Sasol mulls other coal opportunities in Limpopo

Following its decision to ditch plans to build an 80‚000 barrels per day coal-to-liquids plant in Limpopo‚ energy and chemicals group Sasol is now mulling over other possible coal opportunities in the province‚ the company said. Sasol was awarded a prospecting right in respect of the Limpopo west coal reserves in 2007.

By Siseko Njobeni

18 Oct 2012

Sasol mulls other coal opportunities in Limpopo

The company was part of the Eyesizwe Sasol Waterberg Joint Venture - made up of Exxaro Coal Mpumalanga and Sasol Mining. The joint venture wanted to exploit the area's coal resource mainly for a coal-to-liquid market. Sasol‚ however‚ suspended Project Mafutha in 2010.

In an annual report filed with the US Securities and Exchange Commission on Friday and issued in South Africa on Monday‚ Sasol said its group executive committee earlier this year asked Sasol Mining to investigate options to exploit possible future business opportunities relating to the Limpopo west reserves.

"Based on the outcome of study results completed in May this year‚ Sasol Mining submitted a mining right application on behalf of the Eyesizwe Sasol Waterberg Joint Venture in August. It planned to complete a feasibility study by December ‚ with subsequent project studies to follow in the 2013‚" Sasol said.

Sasol said its coal-to-liquid project in India is still being actively pursued.

"Following the decision not to proceed with Project Mafutha‚ the company has decided to conduct a pre-feasibility study to establish a coal mine‚ supplying coal to other viable markets in Limpopo‚" Sasol said.

Sasol said it was putting Project Mafutha on hold pending clarity on large-scale coal gasification tests and the provision of a commercially viable carbon capture and storage scheme.

Former chief executive Pat Davies had previously said that the project would need state financial support. It was‚ however‚ unlikely the government would support both Project Mafutha and national oil company PetroSA's proposed crude oil refinery project at Coega in the Eastern Cape.

Source: I-Net Bridge

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