Exxaro report selector 2019

Report selector

Exxaro Resources Limited
Integrated report 2019

Currently viewing: Understanding our business / Business structure and ownership

Business structure and ownership

Group profile

Exxaro is one of the largest and foremost black-empowered, South Africa-based diversified resources companies.

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 interests in coal, titanium dioxide (TiO2), ferrous and energy (wind) markets. Exxaro is a 30% black-empowered and listed company 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 2019, Exxaro produced 45.6 million tonnes (Mt) (including buy-ins of 0.3Mt) of coal (2018: 47.8Mt), reflecting contributions from our expanded flagship Grootegeluk mine. At 31 December 2019, the group had assets of R68.8 billion and a market capitalisation of R47 billion (US$3.3 billion).

Our assets

Coal

Core operations

  • Largest coal reserves in the country providing a platform for continual investment in our growth
  • Largest supplier of energy coal to Eskom and ArcelorMittal SA Limited (ArcelorMittal) while domestically growing projects for export thermal coal
  • Grootegeluk is acknowledged as one of the largest integrated mining and beneficiation operations globally, runs the world's largest coal beneficiation complex and is the only producing mine in the coal-rich Waterberg, adjacent to Eskom's existing Matimba and new Medupi power stations – Grootegeluk's capacity is expanding by 7% (1.7Mtpa) via the double-stage beneficiation plant (GG6) and new rapid load-out station to enhance the growth of our exports
  • Six managed coal operations (including 50% share of Mafube) produced 45.6Mt of thermal and metallurgical coal (down 5% in 2019) – majority of power station coal is supplied to Eskom
  • To date 57.2% of the R20 billion capex has been spent on greenfield and brownfield expansion and sustaining projects ( business resilience)
  • Mafube joint venture with Anglo South Africa Capital Proprietary Limited in Mpumalanga
Titanium dioxide

Tronox

Titanium dioxide and pigments: 26% direct interest in KZN Sands and Namakwa Sands, as well as 10.38% interest in Tronox Holdings plc, a global leader in mining, production and marketing inorganic minerals and chemicals. In 2017, Exxaro began implementing the strategic disposal of this shareholding. During May 2019, Tronox Holdings plc repurchased 14 000 000 Tronox Holdings plc ordinary shares, for R2.9 billion, from Exxaro after Tronox Limited had redomiciled to the UK.

Ferrous

FerroAlloys

Produces gas-atomised ferrosilicon for use in dense medium separation plants

Wind energy

50% interest in Cennergi (a 50% joint venture with Tata Power Company Limited). Exxaro has acquired the other 50% owned by Tata Power with effect from 1 April 2020.

See footprint on below.

 

 

BASE
METALS

RENEWABLE
WIND
ENERGY

 
COAL

IRON
ORE

10.38%

100%

EXXARO

Over 80%

20.62%

Investment portfolio

SIOC

Iron ore

A leading supplier of high-quality iron ore to the global steel industry and a subsidiary of Kumba Iron Ore Limited.

Coal

Coal mining comprises the core of Exxaro’s operations, which are structured under four legal entities, and are all managed by Exxaro. Exxaro has a 50% joint venture with Anglo (Mafube).

Cennergi**

Renewable wind energy

Exxaro contributes to national energy supply through Cennergi. 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).

Tronox

Titanium dioxide and pigments

26% direct interest in KZN Sands and Namakwa Sands and a 10.38% interest in Tronox Holdings plc.

30%
Eyesizwe RF

52.2%
BEE SPV

24.9%
EXXARO

22.9%
IDC***

12.9%
Basadi Ba
Kopane
Investments

84.1%
Eyesizwe
Mining
Investments

3.0%
Eyabantu
Capital

Ownership structure


* A special-purpose vehicle (SPV) private company, incorporated under the laws of South Africa, holds the black economic empowerment (BEE) shares.
** Acquisition of Tata Power’s 50% was effective 1 April 2020.
*** Industrial Development Corporation.
100% once all conditions precedent have been met.