Sasol Limited (SOL) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. May we all be seated? Thank you. I'm pleased to welcome you to the 43rd Annual General Meeting of Sasol Limited. My name is Sipho Nkosi, Chair of Sasol's Board of Directors. I'm chairing the meeting today from our headquarters here in Johannesburg. Before we commence with the day's proceedings, we'll watch a short safety video. This video deals with the procedure to be followed in the unlikely event of an emergency during our meeting. [Presentation]

Thank you very much. I am very pleased to say that all our directors are here for this occasion, for this AGM. They come from all parts of the world. Others are from the U.S. Others are from Europe, others are from this continent, and others are from South Africa. So ladies and gentlemen, please allow me a moment to introduce my fellow directors who are all here. And I would wish for them just to, either to wave so that we know them or to stand up if they feel energized to do that. So I have on my left, Mr. Fleetwood Grobler who's President and Chief Executive Officer of Sasol. Thanks, Fleetwood. We have Hanre Rossouw to -- oh, that's the guy. I would like to extend a warm word of welcome. Hanre took over as Chief Financial Officer from Paul Victor on 1 July this year. He hit the ground running and was responsible for the annual financial statements that are being presented to you today, so thanks, Hanre. And of course, we have got my boss on the right, Michelle du Toit, who is the Group Company Secretary. All right. And then -- thank you, Michelle. We've got Mr. Vuyo Kahla, our Executive Director. Then on the far left, we have Ms. Muriel Dube who chairs the Safety, Social and Ethics Committee. And of course, we've got the Chair of the Audit Committee, Trix, next to her or sitting next to Muriel. Trix Kennealy, did you wave, please? Oh, okay, I'm just checking. Then, we do have Mpho Nkeli who is chairing our Rem Committee. She is on my far right. So thank you very much, fellow directors. But this doesn't complete the directorship that we have at Sasol. If you look at the front row, they are sitting with some of the directors. And because they are sitting in front, I will request them just to stand up and face the audience so that they are seen. Manuel Cuambe, thank you, sir. Martina Floel, and then we've got Kathy Harper. And we've got Nomgando Matyumza. And we've got Stanley. Where is he? Oh, there he is hiding. Thank you, guys. And of course, last but not least, our Lead Independent Director, Mr. Steve Westwell. Thank you, directors. But it doesn't end there. I'm pleased to announce as probably you saw on sense that we have now been -- we have appointed a new director, Mr. Andreas Schierenbeck as a director of Sasol with effect from 1 January 2023. Andreas is the Founder and a Director of HH2E, a green hydrogen company dedicated to producing green hydrogen to the German market. He was the CEO of international energy company, Uniper, between 2019 and 2021, where he shaped and started the execution of the company's decarbonization strategy. So we move now to safety movement. As it is custom at all meetings at Sasol, we will start with a safety moment. I, therefore, would like to ask our CEO, Mr. Fleetwood Grobler, to present the safety moment. Over to you, sir.

Thank you, Sipho, and good day, ladies and gentlemen. Safety is our #1 priority and together with operational discipline forms the foundation that underpins Sasol's zero-harm aspiration. Being one of our core values, safety is fundamental to our culture. It finds expression in our people promise, which commits us to continually provide a safe and caring workplace centered on the employee well-being to reinforce and embed the safety culture, Sasol engagements [ repeatedly ] with a safety moment as we are doing for this AGM. For today's safety moment, I will reflect on a few salient features of our recent safety performance and actions to progress our journey to zero harm. It is heartwarming to report that we have had no fatalities since October 2021. We are very encouraged by this and are working diligently to maintain this trend. We have seen a declining trend in our high-severity injury rate, which is an indicator that the severity of the injuries we have experienced are decreasing. However, the number of recordable cases in the first quarter of financial year '23 was higher than we had forecasted. Ensuring a safe working environment is an endeavor that never ceases and is one which all Sasol people are steadfastly committed to. In the same reporting period, we also successfully executed a total shutdown of our Secunda East operations. This mammoth undertaking required more than 10 million man-hours to deliver and was completed with no major safety incidents. Furthermore, when compared to the 2019 total shutdown, the number of incidents reduced by around 38%. Thank you to all the Sasol teams and service providers who participated in the 2022 shutdown and for doing so safely. A dedicated leader champion safety culture also remains a key focus for us with leaders actively involved in risk management processes and instilling a work environment where high levels of discipline, care and empathy prevails. To continue on the safety moment, we are progressing sustainable improvements in safety through a range of group-wide initiatives, complemented by customized business-led programs that focus on key risks in specific areas. At the Group SHE meeting, which I chair, we review both the successes and challenges in our various business areas. This ensures that we continuously learn from each other to embed and institutionalize learnings while leveraging the opportunity to collectively brainstorm on critical safety matters. To further [indiscernible] and operational discipline in the past year, we have also updated our SHE policy to reinforce the importance of caring in line with Sasol's values. We also focused on humanizing safety campaign underpinned by our be safe and be caring values. Safety is our top priority and the Board together with the Sasol's leadership team and our full workforce are firmly committed to 0 harm. Thank you.

Thank you very much, Fleetwood, for sharing that safety moment with us. We continued our engagements during the course of the year with our stakeholders, including on climate change and remuneration. In July, the Chairman of the Remuneration Committee met with top shareholders about proposed changes to our long-term incentive plan. In November, the Chairman of our Safety, Social and Ethics Committee and members of management met with a number of stakeholders to get feedback on our climate change approach. During these engagements, they provided input into our progress with our climate chain journey and indicated support for Sasol's climate change management approach for purposes of this year's advisory vote. We also hosted a Climate Change Roundtable on 3 November, 2022 with 120 participants, where we engaged with stakeholders on our greenhouse gas road map on our renewable energy program, low carbon initiatives and the funding of our decarbonization journey. Ladies and gentlemen, I assure you that we take the contributions of all stakeholders seriously and [indiscernible] to be better shape of future direction. So now I will once again invite our Chief Executive, Fleetwood to address us on the goings on within the organization.

Thank you, Mr. Chair. I'm delighted now to have the opportunity to provide the business and strategic overview for our financial year 2022 as well as a brief summary of our business performance for the first few months of financial year '23. I will then hand over to Hanré Rossouw, our Chief Financial Officer, to provide a brief recap of our financial progress and focus areas for the year ahead. Looking back at our journey from 2020, we were faced at different times with significant challenges, which included the outbreak of the global pandemic, the collapse in the oil price and major supply chain disruptions. Notwithstanding these challenges, we remain focused on the factors we could control in order to keep our teams safe, stabilize the business and execute on a response plan to improve profitability and liquidity. During this period, we also significantly stepped up Sasol's climate mitigation strategies which are essential to future-proofing the business. At the same time, we must also acknowledge that in the recent months, the company has faced a sequence of operating challenges that have compromised performance. I will talk about these in more detail a bit later. But it's enough to say that they are present grounds for and present -- rather present grounds for humility. We are working hard. We have achieved successes, but we've also fallen short in some areas where we need to do better over the coming months. Turning to our business overview for the financial year '22, we continued with the same momentum and delivered a strong financial performance, benefiting from favorable macro environment and robust cost and capital discipline. We significantly increased our profitability, achieving ZAR 72 billion in the adjusted EBITDA, which represents a 48% increase compared to the prior year. Our accelerated asset [indiscernible] is now complete, delivering over ZAR 50 billion of proceeds and focusing the business now on our key areas of strength. This has significantly contributed to the deleveraging of our balance sheet and reducing net debt. As a result, we announced the reinstatement of dividends, demonstrating our continued commitment to shareholder returns. We continue to execute our Sasol 2.0 transformation program, which is aimed at ensuring our business remains profitable and competitive into the future even at much lower oil prices than we currently face. I'm pleased to report that we've achieved and even exceeded some of our targets for the financial year '22. We continue to progress our plans to meet our 2030 climate change target, and I will talk also more about this a bit later. Lastly, our South African value chain executed in feedstock and operational challenges in the first half of the financial year, particularly in our mining operations where adverse weather impacts and safety stoppages resulted in lower production. Through focused interventions, we improved operational stability in the second half of the financial year and continued with the ramp-up of our operations in the U.S., benefiting from the stronger chemical prices. We continue to create shared value across a wide range of stakeholders through the employment of social and human capital. Our stakeholders include employees, customers, shareholders, governments where we operate, communities and NGOs among others. Some of the highlights are shown on this slide. As part of our commitment to be a forceful social good, we continued to invest in impactful socioeconomic projects benefiting communities in and around our operating regions. Delivery of key energy and chemicals products to our customers, creating value for our shareholders and [indiscernible] and regulatory authorities are important for our livelihood. Our total measured procurement spend was ZAR 55.8 billion, of which ZAR 33.6 billion was spent on a majority black-owned businesses in South Africa. This is up 40% from last year, demonstrating our ongoing commitment to sustainable transformation and broad-based black economic empowerment. Turning now to our business performance for the first few months of this financial year, our business continued to benefit from a largely at favorable macroeconomic environment [indiscernible] Ukraine full supporting a stronger price environment. We have ever started to see the impacts of weaker economic growth globally on demand, which is leading to a downturn in chemicals pricing together with inflationary pressures and ongoing disruption of supply chains, which are impacting feedstocks cost in Europe and in the U.S. The weakening of the macro environment was aggravated by a variety of challenge in our South African operations. This included sporadic, Eskom power outages, and the strike action by Transnet's unions in October, which disrupted the South African rail import services and our ability to supply and export certain chemical products. Yesterday, we issued an updated outlook for our '23 key financial metrics and operational guidance. They were a few key events in recent weeks that have led to this revision and is not something we are taking lightly at the management level. I will provide more color on each segment starting now with our energy business. In mining, production was impacted by operational challenge at 2 of our collieries as well as proactively, safety stoppages on -- an ongoing coal quality issues. As I mentioned earlier, we continue to embed our safety remediation plans as a priority. Coal purchases continue to supplement our own production as part of the business stabilization plan, which is aimed at maintaining a healthy coal stockpile level [ throughout our ] operations. In our gas segment, the drilling companion Mozambique is continuing with better-than-expected yields and together with a good safety performance. Turning to [ fuels segment ], we have seen a notable improvement in demand from our direct marketing channels supported by our customer loyalty initiatives. In our chemicals business, our Chemicals Africa segment faced several challenges with sales volumes being impacted by Sasolburg plant outages as well as the recent Transnet strike action, which forced us to cut back some of our utilization rates to manage inventories also in line with market demand. In our U.S. operations, we decreased production rates at both the ethylene crackers and polymers units to manage inventory and in response to the poor market conditions. In October, a fire occurred at our Ziegler alcohol unit at the Lake Charles Chemicals Complex. And we have been able to restart our coal production at 50% utilization during November while isolating the damage section for repairs. The timeline to resuming full production rates is dependent on completion of the repair work, which is expected by the end of quarter 3 in this financial year. Our chemicals Eurasia segment continues to be impacted by the ongoing conflict in Ukraine. They resulted high energy prices and the general weakening in economic outlook. We continued to implement initiatives to mitigate these impacts. The significant operating challenges together with the uncertain macro environment leaves less room for maneuver and even greater focus on those activities within our control. This includes ensure a safe and reliable operations, enhance customer focus and ensuring our production is aligned with market demand. In mining, our first priority remains the embedding of our safety remediation program. And this is consistent with previous messaging that we need to ensure that these initiatives are properly embedded before we shift our focus to reaching full potential productivity rates in our mining [indiscernible]. We are focusing all our efforts for the remainder of this year and beyond to restore optimal coal quality to maximize profitability in our South African value chain. We continue to engage with Transnet to ensure reliable rail infrastructure and services to improve product movement and ensure continuous supply to our customers. In the U.S., as stated previously, we are progressing with the restoration of the Lake Charles Ziegler unit. And in our European operations, we are switching to cheaper fuel alternatives where possible to mitigate the high energy prices. In Italy, we are receiving grants by the government in the full [indiscernible]. In Germany, the government is planning to cap natural gas prices for the industry with effect from 1 January 2023. Depending on the details of this program, which are not fully known yet, Sasol Germany may also apply. In summary, I'm confident that the stabilization measures we have put in place will have a positive impact. COP27 recently concluded where climate action and the need for implementation were at the forefront of all discussions. Being the first COP to be held on the African continent, the concept of the Just Transition was mainstreamed while still maintaining a driving towards the highest level of ambition even amidst the global energy crisis. The Just Transition is important as we transition, but it is not an excuse for inaction. Turning now to Sasol's decarbonization journey to reduce 30% of our greenhouse gas emissions by 2030 and achieve our ambition of net zero by 2050. Over the past year, Sasol has been engaging organizations that assess Paris alignment such as the Science Based Target initiative to develop a methodology or assist with independent assurance of Paris alignment. However, to date, this has yet to be developed by these independent bodies. In fact, the SBTi recently revoked oil and gas assessments, previously undertaken and has [indiscernible] in the sector, while Sasol is neither predominantly an oil and gas, no chemicals company and in the absence of being able to independently assess, we utilized widely accepted methodologies to provide some [indiscernible] while we work towards an independent assessment. Our 2050 ambition is a 1.5 degree aligned, while our 2030 target is well below 2-degree aligned, which is in accordance with the Paris agreement. Here, we applied the International Energy Agency's absolute contraction approach, and complemented this with other well-established methodologies. We must bear in mind that being a 1.5 degree aligned is not an absolute target for every country and company, but rather than an aggregate goal, where each of us must play our part based on available resources, socioeconomic issues, availability of technology and cost. Some can do more. Some can do less, but it is critical fact that we all act with a common goal to reach net zero. We are making good progress with our 2030 reduction target which includes a mix of reducing coal volumes, integration of large-scale renewables, energy and process efficiencies and increased natural gas feedstock intake. We note some key reservations publicized by stakeholders. However, it is important to understand that Sasol like all others undergoing a transformation is learning by doing. We have set our sales goals that are non-negotiable. We are also communicating transparently and openly with stakeholders as we progress our journey. Sasol has clearly articulated road map to 2030 we have published and to reducing by approximately 20 million tons of greenhouse gas through using proven technologies. We are confident that we will achieve our targets with our returns optimized through careful planning alongside cost and capital discipline. We are in parallel, refining our views on the path [indiscernible]. We intentionally constructed more than one viable pathway to deal with an uncertain future because technology choices will inevitably change in the future. This offers different options to transform our value chains, progressively shifting our feedstock away from coal towards more transition gas and then green hydrogen and sustainable carbon over the longer term. As economics improve, we will integrate these feedstocks in our facilities sooner to reduce emissions. In no way should this approach be misconstructed or misconstrued as Sasol changing its goal [indiscernible], thus achieving our 2030 target and the net zero ambition by 2050 is an absolute imperative. We are fully cognizant of the implications of not achieving these targets. In line with this, we are bolstering our research and technology capabilities to support and assess the development of emerging and new technologies. These technologies will not only contribute to Sasol's net zero plans but also play a critical role in the broader societal move to net zero through the application of our technologies including Fisher-Tropsch and sustainable aviation fuel. To affirm our serious commitment to the future Sasol strategy, I am delighted to announce the constitution of the first of its kind independent Sasol Climate Change Advisory panel to the Group Executive Committee. The aim of this advisory panel is to guide the group executive on Sasol's climate change response, testing the robustness thereof and providing independent knowledge, potential gaps in our climate management approach and envisage -- or envisage to be identified earlier in this process. This panel due to begin its work early next year, will made up of four recognized thought leaders in the fields of mitigation, technology, transformation, scenario planning, adoption and the Just Transition. I have the pleasure in welcoming [ Ms. Geraldo ], [indiscernible], [ Mr. Grobler, Dr. Have Tati and Mr. Jason Schenker ] on to the panel. We look forward to robust and fruitful debates on our transition. In South Africa, we have agreed the key terms with independent power producers to secure over 600-megawatt of solar and wind power to start coming online before 2025. We have signed 1 agreement this week as part of the first tranche and target to sign the remainder of these agreements in the next 2 weeks. Our ultimate aim of 1,200 megawatts of renewable energy capacity by 2030 represents one of the largest renewable energy procurement programs from the private sector in South Africa and will be a strong contributor towards South Africa's renewable energy ambition. In Europe, we have entered into several power purchase agreements for our German and Italian operations. We have made significant progress in our gas supply strategy. The PSA project in Mozambique is progressing well, and we are partnering to pursue adjacent exploration acreage. To access more gas, we have extended the gas supply plateau by 2 years, which is a huge step forward and ensures that we have flexibility in our gas supply profile and LNG optionality as we progress our 30% reduction pathway. Together with our partner, Total Energies, we have also developed and implemented -- busy implementing a low-cost, innovative solution at Natref that will produce diesel, which meets the newly regulated Clean Fuels 2 specifications towards the end of 2023. A pre-feasibility study has been completed on a green hybrid refinery concept, which includes the introduction of bio-based feedstock. This is a very promising prospect towards energy security for South Africa. Sasol Chemicals has achieved ISCC PLUS sustainable certification at 3 of our largest European sites, namely Marl, Brunsbüttel and Augusta, [indiscernible] use of bio-based and circular feedstocks. Sasol is progressing steadily to roll out our mitigation levers and reduce emissions. We are implementing our 2030 road map systematically because our plants are complex and shutdowns need to take place safely for modifications to be implemented. Therefore, we are not able to commit to annual reductions but in no way does this mean we are changing the goalpost. We are simply indicating that projects will be executed over a few years but still within our target period. Capital projects in the industry typically takes 3 to 5 years to implement once the concept is properly scoped. It is also important to stress that all of our decarbonizations efforts are informed by our Just Transition approach. We will not and we cannot move towards a greener Sasol at the expense of colleagues in the higher polluting parts of the business. Our activities, including leveraging existing initiatives and a collaborative approach with partners in tandem with our decarbonization road map. In closing, let me make some final remarks. I recognize there is impatience that we are not moving faster. Critics go so far as to accuse us of greenwashing as if we are not serious about decarbonization. Let me be clear as I can be. Sasol has no doubt that it needs to decarbonize and transform its business model. We see tremendous opportunities for Sasol in this transition, but there are two caveats that need to be understood. First, together with the Just Transition approach, we must also transition in a responsible manner. The Board is keenly aware of its responsibilities and has taken important steps authorizing investments to achieve this. But the Board also recognizes that we must do so in a manner which allows us to self-finance the transition. So yes, we must build future profit pools, but we need to -- the current profit pools to finance this transition. Second, we cannot go faster than the environment around us allow. The projects we are implementing requires adequate engineering design, plan and execution time. Additionally, there are some factors which are not in our control, such as regulatory approvals and global geopolitical or macroeconomic impacts. In making these points, I do not want you to underestimate the progress that we make today. It is significant, and there is much more to come over the coming years, making Sasol an accelerant in some areas particularly in South Africa. With that, I will now hand over to Hanre to take us through the financial framework.

