Exxaro recognises the pressing challenges of poverty and inequality facing South Africa and the vital role businesses play in addressing them. By equipping local people with skills and resources and creating sustainable economic opportunities, we aim to create lasting, positive impacts that extend beyond compliance, ensuring mutual growth and shared prosperity for our business and the communities we serve.
The school hall was needed to address overcrowding from the influx of new learners at the school, as seasonal workers took up permanent residence in Lephalale during the construction of the Medupi power station and Grootegeluk expansion project.
During implementation, the team at Grootegeluk reviewed the scope for a more sustainable and fit-for-purpose spatial design that created an uplifting learning environment and aligned the budget accordingly. The result was an aesthetically appealing school hall with a stage featuring automated curtains, a backstage changing area and props storeroom – a first for Marapong. The hall, named in honour of the founding headmistress Martina Kekana, accommodates the need for separate junior and senior assembly points, at a maximum occupancy of 1 000 learners, and a block of four grade R classrooms.
To mitigate initial cash flow challenges, the contractor applied for and received an interest-free loan of R2 million from Exxaro's ESD committee, which ensured the project's timely completion.
To further promote a conducive learning and teaching environment, Exxaro Aga Setshaba NPC contributed R780 000 for the purchase of classroom desks, chairs for the hall and classrooms, whiteboards and air conditioners. Furthermore, the NPC funded the school's landscaping. The final total cost of the project was R20.38 million (excluding VAT).
The project was also used as a training ground within the construction and built environment, contributing to expanding skills and supporting suppliers and services in a secondary economy to mining – a critical component of transitioning beyond the coal economy.
Key project highlights
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Local companies involved included:
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CENNERGI
Our mission is to nurture confident, high-impact women who will inspire and uplift others in rural communities. Khazimla Gongqa, a young woman from Bedford and a former learner at Templeton High School, was captivated by airplanes and the art of flying from a young age. The Amakhala Emoyeni Community Fund Trust (AECFT) invested R250 000 towards her two-year pilot training programme at the Madiba Bay School of Flight in Walmer-Port Elizabeth. This contribution, along with support from her parents, is helping Khazimla pursue her dream and pave the way for others to follow.
On 16 November 2024, the AECFT donated wheelchairs to 13 beneficiaries in the Bedford community. This initiative aims to improve mobility and enhance the quality of life for individuals facing mobility challenges. Cennergi remains dedicated to empowering people with disabilities and supporting their journey toward greater independence.
To ensure our bursary recipients gain practical experience and avoid unemployment, the AECFT launched an internship programme. R30 000 was allocated for monthly stipends to support two education degree graduates, Siyahluma Majoka from Cookhouse and Romario Alexander from Somerset East. Between January and April 2024, they gained teaching experience at Cookhouse Secondary School and Wegie Olivier School. Both interns secured permanent employment at Templeton High School, starting in May 2024, showcasing the programme’s success in creating sustainable career opportunities.
While mining companies are legally obligated to implement social development initiatives, translating policy into meaningful, on-the-ground impact is often complex. We therefore take a multidimensional approach to community development, anchored in sustainability, stakeholder inclusiveness and collaboration, which is further supported by:
Accountability and responsibility
The SERC oversees community engagement and development, ensuring the implementation of our Social Impact strategy. The chief sustainable impact officer is responsible for integration and execution of the strategy across various executive functions, including people and performance, sustainable impact, investor relations and supply chain management.
Regulatory compliance
Exxaro's social impact compliance plans comply with the Mining Charter’s SLP requirements as well as MPRDA regulations. The DMRE oversees SLP implementation.
Beyond compliance
Our Social Impact strategy was designed to ensure lasting impacts beyond regulatory requirements. We partner with various organisations to implement initiatives that uplift our host communities. Projects include training farmers through the land use management programme, improving food security, developing ECD hubs and enhancing youth employability.
CENNERGI
Cennergi's internal community liaison officers and local community trustees oversee formal and informal community engagement with local communities, mayors, government departments and other groups such as local business forums and youth, among others.
