LION Project exceeds BEE targets

21 September 2005

SAPREF's R700 million cleaner fuels project (called LION) has exceeded its target for Black Economic Empowerment (BEE) procurement, with R150 million of the South African based capital expenditure going to BEE companies.This equates to a BEE spend of total procurement and contracts of 31% exceeding the 25% target set for 2005. At the same time, SAPREF's focus on providing employment for south Durban residents in the construction of the LION project has resulted in 70 percent of the nearly 1445 people employed so far coming from neighbouring communities.

With construction now 96 percent complete, the LION Project team are focused on commissioning and start up of the plant. On completion, the LION project will see SAPREF providing only unleaded petrol and low sulphur diesel to the country from December 2005, ahead of the government deadline of 1 January 2006. SAPREF has chosen not to replace lead with other octane boosting additives, rather achieving the high octane requirements through further refining of petrol components.The removal of lead from petrol and the reduction of sulphur in diesel and petrol will have a significant positive environmental impact. For SAPREF-produced fuels alone this will result in a reduction of about 2000 tons annually of lead additive and 15 000 tons of sulphur dioxide per annum being emitted through vehicle exhausts. The fuels we produce will truly be 100% cleaner

Tjalling Terpstra, the LION project manager, said good progress was being made. "We are very pleased with the project's contribution to BEE, the local economy and the employment of local of people. We have made a concerted effort to promote safe working practices and this is bearing fruit. The project has reached the safety milestone of 1 500 000 work hours without an injury that resulted in lost time."

More information on the LION project is available on www.sapref-lion.co.za for those wanting to keep track of its progress.

For more information contact:
Prudence Mbatha
SAPREF Communications Officer
Tel: 031-480 1303
Fax: 031-468 1111
Cell: 083 627 0802
email: mbathap@sapref.com