Thank you, Fleetwood, and good morning, ladies and gentlemen. I promised my colleagues I'll be short and sweet with the financial overview, but I think it's important that we start with a discussion of our financial framework that includes the capital allocation priorities. As a reminder, our capital allocation framework, which we shared first to the market in 2021, underpins our capital allocation decision-making and is aimed at balancing the delivery of our long-term strategy, climate change ambitions and growing our shareholder returns. Our first allocation principle ensure that we prioritize and maintain and transform capital to continue operations well into the future whilst the strong balance sheet will support us to continue to pay a sustainable dividend. On a second-order allocation level, growth opportunities will have to compete then with additional shareholder returns in a disciplined fashion so that we can maximize risk-weighted returns of our portfolio. We continue to manage our balance sheet to ensure that we have sufficient flexibility and liquidity to continue with this journey. Looking ahead, there are several key areas which remain a challenge and on which we must maintain a relentless focus. We expect to see continued price and demand volatility, resulting from the ongoing geopolitical events and potential macroeconomic fallout from high inflation and recessionary pressures. This requires us to remain agile and responsive with a strong focus on cost and capital discipline through our Sasol 2.0 transformation program. Ensuring stability is a key priority. And as Fleetwood mentioned, we are working to address the current operational challenges and continued operational excellence across our business. We continue to engage with all stakeholders in response to regulatory challenges which could significantly impact our business. In conclusion, as we continue to navigate the uncertain macroeconomic landscape and ensure safety and stability across our business regions, we remain absolutely committed to deliver our people, planet and profit objectives. Thank you for listening, and I will now hand back to the Chair.

Thanks, Fleetwood, and thanks, Hanre, for those summaries. Ladies and gentlemen, we'd now turn to the business of the day, which is our AGM today. I am comfortable that the Notice of Meeting has been delivered to shareholders in accordance with the requirements of the Companies Act that the attendance register has been duly completed, that a quorum of shareholders is present and that the proxies received are in order. This meeting has therefore been properly constituted. The register of shareholders of the company is open for inspection, either electronically or physically at the offices of the Transfer Secretary, JSE Investor Services. The minutes of the previous AGM were approved by the directors and signed by me as a correct record of the proceedings. A copy of these minutes can be obtained from the group company secretary's office. Now we're going to invite Mr. Andrej Vladar from Lumi, who will explain to us how to ask verbal questions and post written questions as well as vote on all the resolutions. Andrej, thank you very much, sir.

Thank you, Chair, and good morning to the Board, to those of you in the front and to all the shareholders and guests that are in the room with us as well as to the shareholders and guests that are online. So as the notice states, this is a hybrid meeting. So please note that there are people that are online. I think we are currently at 150 people online. So we are going to try and bridge the gap between online and in room. So please be patient with us while we do that, especially during the Q&A. So to start off with regards to the voting, I'll start with those of you that are in the room. For those in the room that are present and entitled to vote and have chosen to vote at this AGM, you would have received a handset as well as a smart card. So please make sure that your smart card is inserted correctly. That's with the gold chip facing you. Insert it into the top of the handset, and you should see your name or the company representing in the top blue bar. The voting is already open and will remain open for the duration of the meeting up until the Chair closes the voting on all the resolutions. On your keypad, you'll see a list of the resolutions on your screen. For those of you that are familiar with BlackBerries, this should be quite easy. So in the middle is a blue trackball, so you can use that blue trackball to scroll up and down the list. Obviously, it would be preferred that you start at advisory resolution #1 and work your way down to special resolution #8. Once you find the resolution that you wish to vote on, press the green button. To view the resolution, you'll then see the resolution text. You'll then press the green button again to vote. You'll then be given the options for, against or abstain. Use the blue trackball to scroll through those options. And when the one you want is highlighted, you then press the green button again. I will then show you that your vote is submitted, and then you can hit the green button again to go to the next resolution. We'll repeat that process for each of the resolutions in turn. And when you're done, at the end, you'll have a long list of all the resolutions and how you voted on each of them. You do have the ability to change your mind. You can scroll back to any of the resolutions, click on it and resubmit your vote. Our system will take the last vote that was submitted. For those of you online, you will have a voting tab at the top of your screen. If you click on that, you'll be presented with an online ballot form or it looks like an online baseball. You do have the option to vote all resolutions in one direction that will be found right at the top or you can make different choices for each of the resolutions individually. For those online, there is no submit button. So as soon as you press the option that you wish to make on a resolution, it will highlight and your vote will then be submitted. For you to be able to change your vote, just click on the option that you wish to change it to, and the highlight will change to that option. And like the in room participants, when we close the voting, we will take the last option that was selected. With regards to Q&A, as I said, please be patient with us on this. We do have various forms of -- and ways for people to be able to ask questions. [Operator Instructions] For those of you online, you have two options in which to ask questions. First one is messaging. And what we've done this year is we have given you the option to select topics. So please select the topic that you feel is most appropriate to the question that you wish to ask so that when we get to the Q&A, we can group them into topics so that we're not all over the place with answering those questions. Your other choice is on your broadcast screen, you have a button that says request to speak. [Operator Instructions] With regards to the Q&A, please note that while we are [indiscernible], please only post questions relevant to the resolutions at that time. The chair will give you all an opportunity after each of the resolutions to ask questions on that specific resolution. If you feel that your question does not fall into one of those resolutions, we will have a general open Q&A session after the announcement of the voting results. So if you could then hold your questions to that point. With regards to the general Q&A, if we [indiscernible] that you only joined the microphone queue or the speaking queue or post your questions to the relevant topic. We will open the microphone queue when the chair announces the topic. For example, environmental, we're now dealing with environmental questions, join the queue then if you wish to ask a question with regards to that topic. We will then shift between the topics and if we get more questions into a topic we've already covered, we will then go back into those topics again. The topics at the moment, we have environmental, social, remuneration, resolutions, and I'm missing one. I don't have them off the top of my head, but finance. Thank you. There we go. Finance. Thank you. You would know. Yes. So when we get to those topics, the Chair will announce, we are now busy with finance and then you can ask your questions based on that topic. We would just like to try and keep it structured as far as possible so that everybody can get a chance to ask their questions based on a certain topic. If you [indiscernible] online, there is a support e-mail address that you can contact. We do have support of online that can assist. For those of you that struggle in the room, I do have colleagues in the room, please raise your hand if you do struggle at any point, and they will assist you. Okay. So please note, for those of you in the room that wish to ask a verbal question, you need to use the handset. You need to join the queue and use the handset. We won't be handing -- handhelds are to those who raise their hands. Okay. Are there any questions on the [indiscernible]? Perfect. Please raise your hand if you have any issues and we'll come and assist. Thank you, Chair.

Thanks, Andrej. Now ladies and gentlemen, we continue with the business of the day. As Chair of this company and the meeting, I'm in charge with maintaining order to facilitate the business of this meeting. We are here today to conduct the business of the AGM as prescribed by the Companies Act and set out in the notice of AGM sent to you on the 3rd of November 2022. As allowed for in Sasol's memorandum of incorporation, I hereby declare that all resolutions will be voted on by way of a pole. Now voting, as Andrej said, is now open on all resolutions, and you can vote on any resolution at any time until the voting is closed, and I will indicate closer to that time when we are about to close the voting. I will give you a few minutes warning, as I said, to ensure that, that is done properly. I will ask you to pose your questions on each resolution separately. After all, the voting has been closed, I will then allow general Q&A. We are anticipating many questions, ladies and gentlemen. So I ask that as a courtesy to all shareholders, you ensure your questions are concise and are posed in English. We will do our best to ensure that everybody's questions are answered. To expedite the process, we will be taking your questions in batches of four: four from the audience; and then the second batch, two written and two verbal from the electronic platform. Given the hybrid format of this meeting, we will be assisted by Mr. Elton Fortuin and Ms. Tiffany Sydow who will read out your written question. They will also read out the name of the shareholder online who wishes to ask a question, and that microphone will then be activated. Shareholders present in the room must use the queuing feature on the handset. Now ladies and gentlemen, the voting continues. The following matters have been placed before shareholders today. The full text and explanations have been provided in the notice of the AGM, and I will therefore provide a brief summary only on annual financial statements. The first item of business on the agenda is to receive the annual financial statements for the financial year ended 30 June 2022. You may now ask questions on the annual financial statements, the report of the directors, the audit committee and the external auditors as well as the report of the Safety Social and Ethics Committee are all in front of you. So if there are questions, please you may ask those questions. There are no question. Thank you very much, ladies and gentlemen. We will now move on to non-binding advisory resolutions. We then get to the remuneration policy and how it was implemented in the previous financial year. Please ask your questions and vote on non-binding advisory resolution 1, which is to endorse the company's remuneration policy. Number two, the remuneration policy implementation report. Please vote. [Voting]

Are there any questions on these resolutions?

Chair, there is one question for the remco chair on the remuneration policy, if I may read that out. On the remuneration policy from [ Luli Nkube ], safety ESG component, we have previously challenged the use of the FERs as a target or metric. Why is the target not fatalities as the company's priority and target is zero harm? If there is, if there are any fatality executives should score 0 to underline the importance of safety. Second part of that question, shareholders have raised concern on the weight of retention awards in LTIs as there are no solid performance targets to these. Why has retention awards remained high at 35% of LTI despite the concerns raised? The third part is relating to climate change [indiscernible]. Given the ambitious targets Sasol has set in the Sasol of the future, why has remco gone for the soft target of energy efficiency and low or no weighting towards low carbon initiatives and the Just Transition?

Thank you very much for the question. As we said, we'll do them in batches of 4. Do we have other questions? Thank you very much. Could we answer those questions? Chair of remco is going to answer that.

Am I on? Thank you very much for the questions. Indeed, we did get a challenge or 2 on the target FER, but it's a very important target for us for safety, and we do indeed plan to continue using it. It's an important metric used for safety as well as many companies choose to use that. But I do want to give comfort to you mutually that zero harm is a very important metrics within our scorecards in general for the company as well as individuals. And what you may not see is the fact that fatalities actually have the harshest scoring on the group's scorecard. For each fatality, we deduct 3% of the overall performance on the scorecard, and therefore, is a modifier which makes it the harshest KPI on the scorecard. And therefore, indeed, zero harm is important to us. We do want all our employees to go home after work. That is what we aim for. One fatality is too much for the business, and we aim not to have any facilities at all at any given time. And on your second question about the weighting of the restricted shares at 35%, which you find too high. I do want to assure you that 35% is not too high. We did a benchmark compared to some companies within South Africa, Europe and America, where we operate. And some companies have as high as 70% to 80% to 100%. 35% is indeed a reasonable level. And we don't have performance targets attached to these, but these have a longer vesting period of 5 years compared to others. And I must just remind you that Sasol has the longest vesting period of 5 years in the country, and therefore, in the top end. Do we see ourselves reducing this 35% over time? We review this on a regular basis as RemCo, but we believe that retentions are a very important element for retention for our executives, particularly through when we go in through tough trading times, but we keep reviewing it, but we're currently happy to retain restrictive shares at 35%. And your last question talks to what you refer to a soft target of energy efficiency. I mean we operate in times where as energy supply is not consistent, you know the challenges that we face in South Africa because of Eskom and therefore, energy efficiency becomes key, a very key element in terms of use of energy for any company basically including us as well. And we do have indeed other targets which you may not necessarily have seen maybe on the scorecard on carbon emissions. And those, I think, were increased from 10% to 30% recently, which was very, very high. I also do want to raise or bring your attention to the fact that Sasol has the highest weighting on ESG targets in South Africa at 30% compared to our counterparts, we have the weighting of between 10%, 20% basically. And also on our LTIP. The weighting of our ESG targets is 25%, which was much higher than our counterparts both locally as well as internationally. We do track all the ESG targets to make sure that they're in line with the company's plans, which are shared with the shareholders on a continuous basis. Thank you very much.

Thank you very much, Mpho. Do we still have another question?

Thank you, Mr. Chair. We will now take a question in the room from Leanne Govindsamy.

Thank you, Fleetwood, for your presentation and to the Board. Fleetwood, you referred to a lot of stakeholders being impatient about some of the climate targets and ambitions that Sasol has said. I think it's so important that for us shareholders this is not about impatience or personal preference here on behalf of civil society or anyone else. This is about us being in a climate emergency and Sasol having a real role to play in relation to it. So I want to refer to the high-level expert panel, the United Nations high-level expert panel on non-state actors, and the 10 recommendations that have come out of the high-level panel. And I want to understand whether Sasol will be incorporating those recommendations into its next climate report. And in particular, I want to refer to 2 of the recommendations that are made, right? Firstly, they referred to this being the critical decade of action and the time being now to draw a red line around greenwashing. In relation to businesses, they refer to net zero pledges that must be made and that should refer to interim targets for 2025, 2030 and 2035, and that must be aligned with science-based targets, which Sasol hasn't necessarily done, right? And on oil and gas, it specifically says that businesses should not allow permits for exploration for new oil and gas fields, not allow expansion of oil and gas reserves and to end the [indiscernible]. So my questions, therefore, are, will you be updating your commitments in accordance with the 10 recommendations of the UN high-level expert panel on non-state actors? Can you justify exploration for new gas given what the expert report has stated? Can we also know through the [ Presidential Climate Commission ] and the Climate Finance Task Team that finance mobilized through the Just Energy Transition will be channeled towards Sasol for green hydrogen? So clearly, this financed a lot of your targets and ambitions and we'd like to understand how you will remain transparent and accountable in relation to finance that will be channeled to full [indiscernible] company essentially through the Just Energy Transition process?

Thank you, Leanne. Can I probably propose something here? We are specifically voting on this resolution right now, which talks to the rem policy as well as the remuneration policy implementation report. So we have noted Leanne, your question. And when we get to the general questions, we will then attend to that. So if you don't mind, if you could allow us to go through the process of these resolutions and asking questions which are specific to the resolutions. And then, we will then attend to your question. So we have noted it. And when we're done with this one, we will go through that one or issues of climate change. Thank you so much. With your indulgence, I would like to handle the meeting that way. Because otherwise, we're going to keep on jumping from resolution to other questions. So can we follow that flow, if you don't mind? Thank you very much.

Thank you, Mr. Chair. We have one more question in the room, and this is from Ms. Thandile Chinyavanhu.

I understand that you're dealing with questions related to resolution 1 right now. But if you can please take note of my question, which will be maybe discussed around resolution 3. Sasol has disclosed in its recent climate change report for 2022 that the kind of foresight in Mozambique is responsible for approximately 819 kilotons of carbon dioxide equivalent emissions, from their fugitive flaring and fuel emissions. Using satellite imagery, Greenpeace Africa was able to observe that methane emissions in this area have been increasing year-on-year since 2019. How do you have confidence in these emissions firstly? And how can we -- how are you able to justify further exploration when you're struggling to ascertain the exact [indiscernible] from this site?

Thanks, Thandile. As you've already pointed out, we will when we get to resolution #3 that talks to climate change in all other areas, we will then answer your question. As we continue focusing now on remuneration policy and the implementation report.

