Creating post-mining economies

To ensure optimal land use and management, and create lasting positive social and economic impact, Exxaro focuses on the agricultural sector. All mined and rehabilitated land, or land no longer required for mining, is reallocated immediately for agricultural activities. This serves as an effective vehicle for supporting the development of agri-enterprises and local economic activity and sustainability in host communities.

Key measures of success include total land under management and in use or to be used by emerging farmers, increase in yields (crop farming), increase in revenue generated by farmers (crop and cattle farming), jobs (seasonal and permanent) created and retained, number of farmers trained and sustainable farmers who can operate independently and deliver on their offtake agreements.

Our MSP approach at a glance

Strategic objective	Rationale	Approach
We aim to effectively develop black emerging farmers, transforming them from subsistence to commercial farmers. We also provide access to resources that guarantee the commercial viability and sustainability of their agri-enterprises. We do this by creating market access opportunities and raising funding through development finance institutions and internally with Exxaro.	Providing holistic support will better position emerging farmers to commercialise their businesses, grow in a viable and sustainable manner, create jobs and improve economic activity for their families and communities. The support provided includes farmer and skills development, funding, land preparation, inputs, mechanisation, planting, harvest and post-harvest support, and access to markets.	The support provided to emerging farmers is preceded by identifying, assessing and profiling these farmers. Support includes needs assessments and implementation, business plans and financial models, crop and animal production best practices training and mentorship. We secure land leases, partnership with funders, agri-specialists and product offtakers on behalf of the farmers.

How we performed

At year end, the MSP supported 662 farmers, grouped into 36 projects across six provinces.

Province	Type of farming		Number of projects	Number of farmers
Limpopo	Crops		4	230
Mpumalanga	Livestock, grain, fruit and poultry		13	32
Gauteng	Essential oils		1	1
KwaZulu-Natal	Livestock, grain, forestry and essential oils		15	297
Western Cape	Honey		1	1
Eastern Cape	Livestock		2	101
Total			36	662

The MSP has 10 608.5ha under management. Key performance relates to the funding provided by Exxaro’s funding instruments towards supporting the farmers, and additional funding leveraged from development financial institutions. Most of the funding went towards pre-operational costs, such as compliance and infrastructure and input costs for operational farmers.