Sasol Form 20-F for the year ended 30 June 2021 - Book - Page 51
its operations in the Mpumalanga and Free State
provinces in South Africa.
imposition of criminal sanction. These also apply to
mining activities.
In respect of the Secunda mining complex in
Mpumalanga, Sasol Mining holds four mining rights
situated within the Bethal, Secunda, Highveld Ridge,
Balfour and Standerton magisterial districts. These
mining rights were granted for periods between 20 and
30 years. The Secunda complex mining right is valid
until 28 March 2040 and Sasol Mining can apply to the
DMR for renewal of the right for a further maximum
period of 30 years. The Block IV and Alexander Block
mining rights are also situated in the Secunda area and
remain valid until 27 August 2037 and 21 January 2048
respectively. The Mooikraal mining right near
Sasolburg in the Free State is valid until 28
March 2040.
Apart from South Africa’s international
commitments, the country’s Climate Change Bill is still
being finalised for enactment. Sasol continues to
engage with the government on the development of the
Climate Change Bill as well as the imposition of
mandatory carbon budgets. Sasol’s engagement focuses
on the need for the alignment of mitigation instruments
in an effort to create long-term policy certainty.
Although not mandatory, Sasol participated in the first
phase of the carbon budget process and received and
agreed to its allocated carbon budget, which was in
place until the end of calendar year 2020. We are
negotiating the voluntary carbon budget for the next
five years, which is expected to be a reduced budget
and is anticipated to be allocated in October 2021 with
retrospective effect from 2020. The National GHG
Emission Reporting Regulations and the National
Pollution Prevention Plan Regulations were
promulgated in April and June 2017 respectively and
subsequently revised. Sasol continues to submit its
GHG data annually, as well as progress on its approved
pollution prevention plans. The Carbon Tax Act, 15 of
2019 was signed into law in May 2019 and came into
effect on 1 June 2019.
Safety, health and environment
Regions in which Sasol operates and their applicable
legislation
South Africa
The major part of our operations is located in
South Africa. We operate a number of plants and
facilities for the manufacture, storage, processing and
transportation of chemical feedstock, products and
wastes. These operations are subject to numerous laws
and regulations relating to safety, health and the
protection of the environment.
For information regarding our challenges
associated with these regulatory requirements refer to
“Item 3.D—Risk factors”.
Germany and Italy
Environmental regulation
In Germany and Italy, we operate a number of
plants and facilities for the manufacture, storage,
processing and transportation of chemical feedstock,
products and waste. These operations are subject to
numerous laws and ordinances relating to safety, health
and the protection of the environment, and noncompliance with these regulations could lead to a
material adverse impact on Sasol’s ability to operate in
these countries.
The Constitution contains the underlying right
which must be given effect to by environmental
legislation in South Africa. The South African National
Environmental Management Act, 107 of 1998 is
therefore the framework act which primarily aims to
give effect to the Constitutional environmental right. It
also underpins specific environmental management
acts, such as the National Environmental Management:
Waste Act, 59 of 2000 (National Environment
Management: Waste Act), the National Water Act, 36
of 1998, and the Nation Environmental Management:
Air Quality Act, 39 of 2004 which all, in turn, regulate
specific environmental media and the associated
regulation of potential impacts thereon. The National
Environmental Management: Waste Act also
specifically regulates the process for management of
contaminated land. These Acts also provide for
enforcement mechanisms as well as provisions for the
Hazardous substances
Provisions for the protection of humans and
the environment against the harmful effects of
hazardous substances and preparations are provided in
the Chemicals Act, and related ordinances on the
Prohibition of Certain Chemicals and Hazardous
Incidents. All hazardous substances are subject to the
requirements of the EU REACH Regulation, including
requirements for registration and notification obligation
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