Thank you, Mr. Chair. We have another question in the room. And this time, it is from [ Segun Gille Khumalo ].

[indiscernible] Since this has not happened, when Sasol establish this plan? Question #2, we note that for Sasol's chemical businesses, the company states that the baseline for the Scope 3 emissions is being developed. This was also said back in the year 2021. Reporting point, when does Sasol intend to set this baseline?

[Foreign Language]. As I said, we will -- we'll keep your question. And when we get to that point where we will -- we need to answer all the other questions, we will deal with that one. So thank you very much for your question. But for now, can we focus on 2 resolutions. That is resolution #1, which is about company's remuneration policy, and the second one is the remuneration policy implementation report. That's my request.

Mr. Chair, there's one more question on the remuneration policy. Good morning, Mr. Chair. I am Greer Blizzard from Just Share. My question is for the Remuneration Committee. Sasol states that for purposes of determining relative total shareholder return, it adjusted its peer group to include larger comparative companies. However, these companies are not disclosed by name. Please could Sasol disclose which companies it considers its peers in its benchmarking process. Such information is critical in determining whether executive remuneration aligns with long-term value creation and best practice around remuneration.

Thank very much. Am I heard? I am.

The Chair of remco will answer the question.

Thank you very much for asking this question. And indeed, it is fully disclosed. If you look at our in detailed rem report on Page 37, you will see all these companies listed for the benefit of our shareholders' and any readers of our integrated report. So it is there and fully disclosed. Thank you very much.

Thank you. Have we completed the questions?

Mr. Chair, we have another question from the room.

Yes, please.

From Emma Schuster.

Sorry, my colleague, Melody Kozah’s mic isn't working. So I'm just going to pass it over to her.

Thank you very much, Chair. With regards to the first question that was asked online by Greer Blizzard from Just Share, we did not actually get the actual information. We managed to do a detailed analysis, and I would like to have a follow-up as to whether we can be given at least some of the specific names regarding the peers. But I hope you will now allow me to proceed to ask the questions that I have that are applicable to this resolution. We note that in 2020, Sasol's Remuneration Committee approved a methodology to track internal pay equity on a group-level rate and gender basis. [indiscernible] employed more than 250 employees on a permanent basis and where the data is available. Sasol reports that its finding with that detailed level pay gap ratios showed a downward trend in South Africa and in Italy. However, no numerical figures are provided to reflect the actual pay gap ratio or the previous [ CES ] figures to allow for comparison and assessment. I have two sets of questions. relating pay equity. Firstly, is Sasol willing to disclose further information on the pay equity? Secondly, given that it is important to include temporary employees in such assessments in order to provide an accurate reflection of pay ratios, will Sasol commit to including temporary employees in its methodology? My other question on pay equity relates to the gender pay equity analysis, which was once again commissioned by the Remuneration Committee in 2020. Sasol reports that this analysis found that no systemic gaps exist. Is Sasol willing to provide say by information in relation to this assessment and to disclose the gender pay gap for the South African operations?

Thank you very much. Chair?

Just to make sure that you do find that list of peer groups, please go to the annual financial statements because you will find that it's also available on our website and go to Page 37. So the information is fully available for you. You can literally go through your cellphone right now to our financial treatments and you will find the information. And I'm glad you read the rem report to the detail that you have. And as Sasol, we are super proud and as a RemCo that we do track race as well as gender even if we are not requested to do so by the law. Why do we do that? Because believe in fair and equitable remuneration and therefore, we do it because it's morally just to do so. But unlike other markets in the U.S. and Europe, where it is required for companies to report on these pay gaps, South Africa is not requested to report and disclose on these pay gaps currently. So for the time being, RemCo is being responsible by tracking these gaps in the business and making sure that we close them where we find them. Yes, indeed, there is a downward trend in a number of countries. And in some countries, there is, I mean, there is equitable pay and therefore, we are happy with that. And yes, when the law does require us to disclose, we will do so. Thank you very much.

Thank you very much, Mpho.

Mr. Chair, we will take another question from the room. This time from Mr. [indiscernible]. [Audio Gap]

That's an old question. The mic is working.

Mr. Chair, doesn't seem as if we have any more questions either online or in the room related to this resolution.

Thank you very much for that. And to colleagues that have asked questions I just want to assure you that we've got your questions noted. So we will attend to them as soon as we have finished resolutions 1 and 2. But thank you very much for your questions. Now if you haven't voted, please continue voting. [Voting]

And we will now proceed and move away from this resolution because that concludes the questions on the remuneration policy and the implementation report. As I said, we encourage you to vote on advisory resolution #1 and 2. Now this brings us to Sasol's climate change report and some of the questions that were asked would be answered now because this has to do with climate change. In our climate change approach, you can pose your questions and vote on non-binding advisory resolution #3 now. Could we then receive and answer the questions that colleagues have given to us. I don't know whether the chair of sustainability is ready? Okay. Thank you.

Thank you, Chair. With respect to the question that Leanne has asked earlier in terms of that 10 points then the United Nations specific report and elements that they recommended to be contained. Now our position is very, very clear and progressive, so all new guidelines and practices that has been published and made available will receive due consideration in terms of how it is applicable, how we can embrace and use that in our own decarbonization journey. So at the outright, I'm just saying that we will make sure that we understand fully all of those aligns. But suffice to say, we've already made in that one that gives a certain dates or periods that you recommended or that you mentioned there, Leanne, in terms of the 5-year tranches, we already aligned where we have '26 target and we have the 2030 target. And so moreover, our targets are science-based. So I think we said in my opening remarks, I mentioned that we are looking into assuring independently these targets and also the methodology that is available. Currently, we know that it's not an easy determination and I also have indicated earlier that even on the areas where they have made some assessment, they have paused on that basis, and so the methodologies are being refined. So I believe that we are then in conformance to that. And we also do not use offsets to get to this target. This 30% target is an absolute target. There are no offsets involved to reach our 2030 target. So with respect to the question, you've asked on financing and green -- on green hydrogen, I believe that the Just Transition partnership in terms of financing has been very clear. There is continued participation and engagement with the entities that will be having access to that finance, and if there are worthy projects to be considered from a national point of view. And yes, they [indiscernible] to green hydrogen. And those projects that will be falling in that category will be assessed, and we will collaborate then with the presidency and [ Mr. Daniel Manelis ] department to really make sure that we have coverage visibility and that we can seek eligibility for those funding. And if we can do it earlier, we will definitely consider that. So I hope that gives you the context how we look at that. Thanks, Leanne.

There were other questions. There were other questions, colleague. I don't know it whether you've attempted them one from Thandile, the other one from [indiscernible]. Yes.

Thank you, Chair. So I believe the next question was with respect to fugitive emissions in Mozambique. Now I think we are very, very clearly and transparently [Audio Gap] I've indicated there, we have appointed expert consultant to help us assess how to contain and how to mitigate this emission going forward. So it is not part and parcel of our current drilling campaign or the wells that we operate currently in Mozambique. And thus, we are really focusing on to understand and how to mitigate that and to deal with that fugitive emission that you are referring to. So attention and focus is there, and we hope to give you by the end of our financial year as we go into the next reporting period, we will update our progress on that matter. There was a question with respect to Scope 3 chemical emissions. Now first of all, we have set a target for our Category 11 Scope 3 emissions, and that is off our 2019 base, which is a 20% reduction. We understand mostly the impact of the use of our energy business impact from a Scope 3, and that is the use of fuel and what is that then bring [indiscernible] Scope 3 emission. But when we get to our chemicals, we have got hundreds of product formulations that goes into a couple of thousand customers that use our products globally. Now to determine end use of how the product is used, how is it applied, how would it be stored or how would it be used and, I would almost think, discard off takes time because you need to engage with these customers. We don't have always the understanding how exactly they are using, disposing of those products. And that's why the road to get to the bottom of all of that Scope 3 from our chemicals business is taking more time because it's a complex problem to solve. And therefore, we have commenced that process. We are making progress on that base. And again, we will update you [indiscernible] basis on how we are making headway to define those category Scope 3 emissions.

Thank you.

Thank you, Mr. Chair. We will now go to questions in the room. The first question is from Emma Schuster. And if we could just ask that our shareholders who are in the room, if they could please stand, just to make it easier for us to identify them in the room. Thank you very much.

My name is Emma Schuster. I'm from Just Share. Before I start with my question, I just wanted to make a point about the [ ends ] question on science-based targets, I think the point is that if there's no methodologies available, you can't say that, therefore, the targets are science based. And at best, I think you can say that there are no methodologies available at the moment to establish whether they're science based or not. But my question is on Sasol's position on the carbon tax, which is reported in the comment and reporting and through Sasol's industry bodies. I just like to [Audio Gap] Hello, thank you. I'll just read out some short sections from the Climate Change Report. Sasol's high GHG emissions make us sensitive to increasing carbon crisis, especially if out of sync with our ability to mitigate. Further information [indiscernible] viability of our business and the increasing carbon tax scenarios. And then in a conservative scenario, assuming all allowances fall away and the increase in prices applied, Sasol would need to consider trade-offs to balance the people, planet and profit agenda. Just to be clear, the purpose of the carbon tax, firstly, is to ensure that the polluter pays for the cost of their emissions to society and that this cost is not borne by society in general, particularly the most vulnerable. And secondly, it's to incentivize behavior change that would not happen otherwise. So in order for this to happen, it has to be expensive. It's supposed to be expensive. In light of this, please can you explain what is meant when you say that -- when you talk about the carbon tax being out of sync with Sasol's ability to mitigate, particularly bearing in mind that South Africa's carbon tax already fall far short of what experts, including the National Business Initiative, say is required to align with the goals of the Paris Agreement? And secondly, Sasol reports that it's engaging with National Treasury for further clarity on the rate, trajectory and allowance [ base ] of the carbon tax. Are these engagements with government strictly about obtaining clarity? Or are they to lobby for lower rates and greater allowances? And to that point, what is Sasol's response to Acting DG Momoniat's comment at the parliamentary subcommittee meeting last month on the surprising lack of vision and leadership from business in response to the amendments to the carbon tax?

Thank you.

Thank you. I will just start off by saying that Sasol has made a very clear commitment to reduce our carbon greenhouse gas emissions by 30%. There's no walking away from that. If you interpret that within South Africa pledge national determined contribution, and you are very well versed with what that number is, Sasol's target snugly falls into that range. As a matter of fact, we are helping to increase the probability of that range to be achieved. And I think that is, first of all, where we position in terms of the commitment from a national determined contribution. I would also like that Hanre weighs in, in terms of where we are. But suffice to say is that it is important to understand that to have means to reach this implementation of the 30% target we committed to. That means that you have to have capital available. You need to have funds available and that you need to spend that to reach it. Now I always [indiscernible] analogy of the athlete that runs the 100 meters. And as he gets out of the starting block and he reaches the 80% mark. That someone throw a stone from the side and he stumbles and he fall, and he can't make that goalpost because of -- and think in our case, that would be that we won't have money to really use to implement those targets, but we committed. We've already started the process. And so you need to have a cash flow to be able to complete the process. And I think that notion also lies into the context of realism of how to go through a period where we are fully in support of carbon taxes, but we also are clear that you need to have realism in how you look at how to achieve that eventual outcome. And I think Hanre can weigh in on the actual other part of your question.

Thanks, Fleetwood. I think just to note that the report that you quote from predated, a lot of activity that subsequently happened in terms of the TLAB process. And along with other stakeholders, Sasol made contributions to the process, where it was open for public comment. And I think to that point, kind of we are absolutely supportive of a carbon tax that's realistic and that represents and underpin to drive transition in South Africa more broadly. And I think that word advocacy you asked, are we advocating, I think we're advocating for a balanced position that takes into account people, planet and profit. It's got to be a just view of what is possible for Sasol and the country's transition path. But to that extent, I think government also recognize that in the government, the engagement was positive [indiscernible] and not [ move ] that process where there were sort of a number of compromises made to clarify aspects such as, for example, the exchange rate determination, clarity on the process of allowances, which have not been concluded yet. And I think that process is going to continue. So I think the public debate that we've seen, we will continue to participate in that. And I think we will note our position and make sure that there's a balanced discussion around such aspects. Thanks.

Thank you very much.

Thank you, Mr. Chair. We go to the next question in the room, and that is from Ms. Ilham Rawoot.

Thank you, Chair. I represent Justica Ambiental, Friends of the Earth Mozambique. One second. I'm referring to -- my questions refer to Pande and Temane projects in Inhambane province. One of the most climate-vulnerable countries in the world. You've just said you'll be planning adjacent plants to extract more gas which is directly contradictory to the climate commitments you've just discussed. Please, can you explain this? And which is the company you're referring to that you'll be using as consultants with the [ assessment mitigation ]? And then my next question is how many methane leaks has the project had in 22 years? And how many has it had this year?

So I'm going to ask that my colleague, Priscillah Mabelane, also weighs in on this particular question. So we have appointed that consultant. I am not -- I can't remember who the consultant was. And I will come back to you in terms of that specific question, if we can, if you can indulge us. So the question about we are looking at bringing in and restoring the decline of our current gas reserve in Mozambique. That gas is being used in South Africa in our operations and by many of our industrial gas customers. Now I think it's also important in the context that the world needs more energy as we speak. That energy needs to be transitioned to a sustainable energy mix that will enable the global society to reach net zero by 2050. In that context, when energy sources are declining or diminishing, you just cannot stop using that [indiscernible] and the energy will be coming from other sources to be able to supply the demand for that energy. And therefore, from that principle, it is incumbent upon us to ensure that we've got a sustainable operation that is transitioning, but that we have interim gas available to afford this transition. And therefore, our gas fields are declining in Mozambique. Our focus is to extend that decline so that we can enable sustainable operations to transition and transform in South Africa. That is the reason why we're doing. We do -- we are not doing it to be in the game of big gas and export Africa in gas. That's not our focus. Our focus is to enable South Africa in energy security and to maintain that and then to transition when sustainable scale energy of other alternatives like green hydrogen, like sustainable sources of carbon becomes more prevalent and cost affordable to implement. So I think just at the outset, I want to put that in context because that is actually energy security. We've seen in the last year or 2, it becomes an important transition. It is not now to say that you are now locked in for all and for decades to come. It is about enabling a transition, and that's how we see it. Priscillah if you can weigh in, please.

Morning, everyone. Just to add, featured on Page 12 of our report, we have actually outlined -- sorry, Page 13, the best practices that we've actually deployed in measuring and the baseline assessment that we've done. In that report, we highlighted that to date in terms of our total emission for Mozambique is 1% of Sasol's total emissions and in terms of CO2 equivalent. The second part that we're also outlining is that we've also developed methane measurement platforms that we intend to use going forward for all of our drilling as well as the flow lines that we're building, and we're already implementing that in terms of the PSA flow line that we're doing. I just also want to reiterate that as far as the historical Pande-4, which blew up in 1965 when technology was not yet developed, as Fleetwood also indicated, over the years, we have adopted best practices in terms of how we execute the drilling campaigns, and we continue to measure and manage this well. And at the same time, we've seen that the operations have normalized, but the appointment of the consultant is [ Valvestus ]. It's actually a renowned upstream company but also to add that they're not working alone. We have solicited a number of experts, particularly global universities to complement both the subsurface as well as the surface solutions that we're looking into. So the data that we're acquiring through satellite as well as through the water monitoring processes will be evaluated and tested and signed off by a number of advisories as we move forward so that we are robust in the implementations that we'll be putting forward to resolve this issue.

Thank you, Priscillah.

I can just come in to deal with a question that was asked by our shareholder from Secunda area. And she has particularly [indiscernible] the public participation processes that were unfolding in the area. And I want to just emphasize that we are regularly having public participation programs and that in the last months, in June, we had a process that was held in Secunda. And we are having another one in December this year. So it is all in line with these sessions, and it will also be held in eMbalenhle in Secunda and in the Lebohang townships where we engage with the local community just to close out that one. Thank you, Chair.

Thank you.

Thank you, Mr. Chair. We're going to take one more question from the room at this time, and that is from Robyn Hugo.

It's actually Ayabulela Quzu, and I'm representing Just Share. I have 2 questions. The first one is the council and the second one leads to Sasol's just transition office. Sasol plays a key role in the Energy Council. For example, Mr. Fleetwood Grobler is the Chairman and the Council has its headquarters at Sasol premises. We are aware that the council has recently appointed as CEO. Has the Energy Council now adopted its constitution and settled its terms of work. We asked last year and still want to know? Will you make public the minutes of meetings between government and the council? If not, why? If so, when, where and how regularly? That's the energy council question. The one on the transition office Sasol, reports that it has recently established a just transition office, where you can find the activities of this reported on, we would like to know, for example, how many engagements with affected communities were held, over which time period and the outcome of this engagement? Sasol's recent report don't provide this information. Thank you very much.

