| Group | Company | ||||
| At 31 December | 2023 Rm |
2022 Rm |
2023 Rm |
2022 Rm |
|
| Pending litigation and other claims1 | 112 | 313 | |||
|---|---|---|---|---|---|
| Operational guarantees2 | 4 183 | 3 834 | 608 | 206 | |
| – Financial guarantees ceded to the DMRE | 3 552 | 3 606 | |||
| – Other financial guarantees3 | 631 | 228 | 608 | 206 | |
| Total contingent liabilities | 4 295 | 4 147 | 608 | 206 | |
| 1 | Relates to commercial disputes of which the outcome is uncertain. |
| 2 | Includes guarantees to banks and other institutions in the normal course of business from which it is anticipated that no material liabilities will arise. |
| 3 | 2023: Includes a guarantee of R405 million in relation to the LSP project. |
On 23 November 2023, Exxaro received service of an application seeking the permission of the High Court of South Africa to certify classes for purposes of a class action for damages against Exxaro and two of its subsidiaries, being Exxaro Coal Proprietary Limited and Exxaro Coal Mpumalanga Proprietary Limited, as well as its joint venture, being Mafube. The application is brought by 27 applicants, comprising of current and former mine workers who state they have contracted coal mine dust lung disease, alternatively, by the dependants of mineworkers whose deaths they state are probably attributable to coal mine dust lung disease, contracted on certain coal mines during specified time periods. They seek to hold the respondents liable on the basis that the respondents are alleged to have owned, controlled, managed or operated the mines or employed the mineworkers at those mines.
Following legal advice, Exxaro delivered its notice of intention to oppose the certification application. Exxaro will continue to address the claim in a responsible manner.
In August 2023, a farmer adjacent to the Durnacol mine-in-closure in Kwa-Zulu Natal reported white precipitate observed in the Kalbas river as well as in underground water surfacing in that area. After investigation by Exxaro internal specialists, it was confirmed that decanting commenced in that area. Even though an obligation to treat the water existed on 31 December 2023, the best water-treatment plan for Durnacol is still being investigated making the measurement and timing of the possible outflows uncertain.
The timing and occurrence of any possible outflows of the contingent liabilities above are uncertain.
| Group | ||
| At 31 December | 2023 Rm |
2022 Rm |
| Share of contingent liabilities of equity-accounted investments | 1 427 | 1 354 |
|---|---|---|
| Group | ||
| At 31 December | 2023 Rm |
2022 Rm |
| Back-to-back guarantees | 134 | 134 |
|---|---|---|
| Other1 | 54 | 117 |
| Total contingent assets | 188 | 251 |
| 1 | Relates to performance guarantees issued to Exxaro in terms of various capital project agreements. |
The timing and occurrence of any possible inflows of the contingent assets are uncertain.
IR