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SOL - Sasol Limited - Sasol`s sale of 20% in mining subsidiary to black

Release Date: 11/10/2007 07:00:02      Code(s): SOL
SOL - Sasol Limited - Sasol`s sale of 20% in mining subsidiary to black         
women for R1,9 billion will meet Mining Charter`s ownership requirements and    
lead the way for women in mining                                                
Sasol Limited                                                                   
(Incorporated in South Africa)                                                  
(Registration number: 1979/003231/06)                                           
JSE Code: SOL          ISIN Code: ZAE000006896                                  
NYSE Code: SSL         ISIN Code: US8038663006                                  
("Sasol" or "the Company")                                                      
Sasol`s sale of 20% in mining subsidiary to black women for R1,9 billion        
will meet Mining Charter`s ownership requirements and will develop women in     
Details of transaction                                                          
Sasol Mining, the wholly-owned subsidiary of Sasol Limited, today announced     
the formation of a black-women controlled coal mining company called Ixia       
Coal (Pty) Limited. 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     
Limited (WIPHOLD) and Mining Women Investments (Pty) Limited (Mining Women      
Investments), 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) Limited, 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.                
Sasol executive director responsible for the South African energy               
businesses, Dr Benny Mokaba says: "This transaction not only achieves           
compliance with the Mining Charter, but also promotes women in mining. 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."                      
Mokaba adds: "Our intention is to create a lasting legacy through skills        
development and capacity building in support of government`s socio-economic     
objectives. This announcement is another step in our over-arching ambition      
to empower a broad-base of historically disadvantaged South Africans by         
advancing initiatives that are sustainable, credible and of benefit to both     
stakeholders and our country."                                                  
Controlled by black women, Ixia Coal will become an investor in Sasol           
Mining. Over the longer term Ixia Coal, with the assistance of Sasol Mining,    
will also develop operational capacity enabling the company to operate its      
own coal mines.                                                                 
"We partnered with WIPHOLD because of the role that we together can play in     
developing a new women`s mining group. With sound business acumen and a         
strong empowerment track record, WIPHOLD will help us build Ixia Coal into a    
new, sustainable women`s empowerment company that over time will become         
involved in operating coal mines. This will include transferring skills to      
the new company," says Sasol Mining MD Hermann Wenhold.                         
Mining Women Investments, the new entrant, is comprised of thousands of         
rural black women, who have not previously been empowered. The group has        
been constituted by WIPHOLD, following a series of workshops held with women    
in the Free State, Mpumalanga and Limpopo provinces, where Sasol Mining has     
operations and coal reserves.                                                   
WIPHOLD is an investment and operating company owned and managed by black       
women, with interests in a range of industries. Founded in 1994, it is          
dedicated to the empowerment of women. Represented countrywide, it has 1 200    
direct female beneficiaries and, through non-governmental organisation          
shareholders, an estimated 200 000 women as indirect beneficiaries.             
Sasol Mining will also benefit from the proposed 10% BEE transaction at Sasol   
Limited level, which if approved by shareholders will be implemented in 2008    
and will take Sasol Mining beyond compliance with the Mining Charter`s          
ownership requirements.                                                         
"The transaction has been concluded at fair value. The facilitation cost to     
Sasol is anticipated to be commensurate with other BEE deals in the mining      
sector in South Africa and will only be finalised once third party funding      
arrangements are in place," says Sasol chief financial officer Christine        
Sasol Mining is in the process of converting its mining rights as required      
by South African minerals legislation. The transaction agreements were          
signed on 4 October 2007 and are expected to be completed in 2008 subject to    
fulfilment of the following conditions:                                         
-  conversion of Sasol Mining`s mining rights and obtaining the requisite       
  regulatory approvals; and                                                     
-  conclusion of the financing agreements with third party lenders.             
To enable the transaction, Sasol will establish a new wholly-owned              
subsidiary, Sasol Mining Holdings (Pty) Limited (Sasol Mining Holdings),        
which will hold 80% of Sasol Mining.                                            
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.                        
Ixia Coal, through an investment company called BEE Holdco (Pty) Limited        
(BEE Holdco), will hold 20% in the issued share capital of Sasol Mining. BEE    
Holdco will raise the required funding for the transaction. WIPHOLD and         
Mining Women Investments, through their investment in Ixia Coal, will from      
inception have full voting and economic rights associated with BEE Holdco`s     
interest in the issued share capital of Sasol Mining.                           
Ixia Coal`s 20% shareholding in Sasol Mining is valued at R1 855 million,       
taking into account Sasol Mining`s future expected cash flows, capital          
investment requirements and an appropriate level of debt. The transaction       
will be financed through equity (R59 million) and a combination of third        
party funding and appropriate Sasol facilitation. It is currently envisaged     
that approximately 40% of the transaction will be funded through third party    
debt; however this is dependent on market conditions prevailing at the time.    
11 October 2007                                                                 
Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited               
Sasol Disclaimer - Forward-looking statements                                   
We may in this document make statements that are not historical facts and       
relate to analyses and other information based on forecasts of future           
results and estimates of amounts not yet determinable. There are forward-       
looking statements as defined in the U.S. Private Securities Litigation         
Reform Act of 1995. Words such as "believe", "anticipate", "expect",            
"intend", "seek", "will", "plan", "could", "may", "endeavour" and "project"     
and similar expressions are intended to identify such forward-looking           
statements, but are not exclusive means of identifying such statements. By      
their very nature, forward-looking statements involve inherent risks and        
uncertainties, both general and specific, and there are risks that              
predictions, forecasts, projections and other forward-looking statements        
will not be achieved. If one or more of these risks materialize, or should      
underlying assumptions prove incorrect, actual results may be very different    
from those anticipated. The factors that could cause our actual results to      
differ materially from the plans, objectives, expectations, estimates and       
intentions expressed in such forward-looking statements are discussed more      
fully in our annual report under the Securities Exchange Act of 1934 on Form    
20-F filed on November 2, 2006 and in other filings with the United States      
Securities and Exchange Commission. Forward-looking statements apply only as    
of the date on which they are made and Sasol does not undertake any             
obligation to update or revise any of them, whether as a result of new          
information, future events or otherwise.                                        
Date: 11/10/2007 07:00:02 Supplied by www.sharenet.co.za                     
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