Thank you, Ayabulela. Thank you for your question. So first of all, the Energy Council is a council that's got the vision to help South Africa to decarbonize and to reach Net Zero by 2050. The Ministry of the Energy Council comprise a wide constitute of business and government in South Africa. The idea is that we're not only using the base members from an energy backdrop, but you would see the members of the Energy Council that has grown since its founding last -- end of last year is now up to 20 members. These members comprise uses of energy. Comprised associations in the energy landscape like the renewables. It also include OEMs in the automotive industry, the norm size is one other area and then many other mining and users of energy as well. And so the collective wisdom is that, that will enable us to get more efficiency and traction towards reaching and transitioning the energy landscape to sustainable energy to reach South Africa's aspiration of Net Zero by 2050. So I just want to make sure that, that is the reason why it exists, is to transition aligned with the sustainability goals of the country. And the engagement has been developing over the last months, we have appointed now a CEO that is running with that. And once that internal processes now and staff will get going, we will have a much better engagement with the public at large in terms of our communications, et cetera. Your reference to the minutes between the counsel and government, there has been no official engagement in terms of the work of the council to engage with government in terms of the regulatory or policy framework. That is work in progress. And I think there's nothing to hide when we do engage with that. That's in the interest of public to understand what is the work of the Council, what is the output and how does it get impact in terms of rules and regulatory environment in policymaking. So I think that is a work in progress. Thank you for your question.

Thank you very much, Fleetwood.

Thank you, Mr. Chair. We'll now go to the online voice questions. And our first question is from [ Zara Omar ].

So my question is, in its reporting on the carbon tax, Sasol refers to the claim need to consider tradeoffs to balance the people, planet and profit agenda. At National Treasury parliamentary report back, the acting DG also said that businesses fears that the carbon taxes prohibitively expensive or based on a business-as-usual calculation instead of one aligned to decreasing emissions trajectory. So firstly, what are the trade-offs that Sasol is referring to? Ability for future carbon taxes? What assumptions do you make about Sasol's emissions trajectory, bearing in mind that Sasol has [indiscernible] and its emissions will rise in the coming year. Thank you.

Thank you.

Thanks. Let Me discuss that saying that I was also involved in the TLAB process and got a brilliant Parliament. I think important point that you do make is that it's not only about the business as usual in your assessment of carbon tax, but it's our ability to reduce our carbon footprint and assessing them the carbon tax liability as we move forward through the year. So effectively take the example of 2030 then, what would be our carbon tax liability or annual liability then if we do then reduce our carbon tax by 30%? And what we then do is we would calculate to go through the one that we go into the scenarios and the assumptions, we would calculate on the basis of whether it's $30 at whatever exchange rate, what would the tax liability be and assumptions that include aspects such as allowances, and we would then have to assess in terms of the projected profitability of our business given the CapEx expenditure needed to transition and the operating cost, whether the business would still be viable. And in that way, we test all our various pathways to check the viability of all the various solutions. Of course, the one of carbon tax. So it's a multifactorial aspect, but I've highlighted that to you the key assumptions that flow through the carbon tax. Just to note -- sorry, I think with most the aspect on the transition office, we've got to just deal with that as well Chair.

Thank you very much. We -- I don't know whether you want to add on this question by just transition?

Chair, it is correct. We have every quarter 38 to 40 of the Climate Change Report on the just transition office. It's an office that we've recently set up, part of its focus will be around the development of our just transition road map. It is a development that will work together with our stakeholders. So indeed, as you intimate, there will be engagements with different stakeholders, including communities, employees, suppliers and a whole host of other players who may be impacted by our energy transition. At the moment, we're leveraging existing engagements and consultations to kick off the process, but there will be further way coming through around this as we move into calendar year '23. Thanks.

Thank you sir.

Mr. Chair, there are a few questions coming through online, if I may proceed with those.

Yes, please.

The first question, I'll read 3 out at a time. The first question comes from Ian Erasmus. How can Sasol decarbonize their operations while the Secunda facility is CO2 emissions intensive by way that the 4 Benfield units invite millions of tons of CO2 daily? How is Sasol going to change the Synfuels operations and physical plant to eliminate or reduce the CO2 emitted by the Secunda Benfields. The second question comes from Mr. Charles Chinyavanhu. Considering that Sasol operates in the high-priority area declared by government with the aim of improving air quality due to dangerously high levels of air pollution, what are your plans to invest on environmental programs aimed at improving the air quality and livelihood of locals? And the last question from Ian Erasmus with respect to fugitive emissions at the Secunda facility, the gold separation units [indiscernible] the plant and has a lot of fugitive emissions to atmosphere via this plant valves and pressure safety valves leaking into atmosphere. What actions are Sasol taking to measure these emissions and rectify them?

Thank you so much for those three questions. So I will deal with the first question with respect to Benfield concentrated CO2, and I'm going to ask Simon Baloyi, our EVP for Operations and Technology to weigh in on the other two questions that was asked. Now the output of the total greenhouse gas in Secunda is measured and is part and parcel of this 63 million tons that we have as the baseline in our South African operations. The Benfield CO2 that you referred to, Mr. Erasmus, is part and parcel of that calculation. The opportunity how to deal with that as the concentrated force for capture is, of course, one of our areas that we look at how to use that. We all know that CO2 is also a source of carbon and with the advent of affordable green hydrogen in future, that may be a viable route to react that CO2 with green hydrogen in our future top reaction to products. At this point in time, we are setting the target based on that total amount, including the Benfield which will be reduced by the 30%. I think that gives the context to that. So it is fully accounted for, if I can ask Simon to weigh in now.

Thank you, Fleetwood. Morning, Ian. On the question dealing with the emissions of gases at liquid methane net cost operation. We -- our plants are equipped with advanced gas detection systems. And the focus of that is to ensure zero harm to our people. Therefore, if relatively any leak on any valve that will be picked up, and we will shut down that unit and fix it. And the pressure safety valves, for instance, those are designed for overpressure situations [indiscernible]. And also as if any event that you're okay, I mean, which is seldom that will then release safely to the flex systems, which the plant is also designed for.

Thank you, Simon.

Thank you. if I may ask Simon just to weigh into the question that was asked in addition, and that was what are we doing in the area, in communities in Secunda to alleviate further emissions in that -- from that area, not only in our plants. What are we doing in the community at large.

Thank you, Fleetwood. As you all know, I mean, we are actively doing and spending a huge amount on our projects, and these are forecasted, particularly emissions, forecast on the NOx. And we are well on track to meet the MES 2025 except SO2 that we have dealt with via various forms. And in the communities, we don't just stop in our plans. What we do in the communities, we have went through various phases. And the first phase was to forecast in the local community. So firstly, we have dealt with installations in the houses to make sure that the communities use less heat, we have belt in projects where we address particulates by having grass-cutting programs because we could recognize in those environments that the grass-cutting was contributing to PMs and [indiscernible]. We also moved in to make sure that we can help the communities move away from the open flames, which were using coal. So we've done all of those projects. We're also rolling out Phase 2. And Phase 2, we'll continue to focus on similar ideas and information on air quality. And then we're also doing projects on waste management as well, where we place various tips to make sure waste is collected, we turn farmers waste site into vegetable gardens. So sort continue not to only do our projects, but fully be involved in our communities to reduce the impact of the mean pollution.

Thank you. I think, yes. Thank you.

Thank you, Mr. Chair. We will take more questions in the room now. And the first question we have is from Leanne Govindsamy.

Great. Thank you. Fleetwood, Hanre, thank you so much for your presentation and for answering our questions. And we completely appreciate what Sasol is doing in regard to dealing with what are very difficult issues, right? So at the end of the day, what we're doing really is civil society is to present our perspective and our views and ensure that this is aired quite openly. I want to make a few points right, in relation to some of the answers being given. The first is that the science require that emissions be halved by 2030. That is much more than what you're currently committed to. That is what the science requires. The second is in relation to the fair share. Our NDCs do not represent a proper, fair share allocation. And so kind of linking your targets to our NDCs. Most represents the actual allocation of a fair share, which the U.N. high-level expert report requires. And the second is -- or the third is around gas. It's more expensive. You've allocated huge amounts to [indiscernible]. I think it's back on. You've allocated huge amounts of money to new gas reserves and exploration. So -- in light of all of these, you can see why we have said your decarbonization targets are insufficient and why we don't regard them as being science-based. So what we're trying to understand is that given that gas is more expensive and is likely to cause issues in relation to compliance with the high-level expert report or broader emissions, for example, what alternative plans are you working on to ensure that let's say, massive ramping up of [ RE, ] for example [indiscernible]. Are you able to share with us what financial arrangements are being made? Who are you speaking to? The whole world is looking at South Africa right now in terms of decarbonization. And there are financiers that are out there able to support this. So you to respond to say, this is about cash flow. Unfortunately, we can't accept that. There are options, and we want to be able to see Sasol illustrate us how you're exercising those options. I think I will end my question there and just say that we want to see you be more ambitious for all of us.

Thank you, Leanne. And I as I've said, we see all stakeholders are part and parcel of shaping the outcome for our beloved country as well as this company, Sasol. So we welcome your input and we welcome your thoughts in that regard. In terms of the science-based requirements, et cetera, I'm going to ask Shamini Harrington to weigh in on that because that is coming in a very technical detail, which I think she can help me to position that better. With respect to the options on mega renewable energy, I would like to just give the following context, so we -- at Sasol, we use about 1.5 gigawatt worth of electricity in our operations. And out of that, we are also generating own electricity that is coming from our boiler plants that is driven by steam as well as our gas turbines in Sasolburg as well as a gas turbine system in Secunda. So in terms of our needs for renewable energy to help us to decarbonize our Scope 2 emissions that we buy currently from the utility. We have embarked on a program to buy 1.2 gigawatts of renewable electricity that will supplement our operations requirement of electricity in South Africa, and you've also noticed globally outside South Africa. Now the moment that you go with a very ambitious bigger part, the electricity per se will not help us much fall further that becomes a point where the ratable renewables will help us to decarbonize the last part of our requirement. And I think there is still cost reductions required for energy storage in that sense to provide fully 24/7 renewable energy to all our operations in South Africa. But I think it is an opportunity, and we watch closely what will transpire and to harness that. Now when we look at a big scale hydrogen export project or a hydrogen utilization project in South Africa which we are in study phases. We are doing a pre-feasibility study in [ Bogubai. ] We've announced a partnership with ArcelorMittal to look at Saldanha by, those type of projects also take time. But yes, to your point, it takes funding and funding for renewables could be available. The thing that you always need to remind yourself of is that notwithstanding those funding available, you have to think the funding that you get. And so in our case, we cannot finance mega projects off our balance sheet. We cannot do that. It's impossible. But what we can do is to follow a realistic implementation of bite-sized chunks on renewable that our balance sheet can handle and that comes back to the cash flow that we generate that helps us to keep our balance sheet in a healthy way. So those are interlinked, and you cannot ignore that. But suffice to say, to your point, we are having ambition to play a leading role. Sasol cannot do that on our own because these are tens of billion dollars of type of projects. We will have to partner and collaborate with others in South Africa and globally to enable that. And that is our intent. As we get clarity on the scale, cost and details, we will then also go to others in these 2 projects that I mentioned to participate with us to enable that. The other part that I also want to emphasize and Leanne, I think it's important that we understand that the cost of, for example, electrolyzers are still coming down. So it is also about the smart way, how to harness investment in renewables [indiscernible] as the cost curve come down. Because if you invest all your needs at the high point in the cost curve, let's take an example, if the cost of hydrogen is now $2 a kilogram, we would like to invest in that. But if we do it at $5 a kilogram, which it is now, we will have regret capital spend because forever in a day going forward, that asset will carry that cost. But if we waited 5 years, perhaps the cost would have come down to $3 [indiscernible] less a kilogram. If you invest big at that time, you have done a better long-term business decision in terms of your investment. And so that is our intent is to be leading in some of these catalysts lighthouse projects, but that we also have a long term in mind that we will have a programmatic implementation at scale as the costs come down in these type of technologies that we know will do over time.

Thank you. I don't know whether there's some questions.

Mr. Chair, just checking if any of our subject matter experts will be elaborating on the responses.

But could we ask Shamini to conclude.

Thank you, Chair.

Leanne, in regards to the science part, I think it's important that we must bear in mind what we are referring to when we say that Sasol's targets are science-based. So while they might not methodology for coal to liquids, specifically within the science based target initiative, we have, in fact, applied the International Energy Agency's absolute construction methodology. This is a methodology that's used by the SBTi itself. And using that, we then apply the absolute contraction of 2.5% per year, and you will get to a 30% reduction by 2030. And that aligns with well below 2 degrees. I do hear you on the point regarding science globally. We must bear in mind the lines globally says halving emissions. And Sasol is certainly on the page of being able to contribute our part and where we can and if the methodologies are there, we will get this assured to demonstrate mitigation what we are doing to assess and make sure we contribute to The Paris Agreement more effectively over time as the methodologies become available. Thanks.

Thank you. Thanks, Shamini.

Thank you, Mr. Chair. We will take another question in the room. And this time, it's from Emma Schuster.

Fleetwood, I want to follow up on something that you said in response to my colleague, Ayabulela, about there being no official engagements between the Energy Council and government as yet. It's quite difficult to understand that given what we know of the role that the Minister of Mineral resources and Energy played in setting up the council and his admission about phone calls to industry bodies to -- on policy positions. I'm not accusing the council of [indiscernible], but I think it's important to understand the potential view of conflicts and uncertainty around these engagements. It depends, I suppose, on the definition of official engagements. But we also know that the historical role that industry bodies have played in lobbying to delay and prevent climate action. And so maybe a little bit more transparency from the council going forward would be appreciated by wider society. Thank you.

I'm not sure whether, Fleetwood, you got the gist of the question.

Yes. I think that please continue with the work, but do it in a transparent manner to just have visibility of that. And when I refer to official engagement, that means what is the output of the Energy Council and how do we then officially get that output in terms of the discussion with government. That's what I refer to as official engagement because we haven't done enough work to propose positive constructive proposals in terms of certain of the areas to transition. And your point well-made and taken. Thank you, Emma.

Thank you.

Thank you, Mr. Chair. We will take another question in the room. This time from [indiscernible].

Thank you, Chair. My question is in June 2022, the Department of Forestry and Fishery, the environment has established a task team to investigate the source of sulfide-oxide and H2S, hydrogen sulfide [indiscernible].

[indiscernible] with the audio, please?

Okay. To investigate the source of sulfide stage and the H2S hydrogen sulfide salts in the Northwest in [ Howden. ] Sasol denies H2S incident. In the most recent response to allegations that the operations are cause of high level of H2S in the Howden region between 8 and 10 June 2022 face us all. We wish to reiterate as we have stated publicly in response to the media reports that our operations have been stable during the period in the question 8 to 10 June 2022 with no questions. With no operations incident that would have resulted in the increase [indiscernible] concentration of H2S and SO2. For the sake of transparency, will Sasol commit in this program to publicly release is H2S emissions? And then the last question that I have is a question on the offset that Sasol is conducting in Sasol especially on the waste system. Can you please describe look and treat and investigate what happened because we don't even have the reasons what happened as the [indiscernible]. So we want to know what happened with those projects.

Thank you so much. I'm going to just weigh in on the first one and then ask Simon again to help us with your specific questions that you have raised. I just want to open up by saying our monitoring system in terms of in on-site measurement and also in the 40 kilometers radius around Secunda is publicly available. It's published on the -- it's linked to the Department of Environment, Fisheries and Forestry, and it is publicly available. So I think there is no question that we will -- or you will be able to have access to that. But having regard to that, the other questions, I'm going to ask Simon to weigh in.

Yes. Thank you, Fleetwood. I'll start on the operations, just to reiterate what you said, we do have monitoring stations around Secunda and Sasol back. And we [indiscernible] that during that time, our operations were running stably. We're also fully participating in the forums, within all client, all the established test teams and sharing our data with them. On the waste matters, the waste keeps that's continue from our side, we still continue to support that, and we're watching with the government on that one as well with the communities.

Thank you.

Thank you, Mr. Chair. We will now go to another online voice question this time from Ian Erasmus.

Okay. What is Sasol's action plan when carbon tax is enforced in South Africa? Is Sasol capable of paying the full carbon tax amount and still make a profit in South Africa for each shareholders? What are the future possibilities that Sasol Secunda will become a stranded asset, if the government tax is enforced? Please explain what Sasol has been doing on ground level to achieve this. For example, installing pipes on the Benfield region columns to divert all the CO2 to a new process to convert the CO2 with a yet unproven green hydrogen [indiscernible]? For instance how are we going to realistically reduce the CO2 emissions at the 4 Benfield units. If you can't make this goal post because of the lack of cash flow, are you going to say that Sasol as a company is making 0 profit at this very moment? If Sasol is not going to use its massive amounts of yearly profit to rectify your CO2 emissions now within the next year, then are you just not kicking the can down the road with the shareholder in end, a decade from now, when you and the rest of the current board members are already -- has already left Sasol's employee. If your calculations include the CO2 of the 4 Benfields, the global emissions calculation that you said can you please post your calculations on your website for all shareholders to see because according to my calculations, based on the CO2 emissions, there is a massive discrepancy in the amounts?

