Report on Form 6-K for 2 December 2010

Commission File Number 1-31615

Sasol Limited

1 Sturdee Avenue

Rosebank 2196

South Africa

(Name and address of registrant’s principal executive office)

Form 20-F __X__ Form 40-F _____

Yes _____ No __X__

Sasol Limited
(Incorporated in the Republic of South Africa)
(Registration number 1979/003231/06)
ISIN: ZAE000006896 US8038663006
Share codes: JSE – SOL NYSE – SSL
(“Sasol” or “the Company”)


UPDATE FROM THE CHIEF FINANCIAL OFFICER


Dear Sasol follower,


I am pleased to report that since our previous communication, our

businesses have continued to perform well operationally. The

Synfuels plant was safely and successfully commissioned after its

largest ever planned maintenance outage. Oryx continues to

sustain good operating rates and increased first quarter sales

volumes from the chemicals businesses have contributed

approximately one third of the group’s operating profit.


Product prices have shown an overall year-on-year improvement,

largely mitigating the impact of the stronger rand. The sustained

strength of the currency, however, remains a key challenge to the

group. We are therefore focused on ensuring that our businesses

remain robust with healthy margins by continuing with our efforts

on the factors within our control, such as cost management and

operational efficiency. Successful delivery of our offshore

projects also provides a solid underpin to earnings

diversification.

The beginning of the current financial year was characterised by

the sustained strength of the rand against the US dollar. The

easing of monetary policy by the G4 economies created significant

capital flows into emerging markets in search of yield and growth

which, in our view, have contributed to the overall strengthening

of these currencies. The global environment has created strong

tailwinds for the rand. Our expectation is that the rand is

likely to remain strong into the medium term.

Product prices, however, remained resilient, with higher oil

prices and refining margins largely offsetting the negative

impact of the strong rand. Average year-to-date domestic fuel

prices are up 1% from the average price in the previous financial

year.

In the chemical markets, international polymer prices have not

had the typical third quarter calendar year increase associated

with restocking of packaging and agricultural film.

US dollar prices for the first quarter of this financial year

were flat compared to the average price received for the previous

financial year.

Year-to-date solvents commodity prices, however, showed a steady

increase of almost 20% in dollar terms, compared to the average

price for the prior financial year.

Modest increase in group turnover

Group turnover for the first quarter of the 2011 financial year

was slightly higher than the quarterly average achieved during

the second half of the 2010 financial year. This is largely

attributed to higher product prices and production improvements,

particularly from the group’s offshore businesses.

Successful delivery on our offshore projects has improved the

geographic earnings diversification, enhancing the robustness of

the group.

Our ongoing focus on controllable factors - cost containment, the

improvement of operational and marketing efficiencies and

optimising capital project returns - will support our efforts to

sustain profitability and deliver sustainable long-term returns

to our shareholders.

In 2006, a decision was taken by management to increase our

electricity generation capacity in South Africa using natural gas

as a feedstock. This was undertaken in anticipation of a

significant rise in electricity prices and the increased risk of

supply interruptions. Two 100 mega watt (MW) open cycle gas

turbines were successfully commissioned in June this year.

The turbines have been in full operation since mid-July with a

combined production output of between 200MW and 220MW. This

allows us to produce approximately 50% of our current electricity

requirements. The new Power Purchase Agreement with Eskom,

associated with this additional capacity enables Synfuels to

significantly lower its net external electricity cost.

As a further enhancement, we are currently installing two heat

recovery steam generators to produce super-heated steam from hot

exhaust gases. The steam will be used in Sasol Synfuels’ existing

steam turbine generators to generate an additional 80MW of

electricity. This additional capacity is expected to be

commissioned in the middle of the 2011 calendar year and is an

energy efficiency optimisation that will not require additional

feedstock. In the longer term, we are also investigating

initiatives to replace natural gas feedstock with waste gas that

is currently flared.

The group aims to undertake a similar electricity generation

project at the Sasolburg facility which will generate 140MW of

electricity using natural gas from Mozambique. These projects

clearly indicate how rising energy costs have created

opportunities for improved energy efficiency.

We continue to pursue our cost management efforts through our

Functional Excellence programme. This initiative aims to reduce

costs in support functions by simplifying, standardising and

sharing business processes.