Exxaro's Social Impact strategy is a proactive response to mitigate systemic social challenges by delivering large-scale, meaningful community development initiatives. The strategy addresses communities' longer-term needs and focuses on enhancing the quality and sustainability of education, skills development and job creation projects.
The strategy aligns with the social pillar of Exxaro's ESG imperative while incorporating environmental and governance elements to ensure sustainability, particularly in relation to energy transition considerations. Viewed through the lens of the SDGs, the strategy not only reduces poverty but also influences other areas of community wellbeing without requiring additional investment.
We achieve tangible impact in our communities through the three pillars of the Social Impact strategy:
CENNERGI
Exxaro's Social Impact strategy is supported by a range of funding structures that serve as conduits for community donations and sponsorships. Some funding is compliance driven, such as SLPs and the dtic scorecard, while other types of funding are value-add investments to optimise our social impact, such as funding from Exxaro Aga Setshaba NPC.
To further enhance the delivery of impact at scale, we are simplifying our funding structures to enable better coordination and enhance the financial efficiency of our impact efforts.
Exxaro group social investment structures include:
| Structure | Funding and purpose |
| Exxaro Chairman’s Fund (ECF) | Contributions from BUs and co-investors (suppliers) for the implementation of SLP projects and CSI projects respectively. |
| Exxaro Aga Setshaba NPC | Receives dividends from a 5% shareholding in Eyesizwe (30.81% Exxaro BEE shareholder). Funds are allocated to community development initiatives. |
| AECFT | Allocates 2.1% of windfarm revenue to socio-economic upliftment and ESD projects within a 50km radius. |
| Tsitsikamma Community Windfarm Trust (TWFT) | Allocates 2.1% of windfarm revenue to community projects within a 50km radius. |
| Amakhala Bedford and Cookhouse Trusts | Represent the 5% community shareholding in the Amakhala Project Company (2.5% each). |
| ESD programme | Funded by 3% of Exxaro’s NPAT as required by the B-BBEE codes, supporting black-owned suppliers (2% within Exxaro’s supply chain) and enterprises (1% outside the supply chain) through interest-free loans and grants. |
| Socio-economic development initiatives | Supported by 1% of NPAT as required by the B-BBEE codes, designated expenditure by the ECF and Exxaro Aga Setshaba NPC, funding discretionary projects, as well as donations to charitable organisations. |
| Exxaro Mountain Bike Academy | Annual funding supports youth by enabling them to complete schooling and develop skills for employment opportunities in sports and related fields. |
CENNERGI
The LSP committed to spend 0.1% of total construction and operation cost value on skills development, 0.1% of total construction and operational cost value on supplier development, and 1.5% of revenue on enterprise development and socio-economic development projects with local communities and municipalities.
We leverage Exxaro's land resources to create sustainable socio-economic value:
Read more about rehabilitated land transferred to farmers
We plan future SLPs in accordance with social impact principles and impact areas in consultation with communities and government when developing municipal integrated development plans. Through localised, in-sourced project management, we develop intellectual capital to support improvement in SLP delivery.
Matla
(2020 to 2025)
Electrical and road infrastructure as well as education projects to benefit 22 000 eMalahleni residents on completion in 2025
Thabametsi*
(2020 to 2024)
Sustainable sanitation infrastructure to be completed in 2025
Grootegeluk
(2018 to 2022)
The sports, arts and culture facilities in the Marapong precinct, and fencing, was completed in 2024. The soccer/athletics stadium with grandstands and an indoor multi-sports complex to be completed in 2025
Tshikondeni
(2018 to 2022)
Agricultural irrigation and skills development for commercial farming to be completed in 2025
Exxaro also integrates these principles into energy and mining operations, leveraging discretionary expenditure to complement regulatory requirements. For example, SLP-funded school infrastructure projects are enhanced by teacher development initiatives funded through discretionary channels.
