Diversified mining and renewable energy solutions company Exxaro Resources has delivered a robust set of results despite a complex and challenging operating environment. The mining giant’s performance underscores its adaptability and commitment to powering possibility in the communities where it operates.
Here are some of the achievements that Exxaro has accomplished over the past 12 months:
The resources and renewable energy group reported its second highest EBITDA performance of R13.4 billion (FY22: R19 billion) and HEPS of 46.81 (FY22: R60.16) for the financial year ended 31 December 2023, a robust performance despite lower export prices and lower domestic and export sales volumes, demonstrating the exceptional performance of its coal business, driven by high-quality product mix.
Health and Safety
Safety is one of Exxaro’s core priorities and ensuring the safety of all employees is a collective responsibility for all. During the reported year there were zero fatalities reported, in line with the extensive “Khetha Ukuphepha” campaign that has been administered across the company’s operations. Regrettably, there were 11 recorded lost time injuries, exceeding the set target of 0.5. To address this, the mining company aims to strengthen its safety focus areas in 2024 through continual improvement and accident prevention.
Environmental Stewardship
The company has experienced zero level three environmental incidents for the past three years. Water intensity improved by 30%, while carbon intensity was reduced by 20%. The organisation also signed an Memorandum of Understanding with the Council for Geosience to explore carbon capture usage and storage. High air quality standards were achieved during the reported year with zero exceedances reported at the operations. Additionally, the Lephalale Solar Project, valued at over R1.6 billion, commenced with construction and will provide a 27% reduction in scope 2 emissions upon completion in 2025.
Social Impact
Bettering the lives and livelihoods of employees and communities is at the heart of Exxaro’s social impact ethos. The contribution to society during 2023 amounted to R1.9 billion, with 71% of this social investment going to supporting 277 Small to medium enterprises, 29 employment opportunities through our Social and Labour Plans (SLP), as well as skills development through the training of youth from our host communities. A total of R,128 billion was invested for local procurement within Limpopo, and RR0,772 billion within Mpumalanga for the year ended December 2023. In line with our commitment to Diversity, Equity and Inclusion, the representation of black women in senior and middle management at the organisation improved by over 75% in the past 6 years.
Exxaro remains prudent in its strategic approach to capital allocation, in terms of returning cash to shareholders, managing debt, and selectively reinvesting for the growth of the business in a low carbon future.
