This section of the report focuses on four issues that are regarded as being the most material to our sustainable
development performance.
| Challenges and opportunities |
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Our response |
Energy and climate change |
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| The challenge: |
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Dealing with a carbon-constrained future, climate change and increasing
energy demand in a world where the concentration of carbon dioxide
(CO2) in the atmosphere has reached a record high is a global challenge.
Scientists at the Mauna Loa observatory in Hawaii found that CO2 levels
in the atmosphere now stand at 387 parts per million (ppm), up almost
40% since the industrial revolution and the highest for at least the last
650 000 years.
It is estimated that energy demand will be about 35% higher in
2030 than in 2005 as economies grow and living standards
improve worldwide.
Demand for coal is expected to grow steadily – given that it remains
the base fuel for energy production and is extensively used in thermal
power stations worldwide.
In South Africa, recent announcements have indicated that the country
requires an additional 40 coal mines by 2020 to satisfy forecast demand
for electricity, and Richards Bay Coal Terminal has recently announced
an increase in its terminal export capacity from 72 million tons per
annum to 91 million tons per annum. |
The completion of the EnviNox™ plant has reduced our
emission of nitrogen oxide, a greenhouse gas, by 98%
at our existing nitric acid plant.
Omnia’s new R1,4 billion nitric acid plant complex in
Sasolburg will use best-in-class technology conforming
to the highest standards of sustainable environmental
development. Plant emissions will be significantly below
legislation requirements. |
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| The opportunity: |
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| Optimising the efficiency of existing energy consuming processes. |
Energy efficiency is critical in meeting South Africa’s growing
energy needs. Our new nitric acid production facilities will
have co-generation capacity, and will be entirely energy
self-sufficient, while contributing about 50% of the current
factory’s energy needs, significantly cutting Omnia’s existing
electricity supply requirements. |
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| The increase in demand for “cleaner” alternative energy solutions
to replace and supplement coal burning power stations is driving
investment in nuclear energy programmes. |
The Mining division is playing a key role by supplying
explosives and mining chemicals to uranium mines across
the continent, which is used to fuel nuclear power stations.
The division is also at the forefront of efforts to recycle oil. |
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| Biofuels are increasingly being seen as a cleaner alternative to
fossil fuels. |
The Agriculture division has invested in Jatropha research
and development which provides the feedstock for biofuel
production. As the plant can be grown on marginally arable
land, it does not compromise food security. |
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Water quality and availability |
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| The challenge: |
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| According to the World Bank, there has been a six fold increase in water use for only a two fold increase in population size since 1990. This reflects higher water usage associated with increasing standards of living, specifically as dietary patterns change to contain more meat and less grain. It also reflects potentially unsustainable levels of irrigated agriculture. |
Omnia’s continued commitment to growing our business through proactive management of South Africa’s scarce water resources is reflected through strategic acquisitions and associates in the treatment and responsible use of water resources. |
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| Moreover, the World Economic Forum has warned that many places in the world are on the edge of “water bankruptcy”. In South Africa, water quality has deteriorated with a lack of resource capacity at many municipal waste water treatment plants, while the efficacy of such treatment has been hampered by unplanned power outages. |
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| Challenges and opportunities |
Our response |
| The opportunity: |
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| Water quality is deteriorating in many areas of the developing world as
industrial production increases and salinity caused by farming and
over-extraction rises. |
Protea Chemicals and Nalco, the world leader in water
treatment and process improvement based in Illinois, US,
have formed an associate, Nalco Africa, that will provide an
extensive range of water and process treatment services to
the African market. |
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Nalco Africa will provide products and services that include
treatments for the mining sector, refinery and petrochemicals
sector, pulp and paper industry, food and beverage market and
broader industrial and effluent treatment applications. |
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The Associate will also allow Omnia to assist its clients
reduce their environmental impact using Nalco’s industrial
water and process treatment technologies. |
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Moreover, water management changes have been
implemented at our plants, which will optimise our re-use of
water and decrease our municipal water use. |
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Zetachem, with its expertise in speciality chemicals and
chemical management systems, is able to assist companies
as well as the public sector with effective water treatment
solutions in the area of potable and industrial water. |
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In Sasolburg, we have developed a storm water management
plan and installed infrastructure to separate storm water
run-off from potentially contaminated and clean areas.
