Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 125
Litigation
Claimed compensation for lung diseases – Sasol Mining (Pty) Ltd
On 2 April 2015, 22 plaintiffs (at that time 1 current and 21 former employees) instituted action against Sasol Mining (Pty) Ltd at
the High Court in Gauteng, South Africa, for allegedly having contracted lung diseases while working at its collieries. The plaintiffs
inter alia allege that they were exposed to harmful quantities of coal dust while working underground for Sasol Mining and that the
company failed to comply with various sections of the Mine Health and Safety Act, 1996. All of which the plaintiffs allege, increased
the risk for workers to contract coal dust related lung diseases. This lawsuit is not a class action but rather 22 individual cases, each
of which will be judged on its own merits. The plaintiffs seek compensation for damages relating to past and future medical costs
and loss of income amounting to R82,5 million in total plus interest. Two plaintiffs have since passed away and their claims have
been formally withdrawn. The total amount of the remaining claims is R67,2 million plus interest.
Sasol Mining is defending the claim. The merits of each single claim are not clear yet since Sasol is awaiting the plaintiffs’ response
to Sasol’s request for further particulars. A date for a hearing has not been set yet. Therefore, it is not possible at this stage to make
an estimate of the likelihood that the plaintiffs will succeed with their claim and if successful, what the quantum of damages would
be that the court will award.
Therefore, no provision has been created for the litigation matter as at 30 June 2021.
Construction disputes – Fischer Tropsch Wax Expansion Project in Sasolburg (FTWEP)
After the conclusion of construction of FTWEP at the Sasol One site in Sasolburg, a number of contractual claims were instituted by
some contractors who were involved in the construction and project management relating to this project. Certain of these claims
have already been resolved, either through settlement between the parties or through the contractual dispute resolution process.
The Fluor SA (Pty) Ltd matter is still ongoing.
Fluor SA (Pty) Ltd – FTWEP
Fluor claimed a total amount of R486 million plus interest. This claim is based on the nature and quantification of Fluor’s alleged
entitlement to a change to the prices and completion dates for delayed access. The claim was referred to adjudication. The
adjudicator rejected Fluor’s entire claim. Subsequently, Fluor has referred its claim for Arbitration.
The Parties have agreed on the appointment of the arbitrator as well as the time schedule for the filing of pleadings in the
Arbitration matter. Fluor filed its Statement of Claim on 14 December 2016 and Sasol was scheduled to file its Statement of Defence
during May 2017.
Sasol filed its Statement of Defence and instead of Fluor filing its replication (and despite Sasol’s previous objections), Fluor
amended its Statement of Claim once again. This amendment was filed without notice or leave from the Arbitrator. The amendments
made changes to the way in which Fluor now argues the matter. The amendment also changes the capital amount claimed to a
lesser amount, being R448 million plus interest. Sasol filed its objection to this late amendment on 22 January 2018. The objection
hearing was held on the 12 March 2018. The Arbitrator dismissed the objection by Sasol. Sasol accordingly filed its amended
Statement of Claim on 26 April 2018.
On the 12 March 2019, Fluor filed and served a further amendment to its Statement of Claim in terms of which a further reduction
in the quantum is being claimed. Fluor now claims an amount of R384 million (alternatively the amount of R 407 million based on
an alternative assessment of its claim). The expert report filed shortly after the amended statement of claim indicated a further
reduction in the amount claimed by Fluor. Based on the expert report the quantum claimed by Fluor reduced to R305 million
alternatively R306 million. The Arbitration commenced in October 2020 however the hearing did not conclude. Hearing of Sasol’s
expert evidence took place on the 12th and 13th of April 2021. Fluor advised that the presentations constitute new evidence not
previously addressed and or raised during the expert engagements and Fluor is prejudiced by not having been able to prepare for
cross examination on the “new evidence”. The Arbitration hearing was accordingly stayed until 28 June 2021 to provide Fluor the
opportunity to prepare for Cross Examination of Sasol’s experts. During the second week of the Arbitration hearing, we were advised
that Fluor’s counsel would not be able to continue with his cross examination of Sasol’s expert witness. The hearing could therefore
not conclude, and the parties are in a process of agreeing on new dates for the Arbitration hearing to recommence. It is anticipated
that the hearing will only recommence during November 2021.
SASOL LIMITED COMPANY
However, Sasol raised certain objections to the Fluor Statement of Claim as Fluor included certain elements in the claim which were
not part of the adjudication of the claim. These objections were adjudicated on 21 June 2017. The Arbitrator ruled that Sasol is not
allowed to proceed with the formal objections but that they should be dealt with in Sasol’s Statement of Defence.
Sasol believes that Fluor’s original claim, including the amended claims are not justified. This view is supported by Sasol’s
independent experts.
Accordingly, no provision was created at 30 June 2021.
Dispute of dismissal during unprotected strike – Sasol Mining (Pty) Ltd
During 2009, the applicants in this matter were charged for participating in an unprotected sit-in, threatening and forcing others
to participate in an unprotected strike and for assaulting or attempting to assault others and sitting in underground during an
unprotected strike and subsequently dismissed. The applicants disputed their dismissal.
OTHER
37.1
SASOL LIMITED GROUP
CONSOLIDATED FINANCIAL STATEMENTS
37 Contingent liabilities
NOTES TO THE FINANCIAL STATEMENTS
OTHER DISCLOSURES
123
Sasol Annual Financial Statements 2021