Exxaro Resource limited Report Selector 2018

Report Selector

Exxaro Resources Limited Integrated report 2018

Overview of our business

Group profile

Exxaro is one of the largest and foremost black-empowered, South Africa-based diversified resources companies, with current business interests in South Africa, Australia, Europe and the United States of America.

Formed in 2006, Exxaro's pedigree and skills were, however, built over decades as a company rooted in South Africa and respected by its peers for its innovation, ethics and integrity.

Our asset portfolio includes coal operations and investments in iron ore, pigment manufacturing, renewable energy (wind) and base metals. Exxaro is listed on the JSE's Top 40 index, a constituent of the FTSE4Good Index and a Top 30 member of the FTSE/JSE Responsible Investment index.

In 2018, Exxaro produced 47.8 million tonnes (Mt) (including buy-ins of 1.0Mt) of coal (2017: 45.5Mt), reflecting contributions from our expanded flagship Grootegeluk mine. At 31 December 2018, the group had assets of R65.1 billion and a market capitalisation of R49.5 billion (US$3.4 billion).

Our assets


Strong South African presence and market:

  • Largest coal reserve in the country, providing the platform for a R20 billion investment in our growth
  • Largest supplier of energy coal to Eskom and ArcelorMittal while domestically growing projects for export thermal coal.

Grootegeluk is acknowledged as one of the most efficient mining operations globally, and runs the world's largest coal beneficiation complex. It is also the only producing mine in the coal-rich Waterberg, adjacent to Eskom's existing Matimba and new Medupi power stations. We are expanding Grootegeluk's capacity by 7% (1.7Mtpa) via the double-stage beneficiation plant (GG6) and new rapid load-out station.

  • Six managed coal operations (including 50% share of Mafube) produced 47.8Mt of thermal and metallurgical coal, up 5% in 2018. Most power station coal is supplied to the national power utility, Eskom
  • Robust R20 billion pipeline of greenfield and brownfield expansion projects.


  • FerroAlloys produces gas-atomised ferrosilicon for use in dense medium separation plants.

Investment portfolio

  • Iron ore: 21% of SIOC, a leading supplier of high-quality iron ore to the global steel industry, and a subsidiary of the listed Kumba Iron Ore Limited (KIO)
  • Titanium dioxide, pigments and alkali chemicals: 26% direct interest in both KZN Sands and Namakwa Sands, as well as 23.4% interest in US-listed Tronox Limited, a global leader in mining, production and marketing inorganic minerals and chemicals. In 2017, Exxaro began implementing the strategic disposal of this shareholding, selling 22.4 million shares and raising cash of R6.5 billion
  • Renewable energy: Exxaro contributes to national energy supply through Cennergi, its joint venture with Tata Power. Two wind projects in the Eastern Cape reached commercial operation in 2016: Amakhala Emoyeni near Bedford (134MW) and Tsitsikamma Community wind farm on Mfengu community land (95MW)
  • Coal: Mafube - JV with Anglo South Africa Capital Proprietary Limited in Mpumalanga
  • Base metals: 26% of Black Mountain, a subsidiary of Vedanta, in the Northern Cape.