Anglo American and Sasol to Proceed with the Development of Kriel South Coal Reserves

JOHANNESBURG, South Africa -- In June 2000, Anglo American plc and Sasol Limited initiated a study to consider the development of the Kriel South coal reserves in Mpumalanga province, South Africa. An agreement has now been reached and Anglo Coal will establish a new opencast operation on the northern portion of the coalfield and Sasol has been granted access to the southern portion of the Kriel South coalfield, through the expansion of its existing underground operations at Syferfontein Colliery.

Anglo Coal will invest R769 million (US$96 million) and Sasol R320 million (US$40 million) in the project. Anglo will produce, for Sasol's consumption, 5 million tons per annum, while a similar production rate will be added to the rate at which Sasol's Syferfontein mine will produce. Together they are expected to yield an estimated 200 million tons of thermal coal for supply to Sasol Synfuels at Secunda over twenty years.

Production will start in July 2005.

Sasol is an integrated oil and gas group with substantial chemical interests. Based in South Africa and operating in 15 other countries throughout the world, Sasol is the leading provider of liquid fuels in South Africa and a major international producer of chemicals, using a world leading technology for the commercial production of synthetic fuels and chemicals from low grade coal.

In the future, Sasol expects to apply this technology to convert natural gas to diesel and chemicals. Sasol manufactures over 200 fuel and chemical products that are sold in more than 90 countries and also operates coal mines to provide feedstock for synthetic fuels and chemical plants. The company also manufactures and markets synthesis gas and operates the only inland crude oil refinery in South Africa.

Business Wire