Sasol welcomed on Tuesday the National Treasury’s decision not to impose a windfall tax on synthetic fuel producers.
”Our government’s growth vision for the synthetic fuel sector is encouraging,” said Sasol chief executive Pat Davies.
”We thank the minister [Trevor Manuel] and the National Treasury team for the constructive manner in which this complex investigation was conducted. This is a win-win outcome for all.”
Davies said Sasol had started the first phase of ”significantly expanding” existing synthetic fuels capacity in Secunda.
”We are proceeding with a pre-feasibility study into a greenfields coal-to-liquids facility in partnership with government.”
This study, known as Project Mafutha, was expected to be completed during 2008.
”We are one of the largest investors in this economy and believe that Project Mafutha could provide Sasol and our stakeholders with a further promising investment opportunity.
”We are optimistic that the proposed venture will meet both government’s and Sasol’s investment criteria,” said Davies.
The government’s decision not to impose the so-called windfall tax came despite recommendations to do so by a special task team it appointed to investigate the matter.
A windfall tax, Treasury said on Monday, might scare off potential investment in the local fuel industry.
The team was appointed against a background of steeply-rising world oil prices, which more than doubled, to $60 a barrel, between 2003 and 2005.
The state-owned oil company, PetroSA, earlier also welcomed the government’s decision. – Sapa