Thank you.

Ian, perhaps I'll jump in just on the financial aspects. And I think it's the technical aspects, perhaps my colleagues can jump in. I don't want to, as a CFO, venture too much on the Benfield emissions. But I think certainly, your question on the carbon tax liabilities and our ability to afford that is critical. I think it references, it was referenced in the previous question, one of the previous questions also on the scenario analysis and looking at our ability to afford a carbon tax. Just to note that carbon tax is already enforced in South Africa. So we paid last year about ZAR 1 billion of carbon tax, and we expect that to step up in the near future to around ZAR 4 billion given the profile that government has indicated in terms of the $20 per ton of CO2 stepping up to $30 a ton CO2. As I've noted previously, the allowance aspect is still unclear, and government has committed to clarifying that also in the near future. And we will be able to then assess the capital required, the ability to afford the longer-term commitments as well. And it really is to those scenarios that I've indicated. I think Simon has answered most of the Benfield aspects previously. I don't know, Simon, if there's more to say rather than embarrass myself around my chemical engineering abilities. Thanks.

No. Thank you, Hanre. We already answered. We've also, in the [indiscernible] communicated that almost 50% of our emissions is from process and 50% from the utilities block. We've given the diagram as well and shared with all the investors. We continue to see the Benfield CO2 as a massive opportunity because for others, they first have to capture that CO2. We've already captured it. We also believe that electrolysis process are going to go down. We will be watching the signpost. And when that happens, we will bring hydrogen into our Phase 3. We will know that the Fischer-Tropsch is a future technology, and that technology, we already have it in the Secunda. So for us, all that we see is possibilities, and we have to continue watching the time post. We also know what has recently happened now in international arena where the European Union has recognized that CO2 from industries had to abate can be used. And the Fischer-Tropsch for CO2 also classified in that. So all of this gives us all opportunities to use CO2 without doing anything further with it.

Got one point just to conclude on Mr. Erasmus question. We have assured tabulation of our CO2 emissions and the calculations that is available in our reports. If you want to have more information, we gladly will meet with you to take you through how the Benfield calculation is incorporated in that part because it is also third-party assured. Thank you.

Thank you very much.

Mr. Chair, one more question perhaps for Fleetwood as well. Good morning, Chair. Greer Blizzard from Just Share. I have the following question. Sasol produces polymer plastic packaging, polypropylene. Polypropylene is one of the most abundant microplastics found in the oceans causing incalculable damage to ocean's life and livelihoods. According to CDP report. Sasol's global initiatives to address the matter of plastic litter, which it finds unacceptable, include initiatives [indiscernible] education, improving household waste management, bolstering recycling and contributing to marine litter collection and growth. This passing of responsibility to the end users to clean up instead of focusing on its own role in exacerbating the problem and from which it is profiting is an unacceptable transfer of responsibility for a global crisis. Please can Sasol indicate how it's planning to reduce its own role in the production of microplastics rather than expecting this burden to be borne by the [indiscernible]?

Thank you. I will start off with context, and I'm going to ask Brad Gifford to weigh in from our chemicals business in terms of the initiatives that Sasol is busy with on this -- in this matter. Now I do want to emphasize that long term in our canning business, we do not see to grow our polymer business that will be in the plastic space. Strategically, we have reviewed our plans to focus more on differentiated and specialty chemicals. So as a larger context, that is also the reason why we have divested 50% of our polymer or polyethylene-producing units in the U.S. And over the long term, we may totally divest from that production of polyethylene. Of course, in South Africa, the ethylene comes out of the Fischer Tropsch process, and it's integral to the supply in the value chain where we then converted in polypropylene and polyethylene in South Africa. But notwithstanding that, we have a number of initiatives that we're focusing on, in order to mitigate the plastic pollution that you mentioned. Brad?

Can you hear me? Thank you. Thanks, Greer, for the question. And we fully agree with you that it's not just about passing the burden to one party to effect change. All of us have to own that change that we want to make to end plastic pollution. That is what we all are achieving or driving for. And so what we are committed to do, and we work with our industry partner, and Sasol is a founding member of the alliance to end plastic waste, which includes not only industry producers, but also brand owners and NGOs around the world to work together on this. And so in Africa, we are on the regional team for alliance and plastic waste, and we work on a number of initiatives to do exactly what you're saying is to underhand the science behind microplastics but also to look at how we can make effective programs for cleanup and proper use and recycling of plastic.

Thanks, Brad.

Thank you, Mr. Chair. We'll go back to questions from the room. This time, we'll go to Ms. Ilham Rawoot.

I actually just want to follow up on my question earlier that wasn't answered, which was how many methane leaks has -- have happened [indiscernible] since the beginning of operations and how many methane leaks have happened this year. And then I think Priscillah probably knows the name of the consultancy because of what you mentioned earlier. So if I could just have that answer as well. Thank you.

Thank you, Ilham. We -- I'm going to ask Priscillah to weigh in, but suffice to say that we do have a focused assessment on all emissions that is coming through any of our operations, including methane. And so I don't have a number on top of my head, but maybe Priscillah can weigh in on this question.

[indiscernible] report that we've done an assessment of the total releases. We are estimating about 150 tons to 400 tons of carbon equivalent emissions. As I've mentioned earlier on, we have appointed [ Valvestus ] with a number of academic institutions and individuals that are interrogating this baseline. We are collecting further data. And by the end of this financial year, we'll have more firm information that we'll be able to share with our shareholders including some of the plans we put in place to address this. [indiscernible], our commitment to ensure that the communities around that area are actually protected. Our ongoing -- our continuous ongoing monitoring is our highest priority, and we are continuing as well to engage with Mozambique to provide them with regular reports on the emissions.

[indiscernible]

Yes. It's [ 2,000 ] tons are translated into emissions equivalent. That's what I was trying to give you the answer on.

And in addition to that, this year's reporting will be concluded in our systems and roll up like our financials. We will report that transparently in the same manner that it's referred to in this current report that you've got access to. You will see the number that you asked this year is being reported at the end of the year in the reporting cycle.

Thank you, Mr. Chair. We'll move on to the next question. This time is from Ms. Thandile Chinyavanhu.

Public calls are growing for carbon majors to -- the public calls are getting louder to make polluters pay for the damage that they have caused to persons property and the public infrastructure as a result of climate change and extreme weather. What is Sasol stance on this? And what are you doing to remedy some of the contributed to the climate crisis?

Thank you. Why don't you answer that?

Thandile, thank you for your question. I think the -- at the recent discussions at COP, this was also a matter that was raised. And so Sasol, like any other company and industry in South Africa and globally have to understand what does this mean on the company level versus what the intent is here to look at and how will that be assessed. So for me, it's too early to give you any indication how to interpret that at this stage.

Thanks, Fleetwood. I just want to say the following. We appreciate all the questions, and we are ready here, we'll continue answering them. We have dedicated this whole day to answer all questions. So we're fine with that. But I just want to point out that we still have other resolutions to go through. And as another method of housekeeping, we have scheduled lunch for 12. If we have to move that one, please indicate so that we continue doing what we're doing. Thank you very much. Are there further questions?

Thank you, Mr. Chair. We'll take another question from the room this time from [ Sibongile Khumalo ].

I just wanted to ask a question to Mr. Baloyi. He talked about the development that he did in Secunda, eMbalenhle. I just wanted to disagree with it. Why I am saying this? Yes, Sasol did try to develop and manage in a [ wrong ] way because they did supply those to their role of [indiscernible] which is the business organization. That is why those business organization, they end up sell those because they do not understand the role of environment. [indiscernible] I am certain [indiscernible] is report of environment. We are working with the community. We know that difficult that we made in Secunda. So it means Mr. Baloyi, they want to implement anything in Secunda. They must convert the right organization. So the only thing that causes people to scale do not concern the right pace. Sasol is no way to consult, where to start. We as the organization about the environment. We know everything that we should go if we convert that project or anything as we are talking about the recycling and all the stuff, all those organization we given to the wrong organizations. So I want to ask the Sasol to know the [indiscernible] of the organization at Secunda so that we can do the [indiscernible] accordingly.

Thank you so much, [ Sibongile ]. I'm going to ask Simon to elaborate further to the point he made earlier on this topic but I do appreciate that we welcome your comments for further collaboration.

Thank you, Fleetwood. Suffice to say, in the Secunda environment or even in Sasol back, there is multiple stakeholders. And our approach is always to work through a collaborative with everyone involved. So I'll take note of what she says and as we roll out the next phases. We will review that to make sure everyone is included, just to make sure that you don't have the voice of just one person. So I'll just take this as a lessons learnt and will incorporate a build and make sure all bodies in that area are involved.

Thank you. Just before we continue with the questions. Some -- one of the shareholders has indicated that they would like to vote on some of the resolutions and have to leave. Can I request that the bulk of the questions that we still have, we move them towards the end -- towards -- after we've completed all the resolutions for voting in order to allow those shareholders that want to leave so that they could leave having voted so that we don't deny them the opportunity to exercise their right in the organization. If that's okay with you and if you're in agreement with me, I will do that. But if you're not, you want to continue now I will follow it. Thank you.

Thank you, Mr. Chair. We still have people in the room would like to ask questions. So we'll go on to the next question from a shareholder in the room, and that's from [ Marimecha Maduwe ].

Okay. Good day, everyone. My question is in regard to the garages. I just want to ask why Sasol is not a fully participant in the [ garage field ], because when you go around, you see there and there, the garages of Sasol, they are not participating like competitors of BP, Total and then others. So I just want to get the clarity in regard to that, or there is not enough supply of petrol diesel, so that Sasol could participate fully in that [indiscernible].

Thank you very much. We have noted your question. But can we focus on this resolution? We will answer your question towards the end, if you don't mind. Thank you.

Thank you, Mr. Chair. We'll go to the next question in the room from Mr. [ Bekani Mlambo ].

For me was to support the Chairman to move -- the other question, [indiscernible] because we have to spend a lot of time on the resolution [indiscernible] if we can move it so that we allow the shareholders to participate those [indiscernible].

Thank you very much for that. And that's my request that, and I'm going to make a ruling now. And then, look, can I just ask that all the questions that we still have that we have not dealt with, can we park them and we'll deal with them in the end? What we need to do is to allow other -- we need to be fair to all shareholders and not go with one subject, but allow others also. Also what Interesting is others to be given an opportunity to ask questions on that. So with your indulgence, Elton, this is what I'm going to do. I will request that we vote on this resolution, resolution #3. And then we move on to ordinary resolutions. Once we are done, we will come back all the questions that colleagues would like to request, to answer -- to ask. So I think that that's fair, fair not only to yourselves but to other shareholders who may wish to leave. Thank you very much. So ladies and gentlemen, that concludes the questions for now on Sasol's climate change. If you still have them, we'll entertain them in the end. We encourage you to vote on ordinary resolution #1 now -- sorry, #3, now. [Voting]

Okay. From now on what we're going to get to ordinary resolutions because we're done with the first ones. So you can now pose your questions and vote on the ordinary resolutions dealing with the reelection and election, all by way of separate votes of the retiring directors and Mr. Hanre Rossouw. They will stand up or put up their hands as I call their names. Please colleagues do so. Ms. Kathy Harper. Thank you, ma'am. There you are. Mr. Vuyo Kahla. Thank you, sir. Ma'am Trix Kennealy. And myself, Sipho Nkosi. Thank you. So ladies and gentlemen, all CVs were provided in the notice of AGM. If there are questions on these directors who've put themselves for what for reelection, please ask those questions now. So add that Mr. Hanre Rossouw is also part of that. Okay. Thank you, sir. All right. So if there are questions, please ask them now.

Mr. Chair, there doesn't seem to be any questions related to this resolution.

Thank you so much. Ladies and gentlemen, that concludes the questions on the election of directors. We encourage you to vote on the reelection and election of all directors now. [Voting]

So we move along. You can now pose your questions and vote on ordinary resolution #3. That is to appoint PricewaterhouseCoopers as independent auditors. Do we have questions on the reappointment as PwC as independent auditors of Sasol?

Not at this time, Mr. Chair.

Thank you very much. That concludes the questions on the appointment of the auditor. We encourage you to vote on ordinary resolution #3 now. [Voting]

You can now post your questions and vote on ordinary resolution #4, that is to elect by way of separate votes the members of the audit committee. They would put up their hands as I call out their names. This is hard work today. Ms. Kathy Harper. Thank you. Trix. Stanley Subramoney and Steve [ Weston. ] Are there questions with regards to our Audit Committee? Please post them now.

Chair, there are no questions related to this resolution.

Thank you very much. That concludes the questions on the Audit Committee. We again encourage you to vote on ordinary resolution #4. [Voting]

You can now pause your questions and vote on the general issue of shares for cash as set out in ordinary resolution #5 as well as special resolution #8. Do we have questions for this resolution?

There are no questions related to this resolution chair.

That concludes the questions.

That concludes the questions on the general authority to issue shares for cash. We encourage you to vote on ordinary resolution #5 and special resolution #8. Thank you. [Voting]

Another body of special resolutions. You can now ask your questions and vote on special resolution #1, that is to authorize the Board to approve the provision of financial assistance in terms of Section 44 and 45 of the Companies Act. Do we have questions for the -- on this resolution?

There are no questions related to this resolution, Chair.

Thank you, sir. That concludes the questions on financial assistance. I encourage you to vote on special resolution #1. [Voting]

Now you can ask questions and vote on special resolution #2 and 3, that is to authorize the Board to approve the general repurchase by the government by any of its subsidiaries of any of the company's shares and as part of a general repurchase of its shares from a director, a prescribed officer or any persons related to a director or prescribed officer of the company. Do we have questions on this resolution?

There are no questions on this particular resolution, Chair.

Thank you very much. We encourage you, ladies and gentlemen, to vote on special resolutions #2 and #3 now. [Voting]

Ladies and gentlemen, you can pose your questions on special resolution #4 and #5, which seek the approval of the Sasol Long-term Incentive Plan 2022 and authorizes the directors to issue a maximum of 32 million ordinary shares in connection with that plan. Would we be having questions around this resolution?

Chair, we have a question from the floor from Mr. Tabo Tepa.

Thank you. Tao, may you please ask your question.

Chair, there are no other questions at this time related to this resolution.

Thank you very much. Ladies and gentlemen, that concludes the questions on the 2022 Long-term Incentive Plan. We encourage you to vote on special resolutions #4 and #5 now. [Voting]

Moving right along. You can now pose your questions and vote on special resolutions #6 and #7, that is to amend Clause 914 of the company's Memorandum of Incorporation to cater for the issue of shares to employees and not only to the share scheme [indiscernible] and to remove a number of obsolete references. Do we have questions on the amendment of the MOI?

There are no questions related to this resolution, Chair.

Thank you, sir. That concludes the questions on the MOI. Once again, we encourage you to vote on special resolutions #6 and #7 now. [Voting]

Ladies and gentlemen, we will be closing the voting in the next 5 minutes. In the next 5 minutes, we'll be closing the vote. You can still change your vote on any of the resolutions. Once the voting closes, you will not be able to change any vote. If you have not yet cast your vote or want to change any vote, please do so now. And as I said, there's 5 minutes for us to finish that one. I know that there are quite a lot of good time keepers. They are checking on me whether I'm adhering to that. [Voting]

Thank you. That was my indication that the 5 minutes is over. Is he ready? I don't think he is. Anyway, let me continue. So ladies and gentlemen, with the votes now cast and voting close and the votes are now being tallied and put together, this gives us another opportunity to open to the floor and to everyone who might have additional questions to pose to management and to the Board and to everyone. Are there questions from shareholders?

Chair, there are quite a few questions online related to some of the themes that we've asked the shareholders to select. We'll start with the first theme, the environmental. There are several questions from Mr. Ian Rasmus. I'll read out 3 at a time. This is to Mr. Fleetwood Grobler, the first question. Has Sasol issued a SENS announcement regarding the criminal investigation by the Department of Forestry, Fisheries and Environment regarding the alleged pollution of the Vaal River with hazardous waste or the resulting criminal charges by the NPA against Sasol regarding alleged pollution of the Vaal River with hazardous waste from Sasol Secunda site? It is not a repeat. I've just also -- is it not a repeat of just also trying to keep bad news from the shareholders as was the case with your predecessors and Lake Charles? Has Sasol really changed its culture of fear in that regard? And do the shareholders need to hold their breath again? The second question, also directed to Mr. Fleetwood Grobler. Are you concerned at all that, if Sasol has found to be guilty of pollution of the Vaal River in upcoming criminal charges in court, that Sasol's major shareholders [indiscernible] may divest completely from Sasol as a result. And the next question along a similar theme, what is Sasol's plan to protect shareholders from losses if Sasol is found guilty of environmental crimes regarding the current criminal charges and are ordered to clean up and rehabilitate the river polluted with hazardous waste? How will this affect profit margins and the shareholders? And how will this affect Sasol's reputation as a responsible corporate citizen and its reputation internationally, but especially locally? I think I'm going to read one more along the same theme, and then perhaps this can be addressed collectively. Sasol has been prominently charged by the NPA for their alleged actions or gross negligence with -- which led to alleged unlawful disposal of hazardous waste at the Sasol Secunda site. Has Sasol suspended any employees involved as the Sasol's Code of Conduct as well as Sasol's Disciplinary Code? If not, why not? The Sasol's Disciplinary Code clearly state, where the presence of the alleged offender may undermine or hamper proper investigation, tamper with evidence or intimidate possible witnesses, it is to be decided if the person should be suspended. Does Sasol not apply their policies and procedures to managers? I'll leave it there for now. Thanks, Mr. Chair.

