Exxaro Resources Limited
Environmental, social and governance report for the year ended 31 December 2025
Improving energy efficiency reduces diesel and electricity consumption, lowering emissions while strengthening cost competitiveness and operational resilience. It is a critical enabler of a secure, sustainable energy future for our employees, host communities and customers.
Our structured approach to reducing energy consumption aligns with our Climate Change Response commitments and Sustainable Growth and Impact strategy.
SERC and RBR committee
Oversees implementation and monitoring of energy management plans and performance across the group
The executive head: sustainability oversees implementation of strategy and group-wide alignment with decarbonisation and energy efficiency objectives, supported by the general manager: technical support and optimisation and the group manager: engineering
BU managers are accountable for achieving energy management objectives, while engineering and optimisation teams support initiative planning, performance tracking and site-level implementation
We manage energy performance through our energy and carbon management programme, supported by a group energy efficiency and management standard that clarifies responsibilities and standardises processes across our operations. This framework guides how we identify, plan and implement initiatives that reduce diesel and electricity consumption and improve energy intensity performance at each BU.
Key elements of our approach include:
Energy and carbon management is governed by internally developed standards and frameworks:
We reduce diesel and electricity use by optimising plant performance and improving the efficiency of our mobile fleet and fixed infrastructure. High diesel reliance in the mining fleet remains a core driver of emissions, informing our focus on operational efficiency, payload management and targeted fuel-saving interventions.
Collaboration between engineering, sustainability, technology and innovation teams ensures that opportunities are identified, tested and embedded to lower overall consumption.
Read diesel and electricity reduction initiatives for more details.
We set energy intensity targets for each BU through annual current-state assessments and opportunity scoping reviews that inform site-specific efficiency goals. These targets form part of the group STI scheme and guide operational focus across the year.
We track energy performance monthly against a baseline calculated from prior year consumption and production data. This provides a steady-state reference that enables each BU to identify deviations, implement corrective measures and optimise the ratio of energy consumed to tonnes handled.
Our KPIs for energy efficiency are:
Under the energy management programme, progress on our operational initiatives, which are geared towards improving our efficiencies, are tracked and monitored towards supporting Exxaro’s goal of improving operational efficiencies and supporting our decarbonisation objective of achieving carbon neutrality by 2050.
We benchmark our performance against other mining houses and recognised standards to maintain best practice and ensure readiness for evolving regulatory requirements, including ISSB-aligned disclosures. We also contribute to national benchmarking processes through the DMPR’s review of the National Energy Efficiency Strategy to 2030.
Exxaro leverages data-driven technology to support real-time visibility, accurate reporting and informed decision making to help BUs achieve their energy intensity targets.
We optimise energy management across our operations by:
Many low-carbon technologies for heavy mining equipment remain pre-commercial, making digital optimisation and data-driven decision making essential for managing operational constraints.
We build internal capability to support effective energy management across our operations:
Monthly forums at each BU further support behavioural change by sharing performance insights and maintaining focus on energy intensity goals.
Grootegeluk completed a detailed group technology concept study in 2025 to identify credible, cost-effective ways to reduce diesel and electricity intensity at one of our most energy-intensive operations. The study produced a sequenced decarbonisation pathway that supports near-term efficiency gains and prepares the site for future low-carbon technologies.
What the study delivered
The study provides Grootegeluk with a credible, evidence-based plan to reduce energy intensity while maintaining operational stability. By identifying early wins and phasing in more complex technologies appropriately, the pathway strengthens decision making and directs resources to initiatives with the greatest impact. The digital backbone underpinning the work embeds consistent measurement and verification, enabling disciplined execution and transparent reporting.
Together, these elements position Grootegeluk to deliver sustained efficiency improvements and contribute meaningfully to Exxaro’s longer-term decarbonisation goals.
| Year-on-year | Year-on-year | |||||
| Electricity and diesel consumption | 2025 | change (%) | 2024** | change (%) | 2023 | |
| Electricity (MWh) | 562 366 | (1.19) | 569 129 | (3.69) | 590 931 | |
| RoM (kt) | 180 489 | (9.18) | 198 742 | 4.43 | 190 311 | |
| Electrical energy intensity (MWh/kt) | 3.116 | 8.95 | 2.86 | (8.04) | 3.11 | |
| Diesel (kl) | 94 832 | 1.91 | 93 051 | 11.27 | 83 629 | |
| Diesel energy intensity (l/t) | 0.525 | 12.42 | 0.467 | 6.38 | 0.439 | |
| * | Performance includes 100%-owned operational mines only. |
| ** | 2024 figures were restated to exclude Mafube JV. |
Refer to the databook for more details on our electricity, diesel, RoM and intensities.
Our primary energy sources remained split between electricity, which accounted for 36.61% (2024: 37%), and diesel at 63.39% (2024: 63%). Overall energy consumption increased by 0.71% to 5 529 435GJ (2024: 5 488 093GJ).
Electrical energy intensity increased by 8.95% (2024: 8.04% decrease), while diesel energy intensity increased by 12.42% (2024: 6.38% increase). The group’s energy intensity performance of 30.761GJ/kt outperformed our 2025 target of 32.589GJ/kt.
The Mpumalanga BUs, including Belfast, Matla and Leeuwpan, met their STI energy intensity targets in 2025. Grootegeluk mine achieved an energy intensity performance of 41.551GJ/kt compared to its target of 39.255GJ/kt.
We strengthened the consistency and credibility of energy management across the group through the introduction of our group energy efficiency and management standard and its supporting energy initiatives tracking, reporting and monitoring guidelines. These tools establish a unified approach for planning, measuring and verifying efficiency initiatives across all operations.
The new guidelines set mandatory minimum requirements for the lifecycle management of energy and decarbonisation initiatives, including registration, baselining, measurement and verification, reporting and assurance. This replaces the previously fragmented site-level processes that tracked progress inconsistently across BUs.
We require all BU energy reduction initiatives to be registered with traceable baselines and supported by documented measurement and verification plans. This ensures that savings claims are evidence based, measurable and auditable. Standardised KPIs and reporting templates enable consistent performance tracking across operations, while the strengthened evidence base improves confidence in disclosed energy and emissions reductions and supports independent verification.
This approach enables informed investment decisions, faster replication of proven interventions and better readiness for evolving reporting requirements.
We established the forum to strengthen coordination of energy management and provide a structured platform for our sustainability, engineering, technology and innovation teams. The forum helps teams align on priorities, share performance insights and resolve cross-functional challenges. This integration ensures that our energy-related decisions reflect operational realities and strategic requirements.
To build capability across operational teams, we introduced an internal energy management masterclass. The programme equips employees with practical skills to identify, assess and implement energy reduction opportunities within their areas of responsibility.
2026
key actions
Our focus for 2026 is to embed the new group energy efficiency and management standard into our culture and BU operations. This includes: