I believe that our strategy and technology position, along with our profi tability and strong balance sheet, places us in an ideal position to capitalise on this signifi cant change in the relative value of energy. 

In the financial year, we made good progress executing our sustainable growth strategy. Sasol Synfuels International (SSI), off the back of a strong operational performance by Oryx GTL, recorded its first operating profit despite an increase in costs associated with the development of other new projects. Oryx GTL has demonstrated the viability of our GTL technology and our ability, alongside our partner, Qatar Petroleum, to successfully commercialise complex technologies. 

Sasol’s unique technology and expertise ensures a strong platform for growth in liquid fuels and selected chemicals markets. During the year, we announced an investment of R8,4 billion in new hard wax production capacity at our Sasolburg facility in South Africa. The demand for hard wax is growing rapidly and Sasol’s unique technology has placed the company in an ideal position to seize this market opportunity. 

Sasol made further progress on its polymer growth strategy with the ramp-up of production at Arya Sasol Polymer Company. The plant achieved an average capacity utilisation of 70% in the second half of the year. 

Over the past four years, Sasol Petroleum International (SPI) has steadily expanded its exploration portfolio. Today we have exploration equity interests in seven countries while maintaining our upstream production in Mozambique and Gabon. 

Our success in developing gas resources in Mozambique has created an opportunity for Sasol to increase electricity generation from cleaner natural gas instead of from coal. We have set ourselves a goal 

Beyond Sasol’s unique technology and engineering expertise, the success of our growth strategy is predicated on strong partnerships. 

of supplying half our electricity needs in South Africa from our own resources by 2012, and we have plans to take this further. 

Pre-feasibility work on Project Mafutha, our proposed new coal-to-liquids (CTL) facility in South Africa, continues. The feasibility phase of the project, however, can commence only once work has been completed on a number of key matters. 

Sasol’s capital investment demonstrates our commitment and ability to executing our growth strategy. Over the last fi ve years, through the highs and lows of the energy and chemical cycles, Sasol increased capital expenditure from R12,6 billion in 2005 to R16,1 billion in 2010. Last year, we indicated that we would reprioritise our capital spend to ensure that our need to conserve cash would not affect long-term growth. In 2010, we carried out this intention with investment (including pre-investment expenditure) in growth projects of R6,6 billion being maintained. This has secured a strong pipeline of growth projects while maintaining our ungeared position. 

Sasol’s successful track record of commercialising unique technologies has positioned the company well to exploit the opportunities arising from low-carbon energy alternatives. As I have stated before, the twin challenges of promoting economic development and simultaneously reducing greenhouse gas (GHG) emissions can only be met through innovation. A suite of technology solutions, ranging from those that drive greater energy efficiency and make available renewable sources of energy, through to carbon capture and storage, will be needed to meet these critical challenges. 

Sasol New Energy, alongside Sasol Technology and in cooperation with a number of external partners, has made good progress in pursuing options in all these areas. This business unit will enable us to achieve three complementary goals: extending the life of our existing carbon resources; reducing Sasol’s GHG footprint; and ensuring Sasol’s long-term growth by commercialising exciting new energy technologies. 

It would be disingenuous to portray the challenges of environmental sustainability as an opportunity only. Society expects of us, wherever possible, to ensure that we conduct our business in an environmentally sustainable way. In Sasol’s case, a large part of this obligation is to reduce our GHG emissions and failure to do so will impact negatively on our licence to operate. We have set tough targets for the reduction of GHG emissions by 2020 and 2030. Our progress on meeting these targets is reported elsewhere in this report as well as in our separate sustainable development report. 

Beyond Sasol’s unique technology and engineering expertise, the success of our growth strategy is predicated on strong partnerships. During the year, we continued to see the value of the relationships we have built over many years. I would like to thank our partners with whom we are advancing new energy technologies, securing upstream resources and developing new chemical and fuel projects, for their continued support. Building strong relationships with existing and future partners is guided by a strong commitment to our values. Our focus on organisational culture over recent years has provided a strong basis for these relationships. 

## Ensuring sound governance 

Management has continued to interact with the Sasol board to continuously 

