As part of a process initiated by Sasol Ltd to incorporate a strategic partner for its explosives and rock fragmentation division, Chile based explosives major ENAEX SA has been selected as a preferred partner to negotiate the terms and conditions for creating a joint venture with Sasol South Africa Ltd, subsidiary of Sasol Ltd, to take part in that business.
ENAEX SA would be the controlling partner of this partnership, which would be formed by spinning off certain assets and associated activities within the current explosives value chain of the Base Chemicals business of Sasol South Africa Limited, into a new joint venture company which will include the associated business activities in both South Africa and the rest of the countries in Southern Africa. The incorporation of ENAEX SA into the said joint venture is subject to reaching an agreement on the terms of the respective contracts to form the partnership and obtaining any necessary authorisations from public authorities.
Sasol Ltd, listed on the Johannesburg Stock Exchange and New York Stock Exchange, is an international integrated chemicals and energy company, based in South Africa with a presence in 31 countries with more than 31,000 employees. Sasol was founded in 1950 and is today a participant in the Explosives Industry in South Africa, with a presence in Namibia, Botswana, Lesotho and Zambia.
ENAEX said: “The operation that we report is part of the strategic plan of ENAEX SA to continue strengthening its international presence in the most important mining regions of the world. We estimate that the potential transaction will have positive effects on the results of ENAEX SA. However, it is not possible to quantify that impact at this stage.”