PRESENTATION TO THE PORTFOLIO COMMITTEE ON MINERALS AND ENERGY 14 SEPTEMBER 2005

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PRESENTATION TO THE PORTFOLIO COMMITTEE ON
MINERALS AND ENERGY14 SEPTEMBER 2005
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CEF GROUP STRUCTURE
CEF (Pty) Ltd incorp. EDC Chairperson - A
Mjekula CEO - M Damane
Central Energy Fund
100 SFF ASSOCIATION Chairperson A Mjekula CEO
M Damane
100 Petroleum Agency SA Chairperson J
Rocha Acting CEO M Xiphu
100 iGAS Chairperson Z Rustomjee COO M de
Pontes
100 PETROSA Chairperson P Molefe CEO S
Mkhize
100 OPCSA Chairperson A Mjekula CEO P
Coetzee
100 SANERI
49 Bannietor Mining
30 Süd-Chemie Zeolites
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CEF GROUP RESULTS 2004/5 (Rm)
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CEF GROUP 2004/5 RESULTS (contd)

• CEF
• Lower interest rates and reduced cash reserves
  significantly impacted on revenue
• Significant progress made within EDC division
• Very good funding obtained for iGas Rompco
  investment
• Fixed portion of foreign loan repaid
• No dividends paid due to large Capex requirements
  and poor 2003/4 results

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CEF GROUP 2004/5 RESULTS (contd)

• PASA
• 18 June 2004 designated agency i.t.o MPRDA
• Tax exemption from 18 June 2004
• Significant increased revenue as a result of
  increased revenues from PetroSA
• Significant roles played
• - WPC
• - Continental Shelf Claim Project
• - UTT

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CEF GROUP 2004/5 RESULTS (contd)

• OPCSA
• Market survey completed
• - OPCSA is by far the largest and most
  technically
• advanced player in oil pollution in
  South Africa
• Loan of R32.4 million from SFF was written off
  and
• has significantly improved the balance
  sheet
• Assisted with salvage of BBC China

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CEF GROUP 2004/5 RESULTS (contd)

• IGAS
• Approval for investment in 25 of Rompco. Deal
  was effective from 1 July 2005
• Equity portion of deal was funded at 50 debt
  50 equity from CEF cash reserves. Guarantees
  have been provided for debt within Rompco
• Rapidly progressed studies for LNG facility in
  Eastern Cape

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CEF GROUP 2004/5 RESULTS (contd)

• SFF
• Sale of Killarney storage facility to Caltex for
  R37.6 million profit
• Strategic stocks below requirement. Insufficient
  cash to procure 1 VLCC
• Backwardation deal to monetise strategic stocks
• New ministerial directive making trading of crude
  oil stock impossible
• Need to find ways to fund crude oil storage
• Application i.t.o MPRDA to enable monetisation of
  mineral rights

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CEF GROUP 2004/5 RESULTS (contd)

• ENERKOM
• Patents sold for 1,5 m
• Company to be liquidated in 2005/6 financial year

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CEF - THE FUTURE

• Short-term (12 months)
• Begin construction of Darling Wind Farm (5.2MW)
• Begin construction of Bethlehem Hydro (3.9MW)
• Complete due diligence on Biodiesel (113mlpa)
• Complete pilot testing for Low Smoke Fuel
  production
• Implement pilot stage of SWH500
• Complete research on Gelfuel (as a replacement
  for IP)
• Convene (RE) roundtable

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CEF - THE FUTURE (contd)

• Medium-term (1 - 3 years)
• Operationalise Low Smoke Fuel program
• Invest in at least one Landfill Gas venture
• Implement financial mechanism for SWH
• Implement Ethanol production plans
• Complete due diligence study on Wave Power
• Invest in LPG for domestic use

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CEF - THE FUTURE (contd)

• Long-term (3 - 5 years)
• Distribute LSF briquettes as replacement for
  grade D coal
• Monitor lignocellulose developments
• Invest in Phase 2 of Darling Wind Farm
• Increase penetration of SWH (take equity)

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iGAS THE FUTURE

• Short-term (12 months)
• Develop the Liquefied Natural Gas to Power
  project in the Eastern Cape
• Examine possible projects to increase the gas
  flow from
• Mozambique

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iGAS THE FUTURE (contd)

• Medium-term (1 4 years)
• Take Final Investment decision for Liquefied
  Natural Gas (LNG) to Power Plant in the Eastern
  Cape
• Manage together with Joint Venture Partners the
• LNG Plant construction, commissioning and
  operation
• Implement and invest in a project for future gas
• throughput in the Mozambique to South Africa
  pipeline

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iGAS THE FUTURE (contd)

• Long-term (gt than 4 years)
• Examine further increases in gas throughput in
  the
• Mozambique to South Africa Gas pipeline
• Feasibilty studies for Coal Bed Methane Projects
• Pre-feasibilty studies for future gas from the
  South
• African west coast, if and when such projects
  arise

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OPCSA THE FUTURE

• OPCSA is already providing a pollution control
  service in Saldanha to
• PetroSA Caltex
• Develop these relationships and market this
  service to other members of the Oil Industry so
  that it can be rendered in other ports as well
• Pursue the opportunities that were
• identified during the oil pollution market
• survey
• Render a pollution control service to other
  Government Departments

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SFF - THE FUTURE

• SFF
• Need to find ways to cover costs of storage
• Approach Minister re change to required strategic
  stock levels
• Ensure funding of environmental liabilities