Exxaro Resources Limited
Integrated report 2022

Combined assurance for effective governance

The board, supported by the audit committee, is ultimately responsible for Exxaro's system of internal controls, which has been designed to evaluate, manage and provide reasonable assurance against material misstatement and loss.

We apply a combined assurance model to optimise assurance by management, as well as internal and external providers, while fostering a strong ethical climate and mechanisms to ensure compliance.

Using our board-approved ERM approach, management identifies key risks facing Exxaro and implements the necessary internal controls with comparable information for trend analysis where possible.

The board and audit committee assessed the effectiveness of controls for the year ended 31 December 2022 as satisfactory, principally through a process of management self-assessment (including formal confirmation by executive management), reports from internal audit, independent external audit and other assurance providers.

Approach, governance and reporting

Exxaro defines assurance broadly to cover all sources, including external assurance, internal audit, management oversight and regulatory inspections.

Our combined assurance model includes and optimises all assurance services and functions to collectively provide an effective control environment and support the integrity of information used for internal decision making by management, the board and its committees, and in our external reports including:

  • Corporate governance disclosures in terms of King IV
  • Financial statements and other external reports, including our integrated report and ESG report

The forum's activities and outcomes of assurance reports are presented quarterly to the audit committee.

Assurance review

For the year under review, the sources, level and focus area of assurance, commissioned and performed, are summarised below.

Function assured
Focus area Assurance
Tier/level of 
Corporate BU
External/statutory audit KMPG 3  Yes Yes
Sustainable development/KPIs KPMG 3  Yes Yes
Environmental liability provisioning KPMG 3  Yes
Mining rights and environmental legal compliance Inlexso 3  Yes
B-BBEE dtic code compliance Empowerdex 3  Yes Yes
Mining Charter III compliance Ngubane 3  Yes Yes
Insurance risk surveys IMIU 3  Yes
Major and mega capital projects PWC/ EY 3  Yes Yes
Mineral Resources and Mineral Reserves statement PWC/EY 3  Yes
Governance, risk and internal controls PWC/EY 3  Yes Yes
Employee benefits Ngubane 3  Yes Yes
SLP projects Ngubane 3  Yes
ISO and OHSAS certifications Various 3  Yes
* Tier/level of assurance refers to independent external assurance.

Outcome of assurance 2022

As 31 December 2022 there were 394 open findings, reflecting an increase of 73 open findings in the year. Of the 394 open findings, 310 (79%) findings are classified as "Ready for Audit" (a three-month "waiting" period is applied before performing follow-up procedures for the control to be fully embedded). The split by status of findings is depicted in the chart below.

Current period reporting
Status of findings Internal
Other assurance
Total for the
current period
Follow-up in progress 30 7 37
Ready for audit 107 203 310
Within timelines 14 2 16
Overdue 19 12 31
Total 170 224 394

Overdue findings have been classified by ratings assigned in the final audit report and split into sources below.

Source Level 1 
Level 2 
Level 3 
Not rated Total
Internal audit 18  0 19
Other assurance providers 0 12
Total 27  0 31
Refer to Appendix A in the ESG report for detailed disclosure.
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