ESG Report 2021
Exxaro Resources Limited
Integrated report 2021
Exxaro has two decades of experience in mining, energy and ESG.
We have a diversified asset portfolio comprising interests primarily in coal, a growing renewable energy solutions business and equity-accounted investments in ferrous (iron ore) and zinc. We have plans to invest and diversify into manganese, bauxite and copper.
ASSETS:
R75.7 billion
at 31 December 2021
(2020: R78.6 billion)
Five
Coal mines:
Two
Windfarms
30.81%
Black-empowered
COAL PRODUCTION:
42.5Mt
in 2021
(2020: 47.4Mt), including buy-ins of 0.2Mt (2020: 0.3Mt), reflecting contributions from our expanded flagship Grootegeluk mine
Constituent of the JSE Top 40 Index
RENEWABLE ENERGY GENERATION:
724GWh
MARKET CAPITALISATION:
R53.4 billion/
US$3.4 billion
in 2021
(2020: R50 billion/US$3.4 billion)
Among the top 30 in the FTSE/JSE Socially Responsible Investment Index
We are among the top five coal producers in South Africa. Hence, we understand the importance and ambition of being carbon neutral and achieving net zero carbon by 2050, and strive to be an active participant in the just transition to a low-carbon economy. We have started incorporating renewable energy solutions into our business portfolio, as evidenced by our 100% ownership of Cennergi since 1 April 2020. Exxaro is also proud to embrace the principles of the Task Force on Climate-related Financial Disclosures (TCFD).
We also have business interests in Europe (comprising a marketing and logistics office in Switzerland) and Australia (comprising a joint operation with Anglo Coal (Grosvenor Proprietary Limited) in the Moranbah South project).
Our company is rooted in South Africa and respected by our peers for innovation, ethics and integrity.
Our core operation is thermal, semi-soft coking and metallurgical coal mining, supplying Eskom, other domestic markets and offshore markets
Our coal mining business (including Reductants) is structured under five legal entities, all managed and operated by Exxaro, supplemented by a joint venture for the Mafube operation and an equity interest in Richards Bay Coal Terminal Proprietary Limited (RBCT)
Black Mountain operates two underground mines and a processing plant in the Northern Cape producing zinc and other minerals
We continue evaluating our options to dispose of our shareholding in Black Mountain following the suspension of the sale in December 2020
SIOC is a leading supplier of high-quality iron ore to the global steel industry and a subsidiary of Kumba Iron Ore
Our renewable energy business consists of 239MW of wind generation assets in the Eastern Cape that contribute to national energy supply
Our renewable energy business
* Includes 50% joint control of Mafube.
Our coal asset base is a key differentiator and critical part of how we create value for our stakeholders.
Our minerals business comprises coal operations and investments are iron ore and zinc. We have deep roots in mining with a track record of operational excellence and delivering value.
Only mineral assets with Measured and Indicated Resources are listed. Inferred Resources are reported in the supplementary CMRR report.
BELFAST
Location: South of Belfast
Market: Export
Product: Thermal coal
Coal Resources (inclusive):
Coal Reserves:
Mining method: Open-cut
Run of mine (RoM): 2.8Mt
Life of mine (LoM): 12 years
GROOTGELUK COMPLEX
Location: West of Lephalale
Market: Domestic and export
Product: Thermal and metallurgical coal
Coal Resources (inclusive):
Coal Reserves:
Mining method: Open-cut
Run of mine (RoM): 51.5Mt
Life of mine (LoM): 20+ years*
LEEUWPAN
Location: South-east of Delmas
Market: Domestic and export
Product: Thermal coal
Coal Resources (inclusive):
Coal Reserves:
Mining method: Open-cut
Run of mine (RoM): 4.0Mt
Life of mine (LoM): 8 years
MAFUBE (50%)
Location:East of Middelburg
Market: Export
Product: Domestic and export
Coal Resources (inclusive):
Coal Reserves:
Mining method: Open-cut
Run of mine (RoM): 5.2Mt
Life of mine (LoM):10 years
MATLA
Location: West of Kriel
Market: Domestic (Eskom))
Product: Thermal coal
Coal Resources (inclusive):
Coal Reserves:
Mining method: Underground
Run of mine (RoM): 5.9Mt
Life of mine (LoM): 3+ years*
THABAMETSI
Location: West of Lephalale
Market: Domestic
Product: Thermal coal
Coal Resources (inclusive):
Coal Reserves:(inclusive):
Mining method: Open-cut
Run of mine (RoM):Project
Life of mine (LoM):25 years
* Adequate Reserves well beyond expiry of mining right.
Our energy business comprises interests in renewable energy through our wholly owned subsidiary, Cennergi.
Cennergi is a southern African-based diversified independent power producer (IPP) that focuses on asset management and the development, ownership, operation as well as maintenance of its own renewable energy projects and some owned by other companies. Cennergi has two established wind projects in the Eastern Cape (the Tsitsikamma community windfarm (95MW) and Amakhala Emoyeni (134MW)), which reached commercial operation in 2016. The energy business is also planning the development of the 70MW Lephalale Solar Project in a ringfenced SPV that will supply renewable energy to our Grootegeluk complex, reducing our carbon footprint and electricity costs.
The two windfarms are SPV companies with no management or employees. Cennergi provides full business, project execution and operations management services under separate management service agreements. Cennergi is responsible for the windfarms' environmental and social management and implementation of SPV commitments, and ensures adherence to applicable environmental, social, legal, regulatory and corporate requirements.
Our investments in renewable energy will enable us to deliver on our strategy, detailed on Our strategy: Positioning Exxaro for enduring success
TSITSIKAMMA COMMUNITY WINDFARM
Location: Near Tsitsikamma in the Eastern Cape
Capacity: 95MW
Number of turbines: 31 x 3.1MW
Performance:Achieved generation output in line with P50 targets since 2016
Customer: Eskom
Power purchase agreement: 20 years
Commercial operation: 2016
Shareholding: Cennergi (75%), RE Times (16%) and the Tsitsikamma Development Trust (9%)
AMAKHALA EMOYENI
Location: Near Bedford and Cookhouse in the Eastern Cape
Capacity: 34MW
Number of turbines: 56 x 2.4MW
Performance: Consistent performance since 2016, albeit at lower than planned P50 generation numbers
Customer: Eskom
Power purchase agreement: 20 years
Commercial operation: 2016
Shareholding: Cennergi (95%), Cookhouse Community Trust (2.5%) and the Bedford Community Trust (2.5%)
For details about our wind operations, refer above.
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