Availability, quality and affordability of capitals shaping our strategic decision making and value creation

Our ability to create sustainable value hinges on effectively managing the availability, quality and affordability of capitals while addressing resource constraints through a focused, robust and adaptive strategy. This involves balancing immediate operational needs with long-term growth and impact priorities, ensuring resilience in a rapidly evolving global context as we pursue our strategic objectives.

Continued availability, quality and affordability of capitals driving our strategy	Key capital dependencies	Strategic objectives to resource constraint	Balancing resource management across time horizons


Limited natural capital, exacerbated by climate change effects, presents a growing risk, as water and resource scarcity and extreme weather can impact our operations. These constraints limit extraction, increase operational costs and hinder our ability to generate financial capital for investment in sustainable growth. We are cognisant of coal's contribution to climate change, and we need to transition the business at speed and scale.			Navigating coal's environmental impact with South Africa's socio-economic needs As we accelerate the low-carbon transition, we remain mindful of South Africa's structural reliance on coal and our contribution to balancing energy requirements and grid stability. Our approach ensures we address environmental impacts and meet society's immediate energy requirements, enabling us to support socio-economic development while advancing towards a low-carbon energy future.



Our first two strategic objectives (transition at speed and scale and make our minerals and energy businesses thrive) are closely linked. The resilience of our coal business provides the financial foundation to invest in technology and innovation, diversify into energy transition minerals and expand our renewable energy solutions offering. By reinvesting financial capital into forward-looking, future-fit and critical capabilities, we can address climate-driven resource constraints and sustain profitability. This approach enables Exxaro to build a robust and adaptable business model that aligns with global climate goals, unlocking value for stakeholders in a rapidly evolving energy landscape.			Balancing capital allocation with sustaining and growth priorities Our low-carbon transition demands a careful balance between maintaining current operations and investing in future growth. Coal operations provide the financial stability required to fund renewable energy and energy transition mineral investments. Capital expenditure to maintain operations such as at Grootegeluk, Belfast and Mafube ensures stable production and operational efficiency, which are critical for supporting ongoing financial resilience. We are redirecting resources away from coal expansion towards future-focused projects like Cennergi's 68MW LSP at the Grootegeluk operation. This approach allows us to leverage the value generated by coal to fund our transition to low-carbon solutions, advancing our goal of carbon neutrality by 2050 while ensuring we meet immediate operational needs.




Human capital is vital to achieving our strategic objectives, particularly in the low-carbon future. Skills shortages in critical areas like engineering, IT, energy and geology pose risks to growth and increase talent management and retention costs. We address this by supporting science, technology, engineering and mathematics students and implementing training, mentorship and development programmes to build a future-fit workforce. These efforts mitigate skills shortages, enhance resilience, and support Exxaro's transition to a sustainable, diversified business. Securing talent and critical skills at a sustainable cost remains a key priority for long-term success.			Maintaining operational focus while advancing diversification Achieving a carbon-neutral portfolio by 2050 involves balancing current operational stability with mineral diversification ambitions. While coal generates the financial capital for this transition, success hinges on motivating, engaging and taking our people along as we navigate the change. Performance scorecards and transparent leadership align daily operations with long-term diversification goals, ensuring financial stability while driving future growth.



To ensure resilience and create lasting value, our pathway to carbon neutrality builds on effectively managing natural, financial and human capital, with the constraints to these capitals previously outlined.			Balancing growth ambitions with carbon-neutral targets Pursuing growth while striving for carbon neutrality requires a careful approach, particularly as acquisitions may temporarily increase total emissions. We evaluate acquisitions against our decarbonisation goals to ensure alignment. By embedding carbon intensity and emissions metrics into our strategic framework, we maintain a clear path towards sustainable growth while supporting global climate objectives.



Becoming a catalyst for economic growth and environmental stewardship depends on securing social and relationship capital. Built on trust with communities, this social licence ensures access to critical resources like land, water and labour. Misalignment or transparency failures could disrupt operations and strategic goals. Safeguarding these relationships is therefore vital to our Sustainable Growth and Impact strategy.			Delivering community impact while enabling strategic resilience Developing local economies and advancing environmental stewardship are central to enabling strategic resilience. Initiatives like SMME development programmes support community growth and strengthen our operations by fostering mutually beneficial partnerships. For example, enhancing local supply chains bolsters resilience against disruptions and ensures continuity in operations. By carefully selecting community-focused projects that align with our purpose, vision and strategic objectives, we create lasting social impact, secure critical resources and build a foundation of adaptability and sustainability. This approach ensures that Exxaro and the communities we serve thrive, reinforcing long-term resilience in a dynamic operating environment.