Report of the Portfolio Committee on Science and Technology on Study Tour
to Sasolburg and Secunda, 10-11 August 2006:
The
Portfolio Committee on Science and Technology, having conducted a study tour to
Sasolburg and Secunda from 10 – 11 August 2006, reports as follows:
Members Present:
The
delegation, under the leadership of the Chairperson of the Portfolio Committee,
Hon. E N N Ngcobo (ANC), included Hon. S Dithebe (ANC), Hon. F Mahomed (ANC), Hon.
B T Ngcobo (ANC), Hon. S N Nxumalo (ANC), Hon. J P I Blanche (DA), Hon. A M
Dreyer (DA), Hon. H J Bekker (IFP), Hon. P J Nefolovhodwe (AZAPO)
Apologies:
Hon. A R
Ainslie (ANC), Prof I J Mohamed (ANC), Hon. B J Mnyandu (ANC), Hon. M J Bhengu
(IFP), Hon. V C Gore (ID) and Hon. N T Godi (PAC)
Supporting Staff:
Ms Z Jansen
(Committee Secretary).
Background:
Sasol’s technologies in the field of
Gas-to-Liquid production were recently in the international limelight with the
opening of the Oryx GTL project in
Purpose / objective for the study
tour:
The objective of the study tour was
for Members of the Portfolio Committee of Science and Technology to familiarize
themselves with the technologies that Sasol has developed over the years, in
particular, Sasol’s Research and Development Activities and its Manufacturing
Plants. It was also an opportunity for Members of the PC to interact with Sasol
on issues pertaining to the PC oversight function such as issues related to scarce
skills and skills development.
10 –
Sasol delegation briefed
the PC on the following:
·
Sasol’s Black Economic Empowerment (BEE) objectives in Liquid Fuels
Business is to increase and create new business and meaningful participation of
broad-based groups such as communities, rural woman and youth groups.
·
·
It is the leading beneficiator of coal to synfuels and petrochemicals.
·
It was pointed out that for Accelerated Shared Growth Initiative South
Africa (ASGISA) to succeed, the energy sector has to meet the following
challenges:-
1. Close the gap between investment
required and domestic capital available.
2. Close the gap between South African
fuel demand and supply.
3. Close the gap between demand for
diesel and ability for crude oil refineries to supply.
4. Close the supply gap of
transportation energy needs to inland area.
·
In order to close the energy gap Sasol would have to expand its coastal
crude oil refineries, import refined products, invest in a new coastal refinery
and invest in
·
In its global activities, it has identified 2 sites in
The following formed part
of the discussion:
·
Committee enquired whether Sasol has made any progress in the Hydrogen
Economy? Sasol responded that it produces the cheapest hydrogen in the world
however, there is a problem transporting it and in generating it as it gives
off Carbon Dioxide which is dangerous.
·
Committee wanted to know how much electricity it uses? Sasol answered
that it uses electricity equivalent to that of two cities the size of
·
Committee questioned Sasol on how long would the gas reserves in
·
Committee enquired what would happen to the equipment when the gas
reserves have depleted? Sasol responded that in terms of the agreement,
·
Committee enquired whether Sasol has a problem with retaining its staff?
Sasol pointed out that it experience a problem with both tha scarcity of skills
and retaining its staff. To overcome this challenge, the Group Executive
decided that they will be doubling their budget allocated for bursaries.
·
Committee queried the statistical breakdown of its staff, in particular
what the percentage of its of managers, students and staff are women? Sasol responded
that 12% of managers are women, 32% of their staff and students are women.
·
Committee queried whether Sasol has a disaster management plan for their
site as well as the communities surrounding the site? Does it take into account
its employees mental state after accidents occurred on the site? Sasol
emphasized that safety has become a way of life for all staff at Sasol. All its
staff receives rescue training and before each shift starts there is safety
training. It has emergency pre-planning for high-risk areas which is linked to
government’s disaster plan.
·
Committee enquired what the composition of the Safety Committee? Sasol
responded that the Safety Committee comprises of two union representatives and
six managers, however when a vote is made on any issue, employees and mangers vote
equally. It also adopts a style of management where everyone’s input is taken
into account.
·
Committee pointed out that as petrol prices are soaring is Sasol looking
at manufacturing vehicles that use gas. Sasol responded that it prototype
vehicles using gas have been manufactured. It is exploring the possibility of
using hydrogen, however there is the problem of carbon dioxide explained
previously.
Recommendations:
·
Sasol should have a portion of its students trained in other countries
to obtain relevant skills. Sasol responded that its Chief Executive Officer
worked with the Deputy President of
·
A national workshop on skills development be held and all the necessary
stakeholders such as Agriculture (re: veterinary sciences), Minerals and Energy
(re: technicians and artisans for the chemical industry), Labor (re: Seta’s)
Education (re: skills training) and Science and Technology (re: technical
skills development) be invited. The workshop should focus on the challenges
Acknowledgements:
The
Committee wishes to thank all the people that it met and interacted with during
the study tour. The hospitality accorded to the Delegation made the task of the
Committee much easier and affordable.
Report to be considered.