Chapter 13: Provisions and contingencies

13.3 Provisions

		Group

		Environmental rehabilitation
At 31 December 2025	Note	Restoration Rm	Decommis- sioning Rm	Residual impact Rm	Other site closure cost Rm	Other Rm	Total Rm
At beginning of the year		2 148	356	1 017	120		3 641
Charge/(reversal) to operating expenses	6.1.3	214	(17)	13	1		211
Unwinding of discount rate	12.1.2	229	41	103	10		383
Change in provisions capitalised to property, plant and equipment	10.1.3	(1)	(32)				(33)
Utilised during the year	6.3.1	(99)	(2)	(41)	(21)		(163)
Disposal of subsidiary	8.3		(3)				(3)
Total provisions at end of the year		2 491	343	1 092	110		4 036
Non-current		2 312	342	950	77		3 681
Current		179	1	142	33		355

		Group

		Environmental rehabilitation
At 31 December 2024	Note	Restoration Rm	Decommis- sioning Rm	Residual impact Rm	Other site closure cost Rm	Other Rm	Total Rm
At beginning of the year		1 823	258	975	127	2	3 185
Charge to operating expenses	6.1.3	180	25	3	3		211
Unwinding of discount rate	12.1.2	201	32	60	11		304
Change in provisions capitalised to property, plant and equipment	10.1.3	2	41				43
Utilised during the year	6.3.1	(58)		(21)	(21)	(2)	(102)
Total provisions at end of the year		2 148	356	1 017	120		3 641
Non-current		1 999	355	908	97		3 359
Current		149	1	109	23		282

		Company

		Environmental rehabilitation
At 31 December 2025	Note	Restoration Rm	Total Rm
At beginning of the year		53	53
Reversal to operating expenses	6.1.3	(2)	(2)
Unwinding of discount rate	12.1.2	5	5
Utilised during the year	6.3.1	(1)	(1)
Total provisions at end of the year		55	55
Non-current		55	55

		Company

		Environmental rehabilitation
At 31 December 2024	Note	Restoration Rm	Total Rm
At beginning of the year		53	53
Reversal to operating expenses	6.1.3	(3)	(3)
Unwinding of discount rate	12.1.2	5	5
Utilised during the year		(2)	(2)
Total provisions at end of the year		53	53
Non-current		53	53

Funding

The NEMA Financial Provisioning Regulations, 2015 (FPR) have not yet been fully promulgated by the Department of Forestry, Fisheries and the Environment (DFFE). As of 1 February 2024, the transitional period has been extended indefinitely. Accordingly, all holders of mining or exploration rights or permits are required to continue complying with the financial provisioning requirements prescribed under the MPRDA until further notice.

The MPRDA allows for specific funding mechanisms to secure future rehabilitation obligations. These mechanisms include financial guarantees and approved environmental rehabilitation trust funds, established in accordance with the requirements of the Income Tax Act. Exxaro maintains guarantees for each mining operation, ceded to the DMPR, as well as approved environmental rehabilitation trust funds to ensure adequate financial provisioning for closure and post-closure activities.

The current funding excess compared to the present values of the environmental provisions is demonstrated as follows:

		Group

At 31 December	Note	2025 Rm	2024 Rm
Total environmental rehabilitation provisions		(3 926)	(3 521)
– Net present value of restoration and decommissioning costs		(2 834)	(2 504)
– Net present value of post-closure residual impact costs		(1 092)	(1 017)
Environmental rehabilitation funds in trust1		3 183	2 775
Guarantees ceded to the DMPR	13.4.1	3 503	3 552
Current funding excess		2 760	2 806

1 Includes both environmental rehabilitation trust funds classified as financial assets at FVPL and financial assets at amortised cost. Refer note 10.3.2.

The table below demonstrates the environmental rehabilitation cost in the event of immediate closure:

	Group

At 31 December	2025 Rm	2024 Rm
Closure cost: restoration and decommissioning	(7 561)	(7 046)
Post-closure cost: latent and residual impact1	(1 630)	(1 513)

1 Long-term post-closure water treatment cost included at the net present value.