In 2017, Sasol commenced with an asset review to ensure all assets in its global portfolio delivered against financial metrics and were aligned with the company’s growth strategy, the company said.
“In line with this review, Sasol’s explosives business was identified as having substantial growth potential that could be unlocked through collaboration opportunities, including the possibility of partnering with a world-class explosives brand,” Sasol said.
The new company will operate under the name of Enaex Africa. Enaex will be the majority shareholder and will take over management and operational control of the entity from July 1.
Enaex, in association with Sasol, will comprise certain assets and associated activities spun off from the current explosives and rock fragmentation value chain of the base chemicals business of Sasol South Africa. This joint venture includes the associated business activities in both South Africa and other countries in Southern Africa.
“We are delighted to announce that on July 1, 2020, Enaex Africa in association with Sasol, will officially start operating in South Africa and on the African Continent. Enaex is a Chilean company celebrating 100 years of history and leadership in the explosives business in South America and together with Sasol will be a force to be reckoned with in the mining industry,” Sasol President and CEO, Fleetwood Grobler, said.
Founded in 1920 in Chile, Enaex’s core business is ammonium nitrate production – Enaex is the third-largest industrial grade ammonium nitrate producer in the world – explosives production and blasting services, according to Sasol.
“Enaex is also one of the few explosives companies in the world that can produce and offer the entire spectrum of products and solutions to execute the blasting process,” Sasol said.
“This is truly an incredible day for Enaex with a new venture on a new continent. This joint venture is a platform of growth for Enaex not only in Southern Africa, but also for us to become the leaders in explosives and blasting services for the mining industry on the African continent,” Francisco Baudrand, CEO of Enaex Africa, said.
Meanwhile, Sasol has announced that it would sell its indirect interest in the Escravos gas-to-liquids (EGTL) plant in Nigeria to Chevron for an undisclosed sum through ongoing catalyst supply, technology and technical assistance.
The company said other sale processes, including its interests in the Republic of Mozambique Pipeline Investment Company pipeline and Central Termica de Ressano Garcia gas-fired power plant in Mozambique, are well underway.
In March, Sasol had accelerated its asset disposal programme and said that it could sell up to US$2 billion of its shares to ensure that it can pay its debt following a slump in oil prices and fears over the coronavirus outbreak.