Exxaro Resources Limited
Environmental, social and governance report for the year ended 31 December 2024 

Investing in talent

A talent and learning strategy is more than just a framework, it serves as a roadmap designed to attract and retain fit-for-purpose talent by cultivating an inclusive and human-centred experience, thereby empowering employees to grow, innovate and contribute meaningfully to our business.

Showcasing the development of future leaders in action

Exxaro's professional in training (PIT) programme is a flagship initiative designed to develop future leaders by equipping graduates with the skills and experience necessary for success in the energy and mining sectors. The programme combines structured on‑the‑job training with mentorship and technical development, offering participants exposure across various operational and functional areas of the business.

To enhance its impact, the PIT programme underwent a transformation in 2023, with phase 1 of the reimagined experience implemented in 2024.

Key enhancements include benchmarking against leading graduate programmes, conducting coach training and revising the development plan to foster greater inclusivity. The PIT brand was elevated through storytelling initiatives and participation in career fairs. We also optimised reporting on bursar data by developing Power BI dashboards.

Looking ahead to 2025, our focus will be on cross-functional mentoring, digitising the onboarding process, introducing a PIT of the Year award and implementing initiatives to improve graduate interview skills. These enhancements will ensure PIT participants are well equipped to transition into leadership roles.

PIT graduates play a critical role in building Exxaro's internal talent pipeline, with a growing proportion of participants being women and black South Africans. The PIT programme addresses skills shortages and improves diversity in engineering and mining disciplines, further strengthens our leadership culture and advances transformation objectives.

Our talent management approach at a glance

Supporting our people to achieve their full potential is integral to our employee value proposition and the delivery of our strategic objectives. Our approach ensures that we have the right skills, at the right time, in the right place. Our approach is anchored in:

Accountability and responsibility

The SERC oversees talent-related strategies and performance. Line managers and management teams at BUs are responsible for overseeing talent management, supported by our people and performance department.

Regulatory compliance

Exxaro submits annual workplace skills plans and training reports to the MQA, Mining Charter compliance to the DMRE and B‑BBEE scores to the dtic.

Beyond compliance

We spend above the required threshold for training and development under the Skills Development Levies Act.
In addition, we:

  • Support SMME development through the Powering Knowledge platform
  • Assist youth in establishing cooperatives in partnership with the Small Enterprise Development and Finance Agency (Sedfa)
  • Create employment opportunities through Yes4Youth programmes
  • Opened a bursary pipeline for people living with disabilities
  • Recruit interns with disabilities from local communities

Our talent management strategy focuses on strategic workforce planning, talent development, leadership capability, compliance training and succession planning to address skills shortages and build a robust leadership pipeline. These efforts ensure Exxaro's workforce is equipped to deliver on strategic objectives while adapting to evolving operational demands.

We achieve this through:

Measuring and monitoring performance

Talent management KPIs, tracked annually on our strategic dashboard, help identify and prepare internal candidates for key positions while addressing identified skills shortages

Education and training

We provide classroom-based training, e-learning platforms, simulators, virtual reality, webinars and masterclasses to broaden access to learning

Innovation and technology

Our people and performance and digital value chain teams regularly update training programmes to reflect technological advancements, including adapting to 4IR on MyNexxt, Power BI dashboards and our data science language curriculum

Our leadership team supports operational excellence, streamlining internal policies by integrating related policies into overarching frameworks, reducing complexity and improving employee access. Additionally, we are reimagining career development across the group as part of our learning and development strategy, with delivery planned for 2025/6 to enhance employee experiences.

CENNERGI
Cennergi prioritises internal recruitment of high-potential employees to retain talent and grow management expertise. Employees receive STIs based on individual and company performance. Cennergi allocates 1% of its payroll to employee training and development. Line managers conduct performance appraisals twice a year to determine training and development needs.

Talent management strategy

Exxaro's talent management strategy aligns with our Sustainable Growth and Impact objectives, considering global and local trends and the evolving needs of our energy and minerals businesses. This strategy supports organisational inclusivity, future capability development and a healthy, engaged working environment. We leverage technology and supportive leadership to achieve these goals.

By focusing on these talent management strategic objectives, we aim to provide resources beyond commodities, supporting Exxaro's vision of delivering critical solutions for a sustainable, low-carbon future.

