Sasol Form 20-F for the year ended 30 June 2021 - Book - Page 50
With the implementation of Sasol Khanyisa,
approximately 18,4% of SSA is in direct black
ownership, which, together with black ownership at
Sasol group level, translates into at least 25% black
ownership credentials at SSA level (for purposes of
measuring black ownership credentials under the
current B-BBEE legislation).
legislation. Another potential negative material effect
on the mining industry is linked to the obligation for
mining companies to sell a certain percentage of their
production to local beneficiaries at a so-called “mine
gate price” which will most likely be lower than the
price at which the producer can sell the minerals in the
open market.
Refer to “Item 18—Financial Statements—
Note 36 Share-based payment reserve” for further
information.
The Liquid Fuels Charter
The LFC for the South African Petroleum and
Liquid Fuels Industry on Empowering HDSAs in the
Petroleum and Liquid Fuels Industry requires liquid
fuels companies, including Sasol Oil, to ensure that
HDSAs hold at least 25% equity ownership in the
South African entity holding their operating assets by
the end of a period of 10 years from the date of the
signing of the LFC.
The Mining Charter
The Mining Charter requires mining
companies to meet various criteria intended to promote
meaningful participation in the industry of HDSAs. The
various iterations of the Mining Charter have been the
subject of much legal disagreement between industry
and the government, most particularly on the issue of
equity ownership of mining companies.
In order to meet this equity ownership
objective, Sasol Limited entered into a B-BBEE
transaction with an HDSA-owned company,
Tshwarisano, in terms of which Sasol disposed of 25%
of its shareholding in Sasol Oil to Tshwarisano. With
effect from 1 July 2006, Sasol Oil met the 25% BEE
ownership target, with Tshwarisano holding 25% of the
shares in Sasol Oil in line with the Charter.
In recent developments, the Minerals Council
filed an application for a judicial review of the gazetted
Mining Charter, citing problems with certain clauses
and the fact that past deals were not sufficiently
recognised, for which the legal process is still ongoing.
Tshwarisano’s shareholding is fully
unencumbered after it settled the last of its debt relating
to its equity shareholding in February 2016.
The Mineral and Petroleum Resources Development
Amendment Bill
The Minister withdrew the MPRDA Bill from
parliament and separated oil and gas matters from
mining. The draft upstream Petroleum Resources
Development Bill was published in the Government
Gazette on 24 December 2019. Sasol submitted
comments directly to the DMR and via the relevant
business association. Due to the impact of COVID-19,
further consultation processes were delayed and the
legislative process is still ongoing. On 13 May 2021,
Cabinet approved the introduction of the MPRDA Bill
to parliament. The MPRDA Bill was gazetted and
published for public comment on 11 June 2021.
The DMR in concurrence with the Department
of Trade and Industry initiated a process to establish a
Sector Charter (Petroleum and Liquid Fuels Sector
Charter) to supersede the LFC in terms of section 12 of
the B-BBEE Act. The outcome or potential effect of
this process on Sasol cannot be assessed at this time.
The Restitution of Land Rights Act, 22 of 1994
Our privately held land could be subject to
land restitution claims under the Restitution of Land
Rights Act, 22 of 1994. Under this Act, any person who
was dispossessed of rights to land in South Africa as a
result of past racially discriminatory laws or practices is
granted certain remedies, including, but not limited to
the restoration of the land claimed with or without
compensation to the holder.
The MPRDA Bill, now with a mining focus,
contains certain provisions that may have a material
negative effect on the mining industry. These include
elevating the Codes of Good Practice for the South
African Minerals Industry, the Housing and Living
Conditions Standards for the Mineral Industry and the
Amended Broad-Based Socio-Economic Empowerment
Charter for the South African Mining and Minerals
Industry to the status of legislation without such
documents having followed the normal route to create
Mining rights
Sasol Mining is the holder of mining rights
granted in accordance with the MPRDA in respect of
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