Exxaro Resources Limited
Exxaro Resources Limited is a South Africa-based diversified resources company with a coal business and acquisitive growth prospects in minerals and energy. Exxaro is among the top five coal producers in South Africa.
We have a clear purpose that extends further than our operations: to Power Better Lives in Africa and Beyond. From grooming the industry leaders of tomorrow to our tireless pursuit of zero harm and sustainability initiatives, we strive to empower local communities and make a positive impact on the world.
Listed on the JSE Top 40 Index and the Socially Responsible Investment Index, we are proud to be an organisation that is recognised for its innovation, ethics and integrity.
Coal is the core commodity of our business, with assets including Grootegeluk – the only coal-producing mine in the Waterberg region and one of the largest integrated mining and beneficiation operations, globally. However, we understand the importance of fossil fuel opportunities and changing global imperatives, and are determined to adapt and redefine our strategic direction as we enter a new decade to 2030.
To live up to our promise of serving all our stakeholders – shareholders, employees, communities, partners, and society at large – we will also continue to work together to drive sustainable development and value creation.
To produce resources that Power a Clean World. Powering Better Lives in Africa and Beyond is our purpose.
This is what drives our ambition to provide resources (beyond just commodities) that are critical in a low-carbon world.
Our Sustainable Growth and Impact strategy enables us to deliver on this vision and our success lies in the strength of organisations’ our culture and values. Through our strategy, we aim to transform Exxaro in a systematic and integrated manner into a diversified company that will transition from a coal base to a minerals and renewable energy solutions business that will thrive in a low-carbon future.
Guided by our purpose to Power Better Lives in Africa and Beyond, we understand that we cannot grow sustainably without deliberately creating a positive impact in the environment and communities we serve. We remain committed to responsibly maximising the value of our coal assets whilst we play an active role in creating a future which enables our vision – “Resources Powering a Cleaner World.”
We are on a journey to support a sustainable South Africa through an unwavering focus on energy security. Our people and communities inspire every decision we make and every action we take. We achieve this by responsibly investing in Resources Powering a Clean World.
As we grow, innovate and adapt as a business, we inch closer to realising our purpose of Powering Better Lives in Africa and Beyond. Coupled with this critical responsibility, we also aspire to promote a cleaner way of living by balancing our mining and energy portfolios.
Our business activities align with our strategy of strengthening our resilience and ensuring we deliver sustainable shared-value through a robust portfolio in a low-carbon economy.
Our purpose guides our activities. This ensures that we continue to provide critical resources that support South Africa's sustainable economic and social development. This is done in a way that will accelerate change and ultimately safeguard the value we create for all our stakeholders over time. We are committed to making a deliberate positive impact through our physical outputs and the way we do business.
Our activities include:
-Responsible mining:
Delivering resources to support the country's energy needs.
Responsible environmental stewardship.
- Renewable energy solutions:
Delivering renewable energy products and services.
Building a leading global renewable energy solutions business by
- Strategising for future relevance and the Just Transition:
Developing a roadmap for a Just Transition to a low-carbon economy.
- Diversified equity investments:
SIOC (iron ore).
Black Mountain (zinc).
OUR COMMODITIES
Where We Operate
With the country's highest resource concentrations, Mpumalanga, Limpopo and the surrounding regions have been at the epicentre of local coal mining industry for decades. it's no surprise then that this is where Exxaro's mines can be found.
Exxaro created renewable-energy company Cennergi in 2012 and built two wind farms with a combined capacity of 229 MW in the Eastern Cape in 2016
OPERATIONING MINES:
1) GROOTEGELUK
2) MATLA
3) BELFAST
4) LEEUWPAN
5) MAFUBE (50% OWNERSHIP)
6) FERROALLOYS FERROSILICON PLANT
7) CENNERGI
MAFUBE (50% OWNERSHIP)
The Mafube mining complex is a 50/50 joint operation between Exxaro and Thungela Resources Limited. It is situated 30 km east of Middelburg, Mpumalanga, and 20 km north of Eskom's Arnot power station.
Mafube is an opencast coal operation, producing seaborne traded thermal coal, as well as coal for Arnot power station. The coal is conveyed and processed at the Mafube coal handling and process plant.
Resources (inclusive):111Mt measured; 10Mt measured
Mining Method:Open-cut
Reserves:32Mt proved; 23Mt probable
Run-of-mine:5Mt
GROOTEGELUK
Situated 20 km from Lephalale in South Africa’s Limpopo province, this open-pit mine employs 3 200 people and produces 26Mtpa final coal products, using a conventional truck and shovel operation. This mine has an estimated minable coal reserve of 3 261Mt, and a total measured coal resource of 4 719Mt, from which semi-soft coking coal, thermal coal, and metallurgical coal can be produced.
Some 22Mt of annual production is power station coal, transported directly to Eskom’s Matimba and Medupi power stations on a 7 km conveyor belt in terms of the existing supply contract. An additional 1,5Mtpa of metallurgical coal is sold domestically to the metal industry and others on short-term contracts.