Cost savings of more than R600 million arising out of the

programme were achieved in the 2010 financial year, and we

anticipate further savings in the coming financial year.

The Synfuels operation commenced the largest maintenance outage

in its 60-year history on Friday 27, August 2010. This was in

order to ensure the ongoing integrity and long-term stability of

the plant. This resulted in a statutory shut down of half of the

plant in accordance with a planned maintenance schedule for a

period of three weeks. With approximately 14 500 additional

workers employed and over 150 000 activities completed, the

start-up was delayed by a few days. We are, however, satisfied

that the plant has been safely and successfully re-commissioned.

Taking into account the impact of the three-week outage, the

total production of 1,7 million tons (Mt) is in line with our

expectations for the first quarter of 2011. However, the delay in

re-commissioning does place our 7,3 Mt production target for the

financial year at risk. With planned plant availability

unconstrained for the remainder of the year, the Synfuels team

considers 7,2 Mt to be a more realistic full year target.

Oryx GTL sustained operating rates at 83% of nameplate capacity

during the first quarter of the 2011 financial year, with actual

production averaging 27 000 barrels per day. This is in line with

the expected 80-90% operating rate range for this facility. This

achievement augments the positive performance achieved since the

beginning of the financial year.

Unit costs in financial year 2011 are expected to drop from the

2010 level due to increased production volumes and despite a gas

price increase effective 1 January 2011. With higher production

and lower unit costs, we expect a healthy contribution to group

operating profit from Oryx GTL in the current financial year.

The ethane cracker at our Arya Sasol Polymer Company joint

venture is constrained at 80% of nameplate capacity. Further

ramp-up is inhibited by a design limitation in the demethaniser

column associated with the cracker. We aim to rectify this

constraint in the medium term and the detailed schedule for this

activity is currently being planned. In the interim, we will

operate close to the current capacity until this modification is

implemented.

Our downstream low-density and high-density polyethylene plants

are, however, unconstrained and have ramped-up according to plan.

We are therefore well placed to maximise production of

polyethylene and to benefit from the higher margins associated

with these value added products.

Overall, our chemical cluster has had a very successful first

quarter contributing nearly one-third of group operating profit.

Our Olefins and Surfactants (O&S) business continues its

outstanding performance by sustaining a double-digit operating

margin and increasing sales volumes. Overall the chemical cluster

has managed to increase the first quarter sales volumes by 2%

compared to the prior year quarterly average.

We are pleased to announce that our board has approved the

construction of a first-of-a-kind Tetramerisation plant. We are

excited about commercialising our proprietary technology to

manufacture octene by tetramerising ethylene. The planned

capacity for this facility is 100 000 tons per annum and our plan

is to complete construction by 2014 financial year. Our Lake

Charles complex in Louisiana is an obvious choice for a site as

ethylene feedstock will be sourced from our existing ethane

cracker. There are other excellent site synergies such as high

level engineering and process management skills. This project

will enable us to build on our position as a leading supplier of

co-monomers (1-octene and 1-hexene) and demonstrates Sasol’s

culture of technology innovation.

In October 2010, we announced the conclusion of the Ixia Coal

transaction which is in line with Sasol Mining’s empowerment

strategy and its commitment to comply with the objectives of the

Mineral and Petroleum Resources Development Act, and the Mining

Charter. The transaction value is R1,8 billion and is financed

through equity and a combination of third party funding and

appropriate Sasol facilitation.

This agreement effectively results in WIPCoal Investments owning

10,2% of the equity in Sasol Mining. We will recognise a loss on

the disposal of the business and a non cash IFRS-2 charge

(facilitation cost) that will impact the group attributable

earnings per share by approximately R1 per share for the current

financial year due to the delay in the implementation of the

transaction. The transaction will, however, not affect headline

earnings.

The group’s growth efforts have been refocused towards

accelerating the GTL value proposition. We do, however, continue

to progress current advanced Coal-to-Liquids (CTL) projects such

as China CTL and India CTL.

The arbitrage between oil and gas prices remains compelling,

driven largely by changes in shale gas extraction technology. We

believe there has been a structural shift in the dynamics between

gas and oil prices, with gas prices likely to remain at depressed

levels, thereby making GTL an even more attractive value

proposition.

