Sasol (NYSE:SSL) has agreed to sell its nitrates business to Enaex Africa, part of Chile-listed explosives and mining services group Enaex (BCS:ENAEX).
The transaction includes primary ammonia conversion plants at Secunda and Sasolburg in South Africa. The facilities produce feedstock for fertilisers and explosives, including products used by the mining industry.
Sasol will retain a 23% interest in the joint venture following completion. The companies have not disclosed the purchase price or other financial terms.
The proposed acquisition extends a partnership established in 2020, when the companies combined Sasol’s explosives business with Enaex’s mining services operations in southern Africa.
Sasol says the sale forms part of its portfolio optimisation strategy. Meanwhile, Enaex Africa expects the acquisition to strengthen its value chain and security of supply.
The companies say they will coordinate the transition for employees, customers, suppliers, and other stakeholders. Completion remains subject to regulatory approvals, with further updates expected once those approvals are obtained.
Sasol is a South African energy and chemicals group with coal mining operations, while Enaex manufactures explosives and provides blasting and rock-fragmentation services to mining companies internationally.
Write to France Pinzon at Mining.com.au
Images: Sasol
