Business Enquirer Issue 135 | EXXARO | March 2025

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PURPOSEFUL MINING FOR THE BETTERMENT OF SOUTH AFRICA AND BEYOND

PURPOSEFUL MINING FOR THE BETTERMENT OF SOUTH AFRICA AND BEYOND

SEXXARO

PROJECT DIRECTED BY: JAMIE

outh Africa’s mining industry is a crucial pillar of its economy, supporting nearly half a million jobs and contributing significantly to infrastructure, export revenue, and energy generation. Among the key players driving this sector forward is Exxaro Resources Limited (Exxaro), a diversified mining and energy company with a strong commitment to sustainability and economic empowerment.

Listed on the Johannesburg Stock Exchange (JSE) Top 40 Index and the Socially Responsible Investment Index, Exxaro has positioned itself as a leader in responsible mining, innovation, and community development. As South Africa transitions to a low-carbon economy, Exxaro’s role in ensuring a sustainable and equitable future for all has never been more critical.

Exxaro’s Commitment to a Sustainable Future

Exxaro’s strategy revolves around powering better lives by investing in responsible and sustainable resource extraction. This is evident in its Sustainable Growth and Impact strategy, which is focused on reducing carbon emissions, enhancing environmental stewardship, and uplifting communities.

Transitioning to Clean Energy

A fundamental aspect of Exxaro’s sustainability plan is its commitment to carbon neutrality by 2050. The company has been proactive in transitioning from traditional coal operations to renewable energy sources through Cennergi, a subsidiary that supplies 229MW of clean energy to South Africa’s national grid. To further its decarbonization goals, Exxaro is actively working on additional solar PV projects to power its operations while reducing its carbon footprint.

Reducing Carbon Emissions

Exxaro has set an ambitious short-term target of reducing emissions by 40% by 2026. This involves:

• Reducing fossil fuel usage across operations

• Optimizing fleet efficiency to lower energy consumption

• Enhancing operational sustainability through digital transformation

According to Rivoningo Mnisi, Chief Strategy Officer (CSO) at Exxaro, the company is also exploring mergers and acquisitions in manganese, copper, and bauxite, which are crucial minerals in supporting the low-carbon economy.

MINING EXXARO

Water Conservation Efforts

Water is a critical resource in mining, and Exxaro has taken significant steps to reduce water consumption and improve efficiency. Notable initiatives include:

Cyclic ponds at Grootegeluk Mine to reclaim water and materials

Desalination technology at Matla Coal Mine, which converts underground mine water into drinking water, releasing over three million kilolitres of safe water into the Olifants catchment

These initiatives reflect Exxaro’s broader mission to align mining with environmental preservation.

Strategic Partnerships Driving Transformation

Exxaro understands that collaboration is key to sustainable growth. In 2024, the company strengthened its partnerships with industry leaders such as Ritluka Resources Pty and Modi Mining, enhancing its ability to integrate innovative technologies and support socio-economic development.

Collaboration with Ritluka Resources Pty

Ritluka Resources, a well-established mining services company, has played a crucial role in enhancing Exxaro’s coal mining efficiency. Through the partnership, Exxaro has:

• Improved operational productivity

• Enhanced mining safety standards

• Adopted technologies that reduce environmental impact

What We Do

Opencast Contract Mining

Underground Contract Mining

Drill and Blast Services

Underground Mine Support

Ventilation Services

Technical Services

Our Vision

We strive to be the preferred supplier of services by continuously providing improvements and solutions in all aspects of field in which we operate – mining, construction, and commodity trading.

Our Mission

To provide services that are of a high quality, promote efficiency, innovation and cost effectiveness whilst achieving our client’s goals.

Empowering Communities and Revolutionizing the Mining Sector: The Ritluka Resources Journey

In the ever-evolving mining industry, innovation, sustainability, and community empowerment are the pillars that distinguish exceptional companies from the rest. Ritluka Resources stands as a testament to these ideals, emerging as a major player in South Africa's mining, construction, and trading sectors. Established in 2016 as a technical services company, Ritluka has rapidly expanded its offerings, providing a range of solutions that span opencast and underground coal mining, as well as specialized services in drilling, blasting, ventilation, and mine support.

With an unwavering commitment to delivering high-quality, efficient, and cost-effective services, Ritluka Resources has positioned itself as a preferred supplier of services across Southern Africa. What began as a small technical services company has grown into a thriving organization with over 1200 employees, contributing to both South Africa's mining sector and the growth of local communities.

