No. 4 Plant

No. 5 Plant

January 11, 2005 - Sasol has reached an in principle agreement with Foskor and the Industrial Development Corporation regarding the sale of Sasol Nitro's phosphoric acid plant at Phalaborwa for an amount of R95 million.  The companies have agreed that Foskor will acquire the productive and storage assets of Sasol Nitro's phosphoric acid plant. Sasol will retain the gypsum disposal dumps and will allow Foskor to deposit gypsum arising from the plant onto the gypsum dumps for a period of four years. Thereafter, it is envisaged that Foskor will either take over the dumps or Sasol will close and rehabilitate them.  Certain Sasol employees at the plant will be offered employment by Foskor on transfer of the assets to Foskor.  Sasol chief executive, Pieter Cox, says: "This agreement will save many jobs. Current and predicted economic conditions have made the production and marketing of phosphoric acid unsustainable for Sasol. Our options were either to close our plant and risk the loss of 250 permanent jobs, or to dispose of the business as a going concern.”  Foskor chief executive, Alfred Pitse, says: "This acquisition will supplement Foskor's operations in Richards Bay and ensure continued viability of our mining operation in Phalaborwa. It should be a win-win situation for all involved, especially Sasol employees and the Phalaborwa community."  The agreement is subject to regulatory approvals and negotiation of the terms of a final agreement.