| 2024 | 2023 | 2022 | |||
| Social investment projects for socio-economic development (SLPs and CSI) (excluding R12.67 million ESD programmes) | R161.79 million | R86.91 million | R181.31 million | ||
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| Combined investment by Exxaro and Cennergi in socio-economic and ESD programmes |
R187.29 million | R223.51 million | R205.81 million | ||
| CSI (excluding ESD programmes) | R117.87 million | R71.95 million | R167.93 million | ||
| Number of community members benefited | 71 525 | 41 867 | 1.17 million | ||
| SLP project investment (excluding R7.67 million ESD investment) | R43.91 million | R14.96 million | R13.38 million | ||
| Jobs created through SLPs | 51 | 29 | 83 |
Social investment projects in local economic development excluding ESD financial support (R161.79 million) (Rm)
Investment structure spend to support social investment projects,
including ESD (Rm)
Implementation of current five-year SLPs continues at BUs until completion as per our mining right commitments in Limpopo and Mpumalanga.
Exxaro spent R43.91 million on SLPs (2023: R14.96 million),
benefiting 140 000 people (2023: 50 630),
with projects that are still in progress potentially
benefiting 123 425 people (2023: 71 752)
| Completed | 2024 spend | 2023 spend | Beneficiaries | ||
| Nelsonskop Primary School hall and classrooms | 1 580 learners | ||||
| 11.36 million | R7.32 million | with 51 jobs created |
Implementation of our prevailing five-year SLPs experienced delays due to challenges with small enterprises and suppliers lacking relevant skills, resources and capabilities.
We are managing these challenges through ESD interventions aimed at building capabilities .The project teams provided a developmental approach through technical and administrative mentoring support to guide local contractors.
SLP project expenditure of R43.91 million (2023: R14.96 million) covered some projects in planning and implementation stages as outlined on the previous page. In 2025, the bulk of the projects to be completed will be in Grootegeluk and Matla. For Grootegeluk, the projects are the ECD hub, ESD programme, Marapong sportsfield and Thabametsi's Paarl sewer project. Matla projects include the Thubelihle substation, sheep shearing shed and hydroponics, Ekungeneni internal road rehabilitation and Bonginhlanhla Primary School's grade R block. Other projects that will be handed over are the Tshikondeni water and irrigation projects, and the Belfast road project.
The REIPPPP expenditure activities at our energy business performed better, despite the intensity of quarterly expenditure targets to maintain and fulfil licence to operate and related conditions. This business is required to spend 2.1% of quarterly revenue on socio-economic development (1.5%) and enterprise development (0.6%) activities in communities affected by its operations.
Project highlights
| 20 deserving learners were awarded bursaries to attend Curro schools until their matriculation | We have successfully connected 80% of the 34 selected schools in Lephalale and Mpumalanga to Wi-Fi networks and provided information and communications technology labs to 20 schools |
| We trained 172 ECD practitioners and 19 principals |
Benefiting over 2 700 ECD children through our play school programme in Lephalale |
We delivered the following high-impact initiatives through various partnerships:
Exxaro Aga Setshaba NPC spent R96 million
(2023: R26.93 million), while the ECF contributed
R18 million (2023: R27.43 million),
benefiting 72 106 community members (2023: 41 867).
These findings highlight critical gaps in funding, infrastructure and practitioner qualifications, which affect the sustainability and effectiveness of ECD centres. In response, Exxaro has realigned 70% of our education investment towards ECD initiatives, ensuring greater impact in early learning support, teacher training and infrastructure development. This shift may require adjustments to other education programmes, such as Curro bursaries, annual career expos, and matric academic camps, which will be carefully managed to maintain continuity in our broader educational impact.
