Integrated Report 2021
Exxaro Resources limited
Consolidated Mineral Resources and Mineral Reserves report 2021
Environmental management, including applicable authorisations that support our estimates, closure plans, allocated funding and associated risks are discussed in detail in Exxaro's ESG report available online under the investors tab.
Exxaro is a leader in business management with sound ESG principles that deliver sustainable economic returns and tangible benefits for all stakeholders. The group has been ranked #1 for ESG performance-selected resources company metrics in terms of the FTSE Russell ESG Index. Everything we do today is geared towards ensuring a safer and more productive tomorrow. Our sustainability is founded on creative, mutually constructive relationships and values we share with our stakeholders. We conduct our business activities in a way that creates success for Exxaro and for society. From how we mine to what we mine, we are stewarding our natural assets and social capital to uplift our communities.
Climate change resilience refers to our ability to adapt and succeed in the face of direct and indirect climate change impacts. In addition to addressing and managing these risks, it encompasses our ability to capitalise on the strategic opportunities presented by the shift to a lower-carbon and resource-constrained economy. Guided by our purpose, our Sustainable Growth and Impact strategy is designed to ensure we are able to manage the direct and indirect climate change impacts on our current portfolio while ensuring we are able to contribute to the low-carbon environment of the future.
Exxaro measures, manages and reports energy and carbon data in terms of the Greenhouse Gas Protocol. Our scope 1, 2 and 3 emissions are monitored and reported annually.
Water is a strategic natural resource for South Africa and our business. We are committed to responsible and sustainable water use as enshrined in our water management policy that focuses on efficient water reuse and recycling. The policy aligns with the legislated environmental framework mainly governed by the National Water Act, 1998 (Act 36 of 1998), supported by the integrated water resource management hierarchy issued by the Department of Water and Sanitation to prioritise mine and waste management decisions and actions.
Exxaro implements various systems and programmes aimed at monitoring and ensuring compliance at all our tailings facilities. The operation, monitoring and decommissioning of the tailings dams are guided by comprehensive risk-based management and governance systems in line with internationally recognised good practice. The company aligns the management of tailings with the global industry standard on tailings management. Risk management is a major aspect of our asset management. It includes risk identification, implementation of controls and assessment of control performance verification. Internal and external reviews, which encompass assurance processes of the tailing dams, are managed and controlled in the company to manage the risks and ensure continuous improvement. All tailings facilities have a third-party appointed tailings dam operator who facilitates the maintenance and monitoring of tailings. All regulatory five-yearly inspections are conducted by a third-party consulting firm. There are dashboards and quarterly inspections are conducted on the tailings dams in an effort to promote continuous monitoring. Systems in place include training to equip all site engineers with the required technical skills to be able to carry out inspections, which include continuous oversight of the maintenance of the assets.
Exxaro is continuously developing new initiatives to ensure that all risks associated with the catastrophic failure of tailings dams are minimised. The company engages industry professionals to ensure that relevant developments in the industry are captured and incorporated in our framework for tailings management.
Air quality management is among our top priorities due to the negative impacts of pollutants such as dust and particulate matter (PM10 and PM2.5) prevalent in mining areas.
Our mitigation measures include:
Cradle-to-grave management of waste is critical to maintain our licence to operate. We have a group environmental policy and waste management standard for hazardous and non-hazardous waste. Our waste management standard enforces a waste management hierarchy that promotes prevention, minimisation, reuse, recycling and energy recovery while ensuring safe waste disposal in line with the National Environmental Management: Waste Act, 2008 (Act 59 of 2008) and supporting legislation. The environmental policy introduced initiatives such as waste prevention, reuse, recycling, energy recovery and safe waste disposal to reduce environmental and health risks with sustainability in mind. Exxaro's business units receive a rebate for recycling waste such as paper, used oil and scrap metals.
One of the fundamental goals for Exxaro is to be a low-impact, high-value organisation for this generation and those to follow. A key aspect of achieving this goal is ensuring that all Exxaro mines coexist in harmony with the natural environment in which they operate. This is achieved through many positive biodiversity initiatives and programmes implemented at various mines. These various initiatives and programmes not only protect indigenous flora and fauna species but also ensure the expansion of such species to support ecosystems within and beyond Exxaro's operations. Exxaro is committed to exceeding its biodiversity goals and plans a legacy in which current and future generations can enjoy the benefits of a clean and flourishing natural environment.
Exxaro focuses on sustainable management of land owned by its subsidiaries. Sustainable land management is a balanced approach of economic application, ecological preservation and the social needs of legal occupiers and hosting communities.
Our business operations review mine closure and rehabilitation financial provisions every year. Rehabilitation plans and closure objectives are amended after environmental management programme performance assessments. Cost estimates of activities in the concurrent and final closure rehabilitation programme are reviewed and adjusted. External auditors visit our sites, review documents and audit the provisions twice a year.
Operational closure, concurrent rehabilitation and land management are part of Exxaro's operating philosophy and moral responsibility. We actively plan our operations with closure in mind, ensuring adequate financial resources are available to meet our rehabilitation commitments.
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