JOHANNESBURG (miningweekly.com) – As at the end of December, the social investments of Exxaro Resources amounted to R2.1-billion amid the bettering of lives and livelihoods being declared core by this black-controlled Johannesburg Stock Exchange-listed coal-mining and renewable-energy business, which finished 2024 with 5%-higher group revenue of R40.7-billion and a mine safety record of zero fatalities for 28 month in a row. (Also watch attached Creamer Media video.)

Despite challenging external factors, Exxaro’s 2024 coal exports shot up by 37%, operating wind assets lifted revenue beyond R1.4-billion by generating 725 GWh of electricity, net cash moved up to R16.3-billion, and the board declared a final dividend of R8.66 a share for the year ended December 31.

The green energy earnings margin was consistent at a remarkably high 80%; the 68 MW Lephalale solar project at the Grootegeluk coal mine was on track to slash Scope 2 emissions by 161 000 t/y from mid-2025; wind assets project financing would be fully settled by 2031; and there was huge pride in the company receiving the top employer award, clinching a three-year wage agreement with coal-mining unions, uplifting safety, and on the socioeconomic front, boosting small business, education, post-mining economies and farming.

The business recently announced a partnership with G7 Energies at the Karreebosch Wind Farm, which has secured an agreement with Northam Platinum Limited to supply 140 MW of power to its mines over 20 years, the company stated during its presentation of results on Thursday, March 13.

While 2024 operational performance for the 2024 financial year demonstrated resilience, the attention given by Exxaro to the manner in which it is addressing unemployment, enhancing education, enabling infrastructure development to empower host communities, and driving inclusive economic growth, reflected to its credit.

Koppeschaar displayed a slide bearing the words “sustainable impact is at the core of our business” as he revealed that Exxaro last year supported 562 small, medium-sized, and microenterprises (SMMEs) though local procurement from black SMMEs as part of a series of enterprise and supplier development initiatives.

“This is integral to our purpose,” said outgoing acting CEO Riaan Koppeschaar, who will continue in his role as FD when Ben Magara takes over as incoming CEO on April 1.

“We’re proud that group social investments amounted to R2.1-billion,” Koppeschaar added during the presentation covered by Mining Weekly. (Also watch attached Creamer Media video.)

On the education front, he outlined how the company’s involvement in early childhood development programmes benefited more than 2 700 children at more than 40 registered institutions, with 180-plus teachers receiving professional training.

Very impressively, the company’s minerals succession programme, involving 10 609 ha of land under management, provided more than R63-million in funding towards 36 projects across six South African provinces.

The projects were made up of 662 farmers, 53% of whom were women and 24% youth.

Also very proudly, in January of 2025 Exxaro handed over the newly built Martina Kekana school hall. It's a block of four classrooms and associated external upgrades to the Nelsonskop Primary School in Lephalale, benefiting more than 1 500 children as well as teachers.

This was at an investment of more than R20-million that also boosted the local economy through local company participation and job creation.

Owing to mine life having a finite horizon, Exxaro is reimagining the sustainability of its communities to ensure that they continue to thrive beyond the life-of-mine by creating post-mining economies.

This is done through a mineral succession programme, which grants emerging farmers access to rehabilitated and surplus mining land for agricultural and commercial ventures.

CHAMPIONING DIVERSITY, EQUITY, INCLUSION

Exxaro is also championing diversity, equity and inclusion and has maintained its value proposition as an employer of choice.

As such, Exxaro has again won recognition from the Top Employer Institute as a 2025 top employer and has gone beyond compliance in achieving six years of employment equity target achievement.

The new three-year coal wage agreement with labour unions was hailed as a demonstration of “strong relations built on trust and mutual respect”.

Described as a big milestone is the signing by anchor shareholder Eyesizwe to maintain 30.8% of Exxaro until December 2027 so that Exxaro keeps its status as one of South Africa's largest listed, black-empowered mining companies.

“We’re very pleased about that,” Koppeschaar stated.

Exxaro is also committed to safeguarding biodiversity through targeted initiatives, including species relocation, wetland rehabilitation, invasive plant management, and implementing conservation projects that protect the native flora and fauna across its operations.

DECARBONISATION ROADMAP

The company’s decarbonisation roadmap, now achieved, is seen as being business critical in that it maps out essential short-, medium- and long-term decarbonisation approaches to enable carbon neutrality.

“We’re decarbonising today to secure a sustainable tomorrow,” said Koppeschaar, adding that Exxaro would continue to review and update the roadmap regularly in line with the evolving technological and innovation landscape.

From a 2022 base, it is targeting a 40% cumulative reduction in Scope 1 emmissions in 2030 and a 75% reduction in Scope 2 emissions in 2040, which will be achieved through renewable-energy initiatives, as well as equipment and fleet optimisation technology, to contribute to a meaningful energy transition in South Africa.

Exxaro, with a combined executive experience of more than 300 years, is advancing a growth strategy into minerals that power a clean world.

“We continue with our approach of very diligently assessing opportunities aligned with our investment criteria."

Exxaro's Cennergi green energy solutions business owning 80% of the shared capital in Kareebosch as well as 50% in the asset management company increases Cennergi’s total gross capacity to more than 437 MW and diversifies its customer base.

“With this deal closed, Cennergi is also well on track to achieve its target to be a robust energy solutions business with managed capacity of 1.6 GW by 2030,” Koppeschaar noted.

“Exxaro’s success lies in its operational excellence. In 2025, we will continue to drive safety, remaining vigilant to prevent workplace incidents and fostering a proactive safety culture that safeguards lives and enhances operational resilience.

“We are currently in the process of refreshing our safety strategy, and we will launch this refreshed strategy at our CEO Safety Summit next month.

“With a portfolio of quality assets and through operational excellence and our effective strategic initiatives, such as our early value strategy, our market to resource optimisation, and our product mix initiative, we will continue managing and optimising cost to maintain our strong margins.

“We will maintain our collaborative approach in responding to the changing policy and the regulatory environment with agility, and now that we've also achieved the development of our decarbonisation roadmap, the next step is to operate and operationalise it within Exxaro and our operations.

“Guided by our clear capital allocation framework, we will maintain strong capital discipline while creating value for all our stakeholders.

“The most important topic is our people. So, as we look into the future, our aspiration is to remain an employer of choice and remain steadfast in that ambition, we recognize that at the heart of the achievement are the excellent people of Exxaro.

“By fostering a supportive and inclusive work environment, we will empower our people to reach their full potential so that they will be able to continue to deliver results and secure the feature of Exxaro,” Koppeschaar added.

Exxaro acting chief coal operations manager Mervin Govender outlined the company’s reduced water use and 26.2% rehabilitation achievement.