Exxaro's Social Impact strategy in education is directly aligned with South Africa's 2030 ECD Strategy and the 2030 National Development Plan, which prioritise quality early learning as a cornerstone of national development. Addressing the country's numeracy and literacy challenges requires coordinated efforts between the private sector, government and relevant NGOs. We are committed to collaborating on strategic ECD interventions that enhance access, equity and quality learning experiences.
| To support this vision, Exxaro partnered with Cotlands in 2024 to implement a comprehensive ECD programme in Lephalale, benefiting: | To further strengthen play-based learning, the programme provided: | ||||
| 44 registered ECD centres | 2 736 children and 182 practitioners |
3 353 age-appropriate educational toys, delivered weekly on a rotational basis | 440 additional wooden toys and puzzles purchased at a value of R0.563 million | ||
| Beyond Lephalale, Exxaro also facilitated NQF level 4 training for 15 ECD practitioners in Mpumalanga, expanding the reach of our capacity building efforts. |
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| 11 additional centres, which achieved registration and bronze status | 172 practitioners, who received professional training, with 20 attaining NQF level 4 certification | ||||
| 44 principals provided with managerial skills and competence to implement effective and efficient processes and systems | |||||
| Aga Setshaba projects | 2024 investment |
| Supported grade 12 academic camps in Belfast and Delmas, and hosted a career expo in Belfast. In Delmas, we partnered with Go Maths, achieving an overall performance improvement of 8.5% for the circuit. One school improved by 22.9%, increasing its pass rate from 53.7% in 2023 to 76.6% in 2024. | R8.94 million |
| Provided ongoing support for food gardens in six schools in Tshwane, promoting food security and sustainable agriculture. | R0.89 million |
| Supported ECD initiatives at Amakhala Emoyeni and Tsitsikamma for a five-year period, including practitioner training to enhance early learning outcomes. | R21 million |
| Funded school sports development in the Eastern Cape through Arch Impact Accelerator NPC, encouraging youth participation in sports. | R6.8 million |
| Implemented the Talent Accelerator Tool, guiding learners in subject and career selection. The tool assessed grade 9 learners to assist with grade 10 subject choices and grade 11 learners in identifying career paths. 7 500 learners benefited across our Mpumalanga BUs. | R14 million |
| Built a ramp at Chris Hani Baragwanath Hospital in partnership with the Stanley Daphne Nkosi Foundation, ensuring the safe transfer of patients on stretchers during load shedding. | R4 million |
| Supported the implementation of an agripreneur programme on Exxaro-owned land in Lephalale in partnership with the African Japan Businesswomen NPC. | R25 million |
| Funded the Lepharo SMME incubation programme, which supports SMMEs over three years, connecting them with supplier opportunities at Exxaro and other sectors in Lephalale. The programme prioritises black women, people living with disabilities and youth-owned businesses in engineering, manufacturing and mining. | R5 million |
To further support quality education, we collaborated with the Lephalale local municipality to enhance water and sanitation infrastructure, while our municipal capacity building programme has developed technical competencies to improve long-term service delivery.
We are also engaging telecommunications providers to support digital connectivity for local education programmes, with discussions facilitated by the DoE. These efforts aim to enhance learning environments and ensure the sustainability of digital tools in education.
Exxaro has successfully completed a three-year municipal capacity building pilot programme in partnership with the National Business Initiative through its Technical Assistance, Mentorship and Development programme. This initiative aimed to strengthen institutional capacity within the Waterberg District and Lephalale local municipalities, equipping municipal leadership with the skills and technical expertise required to drive sustainable local development.
The programme focused on mentoring senior municipal employees, providing hands-on guidance in key areas such as PMO establishment, public works and infrastructure operations, wastewater management, electrification, spatial development and financial management. The pilot was a success, with 20 mentees sharing tangible evidence of how the programme positively influenced their work, demonstrating improvements in service delivery and governance efficiency.
The initiative also aligned with the Department of Cooperative Governance and Traditional Affairs's pilot of the District Development Model, reinforcing collaboration between business and government to drive regional development. While the mentorship phase was completed, several infrastructure projects (including road construction, power supply enhancements and wastewater treatment upgrades) are ongoing and will continue to support economic growth in the region.
