Exxaro Resources Limited
Environmental, social and governance report for the year ended 31 December 2025
Exxaro’s supply chain plays a central role in advancing economic inclusion, strengthening host communities, supporting national transformation priorities and environmental objectives.
Through intentional green procurement, and preferential and local procurement, we help unlock opportunities for emerging businesses, contribute to sustainable livelihoods and responsible sourcing in line with our Sustainable Growth and Impact strategy.
SERC, RBR and investment committees
The executive head: commercial implements policies and guidelines for the execution of the supply chain strategy in support of the sustainable growth and impact objectives
The group manager: supply chain management leads and aligns execution of the procurement mandate to achieve SMME and ESG objectives
Our supply chain management strategy sets out how we apply strong governance, ethical standards and transformation priorities across our procurement activities. The strategy is supported by our supply chain source-to-pay and sustainability policies and aligns with the requirements of the B-BBEE Act, Mining Charter III and our SLP commitments.
Key elements of our approach include:
We demonstrate our sensitivity to the environmental and socioeconomic challenges facing South Africa by incorporating sustainability principles into our supply chain. This is underpinned by:
We prioritise procurement from B-BBEE compliant suppliers, with a particular emphasis on black women, youth and people living with disabilities. Our procurement targets include directing 12% of spend to black women-owned companies and 13% of total procurement spend to local SMMEs from host communities.
We support inclusive procurement by:
We also recognise that smaller suppliers often face cash flow constraints, which is why we offer preferential payment terms and early settlement of invoices. In exceptionally compelling cases, we provide advance payments or relax bank guarantee requirements to help SMMEs deliver on their contracts.
We promote ethical and sustainable sourcing by aligning our policies and controls to ensure that all suppliers meet Exxaro’s governance standards and commit to our supplier code of conduct and conflict of interest guidelines. Our processes focus on:
We incorporate green procurement targets into our supply chain performance to reduce our carbon footprint and support Exxaro’s environmental commitments.
We work with a range of partners to advance inclusive, ethical and supply chain sustainability practices. Collaboration supports shared learning, strengthens governance and enables broader socio-economic impact across our value chain.
Our key stakeholders include:
Noku Resources Proprietary Limited is a 100% black woman-owned enterprise founded in Rietspruit, Mpumalanga. After completing Exxaro’s business development programmes, the company transitioned from a dormant entity into a viable supplier in the mining sector. Exxaro’s structured ESD support has since enabled the business to scale, secure contracts and build long-term capability.
Noku Resources became operational after Nokulunga Dlamini completed Exxaro’s Sunrise Community of Practice programme in 2020, followed by incubation support funded through our SLP. These interventions strengthened the company’s governance, financial management and service delivery skills, enabling Noku to secure a five‑year industrial cleaning contract at Matla mine as well as a dust suppression sub‑contract at Seriti Power’s New Largo mine.
To further enhance operational capacity, Exxaro approved a zero interest ESD loan of R1.19 million in 2025 for the purchase of a 20 000-litre water bowser. This investment reduced reliance on leased equipment, supported contract execution and helped sustain 39 jobs filled entirely by local community members.
With a more resilient business model, Noku Resources is now expanding its services into logistics and conveyor maintenance, with projected turnover expected to exceed R10 million by 2026. Exxaro will continue to provide targeted non-financial support, including mentorship and financial management guidance, to reinforce sustainable growth.
Local vendors accounted for 14.6% of our total procurement spend, representing R1 795 million directed to businesses in host communities. This supported more than 511 local vendors, including 389 local SMMEs, who received R1 307 million in procurement spend.
| 2025 | 2024 | 2023 | ||
| Procurement spend directed to local SMMEs | R1.3 billion | R 1.2 billion | R1.4 billion | |
| Number of local SMMEs supported through procurement spend | 389 | 392 | 341 | |
| Value of local contracts awarded | R1.4 billion | R1.2 billion | R1.9 billion | |
| Number of local vendors awarded contracts | 70 | 38 | 31 |
B-BBEE preferential procurement development
Preferential procurement contributed a score of 26.8 out of 29 points towards our current achievement of B-BBEE level 2 recognition. This contribution is complemented by a 0.6% improvement on spend with EME and QSE.
Women and youth procurement spend
Exxaro achieved a procurement spend of 19% from black women-owned businesses, against the target of 15%. Procurement spend from youth-owned businesses was 13%, against the target of 5%.
Green procurement
Exxaro achieved 6.4% on overall green procurement performance against the target of 2%. The following measurement categories contributed to this outcome:
Ethical procurement
We enhanced our anti-corruption and transparency practices by:
As a mining right holder, Exxaro measures our inclusive procurement by assessing our performance against Mining Charter III for procuring mining goods and services from designated groups. Exxaro maintained the achievement of our target of 40 points (2024: 40) on the Mining Charter III in 2025.
Mining Charter III – services procurement performance (%)
| 1 | Procurement from entities with more than 25% black ownership and at least level 4 on the B-BBEE scorecard. |
| 2 | Procurement from entities with HDP as majority owners. |
| 3 | Procurement from entities with black women as majority owners. |
| 4 | Procurement from entities with black youth as majority owners. |
Mining Charter III – goods procurement performance (%)
| 1 | Procurement from entities with HDP as majority owners. |
| 2 | Procurement from entities with black youth as majority owners. |
2026
key actions
Our focus for 2026 is to increase effectiveness of procurement practices and contributions through targeted initiatives, including: