Our business model depicts the capital inputs we need to conduct our activities and deliver our products.
Our inputs
The resources and relationships we rely on
Natural capital
The natural resources we rely on to run our business and create our products
Human capital
The people who manage our business and perform our operational activities
Social and relationship capital
The relationships that provide our social licence to operate
Manufactured capital
The physical mining, energy and property assets that enable us to deliver our products
Intellectual capital
The unique combination of knowledge, experience, innovation and systems that differentiate Exxaro
Financial capital
The financial assets that enable us to deliver on our strategy
Our activities
What we do
Our business activities align with our strategy of strengthening our resilience and ensuring we deliver sustainable value through a robust portfolio in a low‑carbon economy.
Our purpose guides our activities, ensuring we continue providing critical resources that support South Africa's sustainable economic and social development in a way that will accelerate change and ultimately safeguard the value we create for our stakeholders over time. We are committed to making a deliberate positive impact through our physical outputs and the way we do business.
Our outputs
What we produce
Coal
42.5Mt product volumes
(2022: 43.1Mt)
Renewable energy
727GWh wind energy
(2022: 671GWh)
Iron ore (SIOC)
R6.2 billion adjusted equity-accounted income
(2022: R4.9 billion)
Waste
3 186t hazardous waste
(2022: 1 624t)
953ktCO2e emissions
(2022: 971ktCO2e)
Through our business model, we aim to achieve these overarching value outcomes
We will secure energy, power a clean world, and ensure a just transition through our business model. We are committed to providing energy that fuels development, sustains our planet, and is fair to all involved.
Trade-offs to achieve strategic balance
The path to these outcomes involves careful navigation...
Energy security
We are building a foundation for a reliable energy supply to support economic growth and stability, blending our heritage in coal with a bold venture into broader energy initiatives.
Balancing present energy demands with
future needs
Our mission is to provide the energy essential for today's economic growth while
stewarding environmental resources for
tomorrow. We acknowledge coal's immediate role in economic stability but are aware
of its long-term environmental and
social costs. We therefore strategically invest in transitioning our business,
accepting the short-term financial requirements as
a trade-off for future energy security. This transition promises regulatory
alignment, and public goodwill, anchoring us firmly
within the global shift towards sustainable practices and attracting
forward-thinking investors.
Resources powering a clean world
Our operations are pivoting towards sustainability, with acquisitive growth prospects in minerals and further energy solutions. All ESG improvement opportunities form part of new capital project requirements.
Profitability versus environmental
stewardship
While our current operations, primarily powered by coal, underpin our financial
strength, we are transitioning into a low-carbon
business, considering the just transition and sustainability. This shift, reflective
of our dedication to the environment, not only
anticipates but actively embraces the long-term economic benefits of a low-carbon
economy. It is a deliberate strategy to
mitigate risk, enhance market competitiveness, and secure a legacy honouring our
environmental responsibilities. Our journey
towards sustainability is financially sound, aligning with investor interests in
responsible energy practices while safeguarding
our planet for future generations.
A just transition
Understanding the socio-economic fabric we operate in, we are dedicated to a transition that respects and uplifts our employees, communities, and stakeholders.
Efficiency, equity and the just
transition
In navigating today's challenging economic landscape, we pursue efficiency to
achieve balanced long-term objectives. Our
efficiency gains are thoughtfully traded against immediate impacts to bolster
business resilience, thereby ensuring sustained
reinvestment in our workforce and communities as we transition towards greener
practices. Such shifts, though they may
present near-term challenges, are essential for the intertwined growth of our
economy, environment and social fabric.
Managing our capitals to achieve our ambitions
| Impact on value |  Net increase in value |
 Net value preservation |
 Net value erosion |
| Year-on-year change |
|
 Unchanged |
|
Our inputs (as at 31 December 2023)
Natural capitalOur outcomes
Despite our committed efforts to
environmental stewardship, the inherent nature of our mining operations inevitably
leads to a decrease in natural capital. The
extraction of natural resources, essential to our business activities, directly
impacts the environment despite our best practices and mitigation strategies.