The programme's handover ceremony, held on 13 May 2024, marked a significant milestone in public-private partnerships for sustainable development. The event was attended by Exxaro's chief sustainable impact officer, senior government officials, traditional leaders and key stakeholders, celebrating the success of this collaboration in fostering long-term municipal resilience.
We delivered the following projects through various investment structures:
We invested R85.83 million (2023: R40.4 million)
in community education to benefit
27 000 learners (2023: 25 000)
| Project | 2024 investment | 2023 investment | ||
| School infrastructure and resources | ||||
| Construction of Nelsonskop school hall and a block of classrooms (Lephalale) | R11.36 million | R8.85 million | ||
| Phase 4 of construction of grade R block at Bonginhlanhla School (eMalahleni) | ||||
| Whole school development programmes | ||||
| Learners’ academic programmes and school resourcing | R45.65 million | R21.93 million | ||
| Learners’ extracurricular activities | ||||
| Health and nutrition programmes | ||||
| ECD | R25.02 million | R1.22 million | ||
| Practitioner training and child development programmes | ||||
| Skills development | ||||
| Research and development | R3.81 million | R8.43 million | ||
| University chairs | ||||
| Total | R85.83 million | R40.42 million |
In total, R27.9 million (2023: R25.3 million) was spent on socio-economic development initiatives, including education, welfare, agriculture development and health.
CENNERGI
Invested R12.3 million in host communities (2023: R10.9 million)
reaching more than 2 423 (2023: 2 000) people and creating 104 (2023: 130) jobs
| 2024 investment | 2023 investment | ||||
| ECD support | Continued provision of resources for six crèches benefiting 185 children. Created 26 jobs with national qualifications framework level 2 training for practitioners and cooks. | R1.60 million |
R2.10 million |
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| Teacher stipends | Funded monthly stipends for nine (2023: eight) school governing body teachers and three information and communication technology tutors at Qhayiyalethu FET School, Paul Sauer High School, Kareedouw and Loerie Primary Schools in the Eastern Cape. | R0.92 million |
R0.44 million |
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| Bursary support | Supported 10 (2023: 12) students through bursaries coordinated by Masinyusane. | R1.40 million |
R2.50 million |
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| Internet connectivity | Provided free internet for 654 (2023: 654) AmaMfengu households to access procurement platforms, SMME funding and other opportunities, in partnership with Herotel. | R0.04 million |
R0.04 million |
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| Community hall renovations | Renovated Wittekleibos community hall, creating 10 (2023: 70) temporary jobs and empowering two (2023: seven) local SMMEs. | R0.40 million |
R1.00 million |
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| Grade 12 learner accommodation | Accommodated 87 (2023: 86) grade 12 learners from Qhayiyalethu High School at Paul Sauer High School hostel and funded monthly stipends for three (2023: three) school governing body teachers. | R1.50 million |
R0.71 million |
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| Youth jobs and literacy programme | Partnered with Masinyusane Development Organisation to hire and train 17 unemployed youth (2023: 16) to teach 181 (2023: 225) learners to read and write. | R0.66 million |
R0.31 million |
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| Global wind organisation training | Trained 10 youth in the Global Wind Organisation Basic Safety and Technical training programme in partnership with SP-Wind. | R0.54 million |
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| NNT women poultry expansion | Funded operational costs and construction of a second poultry house, enabling expansion from 1 620 to 4 000 egg layers. | R1.40 million |
R1.80 million |
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| Wittekleibos vegetable garden initiatives | Supported vegetable gardens through farm audits, market access and sourcing external funds in partnership with SE Holdings. | R0.89 million |
R0.31 million |
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| Business empowerment support | Supported Tsitsikamma Development Trust’s business empowerment programme benefiting trustees and area management committee members. | R0.25 million |
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| SMME soap and detergent manufacturing training | Collaborated with Chemical Industries Education and Training Authority and SAICA’s Hope Factory to train 10 local SMMEs in soap and detergent manufacturing. | R0.73 million |
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CENNERGI
We invested R15.5 million (2023: R14.4 million) in host communities, reaching more than
263 people (2023: 2 500) and creating 64 jobs (2023: 220). This decrease is due to reduced
Infrastructure development initiatives compared to 2023.
