We take a holistic, integrated approach to mine closure and rehabilitation*, balancing environmental stewardship, social wellbeing and financial sustainability. Our commitment to environmental rehabilitation also creates opportunities to support our employees and communities through sustainable land use alternatives.
Showcasing our response in action
Exxaro is advancing the rehabilitation of Durnacol discard dump 7, a legacy site from historical mining activities at Durnacol. As part of our commitment to responsible environmental stewardship, this project is restoring the site through comprehensive rehabilitation efforts that improve land stability, enhance water management and support long-term ecological recovery.
Dump 7 comprises a combination of burned and partially burned discard, along with coal slurry co-disposed over time. The rehabilitation strategy includes final profiling of the dump, the construction of contour benches and the covering of intra-bench slopes and plateau areas with stabilising materials. Additionally, stormwater management infrastructure, including down chutes and concrete energy dissipation structures, is being installed to control runoff and minimise erosion. By integrating advanced rehabilitation techniques and strategic land management, we aim to restore the integrity of the Durnacol site while contributing to sustainable land use practices in the region.
The project was initiated in October 2022, with a contractor appointed to execute the rehabilitation in 2023. To date, 75% of the work has been completed, including the covering of 19.2ha of the dump's top surface and the partial installation of stormwater chutes using repurposed concrete railway sleepers. The project continues to progress according to plan, with complete rehabilitation scheduled for September 2025.
| * | Mine rehabilitation restores the post-mined landscape to the intended post-mining land use. |
Our mine closure and rehabilitation plans integrate land management with ongoing operational planning, aiming to minimise closure costs and optimise sustainable post-mining land use. Execution of this approach is driven through:
Our sustainability managers, supported by the rehabilitation team and on-site environmental specialists, led by the chief sustainable impact officer, oversee the implementation of our policy and practices. BUs are accountable for concurrent rehabilitation and have site-specific rehabilitation procedures to follow.
We manage our environmental liabilities and land rehabilitation in compliance with all relevant legislation, including section 24P of the NEMA. Financial provisions for rehabilitation costs and effective mine closure are calculated in terms of Government Notice R1147 (GNR1147) regulations. Our reporting aligns with MPRDA requirements.
Exxaro applies international rehabilitation standards, including Coaltech protocols, and innovative environmental solutions. Through collaborations with partners such as the Impact Catalyst, we work to create sustainable post-mining economies in host communities and aim to transfer 90% of rehabilitated land to emerging farmers by 2026.
Our comprehensive approach to land management, mine closure and concurrent rehabilitation is outlined on the following page. This approach focuses on supporting sustainable outcomes through:
| Identify impacts and rehabilitation areas |
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| Adjust tariffs and escalation |
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| Separation of immediate and LoM cost |
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| Calculate and prioritise concurrent liability |
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| Schedule concurrent rehabilitation |
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Exxaro developed a new mine closure and rehabilitation strategy this year, underpinned by our updated policy and management standard changes. The strategy, policy and management standard changes progressing through board approval for early 2025, align with our Sustainable Growth and Impact strategy. The new strategy outlines specific roles, responsibilities and metrics for tracking rehabilitation progress across all BUs. A key focus of the updated strategy is on final land use outcomes, enhancing social impact after closure, and integrating environmental and social sustainability into land rehabilitation efforts.
Our approach is closely aligned with Exxaro's Social Impact strategy, integrating principles that support employee and community resilience both during and after mine closure.
Key areas of focus include equipping employees with portable skills for alternative employment, establishing effective communication plans and delivering specialised training for managing closure plans.
We prioritise safety, health and job creation in impacted communities, ensuring ongoing socio-economic activities and identifying stakeholder needs to guide our closure practices. Our commitment extends to preparing host communities with skills for commercial and infrastructure use post-closure, while maintaining alignment with SLP commitments to improve quality of life.
Through active engagement with communities, government bodies and NGOs, we strive to ensure a responsible and liability-free closure that meets community expectations and supports a sustainable transition.
We aim to incorporate land and liability management into daily mine planning to reduce final closure costs and enhance post-closure land use for each operation.
Regular environmental management programme performance assessments guide amendments to rehabilitation plans and closure objectives.
We remain committed to transferring 90% of rehabilitated post-mining land to emerging farmers in local communities by 2026.
To manage Exxaro-owned land effectively and efficiently while supporting current and future operations, biodiversity offsets and social impact initiatives, we categorise land parcels as follows:
Through our minerals succession programme (MSP) we empower farmers by providing access to funding, mechanisation, inputs and training under a three-year contract with an external service provider.
Land is diversified for agricultural use, including dryland maize, soya bean cultivation and livestock farming). Internal and external audits evaluate farm transfer success.
Areas designated for operations are actively managed to protect against land grabs and ensure our sustainability.
