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Exxaro Resources Limited
Environmental, social and governance report 2022

Biodiversity

Conservation is a priority for Exxaro to avoid biodiversity loss for the sake of wildlife, economic activities and people who depend on the natural resources impacted by our mining activities. We therefore assess our potential impacts before we mine, and conduct biomonitoring and environmental incident reporting. Communities benefit from employment created by contractors who will eventually hand over invasive plant control contracts to local community members.


We strive to be a low-impact, bio-regenerative organisation for current and future generations.


Our approach

Understanding our impacts enables us to implement effective biodiversity management plans with standards that inform our monitoring and reporting processes, and uphold our licence to operate.

In compliance with the National Environmental Management: Biodiversity Act, 2004 (Act 10 of 2004), we are committed to preserving biodiversity-rich ecosystems that protect species on the International Union for Conservation of Nature (IUCN) Red List and control the impact of invasive alien vegetation.

Our holistic approach to biodiversity management combines:

  • Cost-effective solutions
  • Environmental responsibility
  • Conservation of biodiversity-rich areas within mining rights
  • Management of IUCN Red List species
  • Control of invasive plants (categories 1a, 2 and 3)
  • Integration of biodiversity into social impact studies
  • Collaboration with key stakeholders to achieve our biodiversity goals (Mpumalanga Tourism and Parks Agency, DFFE, Limpopo Economic Development, Environment and Tourism, DWS, Eastern Cape Parks and Tourism Agency, and Mpumalanga Department of Agriculture, Rural Development, Land and Environmental Affairs)
Our renewable energy business manages biodiversity around its facilities with an environmental management programme. This approach aligns with the Equator Principles and the IFC's Performance Standard 6 guidelines on biodiversity conservation and sustainable management of living natural resources.

Accountability and responsibility

Our biodiversity management programmes and stakeholder engagement are overseen by a team at our operations and head office, including executives and mine management, and sustainability and environmental specialists.

How we performed

We experienced minor challenges such as restricted access to privately owned land within our mining right area for the removal of invasive alien plants and delays in permit approval by authorities for species relocation from the mining area into conservation land at Belfast. We therefore cleared 58% less invasive alien vegetation compared to the previous year.

We did not record any biodiversity-related grievances in 2022. Environmental grievances can be raised at environmental stakeholder engagements and as part of the complaints process at each operation. Grievances are managed by environmental personnel with the support of head office specialists and actions are monitored.

Baboon spider relocation at Grootegeluk

Biodiversity relocation and conservation programmes

Our programmes were based on various biodiversity needs at BUs.

Waterberg (Limpopo)

Grootegeluk and Belfast: Baboon spider and succulent relocation

Our team works closely with authorities in relocating baboon spiders and protected succulent species as our mining footprint expands. This reflects our commitment to continuous biodiversity vigilance for conservation of protected and endangered species.

Grootegeluk: Conservation in Manketti Game Reserve

Our 22 000ha Manketti Game Reserve continues to optimise land use and the sustainability
of Grootegeluk..

Managed by Ferroland Grondtrust, a wholly owned subsidiary of Exxaro, the land was a cattle farm until indigenous wildlife was introduced more than 18 years ago. The thriving game reserve generates income from commercial hunting, game trading and accommodation at Manketti Lodge. It maintains the ecological balance of the prescribed area and manages land not impacted by mining operations.

Mpumalanga

Matla and Belfast: African grass owl and bat protection

Digby Wells (environmental consultants) discovered a pair of African grass owls with chicks at Matla in 2022 before construction of a river diversion canal. As other breeding pairs were found on the site in 2013 and 2016, Exxaro has partnered with the Endangered Wildlife Trust to develop a monitoring programme that could enhance our existing processes. We are considering transferring skills from this monitoring programme across the Highveld.

Within the Belfast conservation area, we also assist the Birds of Prey NGO with the safe and controlled release of grass owls and bats. By installing owl boxes and bat banks, we create a balance within the ecosystem along the Klein Komati River and surrounding agricultural areas. Grass owls help control vlei rat populations and bats reduce insect species that are considered pests in local communities.

Eastern Cape

Cennergi: Bird and bat fatality curtailment
Since 2016, as part of our commitment to mitigate the impact of wind turbines on birds and bats, Cennergi has employed local carcass search companies. These companies monitor bird and bat fatalities in accordance with the South African bird and bat wind energy facilities guidelines.

At Amakhala Emoyeni, a bat curtailment programme will be implemented between October 2022 and May 2023 to reduce fatalities. The avifauna specialists prepare the semi-annual bird and bat monitoring reports submitted to lenders, BirdLife Africa, Endangered Wildlife Trust, the DFFE and other relevant authorities.

In 2022, no red data mortalities were recorded at Tsitsikamma. Unfortunately, one secretary bird (sagittarius serpentarius) fatality was recorded at Amakhala Emoyeni on 21 September 2022.