At the heart of Ritluka's success are four main pillars that guide its operations:

• Opencast Contract Mining

• Underground Contract Mining

• Technical Services

• Resources and Reserves

These areas of expertise serve as the foundation for Ritluka’s ability to tackle a wide array of challenges and deliver innovative solutions to clients across the country and neighboring regions.

Opencast Contract Mining: Precision and Efficiency

Ritluka Resources has made remarkable strides in opencast mining, providing high-level services that meet the ever-increasing demand for coal. The company offers a comprehensive suite of opencast services, including earthmoving, coal extraction, road construction, and site rehabilitation.

One of Ritluka’s standout projects includes the Dorstfontein Coal Mine, which commenced in December 2019. Ritluka is responsible for a range of operations, including monthly production, burden/ waste removal, and coaling, with impressive tonnages ranging between 80,000 to 100,000 tons. In addition, the company has also made notable contributions to the Exxaro Arnot Coal Mine through its work on rehabilitating wetlands, constructing concrete cut-off walls, and ensuring the sustainable management of the environment surrounding the mine.

Underground Contract Mining: Expertise Below the Surface

In addition to its opencast mining capabilities, Ritluka Resources is a recognized leader in underground contract mining. The company offers a full range of services, including production mining (both mechanized and conventional), dyke drill and blast operations, conveyor belt construction, stonework development, and road construction and maintenance.

Ritluka’s underground mining operations have played a crucial role in the development and maintenance of several prominent mines in South Africa, such as Exxaro's Matla Coal Operations and Seriti's New Denmark Colliery. The company’s work in ventilation wall construction and maintenance at these sites ensures the safe and efficient operation of underground mining activities.

Additionally, Ritluka excels in underground mine support services. From sidewall and roof support to pillar pinning and strapping, Ritluka's expertise ensures the structural integrity of underground operations, improving safety and enhancing overall productivity.

Technical Services: Driving Innovation and Excellence

Ritluka Resources also provides technical services that are vital for mine planning, exploration, and optimization. The company offers services such as mineral exploration, feasibility studies, mine design, short- and long-term scheduling, project management, and due diligence studies.

These services are designed to assist clients in making informed decisions and optimizing their operations for long-term success. With a team of highly skilled professionals, Ritluka is able to deliver detailed project budget estimates, feasibility studies, and capital project estimates that help clients assess risk, improve efficiency, and boost profitability.

Resources and Reserves: Shaping the Future of Mining

In an era of increasing environmental and economic challenges, sustainability is paramount. Ritluka Resources understands that the future of the mining sector depends on the efficient management of resources and reserves. The company has a dedicated team focused on optimizing the use of available resources while ensuring that future generations can benefit from these reserves.

Ritluka's commitment to sustainability is reflected in its name, “Ritluka,” which means "leaf" in Tsonga, symbolizing growth, renewal, and sustainability. These values are at the core of the company’s approach to mining, ensuring that every project is executed with careful consideration of the environment and the communities involved.

Empowering Communities and Prioritizing Local Employment

One of Ritluka Resources' standout features is its commitment to local community development. The company recognizes that its success is intrinsically linked to the prosperity of the communities in which it operates.

Ritluka has set a goal to employ at least 70% of its workforce from local communities, with an emphasis on hiring unskilled labor from these areas. Additionally, the company places a strong emphasis on promoting gender equality, with a target of having 35% of its workforce comprised of women by 2025. Ritluka has also focused on the training and development of women, with a dedicated custodian for Women In Mining (WIM), Zinhle Ndlovu, ensuring that women have the support and opportunity to thrive in the mining industry.

Corporate Social Investment: Giving Back to the Community

Ritluka’s impact extends beyond the workplace, as the company actively engages in Corporate Social Investment (CSI) projects that aim to uplift and empower local communities. Ritluka supports initiatives focused on the elderly, school children, women’s empowerment, local SMMEs, and university students. The company’s CSI efforts include partnerships with organizations such as:

• Kriel Old Age Home

• Shalom Daycare Centre

• Shiluvane Primary School

• RUWO (Rise Up Women’s Organization)

• Kriel Football Association

In addition to these partnerships, Ritluka has also developed a network of local community companies that provide vital services to its operations. These include partnerships with transport services, water provision, and even the creation of local jobs through initiatives such as sewing machine purchases for women in the Rietspruit community.

Future Development Plans: Building a Better Tomorrow

Looking ahead, Ritluka Resources remains committed to community development and future growth. The company plans to assist local individuals with company registrations, as well as providing training for youth and women to obtain essential skills such as drivers' licenses and certifications. In addition, Ritluka is working on the construction of an Early Childhood Development Centre in Belfast, in collaboration with Bell Equipment.