Thank you.

Thanks a lot, Mr. Rasmus, starting with the question around whether we announced on SENS the criminal investigation. Yes, we did announce our Form 20-F [indiscernible] to reports. Of course, those are released through -- on SENS, so we're comfortable that we've made the right disclosures in relation to that matter. We equally are comfortable that we've been taking the right steps in building the right culture within the company, enabling people to speak up. And in fact, that's reflected in the level of engagement within the company. And part of that, we also run a hybrid service within the company to understand that level of engagement. And so it is not an area of fear for us that we have difficulties in respect to the fear of speaking up. And this is one of the things that the CEO will spend a lot of time together with all the other executives to emphasize and promote the need for everyone to feel free to engage on anything and understand that they will be protected for anything properly raised in relation to any matter within the company. The second question is understand related to our concerns, if we're to be found guilty and, more particularly, what the actions of the PIC would be. I think it is fair to say, Mr. Rasmus, firstly, that it would be inappropriate to speculate on the outcome of the criminal prosecution. We respect the process that's underway there, and we do believe further that our shareholders on the whole -- our shareholders in general are comfortable with our commitment to compliance, and that commitment extends to all our regulatory applications, including that relate to safety, health and environment. So I would expect that our shareholders would take that into account. There have been the questions around measures in place to deal with any possible outcome. I think, as I indicated first, there is no need for me to speculate on what an outcome would be. This is a matter that we've been dealing with and that we are defending, and we will continue to cooperate with the law enforcement authorities around the effective dealing with that matter. Next, the number of measures around the management of our risks, and that includes risk leading to reputation, to compliance with laws as well as financial risks that may arise. I think there was the fourth one. The fourth, I think there's a question that had been raised in relation to whether or not we've suspended any people in respect to the matter that is under investigation. Again, as I've indicated, it would be remiss of me to prejudge what the determinations of the courts would be on that matter. We will wait to [indiscernible] process and thereafter make an assessment as to what action, if any, needs to be taken. Thanks.

Thank you, Vuyo. Can I take other questions?

Thanks, Mr. Chair. The next question was also from Mr. Erasmus, but related to the criminal case that's still pending, so I'm going to assume that, that was already addressed by Mr. Kahla's response. There is one more question on the environmental theme, also from Mr. Ian Erasmus, on a different topic. Your ambient measurement stations are on ground level, while the emissions from your Secunda plant, especially the 2 smoke stacks, are at least 300 meters above ground level. The fact that these emissions from your Secunda plant is clearly seen on photographs and video material blowing directly towards -- the fact that Sasol has reported no update conditions at that stage of these complaints, that should be very concerning to shareholders. In the spirit of transparency to shareholders, is Sasol prepared to display a live stream of their emissions at plant level? Not ambient monitoring stations, which may not even be in the prevalent wind direction for that day. There are plenty of emissions reading analyzers measuring H2S and SO4, et cetera, on the plant. Why is the actual emission volumes at release point on stacks, et cetera, a secret?

Thank you, Mr. Erasmus, I'm going to just say it in the context of -- these measurements are not determined by Sasol and the positioning of where we will measure or would like to measure. This is a regulatory framework where it's determined from an experience-based level, and it is implemented accordingly. So I just want to leave that as context and then ask Simon to weigh in, in terms of that rest of your question.

Thank you, Fleetwood. You're 100% correct. The monitoring stations are actually located all around the plant in all directions. On the data from the stack, that data is shared with the department on a regular basis as per the requirement of all our licenses, and it's actually freely available to the public. So anyone has access to the data for the period, so you can go back and look at it. And we also, during the public participation that you mentioned earlier, in June and December, we'll go through all data with the communities, and we go through all the data and everyone has access to that data. So that data is not a secret.

Thank you, Mr. Chair. We will now take questions in the room. The first in our queue is McGillan.

Hello. Almost good afternoon. My question relates to the [indiscernible] project catastrophe and the class action case that resulted in a ZAR 400 million damages petition by the company. It's quite evident that it's not reflected or transparent in financials. And we had to find out about this $24 million payment from the press. The company's code of conduct requires transparency, so I'm rather intrigued why Mr. Rossouw has failed at his first hurdle to satisfy our shareholders' expectations that he will be joining Sasol and work to the company rules. The -- who work here also apparently just decided to omit this ZAR 420 million payment and damage to our shareholders. So why do we pay these auditors ZAR 131 million to do a job which they're clearly not doing? That would be my first question. The second question. At the Secunda operations, you invested ZAR 4 billion over a 15-year period of time to build this the coal tar filtration plant. Now it remains unproductive after 15 years, as shown in the last AIR reporting around Secunda. And this is the fourth year I've been to the AGM. Complain to you, the Board, about the ongoing at this project.

Can someone assist, please, with the audio? I think it's back. Yes, you're back.

Right. Let me continue. Yes, this is the fourth [indiscernible] my third question relates to Bain. It's well advertised that Bain is a pretty despicable company, but yet Sasol maintains an association with it. It's a disgrace that the company continues to contract this well-publicized [indiscernible] Why should shareholders be associated with this enterprise, the business our company [indiscernible]

Thank you very much. [indiscernible]

That's perhaps start just on the disclosure of the class action to the auditors and at least to my defense that was fully disclosed in the annual -- process, then the settlement was only announced in September. So that's after the event. And also, we disclosed fully that, that case was ongoing at the time. I think we can perhaps elaborate a little bit on the settlement aspects to that.

Correct. As already indicated, we have made disclosures around the settlements that we're getting involved in. Those settlement, of course, included the amount that you just indicated of $24 million, was an amount that has had no impact in respect of any outflow of cash from the company owing to the protection from our insurers in relation to that settlement. And so there's nothing that's not been disclosed in that matter. And that matter now has been closed, and there was no -- it was not on account of any capitulation on the part of Sasol, but it was considered the appropriate time having regard to the management of the risks relating to litigation to settle. And indeed, that settlement was made, as I've indicated, that money was borne by the insurers. The second point, I think, relates to Bain that I want to deal with. I think it is fair to say that Sasol, in fact, from the very start, when the issue of Bain arose going back to 2018, took measures to ensure that it is appropriately addressed. Part of those measures include the suspension of Bain and a commitment that we would only engage with Bain after certain actions have been taken. In 2020, a due diligence process was undertaken and it looked into the measures that Bain had put in place to address the areas of no concern that the company cause changes in relation to the management team. That included the change in respect of the person, the managing partner who since left Bain, changes in relation to risks and compliance by Bain. And part of that, of course, they appointed a Board that would oversee the activities of their company here in South Africa. And the number of the actions also taken in relation to them paying back with interest, the monies that have been earned on the project with Sasol. And so when one looks into the stream of actions that were required to be done in order to allow them back as a supplier, those were taken, and we found comfort having done the due diligence that I've indicated. So in many ways, the way other players probably came to the fray, Sasol was first on the blocks in the lease suspension, and then the due diligence and to that due diligence and the actions taken readmitted Bain as a supplier. Thanks.

Thank you, Mr. Chair.

We'll go to the next question [indiscernible] I think. Is residual part of the question with respect to the [indiscernible] And I'm going to ask Simon to address that, please.

Thank you, Fleetwood. On the core -- yes, this project, we've been busy with it for the last couple of years. I want to also remind you, if you go back into the site, I mean, we step back, the site does have a plant on the West. And when we did the Eastern plant, it was primarily to enable us that during shutdowns we could be able to minimize the transportation of the TAC from the plant. And so that project, we've send BO now. So we've completed the projects we've signed BO. However, we're busy with optimizing the filtration and the membrane systems. So that WACC is ongoing. And we'll continue to do so, but we've proven all the various pieces of that plant and have proven that it does work, and we've considered that part of the project. And like I've said, signed the deal. Then on the issue of personnel safety, I just want to reiterate that, for us, safety and zero harm to our people comes first. We will continue with all the measures that are required working that environment, from the mask to the personal monitors, we get that as we've done before and as we do in our Western plants, and we'll continue with that going forward.

Thank you.

Thank you, Mr. Chair. We'll go to the next question in the room, and it's from Robin Hugo.

Thank you chair,. I have 2 follow-up questions that I asked earlier on, on remuneration. One is related to the methodology that SAS has adopted to [indiscernible] particularly as Sasol concede including temporary employees in its methodology? And this is coming from the fact that Sasol, as other companies, they're already submitting information that includes temporary employees in the capital labor in the implement [indiscernible] the form. My second question relates to the benchmarking question that was asked by a colleague from -- Thank you very much for pointing us to the annual financial statement. I'll just like clarity as to whether the list of companies that we see in that table are the peers that were included in the benchmarking process or the list also includes the competitors that we excluded? Thank you very much.

Your question is with regards to the inclusion of -- I mean when the regulation does come out in South Africa that compares us to disclose. And if that includes Temps, then we will do. We will definitely do that. So let's wait for the regulation in South Africa. Let's see what it says, and we comply just like we comply to all the related labor relations. And in terms of the benchmarks that you have seen, I'm glad you have gone through them. That benchmark is used basically for -- to compare ourselves with the relative performance of those companies that are listed there. I'm not so sure I understand your question. Are you saying that we are including or excluding competitors? But let me just tell you how we come up with a list of our peers. We list companies in the chemical sector as well as energy and South African companies that are listed on exchange. We do look at companies that are almost similar to our size. We also look at companies that have similar geographic footprints as Sasol. And on that basis, we come up with a peer group. We do have -- for salaries, in particular for executives, benchmark company is fairly large. That's where we get a fairly stable benchmarks there. And we don't only look at South Africans. As you will see, we look at America as well as Europe where we have our operations.

Thank you, Mr. Chair. We'll move to the next question in the room, and that's from Mr. Frederick Sebia.

Good day, everyone. Thank you for the opportunity. My concern here is that I've been sitting here since this morning. I'm asking myself whether I would be seeing a difference between myself and the shareholder and the person who is not a shareholder, meaning that I'm not hearing anything concerning a meaningful benefit of being a shareholder. So [indiscernible] invest. So on a meaningful benefit for my investment. Thank you.

Is he benefiting from these investments? Continue investing in Sasol. That assurance I can give you. You know that the organization has been through quite a lot of challenges. The organization has stabilized. And if you look at how we have dealt with matters, we have reinstated the dividend, which is a benefit to the shareholders. And we'll continue reviewing the situation and making things better for the shareholder. So I would say to you [Foreign Language] You're going to be fine. Sure. Thank you.

Thank you, Mr. Chair. The next set of questions relates to the theme of social. So the first question from -- She's from ESG Insight SA on behalf of various pension funds. A question on safety. We have been making noise on safety at Sasol since I don't know when. Yet time and again, Sasol demonstrates poor level of compliance to Health and Safety Act with the continued loss of life. While we hear that this is a priority for the Board and executives, there has been continued loss of life, 5 lives lost this year -- I think she means last year. Instead of lip service, the question is [indiscernible] invested in FY '21 and '22 in safety as a whole and in new technologies to improve safety? [indiscernible] next question comes from Mr. Charles Why Sasol's contribution to its CSI programs less for fence-line communities, which is predominantly black residents compared to what it contributes to donate to the town of Secunda, including places where privileged communities reside? What is Sasol planning to do on improving the skewed support for communities? Take one more from Mr. Charles Due to the high pollution in the area, locals are vulnerable and sick. As a result, they always fail Sasol's medical test for employment. Why can't Sasol create job opportunities that will afford the sidelined and sick communities the opportunity to work in jobs that does not require medical tests. I'll stop there.

Thank you so much, in terms of your question with respect to safety and what are we doing in that regard? So any fatality is unacceptable for us, and we work relentlessly to implement our programs to arrest high-severity injuries and to make sure that our goal [indiscernible] Let me share with you a number of areas where we have invested and employed technology in the past 2 years to enable us to up the level of safety. And I also include process safety in this context. So in the last year, we have employed drones to help us to inspect boilers and emission on cooling towers and emission stacks. So that technology assisted us there. With respect to high-pressure water cleaning of equipment, we've employed the technology that is remotely operated without the person being in harm's way whilst conducting the lining process. We have employed advanced gas detecting systems that we've rolled out in our operations in Secunda. If I look at the areas in the mining where we have employed new technologies, for example, in our mines, we've employed fatigue monitoring systems for underground movement in vehicles. So we've also included a real-time dust monitoring technology. We've implemented CCV and WiFi systems to enable more coverage of remote areas that is critical underground to connect that also with our control rooms for oversight. And if I look at the type of spend that we've done, in the mining area alone, we have invested around ZAR 0.5 billion in the past year to employ these new technologies to enable us to have a better safety outcome. That is not including all the other millions of rands we spend every year on PPE, training as well as other optimization in our equipment and processes in our various operations globally. With respect to the second question that was raised by Mr. Charles, in terms of the contribution of our CSI programs, so for the largest Secunda area, which incorporates the cities of Imbalentle and the others that I can include in this line, about 70% is spent in those fence-lined communities, of which then the remainder is done in the town itself. But I do believe we have a very holistic CSI program covering a balanced spend in the total region around Secunda. Thank you. With respect to the last question, I'm going to ask Simon because I'm just not sure in terms of the OSH Act not allowing us to employ people with respect to not ensuring they are in medical fit condition to be employed in an ongoing operational environment. Simon, do you want to weigh in on that specifically?

Yes, quickly, Fleetwood. Actually, the challenge on the employment in all our operations is something that we call the RFA, which is a test that checked the general fitness of everyone else that we bring in. So what we've done in order to improve and help people to pass that test, we run boot camps. So it's just health and fitness. That's what we see. So as people get fit and they come for a test, then they're able to go through the test. We've not seen any evidence that says the general population that, I mean, unwell and cannot work there. I mean, having lived in Secunda myself for more than 10 years and my kids being born there, I mean, I can attest that the issue is clearly fitness, and we are addressing it by making sure that people go into boot camps and then are ready to do their employment as they come in for that test.

Are there any more questions?

Thank you, Mr. Chair. We'll go back to the room, and this time again from [indiscernible]

Yes. Thank you. So again, I have questions about money. I was in Mozambique last weekend. 3 of the community members from mining wrote -- they asked me to because they can't do it themselves. So I'm going to start. Our names are Alberta, Jose, Mari and Armando. We come from the village of Tamini, one of the villages that Sasol ruined when it built the gas projects in 2000. We have a message for Mr. Chair, Mr. Grobler,[indiscernible] and all your friends. Sasol used to come to the villages and made promises to us. You promised to build technical college, a school, a hospital. You promised to give us jobs and electricity. So now not a single person from Damani has a job. We live in the dark. There is no electricity. The hospital that you built at 75 [indiscernible] became a campsite for workers. Sasol's foundry plans had to be 50 meters from the nearest house. the [indiscernible] and some people's houses are 3 meters from the fence. And now children cannot walk 3 meters from their houses. People are [indiscernible] please build the displacement houses before you started operating. But you've been operating for 19 years, and we still are exactly where we were. We did not have an idea of the humanity that's being affected. [indiscernible] So my questions are, how many permanent skills jobs have people from Damani received since operations began and how many skilled permanent jobs do they have right now? Why did every household not being resettled, received electricity, not received farmland the same size they have for the last 20 years?

Thank you so much, and I really -- I commend you for engaging with the communities and bring their voice into the room. So thank you for that. I would also like to share with you, I was in Binakulu and [indiscernible] about 10 days ago where Sasol opened the training center, where we have spent over $17 million to train people from these communities to provide them hope, to provide them a job and to provide them meaning in terms of their workspace and their ambition in the country. This center was opened with -- by the President of Mozambique, President Nyusi. And we have, up till that point in time, already trained 480 artisans to make a livelihood in -- from that center. And we will still so continue to ensure of that center by supporting it in the next 2 to 3 years with another $1 million to $2 million to ensure that it remains a center of hope. As the President of Mozambique has said at that time, this is an opportunity for everyone to better themselves and to train not that they will necessarily find a job, but that they can be an entrepreneur and skill themselves to make a difference in their own lives. This is just one example of what we are doing in the Mozambican space. As part of our investment of the PSA project, we have committed over $20 million for local development agreements, which has been running in the communities. We will be using the majority of the people that will work on this project that we're now busy implementing the PSA project that will bring additional gas and that will go to the monetization of gas into electricity for Mozambican people, not to other areas. It is -- the gas is primarily prioritized to go to this funded World Bank new gas power station that will be built to better the lives of Mozambique. So we have got endless examples where we are really engaging the communities, where we are assisting and where we are building infrastructure in that area. I would like to ask Priscilla to also weigh in on this matter because there are many other examples of what we are specifically doing in those fence-lined communities and where they were affected what was our approach to assist them with resettlement. And whilst I hear those voices and I've seen those faces, I also know that there are many other desperate people also in the larger areas where you have interrogated or where you have discussed with them. And my heart goes out for all of those areas that's affected, but I also know that Sasol cannot do everything for everybody in Mozambique, but where we can, we are spending large amounts of money. Priscilla, do you want to weigh in?

Thanks, Fleetwood. I think, first of all, just to reiterate, meaningful contribution to the communities we work in and further to our commitment to continuous engagement with our communities. As Fleetwood has mentioned, he was there with the President as we launch the opening of the ITC, which will really make meaningful contribution beyond the industry. We are looking at other sectors as well. In addition to that, we are, especially myself and my team, every quarter in Mozambique, engaging with communities to development in terms of solutions [indiscernible] as we develop. They will be important. To highlight some few things in addition to our [indiscernible] of the $20 million that we're already investing in, we are prioritizing water [indiscernible] last year, and we're happy to take you through to some of those community projects that we prioritize together with the community. In addition, we are also prioritizing schools to make sure that we can work with government to ensure that schools and all the related infrastructure, including health services are continuing to be supported. I must also add that, as part of our commitment in Mozambique, we continue to invest in power generation. So we've invested in CTRG in the beginning. We are now investing in CTT, which will upgrade and provide additional security and electricity to Mozambique. And in addition to that, the investment [Audio Gap]

Mr. Chair, we'll continue taking questions in the room at this time. The next question is from -- Jacob.

It's me again. I think the Chairman is getting unfair to me because I asked about the [indiscernible] that we only start having more direct live is [indiscernible] competitors have no answer on that. Another follow-up question. Can I do a follow-up -- other follow-up question? Yes, yes. Other question is in regard to you, the Chairman, I think we have been appointed to the presidents, if I'm not mistaken. So are you able -- are you going to be able to do both jobs? Be able to do what we have been appointed to the government and also head Sasol as a Chairman?

Okay. Thank you very much. Maybe let me answer that one before they talk about service stations. The -- that I have is not a full-time assignment at the presidency. And it looks to specific issues that you've got to deal with. Just to give you the level -- the amount of time that I spend there would probably be -- we meet once in a week on a Thursday to do just that. And we have a team of people who continue doing the work. Because at the end of the day, I'm not there to fix things, but it is -- I do act as a conscience to various departments for them to do the work. So just to assure you, I am doing no work other than being a voice and that conscience to do that. That's -- and that is, honestly, it doesn't impact or affect us or any other organization I'm involved in. Thank you.

Thank [indiscernible] in terms of the garages or as we call it the retail service stations in Sasol, we have just updated our mobility strategy. Embedded in that strategy is the growth in terms of organic growth, adding more retail fuel stations Sasol fuel stations in the country. So at the moment, we've got around 400 service stations. Our ambition is to grow that to further to provide more access in many areas where people have got the demand for fuel. And I believe we are well on track to be able to execute on that strategy? Is there anything else? Perhaps, Precilla, you would like to weigh in on in terms of the service stations?

Thanks, Fleetwood. I think you officially covered it. I just wanted to highlight that Sasol joined the retail business very late. It's actually impressive that, despite all of that, we have actually managed to grow a network of 400 sites, and we are continuing with an average of a minimum of 10 sites a year. If we can do more, we'll be able to do that as well. So thank you.

Thank you. Mr. Chair, we'll continue in the room at this time. The next question is from [indiscernible]

Right. I'm back on my feet again. Now Fleetwood -- you heard me just now. This is the fourth time I've been to this AGM. When are you going to get a grip of the company and your management team gets proper [indiscernible] because we were [indiscernible] that was my first question. All right. Second one relates to the TIP project. I asked when is the investigation, a detailed investigation of why [indiscernible] 15-year project [indiscernible] ZAR 4 billion -- on initial ZAR 1.8 billion, okay, and I was [indiscernible] for 4 years [indiscernible] When is the investigation? I want to know. I'm going to put my weigh in on that one. Please believe me.

Thank you so much.

My third question originally related to Bain, okay, and it is, why are we conducting business with an unethical company? And all I get told by Vuyo over there, okay, is that he's going to continue doing that business. Tell me why. That was my question. Can I please have some straightforward, professional, ethical answers, please?

Let's start with your CTF question. Simon has indicated that, that plant was commissioned. It reached beneficial operation. The technology has got areas that we need to do improvements on. There is learning in that process, so the plant is operational at the moment with areas that is being further addressed. This is not unusual for technology that is employed in a very, very difficult part of the -- of our Secunda pitch area. And therefore, that operation will be optimized. And we're happy to engage with you and to go and show you what we've done and where we are at in that facility. So I'm not sure what are you requiring more from us to say. It is operational, and we are busy optimizing it, and we welcome to interact on that basis. That's the answer on the CTF. The other one maybe Hanre can refer to the other amount.

Sure. In terms of the financial statements for the period up to June 30, 2022. If you refer to Page 127, it's right at the bottom, there's disclosure of the class action currently [indiscernible] this settlement only happened in September. So it was impossible for us to predict what the settlement could be in the preparation of the financial statements.

I think we just need to clarify your ongoing residual question around this matter because the books have been closed. That amount was not included as a final amount because it was not available to be included in the closing of the books in this publishment of this result. It has subsequently been fully settled and it will be disclosed fully now that the amount is known in the next set of financial results. It's a quite simple accounting procedure. So the question on Bain, I've got nothing further to add that what you have said. We've made our assessments. We have not seen any new information coming for. There is a very clear stance that we've taken on that.

Thank you very much. Sorry, are the results ready for publishing? Okay. Let's see -- let's look at the questions first and see whether we -- just before you publish the results, let's try and finish the questions that are remaining.

Thank you, Mr. Chair. We'll take another question in the room from Mr. Bakani Lambo.

My question goes to Mr. Grobler, Fleetwood Grobler and Mr. Rossouw. We've been talking about Mozambique and then we forgot to talk about Lake Charles. We need to be putting confidence at shareholders on when are we expecting Lake Charles to be profitable, as you said, currently, the operations are at 50% because it's caught fire. And the cost of the repairs, how much it should be? Because I see it as [indiscernible] has been in part in the company and also from shareholders.

Thank you. Thank you so much. I think it's a very pertinent question and clarification that we need to give on Lake Charles. So the Lake Charles investment comprise 7 units [indiscernible] ethylene ethane cracker and downstream derivative units. 2 of the units, 2 polyethylene units were commissioned and started up and is running since the period after commissioning in 2020, thereabouts. I haven't got all the exact dates, but all of the units have been started. The specialty units, there are 3 of those. We have a Ziegler unit. We have a Guerbet alcohols unit, and we've got ethylene oxide MEG unit, and then we also expanded our ethoxylation capacity to process the alcohol and the ethylene oxide. So those all have been started up. They've proven at nameplate capacity, and they are in the ramp-up phase as we have reported in our results and various areas. Context in the question of this 50% is we had an incident, which we declared during our BPM that was published in October this year, where we indicated that after a shutdown of our Ziegler unit in Lake Charles, and during the start-up, we had an incident of fire burn. We safely shut down and there was no harm to anyone, and we have isolated the area that was affected. And the position that we have reached now in November is that we could start up 50% of that Ziegler unit is up and running. But the area that is affected to take us now to the 100% of that unit is now being repaired, and it is dependent on the equipment that has to arrive on site to install it to go back to full operation of the 100%. And it is -- we've got also a legacy part of the Ziegler unit, and we have built a new Ziegler unit, and it's integrated into 1 unit on the Lake Charles complex. And actually, the area that was affected was more in the legacy unit, but it does affect the total integrated area. Now with respect to the investment, we have reported that our North American complex have posted EBITDA number of more than USD 500 million in the previous financial year. So that clearly indicates to you that we are getting money from that investment. And furthermore, that we are ramping up our production and market presence to monetize that better. Of course, there are market conditions that may help or deter from the actual ramp up rate in terms of value, but that is well underway in terms of the Lake Charles investment. I hope that gives you context.

Thanks, Mr. Chair. We're going to move over to a few financial questions. The first comes from [indiscernible]. Given the sustainability target Sasol has set and the drive towards green Sasol, how much of the company's debt is now linked to sustainability targets and has Sasol taken advantage of the growth of green finance to raise capital for its sustainability ambitions. The second question comes from Muhammad Youcas. Considering the high level of debt and the interest payments attached to them, will Sasol other means of finance to ease their debt burden, noninterest. I personally opposed to interest transactions, what is the entity doing to improve the declining share price over the past 6 months? And the last in the set from [indiscernible]. Should Sasol not invest in megaprojects from their balance sheet to protect the Sasol cash cow facility in Secunda instead of bleeding cash from the cash cow to Lake Charles.

Thanks, Stephanie, for those questions. I think all 3 very valid questions. The -- just firstly, on sustainable finance and green finance. It's certainly something that's within our plan. We've recently set out a sustainability-linked framework for future debt issuance. And we'd certainly look at green bonds as well. Typically, a green bond would be linked directly to specific use of proceeds. So we would look at both those options together with project financing that would be green for a lot of our future projects that Fleetwood share that we are currently investigating. In terms of perhaps more unconventional other options, which could include Islamic finance, other debt products, we certainly include assessment of all those options. We've got to look at the risk and the conditions attached to any finance instrument, and we would consider those when we look at finance and refinance options. In terms of big capital projects, as Sipho also outlined earlier, given the significant risk associated with big projects. The Board is certainly not kind of willing to put a lot of money into a single big project. I think we've learned a lot of lessons. So to that extent, in terms of capital allocation, we have noted that we will not invest in a large project, but we will look to partner to reduce the risk to the balance sheet. And I think the question also alluded to, whether we are moving cash from Sasol to Lake Charles. And just to note that Lake Charles, the project has been completed. Only additional capital that goes there is sustenance capital and any optimization growth capital, which competes within the normal capital allocation framework. Thanks a lot for those questions.

Hello? Thank you. Are there anymore questions?

Thank you, Chair. We are moving back to questions on our social team.

Sorry, before the question is asked and answered, I moved lunch for shareholders from 12 to 1. Is it okay if I moved it to 2. I think we should work together on this one. If you want -- I'm here the whole day. If it's okay, we can move it to 2. So please help me to -- so that I can manage that. Sorry, can we have the question?

Chair, we have 12 questions left on non-queue and 3 people queuing in the room, just to give you an indication.

Thank you very much. So colleagues, you can see where we are going. So with your permission, I'm going to move lunch to 2 O'clock. Okay. Let's see what we can do. Thanks. Sorry, can we have a of questions, please.

I'll proceed with the next 2 questions from Ian Smith. In 2021, Sasol uploaded an incomplete fraudulent IRP 5 to my SARS eFiling. Sasol's explanation to me via e-mail is that there was a problem with SARS. Sasol's own tax program causing multiple issues with multiple employees having incorrect IRP 5 uploaded. And that Sasol only picked it up 5 months later due to my complaint. What is Sasol doing to prevent future fines for incorrect tax payment to SARS? The second question directed to Fleetwood Grobler concerning the safety at Sasol Secunda. You stated in 2021 that Sasol has a very robust whistleblowing process. I have personally made many safety related disclosures to the Sasol management since 2015 up to 2019, and then victimized for it by my direct management. Why has Sasol actively limited the scope of greener attorneys to exclude or my disclosures including my safety disclosures at Sasol Secunda Benfield and Refining West being ignored. Does Sasol take seriously disclosures made by the employees regarding safety violations, which can easily result in an explosion which will make the 2004 explosion look like a walk in the park. Is the SARS Sasol takes the people value into account?

Thank you. Firstly, on the SARS error. And again, this is an error as you would appreciate Mr. Irasmus, we process about 29,000 of IRP 5s. And so it is -- we do everything to -- when they have to do everything to ensure that there are no errors. And indeed, in this instance, an error had occurred. In fact, it reflected overall that there was an error rate of 0.06%. We would want to have no error at all but with an error rate of 0.06%, it reflects that the controls that we have in respect of the processing of IRP 5s are appropriate. Of course, we'll continue to look into what further improvements can be made in respect of those controls. As you are aware, we have since raised with you the correction, and we believe that the matter is now closed. Thanks. I think coming back to the issue of our robust whistleblowing process. Indeed, we uphold the view that we've got robust whistleblowing processes. And indeed, we also investigate every matter that comes through our whistleblowing line. You will recall that some of the issues that you've raised, particularly, which may not have been doubted, but the greener attorneys process is because some of them had already been dealt with by another process. So for example, the issues raised around victimization had been dealt with in a process by another sum of attorneys you are not aware. So it is clear that we committed to dealing with all of these issues concerning our whistleblowing process. As you, of course, are aware, the waste blowing issues from part of the criminal prosecution matters that are before the court. And so I think it is best that I not engage further on those less it appears that undermining the process before the court. And so we'll await the ventilation of the issue in relation to whistleblowing in the courts, but we're comfortable about the whistleblowing process that we have in place. Thanks.

Thank you very much. Out of the 12, how many still to go?

There are still 10 questions to go, Chair, but the question from Mr. Irasmus on the whistleblowing process has not been addressed yet.

That's just been handled.

I move on to the next question. What is Sasol doing -- also from Mr. [indiscernible], what is Sasol doing to engage with the residents of Muswell Tennessee to rectify the displacement Sasol caused with building its Lake Charles plant? Specifically, Chris and Carla Mayo, who had to live inside the Lake Charles factory and Sasol simply built the plant around the property after Sasol fail to take away the property in a quick take action to try and force them from their property. Why is Sasol keeping secret, the legal cases between Sasol and the mayors? Is this how responsible company and global citizen behaves by trying to quick take people's property.

Do you have another one from Irasmus?

There are several from Mr. Irasmus, Chair, all our different topics. Would you like me to read out a few more?

I don't know. Let's just attempt this one.

Let's deal with the one in Lake Charles I'm going to ask Brad to weigh in on the actual situation, which he refers to.

Thank you, Fleetwood, and thanks for the question. Let's clarify that it's Mossville Louisiana, which is next door to our Lake Charles, Westlake, Louisiana facility. The Mossville property purchase program was a voluntary program that was started in consultation with the community and actually was recognized by the EPA as a great way to engage with the community for the matters of relocation when it's necessary. And it was voluntary, as I said. With respect to the mayor matter, Fleetwood and Chair, I would refer that to Vuyo.

With regards to -- just for your assistance, Mr. Irasmus, I wish to appeal to you. You've got quite a number of questions that you have here, and other shareholders are not having an opportunity of asking questions. So would it be okay that you -- if you have additional questions, you send them to us. Otherwise, I'm happy and management are happy to answer all your questions, but let's refer to other shareholders as well and give them the opportunity. Thank you very much. Vuyo? Sorry.

In relation to the matter is concerning the mayor, I think that matter has been dealt with in the sense that it's been dealt with in a private settlement arrangement -- And those -- the terms of those settlement arrangements are confidential as between the parties, and it would be a breach on my part to communicate therefore the terms of the settlement arrangements entered into with the mayor family. Thanks.

Chair, your instruction. We've prioritized the other shareholders. There is a question from Robin Hugo. Good day, Chairperson. Robin Hugo from Just Share. Sasol's disclosures on its allocation of capital to its emission reduction road map are crucial for stakeholders to assess whether we'll be able to achieve its 2030 decarbonization targets. Sasol's climate change report states that it has set a target of ZAR 15 million to ZAR 25 billion of capital expenditure to be spent by 2030 on decarbonization and that its capital allocation framework is provided with key guiding principles to progressively grow available capital for transforming the business. After 3 assessments by Climate Action 100+ in which Sasol was found to have failed to meet expectations on any criteria in relation to capital allocation. It is imperative that Sasol provide a detailed explanation of the aligned the capital evolution on decarbonization targets and with the goals of Paris Agreement. When and how does Sasol plan to address this misalignment? And will Sasol be making these disclosures in its FY '23 interim financial results?

Thanks, Stephanie. Thanks, Robin, for the question. We certainly engaged quite actively with Climate Action 100+ as well as other large shareholders to improve our disclosure on our capital allocation. So you'll note that we always referenced the capital allocation framework and also the reason why it was included today. We will look to incorporate some of that not only in our half year but also our full year disclosures. And then also, we've got a Capital Markets Day coming up again later next year to unpack the detailed plans as we progress on this 2030 journey. Thanks.

Thank you, Mr. Chair. We'll go to questions back in the room. Next question is from Migelon.

