As part of the process of incorporating a strategic partner into its explosives and rock fragmentation division, JSE-listed petrochemicals company Sasol has selected Chile-headquartered Enaex as its preferred partner.
The two companies will now negotiate the terms for potentially establishing a joint venture (JV) company.
Enaex, an international blasting services provider and Sigdo Koppers Group subsidiary, will be the controlling and managing partner of the JV.
The JV company will 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.
Sasol in 2017 started a detailed asset review of its assets, finding that the explosives business had growth potential that could be unlocked through collaboration opportunities.
“The preferred partner was selected based on its record and potential to create a best-in-class technical service supplier, offering a one-stop-shop for explosives and blasting solutions.
“As part of the exclusive negotiation phase, the potential partner will be required to continue to ensure reliable and sustainable ammonia offtake for Sasol South Africa, maintain Sasol’s safety record and be in a position to offer existing Sasol explosives employees career opportunities in a truly global, focused and growing explosives business,” Sasol said in a recent statement.
The JV is subject to successful negotiations with the exclusive partner, and external approvals, including that of the South African Competition Commission.