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Sasol may abandon fuel liquids plant if no govt funding-paper
March 9, 2010 / 6:44 AM / 8 years ago

Sasol may abandon fuel liquids plant if no govt funding-paper

* Mafutha project funding needs too big for Sasol

* Project currently in feasibility stage

JOHANNESBURG, March 9 (Reuters) - Petrochemical group Sasol (SOLJ.J) may abandon its planned 80,000 barrel-a-day South African coal-to-liquid Mafutha plant if the government does not help finance it, the Business Day newspaper reported on Tuesday.

The paper quoted Sasol Chief Executive Officer Pat Davies as saying the world’s top maker of motor fuel from coal would let the government determine its funding component for the project, while the company proceeds with its preparatory works currently in feasibility stage.

“If we do not get the support, we will not proceed with the project. It is too big a project to got it alone,” the Business Day quoted Davies as saying.

Sasol plans to develop the Mafutha project with diversified miner Exxaro Resources (EXXJ.J) in South Africa’s northern Limpopo province, which has vast coal reserves. [ID:nL4120453] (Reporting by Shapi Shacinda)

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