The capacity of the existing storm water effluent dams in
Sasolburg has also been increased at an estimated cost of
R8 million. |
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Omnia Fertilizer, through its proven Nutriology® offering,
provides agronomic advice to customers regarding the
conservation and efficient utilisation of water on the farm. |
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Agronomy and the interests of farmers in Africa |
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| The challenge: |
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According to the Food and Agriculture Organisation (FAO), 900 million people faced insufficient nutrition for life and work in 2008, most of whom are living in Africa.
At the same time, the United Nations is predicting that agricultural output will need to increase by 70% by 2050 to adequately feed the expected global population of nine billion people.
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The agriculture sector has taken on a new and more critical
role in today’s global economy in providing solutions to rising
concerns over food security for a growing world population, as
dietary habits change in developing economies and declining
arable land availability fails to meet escalating demand.
Demand for fertilizer continues to grow in response to the
need for increased yields as a result of increasing
urbanisation, reduction of available arable land worldwide, and
the likely development of biofuels in southern Africa. |
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In Africa, farmers only apply 10% of the global average
fertilizer per hectare. Omnia’s agronomic expertise is
extensive and supports optimal fertilization, while our
knowledge of the African agricultural environment enables us
to provide practical and sustainable solutions to issues around
food security. |
| Challenges and opportunities |
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| The opportunity: |
Our response |
| South Africa has been a net importer of food since 2000, and innovative
approaches are required to remedy the shortfall in food production. |
In South Africa, for the country to become more self-sufficient
in producing food, it is critical that new approaches are found
to use the country’s arable land more effectively – Omnia’s
expertise in the development of high-performance nutrients
provide one such solution. |
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In addition, Omnia continues to invest in research laboratory
facilities and new technologies, including silica research and
its potentially favourable implications for crop production as
a fertilizer ingredient. |
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Development work in this area includes:
- Ground Penetrating Radar to map the spatial distribution
of soil water content in a particular field.
- Silica has been shown to activate genes that stimulate the
immune system of plants, assisting them to withstand
disease and climatic stress.
- Trials on hydroponic tomatoes confirmed that phosphites
have the ability to limit the severity of diseases and
reduce the rate at which they infect the plant. The benefit
in terms of crop performance is greater root development
and an increase in marketable fruit.
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| South Africa’s agricultural capacity is under strain as it tries to meet
its transformation objectives. Effective ways are needed to assist
subsistence growers to become small-scale entrepreneurs. |
Omnia’s Agriculture division is implementing collaborative,
integrated approaches to facilitate the development of
emerging farmers to fully take up their role in the South
African agricultural sector as commercially viable and
sustainable businesses. |
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Developed by Omnia’s Agriculture Division to create a
favourable soil environment and manage the life cycle of
crops to increase production and improve farmer profitability,
our Nutriology® training is instrumental in creating strong,
sustained relationships between Omnia and our emerging
agricultural customers. |
Managing the skills shortage |
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| The challenge: |
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| South Africa faces a well documented skills shortage in many sectors
of the economy. For example, according to an Ernst & Young report
released in 2008, the shortage of skills in the mining industry is so
acute that it is likely to persist even if 5% to 10% of new projects are
halted in the wake of the global financial crisis. |
Against a backdrop of increasing mobility in an era of
globalisation and acute shortages of technical skills, we are
attempting to meet this challenge by developing a pipeline of
talent through training interventions and by fast-tracking
high-potential achievers. |
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| The opportunity: |
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| Best practice personal and career development are powerful attraction and retention incentives for top talent. |
Training offered through the Omnia Academy of Learning
– which delivers training developed within the company to meet the specific demands of the business and ensure that knowledge is transferred across the Group to enhance skills
– has been expanded.
In addition, a skills deficit in the explosives industry, which has
resulted in the outsourcing of skilled explosives handling to
companies such as BME, has motivated the company to
contribute to the development of the local skills base by
establishing a skills training centre near Emalahleni. |
A way of life
Next: Corporate governance 