Grootegeluk produces 2,5Mtpa of semi-soft coking coal, the bulk of which is railed directly to Mittal SA under a long-term supply agreement. Approximately 1Mtpa of semi-soft coking coal and thermal coal is exported through Richards Bay Coal Terminal or sold domestically.
Resources (inclusive):2532Mt measured; 1422Mt measured
Mining Method:Open-cut
Reserves:1730Mt proved; 898Mt probable
Run-of-mine:54Mt
MATLA
Situated some 20 km west of Kriel in Mpumalanga, South Africa, this mining complex comprises three mines that produce 14Mtpa of power station coal with a workforce of over 2 500 permanent employees and contractors. Matla is a fully mechanised underground mine employing continuous mining and short wall methods.
Its thermal coal is supplied to Eskom’s Matla power station in terms of a cost-plus agreement, reviewed annually, with a variable return payable by Eskom for any excess tonnage produced. The mine has a coal reserve base of 224,3Mt and a resource base (inclusive) of 752Mt.
Resources (inclusive):694Mt measured; 123Mt measured
Mining Method:Underground
Reserves:148Mt proved; 22Mt probable
Run-of-mine:6Mt
BELFAST
The Belfast Coal mine is situated in the Mpumalanga province, 55 km East of Middelburg and 20 km South-West of Belfast. The mine forms part of the Witbank coalfield on the southern side of the N4 highway.
Belfast Coal will produce primary A-grade (6 000 kcal/kg) and secondary middling (21.5 MJ/kg) products. The coal supply forms part of the Exxaro RB1 export product, which will be railed to the Richards Bay Coal Terminal (RBCT). The mine will produce a combined total of 2.7 million tonnes per annum for a 17-year life.
Resources (inclusive):72Mt measured; 20Mt measured
Mining Method:Open-cut
Reserves:40Mt proved; 2Mt probable
Run-of-mine:3Mt
LEEUWPAN
Located approximately 80 km southeast of Pretoria in South Africa’s Mpumalanga province, Leeuwpan employs about 600 employees – excluding contractors – and produces 3.65Mtpa of thermal coal.
It is a conventional open-pit mine that uses modified terrace configurations and truck and shovel operations. Coal is processed using dense medium separation for the top coal layer (seam 4) as well as the bottom coal layer (seam 2). Crush and screen technology is also used to supply coal to the power station markets. The principal domestic markets for production are the metals and power-generating industries that consume 2,5Mtpa. Leeuwpan has a coal reserve base of about 52.9Mt and a resource (inclusive) of about 128Mt.
Resources (inclusive):80Mt measured; 3Mt measured
Mining Method:Open-cut
Reserves:42Mt proved; 6Mt probable
Run-of-mine:6Mt
FERROALLOYS FERROSILICON PLANT
Exxaro’s FerroAlloys ferrosilicon plant was established in 1996. Two new plants were commissioned in 2014 and 2016 respectively in order to guarantee supply of up to 12 000 tonnes of superior quality gas atomised and milled ferrosilicon (FeSi) per annum. Over the last two decades, Exxaro has developed two groundbreaking processing technologies aimed at improving beneficiation processes and the recovery of mineral products from low grade stockpiles, in-situ resources and waste dumps in order to overcome global mining challenges such as depleting reserves and resource quality issues. A key component of both the Ultra High Dense Medium Separation (UHDMS) and Ultra Fine (UF) processing technologies is the high-quality gas atomised ferrosilicon produced at Exxaro FerroAlloys. Early commercialisation projects were conducted successfully in the iron ore industry with the support of Kumba Iron Ore, where Exxaro holds a 20% shareholding in its subsidiary, the Sishen Iron Ore Company. The UHDMS and UF processes are currently being commercialised across a number of other commodities with the intent of growing the market. The production of FeSi is therefore critical to Exxaro’s long-term growth and investment strategies.
Certification
Exxaro FerroAlloys is ISO 9001, ISO 14001 and OHSAS 18001 certified and adheres to strict control measures to ensure compliance with all quality, environmental and health and safety standards. In the six years since the original certification, Exxaro FerroAlloys has successfully met the criteria of surveillance and recertification audits conducted by an external certification body.
Hensa van Wyk
Marketing/Sales/Quotations:+27 12 307 3489
Hensa.VanWyk@exxaro.com
TSITSIKAMMA COMMUNITY WINDFARM (TCWF)
Tsitsikamma Community Wind Farm (RF) Pty Ltd (TCWF) is a company formed to develop the Tsitsikamma wind farm project. The shareholders of TCWF include Cennergi (Pty) Ltd (75%), RE Times (16%) and the Tsitsikamma Development Trust (9%), the latter two being BEE partners to the project.
AMAKHALA EMOYENI WINDFARM (AE01)
Amakhala Emoyeni RE Project 01 (RF) Pty Ltd (AE01) is the second company formed to develop the Amakhala wind farm project. The shareholders of the AE01 include Cennergi (Pty) Ltd (95%), Cookhouse Community Trust (2.5%) and the Bedford Community Trust (2.5%), the latter two being BBBEE partners to the project. Both AE01 and TCWF started commercial operation in 2016 and sell electricity to Eskom under a Power Purchase Agreement (PPA) for a period of 20 years.