Exxaro Resources Limited
Integrated report for the year ended 31 December 2025
Our stakeholders influence and are affected by our decisions, performance and long-term sustainability. As such, we prioritise building stable, mutually beneficial relationships with them. Meaningful engagement helps protect our licence to operate and create shared value.
Our approach is guided by our stakeholder management policy and engagement procedure. These are strategy led and outcomes based, enabling us to build and maintain intentional and meaningful relationships. We regularly review our stakeholder universe to understand how our activities affect stakeholders and how their expectations influence our strategic delivery. Regular and ad hoc in-person engagements, supported by social impact assessments and surveys, inform our understanding of our social impact and stakeholders’ needs and concerns.
Exxaro’s board and executive committee assess engagement effectiveness. We monitor the effectiveness of engagement and quality of relationships through surveys, feedback platforms, structured review cycles and the outcomes of key interactions, which inform our adjustments and focus areas. These insights help strengthen mutual trust and reinforce our commitment to maintaining constructive, long-term stakeholder relationships.
We categorise our stakeholders into four key groupings and identify relevant engagement objectives and strategies as required.
Stakeholders include 21 297 Exxaro employees and 1 261 Cennergi employees.
Engagement purpose
We foster an engaged, resilient workforce by regularly communicating progress, co-creating solutions, developing capabilities, strengthening culture and trust, and ensuring open dialogue and employee feedback as part of our listening efforts.
How we engage
Through regular, multi-channel methods including structured meetings at various intervals, newsletters, roadshows, communication campaigns, digital communications and performance management processes. Our approach includes safety-focused initiatives, financial and operational feedback sessions, feedback on union meetings, active listening mechanisms that include employee surveys and anonymous reporting and feedback channels. We also support ongoing culture development through training and team journeys
Stakeholder expectations and issues
While employees feel proud to work for Exxaro, they have concerns regarding insufficient communication, which creates a lack of clarity and uncertainty. There is also a strong need to strengthen psychological safety to enable employees to speak up. Leaders are also encouraged to be more deliberate about listening to employees and take visible action on their feedback. This includes enhancing focus on employee development and growth to support our talent pipeline.
Detailed disclosure:
Engaging our employees, developing future-ready talent and remuneration report (ESG report)
Relevant material themes
Capitals impacted
Strategic objectives impacted
Stakeholders include existing and potential shareholders, investment analysts and other capital providers with current and future interest in Exxaro’s operational, financial and ESG performance, and long-term value creation. We also include ESG ratings agencies in the investor stakeholder group.
Engagement purpose
We proactively and consistently engage to build trust through transparency, provide clarity on our sustainable growth and impact strategy, capital allocation and long‑term value creation to support fair valuation of the business. We also engage to gather investor insights and feedback to sharpen our strategy.
How we engage
Through financial results presentations, FD’s pre-close messages, investor roadshows, annual general meetings, Capital Markets Day sessions, site visits and investor conference participation. We also conduct solicited meetings, participate in sell-side roundtables and gather feedback through investor perception surveys.
Stakeholder expectations and issues
Investors continued to seek clarity on Exxaro’s growth and diversification plans and progress on manganese assets acquisition, growth areas, capital allocation framework and ESG issues related to Exxaro’s transition. Company stability, organisational culture, employee morale and strategy during leadership transition were an area of interest. They are also interested in how we manage logistics and coal offtake risk, the sustainability of our coal business, as well as our capital allocation framework, shareholder returns and cash retention policy. Exxaro’s B-BBEE structure beyond 2027 was also top of mind.
Detailed disclosure:
Chairman’s statement and our Sustainable Growth and Impact strategy
Benchmarking our performance and remuneration report (ESG report)
Relevant material themes
Capitals impacted
Strategic objectives impacted
Government stakeholders include national, provincial and local government bodies that shape policy direction, socio-economic priorities and the broader operating environment in which Exxaro functions.
Engagement purpose
We build constructive partnerships with government by sharing strategic developments, collaborating on socioeconomic solutions, contributing to national development, shaping policy, managing country risks, and engaging on ESG performance and community/environmental commitments.
How we engage
Through one-on-one, in-person and virtual engagements, as well as dialogue platforms, events and sponsorships, and quarterly reports.
