Sasol Mining, in partnership with our BEE partner, Ixia Coal, delivered a remarkable 12% improvement in productivity. Continued strength in the rand in the  second half of the year outweighed  the benefits of higher oil and chemical  prices. We see much the same pattern  prevailing for the initial period of the  new fi nancial year.  challenge is to ensure a pipeline of talent  and relevant skills into the future. To  address this challenge we established a  number of units, within the human  resources structure and elsewhere in the  group, focused on the sustainable supply  of suitably qualified and experienced  employees to resource our growth plans. improve governance and systems of  internal control within the group.  In the year under review, deliberations  focused on finding the most appropriate  way to adhere to the principles and  recommendations of King III.  Not only have we improved and  strengthened our competition law  compliance programme, but we are  also cooperating with the South African  Competition Commission on their  ongoing investigations and we are  making progress in dealing with  matters outstanding. Linked to our investment in people  is the ongoing strengthening of our  technological advantage. In this regard,  partnerships continue to be important.  As an example, we concluded an  agreement with our ninth South African  tertiary institution to build institutional  research capacity at a cost of R25 million a year over ten years. Another key  development was that our latest  Fischer-Tropsch design reactor and  catalyst-testing reactor pilot plant  in Sasolburg became fully operational  in the year.  We expect further growth in volumes  and will target cost increases in line with  inflation for 2011. Our deleveraged balance sheet and strong  cash flow will allow us to respond quickly  and effectively to the opportunities and  challenges presented by an unpredictable  economic environment. We remain focused on ensuring world- class performance from our existing  assets, growth through the delivery of our  upstream, CTL and GTL ambitions, and on  entrenching an extraordinary operating  environment and sound governance.  Although economic activity has  rebounded more rapidly than many had  predicted, aided by concerted government  and central bank intervention in most  developed countries and the continued  dynamism of emerging economies, there  is continued volatility. We remain cautious  about the short-term economic outlook  but confident that we are well positioned  for sustainable long-term growth. The group made progress across a number  of fronts in 2010, under challenging  circumstances. This is the result of the  focus, dedication and hard work of all our  people at Sasol. My thanks are due to all  of them. In June this year, the board approved a  number of changes to our group executive  committee (GEC), aimed at streamlining  the functioning of executive management.  These changes will ensure we remain  focused on greater operational effi ciency,  effective business support and sustainable  growth. I wish Lean Strauss (senior group  executive, new business development and  technology), André de Ruyter (senior  group executive, operations) and  Nolitha Fakude (executive director,  business sustainability and  transformation) well in their new roles. Sasol has continued to invest in skills  throughout the economic cycle. A specifi c  Organising for sustainable,  profi table growth Outlook  Acknowledgement Pat Davies Chief executive annual review 2010  •  business review  •  chief executive’s report continued 29