Sasol Form 20-F for the year ended 30 June 2021 - Book - Page 58
virtue of Sasol Mining holding a mining right which is
valid for 30 years. The coal is mainly used for
electricity and steam generation at our Sasolburg and
Ekandustria operations. Steam is a major component
which is required in the production of Sasol’s chemical
products as well as the refining of oil.
Criteria for proved and probable
Over and above the definitions for coal
reserves, probable coal reserves and proved coal
reserves, set forth in Industry Guide 7, promulgated by
the SEC, we consider the following criteria to be
pertinent to the classification of the reserves:
The validity period of Sasol’s mining rights
may, on application to the DMR, be extended for
further periods not exceeding 30 years each.
Probable reserves are those reserve areas
where the drill hole spacing is sufficiently close in the
context of the deposit under consideration, where
conceptual mine design can be applied, and for which
all the legal and environmental aspects have been
considered. Probable reserves can be estimated with a
lower level of confidence than proved coal reserves.
Currently this classification results in variable drill
spacing depending on the complexity of the area being
considered and is generally less than 500 m, although in
some areas it may extend to 800 m. The influence of
increased drilling in these areas should not materially
change the underlying geostatistics of the area on the
critical parameters such as seam floor, seam thickness,
ash and volatile content.
Gas
Our natural oil and gas operations are
managed by Gas Sourcing and Operations (GSO) as
part of the Gas segment of our Energy Business. As of
30 June 2021, we held equity in two producing assets
with proved reserves in Mozambique and Canada
(Canada was classified as assets and liabilities in a
disposal group held for sale as at 30 June 2021, and
effectively disposed of during July 2021) and one
non-producing asset in Mozambique. We also have
equity in exploration licences in Mozambique and
South Africa.
Proved reserves are those reserves for which
the drill hole spacing is generally less than 350 m, for
which a complete mine design has been applied which
includes layouts and schedules resulting in a full
financial estimation of the reserve. This classification
has been applied to areas in the production stage or for
which a detailed feasibility study has been completed.
In the narrative sections below, unless stated
otherwise, all quantitative statements refer to gross
figures. The tabular information which follows the
narrative provides:
total gross and net developed and
undeveloped acreage of our natural oil
and gas assets and exploration licences by
geographic area, at 30 June 2021;
the number of net natural oil and gas wells
completed in each of the last three years
and the number of wells being drilled, at
30 June 2021;
capitalised natural oil and gas exploratory
well costs at the end of the last three years
and information about the continued
capitalisation of natural oil and gas
exploratory well costs, at 30 June 2021;
details about the production capacity of
our natural oil and gas production
facilities and the number of productive
natural oil and gas wells, at 30 June 2021;
and
Legal rights on coalfields
Sasol Mining is the holder of various
prospecting and mining rights for coal in Mpumalanga
and the Free State. These prospecting and mining rights
are granted by the state acting as custodian of South
Africa’s mineral and petroleum resources in accordance
with the provisions of the MPRDA.
In respect of the Secunda mining complex in
Mpumalanga, Sasol Mining has four mining rights
situated within the Bethal, Secunda, Highveld Ridge,
Balfour and Standerton magisterial districts. These
mining rights are valid for periods of between 20 and
30 years, which allows Sasol Mining to provide a
continuous and steady coal supply to SSA, which
beneficiates the coal into higher value and in most
cases, end-line products. Please refer to page M1 for a
map of the Secunda mining complex layout.
Coal mining activities in the Free State
province near the town of Sasolburg are conducted by
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