Exxaro Resources Limited
Consolidated Mineral Resources and Mineral Reserves report 2022

Environmental, social and governance (ESG) matters

Our ESG report details environmental management, including applicable authorisations that support our estimates, closure plans, allocated funding and associated risks. The report is available online under the investors tab.

ESG management

Exxaro is a leader in business management with sound ESG principles that deliver sustainable economic returns and tangible benefits for all stakeholders. The FTSE Russell ESG Index group ranks Exxaro number one in ESG performance-selected resources company metrics. 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, shared by our stakeholders. We conduct our business activities to create success for Exxaro and society. From how we mine to what we mine, we steward our natural assets and social capital to uplift our communities.

Climate change and carbon management

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, resource-constrained economy. Guided by our purpose, our Sustainable Growth and Impact strategy is designed to ensure we 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. We monitor and report on our scope 1, 2 and 3 emissions annually.

Water use management

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, which 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.

Tailings management

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 tailings management with the global industry standard. 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 tailings maintenance and monitoring. 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 carry out inspections, which include continuous oversight of asset maintenance.

Exxaro continually develops new initiatives to minimise risks associated with the catastrophic failure of tailings dam. We engage with industry professionals to ensure that relevant developments in the industry are captured and incorporated into our framework for tailings management.

Air quality 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:

  • Application of chemical dust suppressants on unpaved roads
  • Adhering to all applicable legislative requirements
  • Proactive air quality management planning
  • Risk management
  • Monitoring, measuring and reporting

Waste management

Cradle-to-grave waste management is critical to maintaining our licence to operate and 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) (NEMWA) 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.

Biodiversity management

One of the fundamental goals for Exxaro is to be a low-impact, high-value organisation for this and coming generations. A key aspect of achieving this goal is ensuring that all Exxaro mines co-exist in harmony with the natural environment in which they operate. This is achieved through positive biodiversity initiatives and programmes implemented at various mines. These initiatives and programmes protect indigenous flora and fauna and 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 to leave a legacy in which current and future generations can enjoy the benefits of a clean and flourishing natural environment.

Land and heritage management

Exxaro focuses on sustainable management of land owned by its subsidiaries. Sustainable land management requires a balanced approach of economic application, ecological preservation and the social needs of legal occupiers and hosting communities.

Rehabilitation and closure

Our business operations review mine closure and rehabilitation financial provisions yearly. Rehabilitation plans and closure objectives are amended after environmental management programme performance assessments. We review cost estimates of activities in the concurrent and final closure rehabilitation programme and adjust them accordingly. 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 to ensure adequate financial resources are available to meet our rehabilitation commitments.

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Chairperson's statement
Positioning Exxaro for sustainable growth and impact
About Exxaro
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Our value creation
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Our material matters
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