Stakeholder expectations and issues
Government expects businesses to minimise negative environmental impacts, manage water responsibly and overcome climate change issues, while planning for post-mine closure and contributing to job creation and broader community upliftment.
Detailed disclosure:
Relevant material themes
Capitals impacted
Strategic objectives impacted
Regulators include specialised regulatory authorities responsible for enforcing mining, environmental, water, safety and other compliance requirements across Exxaro’s operations.
Engagement purpose
We maintain constructive compliance relationships, engage on licensing, mine closure and environmental requirements, align on regulatory expectations and ensure transparent reporting and assurance. Our engagements assist with applications to secure our licence to operate and enable us to collaborate in shaping policies.
How we engage
Through one-on-one, in-person and virtual engagements, as well as dialogue platforms and quarterly reports.
Stakeholder expectations and issues
Regulators expect updates on Exxaro’s plans and strategies in addition to receiving submissions for licences and authorisations.
Detailed disclosure:
Our environmental stewardship and empowering people and communities (ESG report)
Relevant material themes
Capitals impacted
Strategic objectives impacted
Stakeholders include recognised labour unions that represent employees’ interests and participate in collective bargaining and workplace forums.
Engagement purpose
We aim to ensure constructive dialogue, fair labour practices, minimise labour unrest risks and maintain workplace stability through transparent engagement, formal structures and collaborative problem solving.
How we engage
We formally engage with unions that have recognition agreements and uphold their collective bargaining rights. We maintain positive employee relations through ongoing monthly engagements at BUs and quarterly engagements at an employer level (Exxaro Coal and Exxaro Coal Mpumalanga) and with Exxaro Resources Limited. These engagements are supported by issue-driven union and management discussions, including engagements on interim and annual results.
Stakeholder expectations and issues
Unions expect Exxaro to finalise issues that emanated from 2024 wage negotiations.
Detailed disclosure:
Relevant material themes
Capitals impacted
Strategic objectives impacted
Communities include those living in and around our operations who are affected by Exxaro’s activities and rely on us for social, economic and developmental opportunities.
Engagement purpose
We engender trust and strengthen our social licence to operate by sharing our strategy and purpose, responding to community needs, practising open communication, supporting economic upliftment and creating opportunities to co-create solutions.
How we engage
Primarily through stakeholder engagement forums and sessions with ecosystem partners.
Stakeholder expectations and issues
Ongoing issues include a lack of skills, limited access to procurement, funding and employment opportunities, and infrastructure development challenges.
Detailed disclosure:
Relevant material themes
Capitals impacted
Strategic objectives impacted
Stakeholders include domestic and offshore customers in Europe, Asia and other markets. Eskom is our largest customer, making up 71% of our coal sales (per product tonnes) (2024: 72%).
Engagement purpose
We engage with customers to understand their requirements and collaborate on environmental priorities, market trends, future opportunities and performance improvements.
How we engage
Through outbound marketing, email correspondence and meetings at different customer organisation levels. This is complemented by participation in marketing and industry conferences.
Stakeholder expectations and issues
Customers expect high-quality, reliable product supply and responsive service, supported by clear communication. They are also interested in how we address societal challenges, uplift our communities, minimise our environmental impact, build climate resilience and address climate change issues.
Detailed disclosure:
Relevant material themes
Capitals impacted
Strategic objectives impacted
Stakeholders include partners who render services and supply goods to execute strategic, transformational, ESG, security of supply and localisation of supply objectives at our operations.
Engagement purpose
We aim to build strategic, resilient relationships, promote local participation, support supplier development, and advance transformation and local economic development commitments.
How we engage
Through interaction via our vendor services helpdesk and direct, proactive engagements that focus on category management, capital sourcing and contract lifecycle.
Stakeholder expectations and issues
Suppliers seek long-term, sustainable relationships supported by active contract management, timely communication and collaboration to create shared value. They also expect increased local procurement and employment opportunities, and visible, meaningful demonstration of good corporate citizenship.
Detailed disclosure:
Relevant material themes
Capitals impacted
Strategic objectives impacted
Refer to the ESG report for more information, including the 2025 and 2026 stakeholder focus areas.
