The Exxaro annual estimation and reporting process is managed through the Exxaro geosciences and LoM policies and associated Coal Resource and Coal Reserve reporting and estimation procedures. Both policies and procedures are aligned with the guidelines of JSE section 12, SAMREC Code 2016 and, for South African coal reporting, SANS 10320:2004.
The policy and procedures dictate technical requirements for estimation and reporting, and include guidelines on methodologies, processes and deliverables. Procedures are also implemented for the geophysical, rock engineering, geotechnical, structural geology, tenure management, hydrogeological, exploration and mine-planning disciplines that prescribe methodologies and minimum standards for compliance.
To align with the SAMREC 2016 code, Exxaro has updated its internal competent persons' reports (CPRs) in 2017, 2018 and again in 2019. No material changes, as defined in the Code, have occurred but we considered the introduction of the "if not, why not" principle as significant enough to warrant the updates. The reports followed guidelines under Appendix A of SAMREC 2016.
Table 1: Exxaro reporting structure
|JSE Listings Requirements (section 12)||Geosciences policy||Annual Resource and Reserve estimation schedule||Annual review and update of procedures|
|2016 amendments to "minimum contents of annual report, point 12.13" were considered||2018 update to align with our functional model strategy was considered||2019 estimation schedule for operations under Exxaro control was followed||2018 procedures and the 2019 updated exploration procedure were considered|
|SAMREC Code (2016) Table 1||Exxaro Mineral Resource and Mineral Reserve reporting procedure||Mineral Reserve fact packs||Competent persons register update and review|
|2016 updated Table 1 was considered||2019 update to include audit findings and recommendations||ECC, Matla, Grootegeluk and Leeuwpan fact packs containing all modifying factor considerations were updated||Updated for 2019|
|SANS 10320:2004||Exxaro Mineral Resource estimation procedure||Annual operation/project Mineral Resource and Mineral Reserve report||Consolidated Mineral Resource and Mineral Reserve report review and lead competent person sign-off|
|SANS guidelines were considered||2019 update to include audit recommendations||Competent persons reports were updated for operations under Exxaro management's control||Peer reviewed and corrections made|
|JORC Code (2012)||Exxaro Mineral Reserve estimation (LoM) procedure||Consolidated Mineral Resource and Mineral Reserve report||Applicable competent person and technical team sign-off|
|2019 update was considered||Updated and incorporated 2019 review findings||Included in individual competent persons reports available on request|
Mineral Resource and Mineral Reserve competent person's report(s)
|Internal review and external audit process|
|Competent persons reports were updated for 2019 reporting period||A number of internal and external audits were conducted in the reporting period. No material findings noted. The audits are discussed in the Risk and Assurance chapter|
Comments on 2019 estimation shown in italics