all the public buildings within a municipal area.
• Utilizing trade union partnerships
• Other mediums such as radio and community newspapers are also utilized
• The numbers selected within communities are determined by the number of employees
selected internally 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 to establish interest
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Copyright ©, 2019, SasolLearnerships
• Sasol Mining Technical Training (T2), based in Sasolburg 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
25
Copyright ©, 2019, SasolSelection process for learner miners 18.1 and 18.2
• Artisans are still categorised 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) 4 4 4 4 4 20
No employment
1 1 1 1 1 5
commitment (18.1)
Total 25
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Copyright ©, 2019, SasolInternships
• 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
Period FY21 FY22 FY23 FY24 FY25 Total
Internal 1 1 1 1 1 5
27
Copyright ©, 2019, SasolBursaries
• 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 Fezile Dabi District and the
Free State Province, to target students in grade 10 to 12 to create an awareness of a
career in mining
• Sasol Mining also advertises within the Free State region for prospective bursary holders
to attract students
• 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
Period FY21 FY22 FY23 FY24 FY25 Total
Internal 5 5 5 5 5 25
External 1 1 1 1 1 5
Total 30
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Copyright ©, 2019, SasolEmployment Equity
• The five-year Employment Equity targets are aligned with the 2018 Mining Charter
• Mooikraal has no executive management at the operation
Management Level Target 2021 Target 2022 Target 2023 Target 2024 Target 2025
Top Management 50% 50% 50% 50% 50%
Females 44,4% 44,4% 44,4% 20% 20%
Executive Management 0% 0% 0% 0% 0%
Females 0% 0% 0% 0% 0%
Senior Management 46,1% 50% 53,9% 60% 60%
Females 15,7% 18,4% 21,05% 25% 25%
Middle Management 59,4% 59,4% 59,6% 60% 60%
Females 24,2% 24,2% 24,7% 25% 25%
Junior Management 65,7% 69,3% 69,7% 70% 70%
Females 21,8% 24,4% 27,6% 30% 30%
Employees with
0,15% 0,27% 0,67% 1,5% 1,5%
disabilities
Core and critical skills 84,49% 85,00% 85,00% 60% 60%
29
Copyright ©, 2019, SasolPortable 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 20 20 20 20 20 100
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Copyright ©, 2019, SasolPortable 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 Human Resources and union partnerships
31
Copyright ©, 2019, SasolBenefits 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
32
Copyright ©, 2019, SasolLocal Economic Development Copyright ©, 2019, 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 meaningfully contribute
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
• Mooikraal Colliery cuts across two municipal areas, namely; Ngwathe and Metsimaholo
Municipalities
• LED projects are identified in partnership with municipalities and communities through the
IDP processes
34
Copyright ©, 2019, SasolImplementation 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 and the main contractor on site.
• CLO is appointed through a fair selection process, and a representative panel conducts
oral interviews.
• A Project Steering Committee is the representative decision making body elected by the
community to guide the project during implementation.
35
Copyright ©, 2019, SasolLED projects to be implemented in FY 21 to FY25
• The construction of the community health centre in Parys could not commence due to a
number of factors, including the impact of the COVID-19 lockdown regulations
• In Ngwathe Municipality the need for emergency response vehicles was identified as a
critical need
• In the Metsimaholo Municipality, development of an agricultural project has been identified
as an opportunity to create sustainable jobs
Total
FY 21 FY22 FY23 FY24 FY25
Municipality Budget
(Rm) (Rm) (Rm) (Rm) (Rm)
(Rm)
Ngwathe
Completion of construction of
R12,5 R12,5
a community health centre
Provision of Emergency
R3,5 R3,5
response vehicles
Metsimaholo
Agricultural Project R1,5 R1,5
Total R17,5
36
Copyright ©, 2019, SasolInclusive 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 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
37
Copyright ©, 2019, SasolInclusive Procurement targets for mining goods aligned
with the Mining Charter
Category 2020 2021 2022 2023 2024 2025
50% +1 HDP owned and
4,2% 7,35% 10,5% 21% 21% 21%
controlled
50% +1 Women and Youth
1% 1,75% 2,5% 5% 5% 5%
owned and controlled
25% + 1 HDP ownership and
minimum DTI B-BBEE Level 8,8% 15,4% 22% 44% 44% 44%
4 status
4
38
Copyright ©, 2019, SasolInclusive Procurement targets for services aligned with
the Mining Charter
Category 2020 2021 2022 2023 2024 2025
50% +1 HDP owned and
50% 50% 50% 50% 50% 50%
controlled
50% +1 Women owned and
15% 15% 15% 15% 15% 15%
controlled
50% +1 Youth owned and
5% 5% 5% 5% 5% 5%
controlled
25% +1 HDP ownership
and minimum DTI B-BBEE 10% 10% 10% 10% 10% 10%
Level 4 status
39
Copyright ©, 2019, SasolConclusion
• Sasol Mining, in its quest to do business with its clients and stakeholders, ensures
compliance with all the MPRDA (2003) and the Mining Charter (2018) requirements for the
development of living conditions within our host communities
• 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
40
Copyright ©, 2019, SasolConclusion
• The proposed Mooikraal SLP can be viewed on the Sasol website https://www.sasol.com/mining-slp
• Comments to be submitted no later than ???? 2020 by email to MooikraalSLPReview@sasol.com
• Hard copies of the Mooikraal SLP are available at the following libraries:
• Sasolburg
• Zamdela
• Deneysville
• Parys
• Koppies
• Vredefort
• Heilbron
• Mooikraal Colliery offices
• To ensure that no more than 100 people attend the public meeting please register for a particular date
and venue by sending an email to MooikraalSLPReview@sasol.com with your name and contact number
as well as the relevant venue. Registrations can also be done by phoning Paul Lempe at 082 605 0342
or Zimbini Zwane at 082 312 5956 and/or completing the public participation meeting registration form at
the applicable library.
Metsimaholo Municipality
Sasolburg: 23 November 2020 at 10:00. Venue Deneysville: 24 November 2020 at 09:00.
?? Refenkgotso Community Hall
Zamdela: 23 November 2020 at 14:00. Zamdela Oranjeville: 24 November 2020 at 15:00. Venue
Hall ??
Ngwathe Municipality
Parys: 25 November 2020 at 10:00. Venue ?? Koppies: 26 November 2020 at 09:00. Venue ??
Vredefort: 25 November 2020 at 14:00. Venue ?? Heilbron: 26 November 2020 at 15:00, Venue ??
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