How we improve our outcomes
Carbon intensity: 20% decrease (2022: 0.5% increase)
Water intensity: 30% decrease (2022: 0.5% increase)
Environmental incidents: No level 3 incidents (2022: zero level 3)
Valid
mining rights: 100% (2022: 100%)
Safety stoppage directives: four section 54(a) stoppages
(2022:
seven)
Affected SDGs
Our inputs (as at 31 December 2023)
Human capitalOur outcomes
To ensure we have the
right people to
drive us forward, we invest in, upskill and
offer our employees an attractive value
proposition, thereby increasing our overall
human capital. This investment extends to
potential future employees and the
communities who provide labour to our
operations.
We seek to preserve
the value of our
human capital by striving to achieve zero
harm. Although we have observed a
downturn in high-potential incidents (HPIs),
regrettably, we saw an increase in our lost-time injury frequency rate (LTIFR). To
address this, we initiated enhanced safety
campaigns across all our operations.
How we improve our outcomes
Employee and contractor fatalities: None (2022: one)
LTIFR: 0.07 (2022: 0.05)
Occupational health incident frequency rate (OHIFR): 0.15 (2022: 0.16)
Scarce skills retention: 4.5% (2022: 4.4%)
Affected SDGs
Our inputs (as at 31 December 2023)
Social and relationship capitalOur outcomes
We provide value to
our host communities
through our impact-at-scale initiatives, SLP
commitments, active stakeholder
engagements, attracting participation from
black-owned suppliers and our commitment
to the UNGC principles.
We recognise the
effects of our mining
activities on local communities, both during
operational periods and after a mine's
closure. We aim to mitigate this by ensuring a
just transition of our operations that supports
our communities' long-term sustainability.
How we improve our outcomes
Number of
community members who
benefited from our CSI: 41 867
(2022: 1.7 million)
Jobs created
for SLPs: 29
(2022: 83)
Community incidents: Four (2022: 13)
Top-quartile mining performer
in ESG governance structure ESG analyst
rating: 3.9 (2022: 4.0)
BEE
level: 2 (2022: level 3)
Affected SDGs
Our inputs (as at 31 December 2023)
Manufactured capitalOur outcomes
Our investment in our
portfolio of
quality assets to meet changing market
demands, particularly through an
expanded investment in green energy,
increases our manufactured capital. Minor
delays in our mega-projects were offset by
adherence to budget and the
commencement of crucial constructions,
signalling an effective management of our
manufactured capital.
Our early value
strategy seeks to
mitigate the transition risk to our portfolio
of assets.
How we improve our outcomes
Marginal timeline
overruns in mega-projects
Implementation cost
for mega-projects on
target
Construction
of the LSP started
Implementation of three mine expansion projects, securing an estimated ~85% of Matla
Coal Reserves
Coal
Resources at Matla provided additional pit room and the flexibility for mining teams
to alleviate implementation delays
Affected SDGs
Our inputs (as at 31 December 2023)
Intellectual capitalOur outcomes
We continue increasing
our
competencies across mining and energy.
Our focus on business resilience,
investments in innovation, digital
transformation and technology increases
intellectual capital.
Our collective
knowledge, skills and
resources positively impact human, social
and relationship, and manufactured
capital.
Improved core system
availability
reflects increased intellectual capital.
How we improve our outcomes
Core
system availability: 98.66% (2022: 97.94%)
Affected SDGs
Our inputs (as at 31 December 2023)
Financial capitalOur outcomes
Maintaining a robust
balance sheet and a
thriving coal business, our strategic focus on
core strengths and a leadership dedicated to
carbon resilience ensures a positive impact on
financial capital, fostering financial value.
Long-term strategic
investments
underscore our commitment to bolstering
strategy, enhancing efficiency, expanding
operations, and optimising value, ensuring a
resilient financial position despite year‑on‑year variations in financial metrics.
How we improve our outcomes
EBITDA margin: 35% (2022: 41%)
Return on capital employed (ROCE): 35% (2022: 45%)
Adjusted HEPS: 4 681 cents per
share (2022: 6 016 cents per share)
Market capitalisation: R71.4 billion (2022: R75.9 billion)
Affected SDGs
Our business model does not operate in isolation. It impacts and is impacted by our:
Report Index
IR