Performance overview
- Divestments: ECC* complete and Leeuwpan divestment remains on track for the second half of 2022
- Formally allocated capital with expected returns to minerals and energy businesses
- Signed a memorandum of understanding with Eskom and Seriti for decarbonisation projects
- Conducted rigorous market analysis and commodity evaluation that led to initial focus on copper, manganese and bauxite
KPIs (2022 onwards)
- Growth in renewables: MW – target 3GW (net) by 2030
- Diversification of minerals: EBITDA – target 50% of coal EBITDA by 2030
- Energy EBITDA
Looking forward
We aim to transition at speed and scale but not at all costs. Our investments in minerals and energy will be governed within our prudent capital allocation framework and rigorous investment criteria positioning our portfolio within our desired risk-adjusted return levels
Performance overview
- Appointed managing directors for the minerals and energy businesses
- Refinanced an R8 billion loan facility
- Digitalisation continuing to deliver value
- Implemented RRODA for energy business
- Implemented a revised governance structure in line with empowered and agile decision making across the group
- Implemented a country risk assessment framework and differentiated weighted average cost of capital for minerals and energy
- Implemented M2R and cost-saving initiatives, leading to notable cost saving for the year
KPIs (2022 onwards)
- EBITDA
- Covenants
- ROCE (risk-adjusted)
- S&P credit rating
- Total shareholder return
- Group cost efficiency
Looking forward
Safety, cost optimisation and business improvement remain our priorities across our minerals and energy businesses
Performance overview
- COVID-19 vaccine roll-out in line with Minerals Council targets
- Signed up for UN Women's Empowerment Principles and listed on Bloomberg Gender Equality Index
- Rolled out the Exxaro Leadership Way that included mindset training across the group
- Implemented a group incentive scheme aligning individual and team goals to group objectives
- Implemented a revised corporate governance framework to ensure the appropriate delegation of authority for our energy business
KPIs (2022 onwards)
- Zero harm
- 2022 LTIFR target = 0.06
- OHIFR
- Fatalities – zero fatalities
- Culture score
- Diversity and inclusion score (Bloomberg Gender Equality Index)
Looking forward
Continuous development of our people, processes and platforms to ensure we build on our learning culture and achieve our strategic objectives
Performance overview
- Commissioned an internal decarbonisation project management office
- Self-generation renewable energy projects at Belfast and Grootegeluk in prefeasibility stage
- Published a TCFD report
- Issued the open innovation challenge to track and trace our carbon emissions
KPIs (2022 onwards)
- Reduction in carbon intensity
- Potential carbon credits created through nature-based methods and carbon sequestration projects
- Interim targets
Looking forward
Our key focus in the short term will be our detailed stakeholder-centric decarbonisation roadmap with clear objectives and milestones
Performance overview
- Delivered UNGC communication on progress
- Partnership with SAICA ED unit to implement a financial excellence programme for miners' suppliers
- Ranked as one of the Top 100 best emerging market performers by Vigeo Eiris
- Finalist for Absa Business Day Supplier Development Awards
- Impact Investment opportunities presented at COP26
- Identified Exxaro-owned land for social and environmental impact initiatives (RRODA)
KPIs (2022 onwards)
- B-BBEE dtic scorecard – level 1 target
- Mining Charter III scorecard
- Impact matrix (FTSE Russell ESG index) > 3.5 score
- Water intensity
- Rehabilitation liabilities and performance
Looking forward
We aim to progress our industry leading ESG performance towards delivering sustainable impact at scale
ESG Report 2021
Report Index