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At Secunda, located in central South Africa, Sasol Synfuels operates the world’s only commercial coal-based synfuels manufacturing facility. We produce synthetic fuel through coal gasification and natural gas reforming, using Sasol’s proprietary technology to convert syngas to synthetic fuel components, pipeline gas and chemical feedstock. Our fi nal product is made up of 40% petrol-blend components, 20% diesel-blend components and 40% chemical feedstock. 

## Recording solid progress 

Sasol Synfuels recorded solid progress in its drive to improve plant stability and production levels in 2010, setting a robust platform for growth in the years ahead. Our successes were, however, completely overshadowed by the tragic deaths of three employees during the year. In addition, there was one service provider fatality at premises leased from Sasol by the service provider and not under the control of Sasol. As a team, we deeply regret these fatalities and fi rmly believe that our goal of zero injuries is possible. 

Two colleagues, Johnny Fourie and Deon Olivier, were overcome by a noxious gas; a third, Simon Tsotetsi, died after he fell off a horse in the fields around our complex. Although we have made encouraging progress in our safety performance in recent years, our foremost priority remains that everyone who works at Sasol Synfuels returns home safely every day. 

Our recordable case rate (RCR) in 2010 was 0,37, which translates into 92 recordable injuries a year, up from 0,33 in 2009. In 2001, our RCR was greater than 3, which is equivalent to more than a thousand recordable injuries. This shows that Sasol Synfuels is a 

significantly safer place at which to work than it was a decade ago. However, we continue to roll out various initiatives to bolster our safety performance. Our philosophy is encapsulated in the slogan “Stop and think before you act”. The intention is to inculcate a culture of being aware of the surroundings and possible safety hazards at all times, to think through the activity that is required, as well as the potential hazards while performing it, and only then to perform the activity, safely. 

## Sustaining profi tability, improving production 

Sasol Synfuels’ operating profit for 2010 was R13 175 million. This is signifi cantly less than the profit achieved in 2009 because of a drop in sales prices (due to lower average oil prices) and the strength of the rand. The 2009 results had also benefited from a R4,9 billion gain on a commodity derivative on the part of Sasol Synfuels’ production in that year. 

Production volumes rose 3,9% to 7,3 Mt as a result of improved stability in our production facility. In particular, the selective catalytic cracker (SCC) plant performed well, exceeding 80% of its design load in the year from 70% the previous year. A successful statutory 

shutdown was completed on the SCC in December, during which we made modifications that improved stability. The SCC uses fi rst-of-a-kind technology to crack low-octane fuel into high-octane fuel and chemical components. 

Efforts to ensure that Sasol Synfuels’ cost inflation is in line with market trends are paying off, despite a 25% increase in electricity prices and a higher coal price. In 2010, unit cash costs decreased by 5,8%. This decline was due to capitalising the cost of shutdowns. Excluding this accounting treatment, Sasol Synfuels’ unit costs increased by 3,6%. 

## Enhancing stability 

To further enhance the robustness of our operations, we are on track with the replacement of the jackets and linings of our coal gasifiers, as well as replacing the feed pre-heaters and waste heat boilers of our gas reformers. 

In March, the Sasol board of directors approved the R2 billion required for the construction of four additional Sasol Fixed-Bed Dry-Bottom Gasifi ers™ (for coal gasification), as well as R1,5 billion for a 17th gas reformer (for the conversion of natural gas). We plan to phase in the gasifiers, as well 

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