In the context of these price dynamics, GTL has become more

competitive relative to Liquefied Natural Gas (LNG). Our efforts

to increase natural gas reserves through exploration and/or

acquisition opportunities remain on track. This will allow the

group to accelerate its GTL value proposition.

With Oryx GTL currently being the only large-scale commercial GTL

plant globally, Sasol is well positioned to extend its

competitive expertise and technology in providing a viable

alternative to monetising stranded gas.

We are nearing the completion of our feasibility study for a GTL

facility in Uzbekistan and are satisfied with the progress made

thus far. As previously communicated, the China CTL project is

awaiting feedback from the National Development and Reform

Commission (NDRC) and the State Council of the Republic of China,

following which we will consider an investment decision.

The group’s balance sheet remains robust and we are in a good

position to fund our near-term projects and potential

acquisitions.

The group remains on track to deliver on its full-year

expectation of continued improved operational performance and

cost containment within inflationary levels. The strength of the

rand remains a key risk to earnings for the year given the

sensitivity of our business to the rand/US dollar exchange rate.

Consideration will also be given to any adjustments arising from

our half-year closure process, as well as re-measurement effects

including the impact of the Ixia empowerment deal.

An update on earnings guidance will therefore be provided once we

have a reasonable degree of certainty on the interim results for

financial year 2011.

Sasol’s interim results for the six months ended 31 December 2010

will be released on Monday, 7 March 2011. The forecast financial

information appearing in this update has not been reviewed or

reported on by Sasol’s external auditors.

Shareholders have, among other resolutions, approved the re-

purchase of up to a maximum of 10% of the company’s issued

ordinary shares on the open market, subject to board approval,

and in accordance with the Companies Act and the JSE Listings

Requirements.

Shareholders have also approved the resolutions required to

facilitate the implementation of a trading mechanism involving

the listing of the Sasol BEE ordinary shares on the proposed BEE

segment of the JSE.

We were pleased to have been ranked as the oil and gas global

sector leader in the internationally recognised Dow Jones

Sustainability Index (DJSI) 2010, based on an in-depth global

analysis of corporate economic, environmental and social

performance. Sasol has also been ranked among the world’s top 100

companies for sustainability by the QCRD Global Sustainability

(QCRD) Index's semi-annual report, issued on November 19, 2010.

The award recognizes exceptional delivery, in the fields of

environmental, social and governance issues, along with a strong

financial performance.

We were also encouraged that Sasol's 2009 annual report was

ranked 14th among the top 300 global annual reports out of the

listed companies surveyed in the 2010 Annual Report of Annual

Reports, published by Report Watch of e.com.

Best wishes for a safe and joyous festive season!

Best regards,

2 December 2010

Johannesburg

Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited

In this document we make certain statements that are not

historical facts and relate to analyses and other information

which are based on forecasts of future results and estimates of

amounts not yet determinable.

These statements may also relate to our future prospects,

developments and business strategies. Examples of such forward-

looking statements include, but are not limited to, statements

regarding exchange rate fluctuations, volume growth, increases in

market share, total shareholder return and cost reductions. Words

such as "believe", "anticipate", “expect”, "intend", "seek",

"will", "plan", "could", "may", "endeavour" and "project" and

similar expressions are intended to identify such forward-looking

statements, but are not the exclusive means of identifying such

statements. By their very nature, forward-looking statements

involve inherent risks and uncertainties, both general and

specific, and there are risks that the predictions, forecasts,

projections and other forward-looking statements will not be

achieved. If one or more of these risks materialise, or should

underlying assumptions prove incorrect, our actual results may

differ materially from those anticipated.

You should understand that a number of important factors could

cause actual results to differ materially from the plans,

objectives, expectations, estimates and intentions expressed in

such forward-looking statements.

These factors are discussed more fully in our most recent annual

report under the Securities Exchange Act of 1934 on Form 20-F

filed on 28 September 2010 and in other filings with the United

States Securities and Exchange Commission. The list of factors

discussed therein is not exhaustive; when relying on forward-

looking statements to make investment decisions, you should

carefully consider both these factors and other uncertainties and

events. Forward-looking statements apply only as of the date on

which they are made, and we do not undertake any obligation to

update or revise any of them, whether as a result of new

information, future events or otherwise.

By:

/s/ N L Joubert

Name:

Nereus Louis Joubert

Title:

Company Secretary