Availability, quality and affordability of capitals

We create sustainable value by managing the availability, quality and affordability of the capitals we use while taking a focused and adaptive approach to addressing resource constraints. By balancing immediate operational needs with long-term growth and impact priorities, we ensure resilience in a dynamic global environment as we pursue our strategy.

Continued availability, quality and affordability of capitals driving our strategy	Key capital dependencies	Strategic objectives addressing resource constraints	Balancing resource management across time horizons


Finite natural capital, including coal, metals and water, presents a growing risk to Exxaro, as resource scarcity can limit extraction and raise operational costs. Climate change further affects the availability of natural resources and exacerbates extreme weather conditions, which can impact our operations. At the same time, we are aware of coal's contribution to climate change. To ensure long-term financial and environmental sustainability, we must transition.			Navigating coal's environmental impact with South Africa's socio-economic needs Coal is a mainstay of South Africa's energy mix and economy. Bearing this in mind, we balance our diversification goals with South Africa's current energy requirements. Our approach ensures we address environmental impacts while contributing to grid stability, enabling us to support socio-economic development as we advance towards a low-carbon energy future.


Our strategic objectives to transition the business and make our coal, metals and energy businesses thrive are closely linked. Our coal business provides the financial capital needed to invest in technology and innovation, diversify into energy transition metals (including manganese) and grow our energy solutions business. By reinvesting financial capital into future-fit and critical capabilities, we address climate-driven resource constraints and sustain profitability.			Balancing short-term and long-term priorities when allocating capital Our impactful transition demands a careful balance between maintaining current operations and investing in future growth. Coal operations provide the financial resilience required to fund our growth priorities, and we allocate sustaining capital to these operations to ensure stable production and operational efficiency. We divert resources from coal expansion towards future-focused projects. This approach leverages the financial value of coal to fund our transition to a low‑carbon business, while ensuring we meet immediate operational needs.


To achieve our strategic objectives, we must attract, cultivate and retain the best available talent. A competitive labour market and skills shortages in critical areas, including engineering, IT, energy and geology, lead to rising talent management, engagement and retention costs, alongside posing a risk to growth. In response, we implement continuous relevant training, mentorship and development programmes to build the skills of the future. These efforts mitigate skills shortages, boost resilience, and support our transition to a sustainable, diversified business.			Maintaining operational focus while advancing diversification Becoming a diversified natural resources champion in Africa and beyond hinges on motivating, engaging and gaining buy-in from our people as we pursue our diversification goals. Performance scorecards and transparent leadership align daily operations with long-term diversification goals.


We seek to create value for all our stakeholders. To ensure resilience and create lasting value, our pathway to carbon neutrality builds on effectively managing natural, financial and human capital, with the constraints to these capitals outlined above.			Balancing growth ambitions with our carbon‑neutral target We take a careful approach to pursuing growth while striving for carbon neutrality, cognisant that acquisitions may temporarily increase total emissions. We evaluate acquisitions against our decarbonisation goals and incorporate carbon intensity and emissions metrics into our strategic framework.


Becoming a catalyst for economic growth and environmental stewardship depends on securing social and relationship capital with our communities, who grant us our social licence to operate. This social licence ensures access to critical resources like land, water and labour. Misalignment or transparency failures could disrupt operations and strategic goals.			Delivering community impact while enabling strategic resilience Developing local economies and advancing environmental stewardship are central to enabling strategic resilience. We carefully select meaningful, community-focused projects that align with our purpose, vision and strategic objectives. This approach creates lasting social impact, secures critical resources and builds a foundation of adaptability and sustainability.

How we define the six capitals is unpacked in our business model.