Mr. Rossouw, I'm sure you'll agree that estimating forms part of your ambit. Unfortunately, you weren't at last year's AGM. I was, and I asked Mr. Vuyo, very straightforward question. What is the estimate of the damages to be expected on the class action case? And he told me, "No, we haven't got an estimate." Well, I've got news for you. Sasol agreed to a settlement agreement from as early as February this year, okay? And it is there, directly from the lawyer, who you capitulated to for $24 million. Now I'm going to ask you again, why isn't it in this year's financial results?

Let me. Financial results. Do you mean last year's financial results?

Up until the 30th of June 2022. Yes, this $24 million was agreed back in February.

Once the settlement that gain as we had already disclosed in February that there was a settlement that had been added into with the parties that settlement at the time was still subject to a number of conditions, including that it be endorsed by a court. Press with the process that would include engagements with any other interest or potential plans. So that process was closed after the reporting period. So we could not have disclosed an amount which was still subject to confidential engagements and which was still to be approved. And so that's where the position lies. That amount had not been approved until the time the court made an approval after the financial year.

Well, I'm afraid there was no risk to you making it the disclosure. There was no risk. You should have made the disclosure. You've told us numerous times that it's all covered by insurance. So where is the risk? So it should have just been a one-line item very selected in the financials. $24 million we caught up. We were 2-week. We packed in, we capitulated, which you did. If you read this judgment. And if anybody wants a copy of it, I'll make it freely available. It is a public record, but I want to know from the Chief Financial Officer of Sasol. Why is it in the statement? That's my first question.

Sorry, on the CTFE, can we...

This question of yours. Can we respond to it, please, before you move to the other one.

So I thought I was going to upload my questions and then you would give answers.

Yes. I'm afraid I...

Just another change to the terms today of our meeting.

No, no. There's no change. I'm suggesting that we all have to be fair to all shareholders and give them equal opportunity because all of them are shareholders. So we're dealing with your situation. And Vuyo, can we just handle that.

So we're still on the class action.

Again, I think it's totally misleading with respect to Mr. Migelon to suggest that there have been any capitulation on the part of Sasol. Even the settlement makes it clear that it was on a basis that Sasol itself accepted no liability in relation to that matter. But of course, as you would understand, in any litigation, there are various risk assessments and in the instance, where litigation is also covered by insurers, the insurers too come in and make their own assessment. I've indicated very clearly that there had been no cash outflow from the company in respect of this litigation. And so I do think that there is no basis of any suggestion that our disclosures were inadequate in any form. At the time, based on the information that we had and subject to the confidentiality that applied having a bearing on the fact that we're setting decisions that was still conditional on determinations by the court, we're comfortable that the disclosures we've made appropriate around it. Thanks.

Well, it's quite interesting that it came out in the press as opposed to from the company. So that's quite a clearing tie between the parties. But anyway, I'll move on to my -- the next question that I brought on that concerned the CTFE project. Mr. Grobler has given an undertaking that, as I understand, if I'm going to be invited to some investigation, and I'll be able to participate.

You heard me perhaps wrong. I ask that you can come and have a look to see the plant is operational and that we are busy optimizing it. That was my context.

All right. Well, I'll decline that because it's too damn dangerous. Is still harming people there, Fleetwood. And until you can prove that the ambient air outfall from that plant is satisfying the ZAR 4 billion investment, I'm not going anywhere near it. I wouldn't go near it when I was working in primary area. I certainly wouldn't be going there now. So if you're going to do an investigation, I'll be there. And the last issue is the one being about Bain. What I'd like to address is there are standards and rules and regulations plentiful, obviously, within the company. Now is an ethical company or they're not an ethical company. I think it's fairly well clear that 2 major governments, the South African government now and the U.K. government have kicked them out. Now can I suggest that you review that position you have with Bain and Kick them out.

I will just say that we are constantly reviewing our position. And in this case, per your request, we will continue to do that. So that is part and parcel of our approach. So thank you for that suggestion.

Thank you. Thank you. I got a note here that Mr. Irasmus insists that he wants to ask all these questions in front of all the shareholders. So bear with us. If you must go, please do so. But what we will do now before he continues with these questions, can we get the results published, so that all the shareholders [Audio Gap] That want to be excused. So that then [Audio Gap] Can we get all the resolutions? [Audio Gap] Thank you very much. I am just going to go through all of them. It looks like if you look at column 1, 2, 3, these are 3. All the ones in front of us that is adviser resolution #1, adviser resolution #2. Can you put it back again? I like that. Okay. Adviser resolution #3 -- ordinary resolution #1.1, ordinary resolution #1.2, ordinary resolution #1.3. Ordinary resolution #1.4. Ordinary resolution #2. Ordinary resolution #3. Ordinary resolution #4.1, ordinary resolution #4.2, ordinary resolution #4.3, ordinary resolution #4.4, ordinary resolution #4.5, all of those on the screen, yes. And then the next patch of resolutions, ordinary resolution #5. Special resolution #1. Special resolution #2. Special resolution #3, special resolution #4, special resolution #5, special resolution #6, special resolution #7, special resolution #8, all of them in front of us have also been supported by the shareholders. So it's really are grateful for that. So those that have been insisting that they want to move on, they are fit to do so. We will then continue with the questions that Mr. Irasmus has got. And any other shareholder who has some more questions here the old day, I dedicated the day for this one today.

Thank you, Mr. Chair. We will resume taking questions in the room again. And first in the queue is Miss Ian Rawoot.

So I'm just a bit surprised that we're talking about getting energy to Mozambique 20 years and talking about creating a training -- skill training center 20 years later. Mozambique still have -- 30% of Mozambique still has access to electricity. And in Nanyambam province [Audio Gap] Okay. Thank you. And percentage of increase of electricity in Nanyambam province have increased, on average, less than the rest of the country, right? So can you explain that, please? Why most people do not have energy. In fact, all the people in the community still do not have electricity, even though you said otherwise. And are you talking about this now? And can you also answer the question I asked before, which was how many people from Temane and the surrounding communities have skilled permanent jobs at the plant right now, and I'm not talking about artisans. And then my last question is about the environmental question that I wasn't able to ask earlier. Where people in Temane the surrounding communities have been complaining about polluted lakes, which are -- and their water sources. How often does Sasol do water and air quality testing? And do you make this info available to communities? And can you make it available to the public that request was refused of mine when I sent in written questions. And I just want to point out that these were your communities and homes and livelihoods being destroyed. I don't think they would be able to go somewhere else. I don't think it'd be that understanding and enthusiastic. But I'll tell them my heart goes out to them.

Thank you again so much. I also like to just leave you with a thought that in the times when we had the cyclones in the region, Sasol contributed multi to really support the communities affected during those times as well. With respect to your first question, I'm going to ask Precilla to weigh in on your second and third question. With respect to electricity, Sasol is not doing the infrastructure, the planning and deployment of electrification in Nanyambam province or in the country of Mozambique. What we are enabling is the ability for the country to be more self-sufficient with restrict to electricity generation through the gas exploration activities that we're busy with. So unfortunately, I cannot help you with the first question specifically, maybe on the second and the third Precilla, please come in. Can we get the roving mic to activate?

Thank you again for your questions. Just for permanent employees. Our total employees that we have in Mozambique, particularly in CPF, over 99% of our employees are Mozambican of which more than 95% from the Nanyambam area. The second question was on water and quality testing. In line with our policies, we do regular water and testing all of the assessments are done. We also report on a regular basis to the INP. The reports are publicly available, but I'm also willing to share that with you. It's also just to note that we haven't really had any significant or major incidents in terms of fires or any incidents in terms of water pollution other than the challenges of plant that we are aware of and we're happy to share the detailed reports with you, but they are also publicly available in Portuguese as well.

Thank you, Mr. Chair. We'll move on to the next question from the room, and that's from Moses.

Is there a question from Moses?

We'll move on. Mr. Chair. We will go to Ms. Tim Sesler from Cosey.

I don't know. But I think the form part of those that have just left.

Thank you, Mr. Chair. We move on to Mary Macha Mado.

Okay. I didn't get a question in regard to Lake Charles project quite well. And yet there were some answers, but I didn't get it very correctly because the last 3 years, we hear -- before COVID, we hear that there was a cost overruns and then the project since not going very well. So I still want to get clarity to on that, maybe the Board can come back to me again and say something in regard to that.

Thank you, Macha. We can give you a quick update. That project has been fully completed and fully commissioned and is operating on all units that was built and within the context that I provided earlier that we discussed Lake Charles. So yes, project was completed. There was a cost overrun. We indicated the project will be completed between the $12.6 billion and $12.9 billion. We've completed it at $12.8 billion, and it's fully operational.

Thank you, Mr. Chair. We now have -- we have 7 remaining questions from Mr. Irasmus, I'll read through 3 at a time to expedite. There are some questions that have been asked, which are related to the ongoing court case, and we've responded to that to say that, that will not be addressed in this forum. The remaining questions are related to operational and social questions. The first one, according to a Sasol internal flash notification this year in January '22, Sasol 2 plant smoke stack at Secunda, NOx analyzer is not functioning and not reading and that Sasol is still using a calculation done only at the end of each month to see when and if Sasol went over the NOx emissions from the Sasol 2 smoke stacks. Has this analyzer been replaced or repaired? And if not, why not? Has Sasol investigated the effects of this unmeasured NOx emissions in the Secunda high South area? If not, why not? Second question relating to regulations. Why is Sasol going to hide behind some regulations, but flat other regulations concerning emissions? The SAQI's readings again are only concerning ground level monitoring stations? Why is Sasol really concerned with planet? Is Sasol actively dodging the release data of actual real-time emissions at its Secunda site? Sasol data service to shareholders concerning GHG emissions while hiding the actual volumes at emission level. If Sasol going to continue to hide behind license conditions instead of doing what's right? The third question invested to Mr. Simon Baloyi. If the coal tar filtration plant at Secunda, has taken 15 years to construct what guarantees can Sasol offer to shareholders that the current proposed green hydrogen projects, which Sasol wants to do in order to reduce carbon emissions will actually be built in time and actually used instead of dragging out the process in order to allow shareholders until Sasol can escape to America. Sasol just buying time in order to move house. And is it true that South Africa is split off from Sasol as a global company. I'll stop there.

Thank you, Mr. So I'm going to ask Simon to weigh in on the first 2 questions, which you had as well as then the last one, I'll start off with is that any project has got complexity in scale, technology and time frames and it depends on the magnitude of that in combination that sometimes impact the cost of the project, the time duration of the project to implement or the performance of the outcome. So in many cases that you referred to were the issue of the technology that was implemented, which was mostly the case in this instance. When you look at areas like green hydrogen and renewables, you would know that most of the renewable projects carries less risk because of the technology being much more proven in terms of photovoltaic panels as well as sun -- wind turbines to generate electricity. Coupled to that, electrolysis hub is being developed and being matured. But inherently, the technology has been running for many years. It is the cost that was that technology come that is the biggest focus in the industry. So if we consider our future projects that we have in that space, I believe we would have due consideration details and plan and execute appropriately. Simon, do you want to weigh in?

Yes. Thank you, Fleetwood. Just to support you on the project. We have completed many megaprojects in Secunda successfully. And I think for the CTF East, like we've said and given the commitment, the ones we have done with that project, we will do a post implementation to take all the lessons learned from there and continue in that fashion. On the NOx matter, you mentioned about a stack analyzer that was not working. I must first reiterate that stack has now been fixed, it's working. Suffice to say, during that time, we used the model that was independently audited to check our emissions. We check that model against rent data. And we published in our annual report, you will see that, that model has actually conservative. Therefore, during that time, there was nothing untoward in terms of our emissions. Actually, what you were reporting was much more conservative than what was happening. And even after we fix the stack, we back calculated the data, and we can also show that. Then the question on the GSG, We've unstarted. The data on all our is audited by independent third party, and it's released. So that data is not just as thinking about it. I think you mentioned the service provider, I think, is Deloitte. We have that. It's independent and that data has given. And you also mentioned why are we hiding behind license conditions. We're not hiding, like I've said, the data is regularly released, and that data is public information. I mean, we will also give you the data we can give you access to the data. It's public information. It's not common standards for plants. There's many, many variables that you measure in the plant. It's not common standards. We have all planned data on a live stream. It just doesn't work like that. But operational data is fully available. We will comply to all the licenses. We share that data with the communities, and we can share the data with you as well.

Thank you. The next question, a recent tweet from Mr., is leaking hazardous waste into the soil and groundwater just east of the Sasol Secunda plant. Is it true that...

No. He's claiming that there's specific arm to his farming activities, independent veterinary investigations that was commissioned by Sasol, didn't find any proof of that. It is so that when that dam is decommissioned as part of the plans, that area will be rehabilitated.

Still waiting on line through the Chorus call option. I will hand over to you to decide how to proceed with us.

What is Mr. awaiting?

Okay. Can you hear me?

Yes, sir.

And I really want this question to be answered. That's why I'm asking this employee worked for Sasol as an environmental regulatory specialist from 2015 to 2020. We happen to work for Sasol at the very same time I made all the environmental [Audio Gap] In fact, it was the very same lawyer who contacted me and asked for all the evidence and photographs recording Sasol sanctioned investigation. Sipho, firstly, do you think that your so-called [Audio Gap] Why that Sasol limit the scope of Greener Attorney investigation to exclude all my evidence on victimization as a whistleblower. Does Sasol not take their whistleblower policy issued in July '20?

Thanks a lot, Mr. I think the first point to make around you've indicated that there was an individual who worked on this matter within Greener attorneys who had previously worked with Sasol indeed that there [Audio Gap] There was oversight of the investigation by the managing partner of Greener and you yourself have been involved in directly who's at oversight [Audio Gap] Process that you are in that you are a witness -- that you are likely to be a witness to and which is before the court. So that's the position in respect to the whistleblower complaints from part of the criminal prosecution and we [Audio Gap]

Concerns, which flow with my concerns. At last year's AGM, I had question for Vuyo, a good faith way forward, spectacularly in writing. When he had to admit to me that the good faith gesture that he had made. He had no permission to make in the first case. So this is the very Board member and character at the highest level that we have to deal with as either whistleblowers or potential whistleblowers because I am not a whistleblower. I just [Audio Gap] To give a about [Audio Gap]

You are welcome to register the potential social supplier in accordance with our standard supply chain process touch trading material guide instructions, which were then provided. I foresee that maybe that's, again, the basis of what you're saying, I may have given you the impression at no mandate. You application [Audio Gap] You will be contacted by an application's management administrator. Should there be no immediate need, your details will be retained on Ariba for future reference. Kindly take note that the inclusion of your entity in the Sasol supply database does not create an obligation on Sasol South Africa Limited to issue any request for quotation or to award any contract to your organization. Please note that I have no involvement in the above-mentioned process and we therefore advise you to please address all further correspondence in this regard in the manner detailed above. So I'm careful that you [Audio Gap] Having a betting on the fact that, that meeting was not just between you and I. The Chief Compliance and Ethics Officer, the issues were probably ventilated, and I had the opportunity to ask you what else was there that may have been missed by the Cliff Degroff of mayor. And I called the view that, that process by Cliff Degroff was proper, and we accept its conclusions. Thank you.

Thank you very much. Can we go back to our colleagues just to double check that we've covered all the questions from Mr. Irasmus and Mr. Migelon, we've done that one. Can you confirm that?

I can confirm chair. All questions are now have been addressed.

Thank you very much, and thanks for your help. So ladies and gentlemen -- Mr. Migelon, Sorry? I can't hear you.

If we can ask the participants to please join the queue using the handheld device.

Right. Yes. I'm back on. Yes. Thank you very much for your attempt at deflecting that view. The fact that you had to reduce the revised you had made and then were named on. It's quite clear that in the previous meeting, you had agreed with me that the best way to sort up the culture problem at Sasol was to go into this proposal that I have made. Now I'm not going to start discussing here the details of my expertise and what I and what I recommended and what you bought into. And I'm most certainly not going to have go into any further detail of a follow-up meeting that I had with another gentleman on the board there. And I must say, he was completely complementary, completely open, frank and very decent. I'm not even to mention his name. But I'm not going to be dismerged here that in some way or other, including the ongoing with CDH, who unfortunately had a COVID death of the individual who handled the matter and the record disappeared concerning the ongoings of those meetings, phone them and ask them, if you wish. And whether or not you were misled by that company as I contended. So perhaps we'll have that meeting all over again. That would be fair, wouldn't it?

Thank you very much Mr. Migelon. I think your request has been noted. But thank you very much for your interaction. And I don't think Vuyo has further comments to make there.

I don't think so, Chair. I think I mean -- Mr. McGill knows that I remain open to meeting with him on any matter. But again, the point that I've just indicated around, services that he believes he could provide to us that are beneficial to us. There is a process around how you go about doing that. That process has been probably outlined. I can't allow for a different process specific to him, which is inconsistent with the merger to say.

Thank you very much. Ladies and gentlemen, this concludes the business of the 43rd Annual General Meeting of Sasol Limited. I truly thank you very much for your indulgence. I hope that you remain safe and healthy over the holidays. I look forward to seeing you all next year at this AGM. Thank you very much, and have a pleasant day. Thank you very much.