The objective of the Commodity Hedging Strategy is to protect the Company (“N3TC”) against wild fluctuations whilst ensuring that it benefits from any downward movement in the dollar’s price of oil or upward movement in the Rand exchange rate. With the assistance of N3TC’s technical personnel, the projected consumption of bitumen and diesel was determined for each six monthly period to 31 December 2009. A competitive tender process was entered into with the financial institutions, the result of which was that derivative contracts were taken out for each six month period based on the projected consumption and a price determined by reference to the aggregate of the forward curve of the Rand exchange rate and the relevant commodity benchmark derived from the dollar oil price.