Sasol Mining’s total coal production increased to 42,6 Mt  in 2010 from 39,1 Mt in 2009. factors were our achievements in  employee equity, management diversity  and enterprise development.  development, growth and employment  task team. Sustaining coal supply In line with the group’s strategic goal  of delivering on the South African  transformation agenda, in 2009 we  concluded a memorandum of  understanding with Ixia Coal on the way  forward for this start-up company. We  expect to conclude the Ixia deal and  associated financing in 2011. Some of our mines are approaching  the end of their useful lives and we are  developing new mines and shafts to  sustain a consistent supply. This is in  answer to the group’s strategic goal of  nurturing and growing our asset base.  During the year, we started construction  of Twistdraai Colliery’s new Thubelisha  shaft. We also obtained board approval for  the construction of the Impomelelo mine,  which will replace the ageing Brandspruit  Colliery. Construction is due to start in 2011. Another important feature of the year  was the successful coal blasting and  extraction of a 170 000 ton sample of  coal for Project Mafutha (a proposed  greenfields CTL facility in Limpopo  Province). This coal will now be tested in  Secunda for its suitability for gasifi cation.  We also continued to assist Sasol Synfuels  International with potential mining  opportunities in China and India. Our training initiatives comply with the  Empowerment Charter for the South  African Mining Industry, and we are  pleased to report substantial progress in  meeting its many other requirements.  Sasol Mining is also actively involved in  the work of the mining industry  We continue to develop our people,  spending more on education,  implementing new training and retention  strategies and launching initiatives to  use technology more effectively. Among  these are efforts to disseminate shift  performance data to miners in good  time. This is already bearing fruit, helping  to support the increase in productivity  achieved. In 2011, we plan to establish  an underground training section, offering  a more genuine training environment.  We are also developing our own  simulators of mining production  equipment to allow trainees to  better measure and improve their  productivity. Operating profit declined to R815 million  from R1 593 million as lower US dollar  coal prices and the stronger rand reduced  coal export earnings. We increased the  coal transfer price between Sasol Mining  and Sasol Synfuels in the year to ensure  it better reflected cost increases  experienced by the industry, as well  as to achieve better alignment with  current market prices. The increase also  helps ensure a fair return on capital  expenditure to fund our mine  replacement programme, which aims  to secure supplies to Sasol Synfuels.  The price increase, along with signifi cant  gains in productivity and cost savings of  almost R200 million, helped us meet our  targeted return on investment. As part  of the business recovery programme  initiated during the economic crisis, our  target is to save about R400 million a year  in costs by 2012. Converting our mining rights Developing our people A major highlight in 2010 was the  conversion, in March, of Sasol Mining’s  old-order mining rights to new-order  rights by the Department of Mineral  Resources. In terms of the requirements  of the Mineral and Petroleum Resources  Development Act of 2002, this means we  have a licence to mine current reserves.  The granting of the conversion was based  on Sasol Mining’s black economic  empowerment strategy which includes –  among other things – investment and  support for majority-black-women-owned  mining group Ixia Coal. Other supporting  32