Integrated Report 2021
Exxaro Resources Limited
Annual Financial Statements 2021
ECC operation
The ECC operation was identified as non-core to the future objectives of Exxaro. As a result, Exxaro embarked on a divestment process of its interest in ECC. On 31 December 2020, the ECC operation met all the criteria to be classified as a non-current asset held-for-sale in terms of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations (IFRS 5).
On 8 April 2021, Exxaro signed an SPA with Overlooked Colliery and the sale became effective on 3 September 2021.
The ECC operation was reported as part of the coal commercial Mpumalanga reportable segment and did not meet the criteria to be classified as a discontinued operation since it did not represent a separate major line of business, nor did it represent a major geographical area of operation.
Tronox Holdings plc
In September 2017, the directors of Exxaro formally decided to dispose of the investment in Tronox Limited. As part of this decision, Tronox Limited was required to publish an automatic shelf registration statement of securities of well-known seasoned issuers which allowed for the conversion of Exxaro's Class B Tronox Limited Ordinary Shares to Class A Tronox Limited Ordinary Shares. From this point, it was concluded that the Tronox Limited investment should be classified as a non-current asset held-for sale as all the criteria in terms of IFRS 5 were met. As of 30 September 2017, the Tronox Limited investment, totalling 42.66% of Tronox Limited's total outstanding voting shares, was classified as a non-current asset held-for-sale and application of the equity method ceased.
Subsequently, Exxaro sold 22 425 000 Class A Tronox Limited Ordinary Shares during October 2017. During May 2019, Tronox Holdings plc repurchased 14 000 0000 Tronox Holdings plc Ordinary Shares from Exxaro after Tronox Limited had redomiciled to the UK. On 31 December 2020, management concluded that the remaining investment in Tronox Holdings plc continues to meet the criteria to be classified as a non-current asset held-for-sale in terms of IFRS 5. On 1 March 2021, all the Tronox Holdings plc Ordinary Shares were sold.
The major classes of assets and liabilities classified as non-current assets and liabilities held-for-sale are as follows:
| Group | Company | ||
| At 31 December | 2020 Rm |
2020 Rm |
|
| Assets | |||
| Property, plant and equipment | 841 | ||
| Right-of-use assets | 1 | ||
| Intangible assets | 2 | ||
| Investments in associates | 1 741 | 3 133 | |
| – Tronox Holdings plc | 1 741 | 3 133 | |
| Investment in subsidiaries | 869 | ||
| – ECC | 869 | ||
| Non-current financial asset at FVPL | 655 | ||
| – Environmental rehabilitation funds | 655 | ||
| Inventories | 149 | ||
| Trade and other receivables | 39 | ||
| Current financial assets | 139 | ||
| – Loan to associates: Tumelo | 139 | ||
| Current tax receivable | 21 | ||
| Cash and cash equivalents | 8 | ||
| Other current assets | 153 | ||
| Non-current assets held-for-sale | 3 749 | 4 002 | |
| Liabilities | |||
| Non-current lease liabilities | (13) | ||
| Other non-current payables | (7) | ||
| Non-current provisions | (724) | ||
| Retirement employee obligations | (1) | ||
| Deferred tax liabilities | (21) | ||
| Trade and other payables | (289) | ||
| Current lease liabilities | (8) | ||
| Current provisions | (2) | ||
| Current tax payable | (1) | ||
| Other current liabilities | (72) | ||
| Non-current liabilities held-for-sale | (1 138) | ||
| Net non-current assets held-for-sale | 2 611 | 4 002 |
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