Integrating mine closure and rehabilitation

Strategy and management approach

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. Exxaro’s mine closure and rehabilitation policy, strategy and management standard define clear roles, responsibilities and metrics for consistent application across all BUs.

Key elements of our approach include:

• Developing and regularly reviewing mine-specific closure plans
• Proactively managing environmental effects to limit residual liabilities, particularly in relation to water quality, water retention and soil health
• Protecting rehabilitated areas from water ingress and other environmental risks
• Establishing financial provisions for all operational and closure sites, supported by annual assessments by sustainability, finance and independent specialists
• Updating and approving closure liabilities through structured internal governance processes
• Complying with all relevant legislation, including section 24P of the NEMA and MPRDA requirements
• Engaging with communities and regulators to align closure outcomes with future land use and post-mining economy opportunities

Integrated stages of mining and mine closure planning

We integrate land and liability management throughout the mining lifecycle to optimise social impact, stakeholder engagement and final land use after mine closure. Incorporating closure and rehabilitation planning into daily operations minimises final closure costs for each BU.

Monitoring, measuring and reporting		We apply a structured monitoring and reporting process to track rehabilitation progress and environmental liabilities across all BUs. Operations submit monthly reports on concurrent rehabilitation KPIs in line with the updated mine closure and rehabilitation standard, supported by advanced systems that consolidate data on rehabilitation volumes and liabilities. Regular environmental management programme assessments provide insight into performance and inform amendments to rehabilitation plans and closure objectives.
Post-mining land use		We manage Exxaro-owned land to support future operations, biodiversity offsets and sustainable post‑mining economic opportunities. Land parcels are allocated for long-term agricultural use, community upliftment or operational protection. We actively manage operational land to prevent land grabs and safeguard access for future mining and rehabilitation activities. We support emerging farmers with funding, mechanisation, inputs and training delivered through three-year contracts with an external service provider through the minerals succession programme (MSP). Land under lease is used for diversified agriculture, including maize, soybean and livestock farming. Internal and external audits assess the success of land transfers.
Long-term agricultural leases		Available land for emerging farmers and communities: Mpumalanga Strathrae: 6 474 ha (seven farmers on 4 495ha for crop and cattle farming) Sheepmore: 740ha (two farmers on 740ha for cattle farming) KwaZulu-Natal Durnacol: 1 090ha (110ha leased to one female farmer for cultivation) Limpopo Lephalale: 296ha (112ha leased to three entities for intensive vegetable farming)
Donations and community upliftment		Where appropriate, we donate land to achieve social impact or transfer it to government for redistribution. We support local government resettlement processes and livelihood restoration initiatives such as the Phumlani agri-village.
Infrastructure and assets		We assess existing infrastructure such as power lines, water pipes, buildings and dams to determine whether it can support sustainable post-mining land use. Infrastructure with long-term value is retained and incorporated into final closure environmental management plans and transferred to appropriate entities for ongoing management. Redundant but serviceable assets, including vehicles and furniture, are also retained where they can support social impact programmes and are transferred to suitable partners for use.
Financial provisioning		We conduct annual reviews of mine closure and rehabilitation obligations, updating plans and cost estimates based on environmental management programme assessments. These reviews ensure that financial provisions for concurrent and final rehabilitation are up to date and reflect operational conditions. Financial provisions for rehabilitation costs and effective mine closure are calculated in terms of Government Notice R1147 (GNR1147) regulations. Independent auditors provide additional assurance through biannual site visits, document reviews and environmental liability audits. Their assessments identify optimisation opportunities that can reduce long‑term closure costs. Exxaro’s environmental rehabilitation fund, supported by bank guarantees, addresses any financial provision shortfalls. We manage the fund using asset-liability modelling to ensure that investment growth aligns with projected liability profiles. An external specialist supports the trustees by advising on appropriate investment structures. Current implementation includes income-focused instruments benchmarked against cash and treasury rates, inflation-linked growth products and equity-based investments where volatility is actively managed through portfolio adjustments.