These objectives are supported by talent management functions and our culture and values are at the centre of our strategy's success. Our progress against these objectives is unpacked below.

TALENT AND LEARNING STRATEGY


How we performed

People development training expenditure     2024 2023 2022
Total training (Rm)     402 358 331
Total training (% of total payroll)     6.75 6.22 6
Training of black people (Rm)     363 318 275
Black people trained (% of total payroll)     6.08 5.54 5

R402 million or

6.75% of our payroll spent on training and development

Community development, such as portable skills training

R9.4 million

Support for Youth Employment Service to train and develop youth from our host communities

R28 million

(2023: R358 million or 6.22%)
(2023: R7.6 million)
(2023: R22 million)

Job-related skills development (functional and technical training)

R200 million

Bursaries, training professionals, internships, learnerships and skills programmes

R173 million

Developing targeted employees in management programmes, leadership roles, postgraduate studies and support functions

R11 million

(2023: R193.5 million)
(2023: R126.6 million)
(2023: R10.5 million)

Progressing against our talent management strategy

Use of digital platforms

Our digitalised environment is a critical success factor in executing our strategy and supports the creation of a self-learning culture. By leveraging technology, we expand access to learning opportunities, reach a broader audience and enable group-wide career growth.

To further enhance career development, we are developing a capability system tool to guide employees in capacity building and leveraging various learning and development opportunities. While implementation was delayed in 2024 due to system integration challenges, the tool is on track for deployment in 2025.

108 employees registered for open-source online courses, including LinkedIn, Udemy, Coursera (2023: 1 033), achieving 8% utilisation in 2024 (2023: 70%)

6 788* training interventions were completed on the MyNexxt e‑learning platform as part of our iNNOVAXXION strategy and aligned with connect2NEXT and smart workforce initiatives (2023: 109 745)

99 395 compliance-related courses were completed through MyNexxt (2023: 91 309), ensuring safety, health and environmental compliance

The Powering Knowledge e-learning platform provided learners participating in Exxaro Yes4Youth initiatives with self-learning opportunities, achieving 94% utilisation in 2024 (2023: 63%)

Courses and number of interventions     2024 2023
ESG and risk    
Climate change     35 5
Anti-bribery and anti-corruption     727 9663
Confidentiality     103 246
DEI courses such as workplace harassment     612 196
Exxaro Leadership Way     15 8
Risk management framework     20 32
Implicit and unconscious bias     61 116
Performance        
Performance management     37 95
Information technology and cyber        
Cybersecurity     146 2248
Microsoft Office     144 136
Adapt to 4IR     126 270
Managing innovation     3 5
Management        
Beyond budgeting management thinking     33 4

*   Most of the courses we offer on MyNexxt are voluntary, and we only enforce the 18-month anti-bribery and anti-corruption course. This, combined with Exxaro's operational effectiveness process, resulted in a lower usage of the platform this year.

Enhance employee experience

We enhanced our internal processes to improve performance achievement, career and succession planning, leadership development and alignment with SLP commitments.

To foster a culture of empowerment, line managers are no longer required to approve employment applications from their team members, enabling employees to freely pursue internal growth opportunities. Additionally, our employee referral reward programme incentivises employees to contribute to talent acquisition by offering rewards for successfully referred candidates who are appointed.

Internal career mobility     2024 2023
Applications for internal growth opportunities (Paterson DL band and higher)     3 646 1 598

Build relevant future skills and competencies

We proactively address talent and critical skills shortages and changes when employees are promoted, rotated, resign or retire.

  • 102 employees attended various leadership programmes (2023: 306) and 153 enrolled in management programmes (2023: 162)
  • 52 employees enrolled in the University of Cape Town Graduate School of Business Women in Leadership programme (2023: 30)
Leadership programmes     Occupational
level
 
Number of employees
2024 2023
Leading programme     E band   0 8
Leadership in connected economies     Paterson DM/ DU band   18 26
Essential leadership     DL level   33 21
Launchpad leadership     below Paterson DL   19 127
Nano sessions     Paterson C band   32 94
Women in leadership         52 30

Our learning interventions are structured appropriately to support improved employee capabilities through formal studies in traditional programmes and to ensure new capabilities support renewable energy, digitalisation and the new world of work.

We also provide university-accredited short courses in competencies to support automation, neuroscience, change management, data analytics and digital business strategy.

Our talent management strategy supports capability development and succession planning for management and specialist roles in response to new ways of working and global workforce trends.

Formal studies     Total enrolled Black people Black women
Postgraduate1     14 13 3
Undergraduate1     10 9 3
New skills short courses2     20 18 9

1

South African universities.

2

South African and international universities.

Build a talent pipeline representative of economically active populations

We are dedicated to advancing employment equity by focusing on the development and promotion of employment equity candidates. Exxaro prioritises vacancies for black people, with a particular emphasis on black women and people with disabilities. Succession planning clusters play a critical role in preparing black employees for immediate or medium-term progression to higher-level positions.

Key progress includes:

  • D band representation: 23.8%RA (2023: 32.5%)
  • E band representation: 27.9%RA (2023: 25.3%)
  • B-BBEE bursary element: improved to 0.69% (2023: 0.44%)

RA Reasonable assurance provided.

Our women in mining initiatives focus on growing this talent pipeline through:

  • Development and executive coaching programmes
  • Participation in mentorship training (47% of employees trained in 2024 were women, compared to 69% in 2023)
  • Enabling young women in our communities to plan their careers through programmes like Edumap, which helps matriculants improve their maths and science results
  • Employment equity plans to increase black women's representation in feeder schemes and the talent pipeline
  • Dedicated forums, including the Women in Mining and Women in Leadership programmes
Women talent pipeline     2024 2023
Female employees in the workforce     33% 31.2%
Female PIT graduates     65% 61%
Black women full-time bursars in engineering and mining disciplines*     61% 61%
Women in learnership and internship feeder schemes     52% 55%
Number of black women sponsored at TVET** colleges for access to formal learnerships     20 11
* South Africans at local universities.
** Technical and vocational education and training.

We are also strengthening our talent pipeline by supporting the education and empowerment of people with disabilities. This effort aligns with our DEI strategy and employment equity targets. Our recruitment policy is integrated with both the DEI and people with disabilities strategies, ensuring a holistic approach to inclusivity.

People with disabilities     2024 2023
Black South Africans with disabilities supported at local tertiary institutions (full-time studies)     30 (50% women) 25 (56% women)
Internships for people with disabilities appointed (all black people)     3 (67% women) 23 (52% women)
CENNERGI
In accordance with its aim to further the objectives of diversity and inclusion in the energy sector, Cennergi recruited three new employees in 2024, of which 66% were female (0% black women) and 33% were male (0% black men).

Build a talent pipeline for energy and minerals businesses

We align our talent pipeline with Exxaro's strategic direction, focusing on addressing skills shortages in science, technology, engineering and mathematics fields. To achieve this, we identify full-time students in core disciplines such as engineering, information technology, geology and business support services, prioritising candidates from our host communities.

Feeder schemes     In
training
Black
people
Black
women
Engineering learners     639 620 305
Miner learners     36 36 23
Operator learners     231 229 116
Internships     124 124 74
Business administration learners     38 38 35

Key professional training outcomes include:

56

full-time bursaries in engineering and mining disciplines

(2023: 54)

R9.3 million

full-time bursariess to address engineering skills shortages

(2023: R1.1 million)

20

matriculant supported in Edumap maths and science bridging programme

(2023: 10)

21

full-time bursaries for tertiary studies awarded to Edumap students and youth from Exxaro's communities

(2023: 12)

Our three-year PIT programme provides a structured blend of academic theory and hands-on workplace experience, preparing graduates to meet current and future business needs. Each participant is guided by a technical coach and gains exposure to various operations. Alongside technical training, leadership and management development form a key part of the programme. Graduates who meet accreditation requirements are supported to qualify as professional engineers.

PIT programme     2024 2023
PIT programme graduates in the talent pipeline     82 85
Percentage of black South Africans     94% 96%
Total programme cost     R64 million R55 million

In 2024, Exxaro adapted to new occupational qualifications developed by the Quality Council for Trades and Occupations, following the expiry of legacy artisan trade qualifications in 2023. New learners were enrolled under these updated frameworks, ensuring alignment with evolving industry standards.

Establish healthy strategic partner relations

Strong partnerships enable Exxaro to build competencies that align with our strategic objectives and address national socio-economic priorities, such as youth unemployment, within our host communities.