Amakhala Emoyeni: Cape vulture management

Cennergi supports the Endangered Wildlife Trust's Eastern Cape vulture safe zone research. This programme aims to reduce Cape vulture fatalities at operating and proposed wind energy facilities. It also stabilises the local population by addressing threats in the safe zone. It is the first habitat safe for vultures within wind energy facilities and the surrounding landscape.

Vultures have incredible eyesight during the day that enables them to spot an animal carcass from around 6km away. We also implement the on-site Cape vulture food management programme, which entails removing livestock and wildlife carcasses to minimise collisions with wind turbines. In 2022, no Cape vulture fatalities were recorded.

Alien plant eradication

The positive outcomes of monitoring, controlling and eradicating invasive alien plant species on our sites include improved water quality and surface water runoff, flourishing indigenous vegetation, increased species diversity, and availability of productive land.

Progress in 2022

Across our sites, we progressed in avoiding:

  • Biodiversity decline
  • Indigenous animals being prevented from feeding or nesting in the area due to fauna changes
  • Extinction of indigenous species due to genetic pool loss (pine, wattle and hakea trees prevent fynbos species growth)
  • Greater risk of catastrophic events (fire and flooding) due to ecological imbalance
  • Lower productivity of rangeland due to selective grazing
  • Soil erosion and dam and river siltation due to invasive alien species consuming more water than indigenous flora
  • Sandy and nitrogen-poor natural soil

Invasive alien plant control continues at BUs and will start at Grootegeluk in 2023. The tender process to appoint a service provider began in the third quarter of 2022.

Stage 1
Development of invader species management plan
Stage 2
Physical implementation (removal of invader species)
Stage 3
Maintenance (eradication of invaders on rehabilitated land)
Belfast
Leeuwpan
Matla
Grootegeluk
Tshikondeni

Completed To start in 2023 Ongoing

Land cleared of invader plants (ha) 2022 2021 2020
Leeuwpan 86 118 146
Matla 0 23 70
Belfast 19 0 0
Tshikondeni 132 264 198
Total 236 405 414
Since 2016, full-time local SMMEs have successfully managed Cennergi's alien plant control programme.

Farmland around Cennergi's Tsitsikamma windfarm

Pan research

Following an assessment of pans at Belfast by the Council for Scientific and Industrial Research in 2019, and subsequent monitoring by Exxaro since 2020 to avoid deprivation, an external reviewer conducts monthly and quarterly evaluations.

Research concluded in 2022

Recommendations from our completed pan research project are being evaluated to determine the next steps.

Wetland rehabilitation

We monitor and evaluate our wetland rehabilitation activities to ensure on-site mitigation measures deliver anticipated returns.

Belfast

We completed rehabilitation of the wetland system adjacent to Belfast in 2020. The second phase will begin in 2023 to improve wetlands within the mining right area. We will appoint a contractor to execute the implementation plan.

Grootegeluk

In 2021 the proof-of-concept study in the Grootegeluk mining rights area was completed and six seasonal pans were created using donor material from pans that will be lost to mining.

The seasonal pans referred to low laying areas that occur naturally in the landscape. These pans have a clay base that captures and stores water in the rainy season. During the rest of the year, they are dry.

The clay and biological material was stripped from the "donor" pans in front of the pit area, which would otherwise have been lost to mining, to test if similar pans could successfully be created. Six pans were created testing various scenarios, where donor clay was used for sealing and the biological layer (filled with eggs of the invertebrates that occur within the natural pans) was used for seeding the invertebrate species into the newly created pans. Over time, it is expected that the biodiversity in the created pans will resemble that of the originally harvested/lost pans, should the study show to be successful. The five-year programme to monitor the project's success started in January 2022. The outcome of the monitoring programme will determine if the pans can be successfully recreated as part of future rehabilitation or offsetting.

Pan recreation project

Biomonitoring continues in terms of the WUL requirements for Grootegeluk, Tshikondeni and Thabametsi.

Matla

A detailed report of wetland monitoring will be submitted to the DWS in 2023.

Leeuwpan

We will review the implementation of the wetland offset initiative in 2023 following the termination of the divestment process in 2022.

Future focus

Exxaro intends to introduce detailed regional biodiversity management plans based on our impact assessments in 2022. Plans will ensure compliance, and inform targets and KPIs being developed for each BU.

Case study: Rhino conservation invests in people and wildlife (media and insights, press releases tab)

Exxaro worked with the Peace Parks Foundation and Mozambique’s National Administration for Conservation Areas in relocating seven black rhino — identified as critically endangered on the IUCN Red List of Threatened Species — from our Manketti Game Reserve in Limpopo to Zinave National Park in Mozambique during the year.

Wetland rehabilitation at Belfast

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OVERVIEW
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ADDITIONAL INFORMATION
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