Community resilience		We support community resilience throughout the closure process by aligning our approach with Exxaro’s Social Impact strategy and SLP commitments. This ensures that socio-economic activity remains viable beyond mining and that communities are equipped to participate in post-closure opportunities. Key elements of our approach include: Preparing host communities for post-closure land use by developing skills for commercial, agricultural and infrastructure-related activities Supporting local job creation through programmes such as the MSP, which provide employment linked to rehabilitation and agricultural initiatives Implementing communication plans that keep communities informed about closure timelines, impacts and opportunities Engaging communities, government bodies and NGOs to ensure closure expectations are understood and to support a responsible, liability-free transition Prioritising community safety, health and long-term wellbeing throughout the closure process
Employee development		We focus on preparing employees for the transition beyond active mining by: Providing portable skills training, mentorship and agricultural training to support alternative employment options Delivering specialised training that enables employees to implement and manage mine closure plans effectively Using structured communication plans to ensure employees understand closure timelines, requirements and opportunities available during the transition
Mining plan		Concurrent rehabilitation is fully integrated into operational planning and tracking to support consistent progress across all sites. Each BU maintains a five-year conceptual concurrent rehabilitation plan that sets measurable targets, outlines schedules and includes the associated budgets. These plans help prevent backlogs that could increase rehabilitation liabilities and ensure that managers can implement rehabilitation strategies without cash flow constraints.
Safety and risk control		Health and safety at mines undergoing closure is as important as at operational sites and the same standards, policies and procedures apply across all operations. Closure environments can present heightened security risks and safeguarding of infrastructure and assets is essential to protect people, maintain compliance and prevent environmental harm. We monitor these risks closely and implement appropriate controls to ensure safe and orderly closure activities.
Environmental stewardship		We rehabilitate Exxaro’s disturbed footprint, including buildings, roads and mining areas, in line with approved environmental management programmes and the final land use plan. This rehabilitation includes ongoing monitoring and maintenance to support long-term ecological stability. Our biodiversity and conservation activities focus on maintaining harmony between operations and the natural environment, such as at Manketti game reserve. Biodiversity management plans guide invasive alien plant control and the enhancement of sensitive ecosystems to meet environmental licence conditions. Removing invasive species improves water quality, vegetation cover, runoff and the health of indigenous vegetation, strengthening the ecological resilience of rehabilitated areas.

Stakeholder engagement

We engage a broad range of interested and affected parties to ensure that closure planning supports socio-economic continuity and helps create the conditions for responsible, liability-free closure.

Our approach includes:

• Identifying stakeholder needs and expectations to guide closure practices
• Working with host communities to build skills for commercial and infrastructure-related activities after closure
• Aligning closure planning with community expectations and SLP commitments
• Engaging communities, government and NGOs throughout the closure process to ensure transparency and shared understanding
• Collaborating with partners such as SE Holdings to support post-mining economic initiatives, including new engagements in KwaZulu‑Natal and agricultural projects in Limpopo and Mpumalanga
• Supporting government through compliance with reporting requirements and participation in regulatory engagements
• Working with the Minerals Council to provide inputs on related legislation and policy development
• Drawing on guidance and benchmarking from Coaltech and the Land Rehabilitation Society of Southern Africa, including participation in its annual conference
• Assisting BUs to achieve liability-free closure within appropriate timeframes

2025 performance

		2025	2024	2023
Land rehabilitated (ha)		2 639	2 325**	2 132
Land disturbed (ha)		9 739	9 002**	11 028
Operational guarantees (Rm)		3 504	3 552	3 552
Unscheduled closure costs (Rm)		9 191	8 773	9 327
Returns on Exxaro and Matla rehabilitation trust funds including fair value adjustments (Rm)		408.1	240	244
Active closure sites*		3	4	4

* Tshikondeni, Durnacol and Hlobane.
** Restated: The definition of land disturbed and land rehabilitated was changed in a new management standard during 2025, which resulted in the statement of these figures.

Refer to the databook for historic data related to the table above.

Rehabilitated land increased by 313.8ha due to Belfast and Matla rehabilitated areas being signed off. An overall increase of 739ha in land disturbed compared to 2024 is due to additional areas mined.

Improving our mine closure and rehabilitation management