Through the submission of annual workplace skills plans and training reports to relevant government entities, Exxaro receives grants that enhance our training and development programmes. In 2024, we received R55.3 million in grants due to the successful submission of the MQA Workplace Skills Plan and Annual Training Report (2023: R50.5 million).

Our partnerships with Yes4Youth service providers SME.TAX and Lularides are prime examples of our commitment to empowering young entrepreneurs.

SME.TAX

Since 2024, SME.TAX has supported youth employment and skills development by recruiting 50 participants for a two-year programme, which will conclude in April 2026.

The success of the programme will be measured by youth finding employment or starting their own cooperatives, which will contribute to small business ventures. Since its inception, the SME.TAX programme has had a positive impact, with our participants finding employment or entrepreneurial opportunities after their training.


Lularides

Since April 2024, Lularides trained 250 youths in motorcycle operation, equipping them with learner's licences and delivery driver certifications.
Key achievements include:

  • Training milestones: 200 participants completed motorcycle training
  • Most of the youths were placed as delivery drivers with companies like Mr D in Centurion, Soweto, Middelburg, Witbank and Secunda

Enhancing talent bench strength

Talent acquisition

To expand talent pools, Exxaro advertises opportunities on virtual platforms, attends career fairs at accredited universities and collaborates with disability units at institutions such as the University of Pretoria, Wits University and North West University. To support agile and responsive talent acquisition, we implemented an applicant tracking system in 2024. This platform streamlines internal and external recruitment by enabling current and prospective employees to easily explore, apply for and track job opportunities.

Succession planning and leadership development have enabled numerous internal promotions, highlighting the effectiveness of Exxaro's talent pipeline.

Middle management (Paterson D band)

  • 52 external candidates were appointed (2023: 16), of whom 51 are black people and 40% black women
  • 115 internal appointments were made (2023: 43), comprising 86% black people and 40% black women

Senior management (Paterson E band)

  • Five external black candidates were appointed (2023: three), of whom 100% are black women, alongside 86% internal black candidates

We recorded a talent bench of 27.9% for E Band (2023: 25.3%) and 23.8% for D Band (2023: 32.5). Exxaro's organisational effectiveness process impacted our talent bench scores as follows:

  • The number of employment equity candidates declined within these bands
  • The creation of new positions
  • Succession planning ratings changed
  • Clusters that will be delimited after the process concludes were removed
  • The appointment of new employees who were rated as not plotted in the 2024 succession planning cycle

It is envisaged that the 2025 succession planning cycle will contribute to a positive movement in employment equity representation on the D and E bands.

 

Mentorship programme

Exxaro's 24-month mentorship programme is critical for developing a diverse leadership pipeline. No training was conducted in 2024 due to our organisational effectiveness process (enabling the successful realignment of roles across the organisation), which resulted in the decline in participants. We anticipate an improvement in participants for the 2025 financial year.

17 total participants

88% black people

47% black women

(2023: 126 participants, 89% black, 58% black women)

17 mentees trained (2023: 100)

 

Women in mining

Recognising the vital contributions of women in mining, we aim to attract and support women across all levels of the business. All BUs have championed inclusivity through their women in mining committees and transformational leadership initiatives, creating a supportive environment for women. We also prioritise developing internal talent and broadening the skills base of women within mine communities to drive local employment and achieve employment equity goals.

Adult education and training

Interest in adult education and training remains low due to the age profile of our workforce and lack of interest. To address this, we offer portable skills training in practical areas such as welding, plumbing and civils to support the development of entry-level employees.

Adult education and training equips employees with the skills to achieve national qualification framework level 1 (equivalent to grade 9), enabling functional literacy for health and safety communication, further learning opportunities and access to higher-level roles within the organisation.

      2024 2023 2022
Investment (Rm)     0.97 0.95 1.57
Employees enrolled     1 0 4
Community members enrolled     61 125 52

Our primary focus in 2025 will be:

  • Providing training on artificial intelligence (AI) capabilities using open-source and customised software
  • Expanding the accessibility and variety of learning opportunities through e-learning facilities
  • Introducing the EduMine platform to offer mining experience in Exxaro technologies and prepare employees for future merger and acquisition (M&A) opportunities
  • Offering Bookboon resources, including downloadable books, podcasts and videos for online development