Exxaro Resources Limited
Integrated report 2022

Operational performance

 Our manufactured capital comprises the physical mining and energy assets we require to deliver our products, primarily coal and energy. Our operational performance is impacted by the quality of the assets we own and how effectively we utilise these assets.

Exxaro's manufactured capital consists of five mines, including a joint venture; two coal projects; a ferro-silicon manufacturing facility; and two windfarms. These assets are substantial in size. It is critical to invest in them to ensure their enduring value, upkeep and performance, and optimise their utilisation in delivering our products at optimal qualities.

We strive to positively impact our operational performance through:

  • Appropriate stay in business capital investments
  • Optimisation strategies
  • Market to resource strategy
  • Portfolio review
Material theme Matter Our strategic response Our impact on the SDGs

Adapting to a changing context

  • Geopolitical context
  • Macro-environment
  • Supporting a just transition to a low-carbon economy
  • Commodity price risk
  • Transition at speed and scale
  • Make our minerals and energy businesses thrive

Executing our strategy

  • Coal portfolio optimisation
  • Diversify into minerals
  • Build a leading global renewable energy solutions business

How we will achieve this

To achieve excellent operational performance, through executing our strategy in portfolio optimisation and effective utilisation of our invested capital. We do this through operational excellence and digitalisation programmes, optimisation strategies, internal cost savings and utilising data science for decision making.

Our operational performance areas comprise:

  • Coal
  • Energy
  • Ferrous
  • Portfolio optimisation
  • Investments in minerals and renewable energy

Snapshot of our performance

Product volumes

Sales volumes

Export volumes


Despite major rail constraints, our operational excellence and digitalisation programmes focus on safety, productivity improvements and cost management that deliver value. Through our integrated operations centres and market to resource optimisation strategy, we continue to enable timeous decision making, allowing our business to focus on controllable elements, thus limiting the impact of the disruptions in the value chain. We are continuing with our drive to enhance this process through our data sciences and advanced analytics, which is a large part of our digital programme going forward.

International thermal coal pricing reached record highs in 2022 with the API4 averaging US$270.87/t versus US$124.12/t in 2021. Prices were supported by increased demand from Europe with the onset of the Russia-Ukraine conflict and the embargo that was placed on Russian coal. Pricing was further supported by supply chain disruptions such as bad weather, mine incidents, labour issues and logistics constraints. Shortage of liquefied natural gas and other gas also drove European coal prices higher based on gas-to-coal switching where possible.

Cost per tonne

Production cost per tonne was impacted by increased inflation resulting in higher fuel and blasting expenses. We further experienced higher maintenance, which was offset by savings on contractor costs, resulting in a net saving in production costs.

Other operational costs were impacted by increased royalties, based on increased revenue and lower capital spend, distribution cost providing for alternative logistical channels, general expenses and rehabilitation, offset by a positive impact on foreign currency movements, resulting in a net increase in operational cost.

Our net cash cost per tonne remained below mining inflation.

Internal cost saving initiatives were focusing on improved efficiencies remain a major focus to address the inflation challenges.

To further remain competitive across various markets, our operational excellence and digital programmes continue to focus on specific projects across the value chain, which are aimed at managing stock levels and productivity, thus reducing overall production costs.

Total coal product

Total coal product (Mt)

Total coal sales

Total coal sales (Mt)

Coal export sales

Coal export sales (Mt)

Cost per tonne

Cost per tonne (R/t)



Cennergi's EBITDA margin was 80% (2021: 83%), showing the consistency of earnings underpinned by long-term offtake agreements.

The two windfarms' performance generated 671GWh in 2022 (2021: 724GWh). The decrease in generation resulted from persistent low wind conditions. In South Africa and regions such as Europe, windfarms have experienced below-normal wind conditions over the past 12 months. Our average equipment availability of 97.9% was better than contracted levels of 97.0%.



  • Adjusted equity-accounted income of R4.902 billion (2021: R9.035 billion) primarily driven by lower market prices and volumes and higher operating expenses which were partially offset by a weaker currency
  • Dividends received of R5.153 billion to Exxaro in 2022 (2021: R9.991 billion)

Portfolio optimisation

Black Mountain

Exxaro continues to evaluate its options to dispose of its 26% shareholding in Black Mountain.


Exxaro initiated the Leeuwpan divestment process as part of its ongoing portfolio optimisation strategy to ensure the future resilience of our coal business. Progress on the divestment stalled and the process was stopped in the third quarter of 2022 to ensure stability at the mine. Exxaro will continue to review its coal assets and projects in line with its strategic objectives.

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Driving transition through leadership
Driving value creation through transition
About our integrated report
Chairperson's statement
About Exxaro
Sustainable growth and impact
Our operating context

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Our business model
Our material matters
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CEO's report
Our strategy: positioning Exxaro for sustainable growth and impact
Performance against our strategy and future focus
2022 strategic key performance indicators
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