| 2024 investment | 2023 investment | ||||
| Bursaries | Provided bursaries for 14 students from Cookhouse, Bedford, Adelaide and Somerset East to acquire scarce skills at South African universities and TVET colleges (2023: 14). | R2.70 million |
R1.10 million |
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| Pilot training | Empowered Khazimla Gongqa to attend a two-year pilot training programme at the Madiba Bay School of Flight in Walmer-Port Elizabeth. | R0.25 million |
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| School refurbishment | Refurbished ablution facilities, installed a high-water pressure pump and added six 10 000L rainwater tanks at Cookhouse Secondary School, creating four jobs (2023: four), benefiting eight teachers and 246 learners (2023: 246 learners). | R0.46 million |
R0.61 million |
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| Teacher and admin stipends | Funded stipends for one assistant teacher and two administrative clerks (2023: six teachers, one admin clerk), creating four temporary jobs (2023: seven), benefiting over 1 000 learners (2023: 1 088). | R0.22 million |
R0.31 million |
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| Youth literacy programme | Hired and trained 10 previously unemployed youth to teach learners from Msobomvu Primary School and local ECDs to read and write. | R0.45 million |
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| Clinic renovation | Renovated Mzamomhle Clinic in Bedford, creating 13 temporary jobs, benefiting one local SMME and more than 1 607 households | R0.81 million |
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| School vegetable gardens | Established vegetable gardens at four schools (2023: four), benefiting 1 142 learners (2023: 1 961). |
R0.22 million |
R0.69 million |
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| Wheelchair support | Purchased wheelchairs for 14 beneficiaries residing in Bedford, Cookhouse, and Somerset East communities (2023: 14 beneficiaries). | R0.17 million |
R0.13 million |
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| Soup kitchen construction | Constructed a soup kitchen container for the Lixhase Women Cooperative, benefiting 60 elderly beneficiaries. |
R0.27 million |
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| Mini-solar farm construction | Built a 24kW mini-solar farm with a 35kW battery backup, benefiting 16 farmworker houses and 31 residents at Alstonfield Farm. | R0.96 million |
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| Community radio station support | Supported electrical works and operational costs for Ikhala FM Community Radio in Cookhouse, creating 21 jobs for DJs, presenters and managers. | R0.15 million |
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| Victim support centres | Supported construction of plinths and rainwater tanks for Somerset East and Cookhouse victim support centres. | R2.10 million |
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| Livestock farm support | Supported Laphumikwezi livestock farm, benefiting 10 beneficiaries (2023: 10). | R0.69 million |
R0.88 million |
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| Soap and detergent training | Trained 16 local SMMEs from Adelaide, Bedford, Cookhouse and Somerset East in soap and detergent manufacturing (2023: 16 SMMEs). | R0.52 million |
R0.82 million |
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| SMME support | Supported agriculture, baking, sewing, waste recycling and general trading SMMEs in partnership with SAICA Enterprise Development. | R0.71 million |
R1.40 million |
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| Sewing training and mentorship | Partnered with Nubain Renewables Energy Solutions to provide sewing training and market access for the Cookhouse Sophila Sewing Women Cooperative, benefiting four individuals | R0.96 million |
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| Ikamva-Lethu poultry project | Supported Adelaide’s Ikamva-Lethu poultry project with farm audits, market access and external funding, benefiting two farmers. | R0.21 million |
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| Sakhubuntu vegetable farm | Supported a farming project in Cookhouse, benefiting 100 people. | R0.89 million |
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| Rise & Shine bakery | Supported a small business in Adelaide, benefiting one SMME and creating 21 permanent jobs. | R0.12 million |
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Our primary focus in 2025 will be to continue:
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