Exxaro Resources Limited
Integrated report 2022
Our business's sustainability and impact depend on our contribution to accelerating economic growth, practicing environmental stewardship and driving positive change.
Our diversified asset portfolio comprises interests primarily in thermal coal (where we are among the top five South African coal producers), a growing renewable energy solutions business and equity-accounted investments in ferrous (iron ore) and zinc among other base metals. We will contribute to a more sustainable future by expanding our business portfolio to include manganese, bauxite and copper. Our business interests in Europe comprise a marketing and logistics office in Switzerland. A joint operation with Anglo Coal Grosvenor Proprietary Limited, the Moranbah South project, is conducted in Australia.
We are aiming to be carbon neutral by 2050, and are committed to being an active participant in the just transition to a low-carbon economy. The renewable energy solutions business and our scope 1 and 2 emissions reduction efforts are critical activities in this regard. Reduction of scope 3 emissions is a longer-term goal influenced by the country's energy mix.
at 31 December 2022
(2021: R75.7 billion)
(2021: 42.3Mt), excluding buy-ins
(2021: 724GWh)
(2021: R53.4 billion)
Constituent of the
JSE Top 40 Index
black-empowered
Among the top 30
in the FTSE/JSE
Socially Responsible Investment Index
Our core operation is thermal, semi-soft coking and metallurgical coal mining, supplying Eskom, other domestic markets and offshore markets.
Our coal mining business is structured under four legal entities, all managed and operated by Exxaro, supplemented by a 50% JV with Thungela Resources Limited in Mafube and a 12.04% legal equity interest in RBCT.
Our renewable energy business, Cennergi, consists of 229MW of wind generation assets in the Eastern Cape that contribute to the national energy supply.
SIOC is a leading supplier of high-quality iron ore to the global steel industry and a subsidiary of Kumba Iron Ore.
Black Mountain operates two underground mines and a processing plant in the Northern Cape that produces zinc and other minerals.
We continue evaluating our options to dispose of our shareholding in Black Mountain.
| * | Eyesizwe (RF) Proprietary Limited (Eyesizwe), a special purpose vehicle (SPV) private company, incorporated under South Africa's laws, holds the black economic empowerment (BEE) shares. |
| * | Exxaro Matla Setshabeng NPC. |
| ## | Including one joint venture, Mafube. |
Minerals business
Our minerals business comprises coal operations and our equity investments in iron ore and zinc. We have deep roots in mining with a track record of operational excellence and delivering value.
Our coal asset base is a key differentiator and critical part of how we create value for our stakeholders.
Only mineral assets with Measured and Indicated Resources are listed in this report. Inferred Resources are reported in the supplementary 
CMRR report.
Operations
Project
Limpopo
1
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): 56.52Mt
Life of mine (LoM): 19+ years*
2
Location: West of Lephalale
Market: Domestic
Product: Thermal coal
Coal Resources (inclusive):
Coal Reserves (inclusive):
Mining method: Open-cut
RoM: Project
LoM: 24 years
Mpumalanga
3
Location: South of Belfast
Market: Export (alternative domestic)
Product: Thermal coal
Coal Resources (inclusive):
Coal Reserves:
Mining method: Open-cut
RoM: 2.65Mt
LoM: 11 years
Mpumalanga
4
Location: South-east of Delmas
Market: Domestic and export
Product: Thermal coal
Coal Resources (inclusive):
Coal Reserves:
Mining method: Open-cut
RoM: 3.71Mt
LoM: 7 years
5
Location: West of Kriel
Market: Domestic (Eskom)
Product: Thermal coal
Coal Resources (inclusive):
Coal Reserves:
Mining method: Underground
RoM:6.16Mt
LoM: 2+ years*
6
Location: East of Middelburg
Market: Domestic and export
Product: Thermal coal
Coal Resources (inclusive):
Coal Reserves:
Mining method: Open-cut
RoM: 5.44Mt
LoM: 21+ years*
7
Location: Queensland, Australia
Undertaking prefeasibility study to inform decision for development prospects.
* 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 independent power producer (IPP) that focuses on developing, owning and operating renewable assets. Cennergi has two established wind projects (the Tsitsikamma community and Amakhala Emoyeni windfarms).
The renewable energy business is also developing the 68MW Lephalale solar project in a ring-fenced SPV that will supply renewable energy to Grootegeluk, reducing the carbon footprint and electricity costs of this mining operation. The energy business has also concluded a joint development agreement with Enertrag, an established German IPP, to develop projects in Mpumalanga for the mining industry.
Eastern Cape
8
Location: Near Tsitsikamma
Capacity: 95MW
Number of turbines: 31 x 3.1MW
Performance: 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%)
9
Location: Near Bedford and Cookhouse
Capacity: 134MW
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%)
Limpopo
10
Product: Solar energy
Capacity: 68MW
Customer: Exxaro Coal Proprietary Limited (Grootegeluk)
Power purchase agreement: 25 years
Commercial operation: 2025
Shareholding: 100% Cennergi Holdings Proprietary Limited
Financial close: 31 March 2023
Estimated commercial operation: 2025
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