Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker, who is responsible for allocating resources and assessing performance of the reportable operating segments. The chief operating decision maker is the group executive committee. Segments reported are based on the group’s different commodities and operations.

In applying IFRS 8 Operating Segments judgements have been made by management with regards to the identification of reportable segments of the group.

During the current financial year, the chief operating decision maker revised the manner in which the coal operations are reported on. The coal operations have been disaggregated based on the nature of the operations (commercial, tied and other) as well as geographical location, between the Waterberg and Mpumalanga regions. The key changes to the coal reportable operating segment are:

• The commercial coal operations have been split by region into Waterberg and Mpumalanga
• The tied coal operation includes the Matla mine
• Coal other operations have been added which include the remaining coal operations not reported on under the commercial or tied coal operations as well as Arnot and Tshikondeni (tied mines in closure).

The export revenue and related export cost items have been allocated between the coal operating segments based on the origin of the initial coal production. The comparative segmental information has been represented to reflect these changes.

The reportable operating segments, as described below, offer different goods and services, and are managed separately based on commodity, location and support function grouping. The group executive committee reviews internal management reports on these operating segments at least quarterly.

COAL

The coal reportable operating segment is split between commercial (Waterberg and Mpumalanga), tied and other coal operations. Mpumalanga commercial operations include a 50% (2017: 50%) investment in Mafube (a joint venture with Anglo). The 10.82% (2017: 10.82%) effective equity interest in RBCT is included in the other coal operations. The coal operations produce thermal coal, metallurgical coal and SSCC.

FERROUS

The ferrous segment mainly comprises the 20.62% (2017: 20.62%) equity interest in SIOC (located in the Northern Cape) reported within the other ferrous operating segment as well as the FerroAlloys operation (referred to as Alloys). The Alloys operation manufactures ferrosilicon.

TiO₂

This segment has been renamed to TiO₂ as the Alkali chemicals business was disposed of in 2017. Exxaro holds a 23.35% (2017: 23.66%) equity interest in Tronox Limited. The investment in Tronox Limited was classified as a non-current asset held-for-sale on 30 September 2017 (refer note 9.4). Exxaro holds a 26% (2017: 26%) equity interest in Tronox SA (both South African-based operations), as well as a 26% (2017: 26%) member’s interest in Tronox UK. The member’s interest in Tronox UK has been classified as a non-current asset held-for-sale on 30 November 2018 (refer note 9.4).

ENERGY

The energy segment comprises a 50% (2017: 50%) investment in Cennergi (a South African joint venture with Tata Power), which operates two wind-farms, as well as an equity interest of 28.98% in LightApp, which was acquired in 2018.

OTHER

This reportable segment comprises the 26% (2017: 26%) equity interest in Black Mountain (located in the Northern Cape), an effective investment of 11.7% (2017: 11.7%) in Chifeng (located in the PRC), an equity interest in Curapipe of 10.53% (2017: 13.7%), a 26.37% equity interest in AgriProtein (acquired in 2018) as well as the corporate office which renders services to operations and other customers. The Ferroland agricultural operation is also included in this segment.

Analysis of the group’s profit or loss and assets and liabilities by reportable operating segment:

The information per geographical area is not regularly provided to the chief operating decision maker, but included on an annual basis for additional disclosure purposes.