Modern Mining March 2020

MINING News

Exxaro maintains resilient operational performance

Exxaro Resources Limited (Exxaro) has reported a R235-million top-line increase for the financial year ended 31 December 2019, a notable achievement in the face of escalating global trade tensions, a deteriorating local economy and a decline in thermal coal pricing. Core EBITDA declined by 20%, mostly due to the impact of the 27% drop in the export API4 coal price, local inflationary cost pressures and higher rehabilitation costs at its closed operations. The strong performance of iron-ore in its commodi- ties basket saw a 70% increase in core equity income from Exxaro’s investment in Sishen Iron Ore Company (SIOC) which led to a 7% increase in core HEPS. CEO Mxolisi Mgojo says that Exxaro

Sibanye-Stillwater Group accepted as ICMM member The consolidation of the renewable energy asset comes at a crucial time in South Africa when energy security is needed, and it aligns to the company’s response to increasing negative sentiment towards coal- based electricity generation. It further underscores Exxaro’s intention to power better lives in Africa. Mgojo says that full control of the invest- ment gives the group time and opportunity to fully consider its options, including the potential for Cennergi to form the bedrock of a renewable energy business within Exxaro.  programme, in an environment of chronic unemployment.” Mgojo explains that to arrest the declining trend in safety perfor- mance during the year, the company launched a safety campaign Khetha uKuphepha (Choose Safety). “Workers onsite at our mines have increased by over 6 000 in the past three years and we remain well- ahead of the global industry curve according to leading safety surveys. However, our internal benchmark of zero harm dictates our ambitious group safety targets,” he says. We maintained best-in-class performance in terms of our ESG rat- ings. This is positive and objective recognition and momentum upon which we are building our climate-response strategy. The opportunity for self-generation is being evaluated, which will present additional opportunities for improvement in Exxaro’s emission-reduction efforts. The company acquired the remaining 50% ownership of its renew- able energy investment in Cennergi with the last condition precedent being met in March 2020; although it delivered a reduced profit, it showed an improvement in its operating performance in terms of energy generated.

Mxolisi Mgojo, CEO of Exxaro.

continued to successfully advance its key objectives of safety, portfolio optimisation, operational excellence and capital allocation in the year. “We achieved three-years of zero fatali- ties, grew our coal export volumes by 14%, delivered first coal at Belfast early, progressed divestments and earmarked assets for future disposal, all while creating around 746 new jobs through our Enterprise and Supplier Development

Sibanye-Stillwater has been accepted as a member of the International Council on Mining and Metals (ICMM). Following the acquisition of Lonmin, an existing ICMM member, the Sibanye-Stillwater Group went through the ICMM’s rigorous com- pany membership assessment process, conducted over several months, and has qualified and been admitted, based on its high level of standards and practices. Sibanye-Stillwater CEO Neal Froneman says it is a proud moment to be accepted

Sibanye-Stillwater CEO Neal Froneman.

as a member of the ICMM. “This confirms our ongoing commitment to environmental, social and governance best practices throughout our business. The membership will also provide us with an opportunity to learn, define and share best-in-class mining practices through a com- mon set of international standards.” Tom Butler, CEO of the ICMM, says the group went through ICMM’s rigorous company membership assessment process and has received a “very positive” assessment from ICMM’s Independent Expert Review Panel. “The group will bring to the council its experience of operating in both southern Africa and North America, alongside knowledge of man- aging ESG issues unique to gold and platinum group metals extraction and processing.” 

6  MODERN MINING  March 2020