Redundant but serviceable assets, such as vehicles and furniture, are retained if they can support social impact programmes and transferred to appropriate entities for implementation
We conduct annual reviews of our mine closure and rehabilitation obligations, with plans and closure objectives updated based on environmental management programme performance assessments. Cost estimates for concurrent and final closure rehabilitation activities are evaluated and adjusted. External auditors carry out biannual site visits, document reviews, and environmental liability audits, identifying potential rehabilitation alternatives to reduce long-term closure liabilities.
Exxaro’s Environmental Rehabilitation Fund, along with bank and insurance guarantees, supports new developments and addresses financial provision shortfalls. The fund’s assets are managed in terms of asset and liability modelling, ensuring alignment with site-specific risks, returns, and liabilities. The fund’s goal is to maximise investment growth relative to liability costs. Trustees are supported by an external specialist who provides technical expertise to assess and recommend suitable investment structures. Current implementation includes:
Programmes such as the MSP are in place to address health and safety issues, as well as employment opportunities for communities.
Each BU maintains five-year conceptual concurrent rehabilitation plans, schedules and associated budgets to:
Health and safety standards at mines undergoing closure are as rigorous as those at operational mines. Exxaro applies consistent health and safety policies across all its operations, including those in closure. Security risks remain a significant challenge during the closure process, requiring continuous safeguarding of infrastructure and assets to ensure safety and compliance.
Exxaro’s disturbed footprint, which encompasses buildings, roads, and mining areas, is rehabilitated in accordance with the environmental management programme and aligned with the final land use plan, including provisions for ongoing maintenance and monitoring.
2002
2015
20162020
2021
2023
2024| 2024 | 2025 | Total | ||
| Land rehabilitated (ha) | 2 609 | 2 132 | 2 000 | |
|---|---|---|---|---|
| Land disturbed (ha) | 10 794 | 11 028 | 9 624 | |
| Operational guarantees (Rm) | 3 552 | 3 552 | 3 606 | |
| Unscheduled closure costs (Rm) | 8 773 | 9 327 | 8 427 | |
| Returns on Exxaro and Matla rehabilitation trust funds including fair value | ||||
| adjustments (Rm) | 240 | 244 | 19 | |
| Active closure sites* | 4 | 4 | 4 |
* Tshikondeni, Durnacol, Hlobane and Strathrae.
Refer to the databook for historic data related to the table above.
Rehabilitated land increased by 477.27ha due to Matla rehabilitated areas being signed off and handed to external farmers for utilisation. Although this led to an overall decrease in land disturbed compared to 2023, new areas opened for mining in 2024 increased land disturbed by 243.75ha.
Concurrent rehabilitation continued at all active sites, with substantial investment allocated to backfilling mined-out areas. While exceeding the initial budget, this proactive approach allowed for more extensive rehabilitation. However, challenges such as equipment limitations, regulatory delays and extreme weather conditions impacted the timely completion of backfilling activities. To optimise future backfilling processes and reduce environmental impact, we aim to improve planning, resource allocation and stakeholder collaboration.
Government indefinitely postponed the expected NEMA financial provisioning for mine closure regulations in February 2024. This delay creates legislative uncertainty in financial provisions for environmental rehabilitation. In the interim, Exxaro follows GNR1147 for liability calculations.
We completed the rehabilitation of 477ha of land at Matla mine, which was transferred to local farmers for agricultural use. The land is used for cattle and crop farming and supports local economic activity.
The design phase for a new Grootegeluk dump is underway and expected to be finalised in 2025. We have actively engaged with government authorities to finalise the rehabilitation designs for Grootegeluk dumps 4 and 5. Productive discussions with the DWS confirmed the requirements for the new designs. Exxaro appointed specialists to lead the design process, ensuring that our rehabilitation plans meet regulatory standards and follow environmental best practices.
Exxaro progressed on rehabilitation projects at Fripp, Zwartkops and Hoornbosch. At Fripp, headgear was dismantled, and the shaft sealed, with further physical rehabilitation scheduled for 2025 following plan approval. The Zwartkops site was secured, with a comprehensive rehabilitation plan under development for completion in 2025.
Rehabilitation at Tshikondeni mine progressed well, with 80% of planned work completed by year end and finalisation set for May 2025. The discard dump showed early signs of natural vegetation regrowth, prompting a detailed assessment of soil and vegetation to guide
further enhancements. At Durnacol, the design for dump 3 was approved, preparing the site for rehabilitation activities to begin in 2025. Exxaro appointed a service provider to implement a water treatment solution to treat the decant from the closed mine at Durnacol, with the plant operating since November 2024. This initiative aims to address the long-lasting issue of acid mine drainage and contributes to the protection of local ecosystems and water resources.
Work is also progressing at Hlobane, where the design phase is set to complete in the first half of 2025. A water treatment solution is under review by the DWS as part of our integrated WUL application, and we appointed a specialist to explore alternative options for optimal environmental performance.
Our primary focus in 2025 will be:
IR