Eyesizwe, created in 2000 by Anglo American and BHP Billiton, is the fourth-largest coal mining company in South Africa, with an annual production of 25 million tons a year.
South Africa’s Business Day reported that Sasol had picked Eyesizwe as its preferred empowerment partner in the mining sector, under the terms of that country’s mining charter which requires mining companies to undertake black economic empowerment.
Sasol's mining activities showed a profit of R521 million in the six months to December.
Eyesizwe CE Sipho Nkosi said a new relationship with Sasol would help boost Eyesizwe's coal exports, and that a new market could open up in selling to Sasol's coal to liquid fuel plants. In addition, the true test of empowerment would be in new projects the two partners could launch, he said.
Sasol CE Pieter Cox said the new partnership was expected to "lead to a mutually beneficial long-term relationship", as potential synergies in the coal export and power and steam generation coal supply markets would be explored.
"We at Sasol are satisfied that Eyesizwe coal fulfils all strategic requirements to advance our BEE (black economic empowerment) initiatives in the mining sector."
Cox confirmed that the company intended to introduce "a 15% BEE ownership into our South African coal mining operations by 2009, which would be increased to 26% on a willing-buyer, willing-seller basis by 2014. We are confident that the required economic empowerment objectives will be met," he said.