Through these initiatives, Ritluka continues to support economic growth and skill development within the local community, ensuring that future generations have the tools they need to succeed in the workforce and beyond.

A Commitment to Excellence, Sustainability, and Growth

Ritluka Resources' rise from a small technical services company to a major player in the South African mining and construction industries is a testament to its unwavering commitment to excellence, sustainability, and community development. By continually improving its services, empowering local communities, and promoting gender equality in the workforce, Ritluka is paving the way for a brighter, more inclusive future in the mining sector.

Through its four pillars—Opencast Contract Mining, Underground Contract Mining, Technical Services, and Resources and Reserves—Ritluka continues to provide valuable services to its clients while staying true to its vision of growth, renewal, and sustainability. As the company looks to the future, Ritluka is determined to remain at the forefront of innovation in the mining industry, all while making a positive impact on the lives of those it serves.

Modi Mining’s Vision for 2025: A Commitment to

Growth, Innovation, and Community

The mining industry is evolving rapidly, driven by technological advancements, sustainability concerns, and shifting market demands. In response to these changes, Modi Mining has set out a clear strategy for 2025, with a strong focus on client satisfaction, operational excellence, safety, and community engagement. Through strategic partnerships, investment in innovation, and a firm commitment to social responsibility, the company is positioning itself for long-term success.

Putting Clients and Stakeholders First

At the heart of Modi Mining’s 2025 strategy is a commitment to its clients and stakeholders. The company aims to enhance its service offerings by gaining a deeper understanding of client needs, allowing it to provide tailored and cost-effective solutions without compromising on quality. By fostering long-term relationships built on trust and reliability, Modi Mining seeks to maintain its reputation as a dependable partner in the mining sector.

Sustainability is also a key priority, with the company placing emphasis on responsible mining practices. By integrating environmentally friendly methods and ensuring compliance with stringent safety and environmental standards, Modi Mining is striving to minimise its impact while delivering value to its clients and stakeholders.

Strengthening Partnerships: The EXXARO Collaboration

A significant aspect of Modi Mining’s growth strategy is its partnership with EXXARO, a well-established player in the mining industry. The company operates at two EXXARO sites: Matla Colliery, where it has managed coal stockyard operations and material handling since October 2022, and Belfast Colliery, where it has been responsible for topsoil and soft overburden stripping since February 2023.

This collaboration has provided Modi Mining with valuable opportunities for operational growth and industry alignment. By leveraging EXXARO’s market presence and expertise, Modi Mining has been able to refine its capabilities, strengthen its workforce, and expand its reach within the sector. The partnership is a testament to Modi Mining’s ability to deliver high-quality services while adhering to industry best practices.

Supporting Women in STEM: The TechnoGirls Initiative

Modi Mining has been an active participant in the TechnoGirls initiative, a programme designed to encourage young women to pursue careers in science, technology, engineering, and mathematics (STEM). Over the past year, the company has hosted ten young girls from two schools in North West and Mpumalanga, exposing them to real-world experiences in mining and finance.

Through mentorship and handson learning opportunities, these students have had the chance to engage with professionals across different departments, including finance, accounting, engineering, and site management. This exposure has influenced career choices, with several students now considering future paths in accounting and engineering. Modi Mining remains committed to supporting these young women over the next two years, ensuring they receive guidance and opportunities to help them succeed in STEM fields.

Recognising Excellence: Celebrating Outstanding Performance

Modi Mining recently recognised the achievements of its crew, celebrating outstanding performance across its operations. This recognition is a reflection of the company’s dedication to fostering a culture of excellence, teamwork, and continuous improvement. By acknowledging and rewarding employees who demonstrate commitment and skill, Modi Mining reinforces the importance of collaboration and hard work in achieving its goals.

A Focus on Safety: Reaching 365 InjuryFree Days

Safety is a cornerstone of Modi Mining’s operations, and achieving 365 injuryfree days across multiple sites is a major milestone. This accomplishment highlights the company’s strong safety culture, which is upheld through rigorous training programmes, on-site awareness campaigns, and strict adherence to safety protocols.

To maintain this record, Modi Mining continues to provide employees with the necessary personal protective equipment (PPE), enforce comprehensive safety guidelines, and monitor accident prevention efforts. By consistently prioritising health and safety, the company ensures a secure working environment for all employees.

Giving Back: Community Initiatives and the Mandela Day Blanket Drive

Modi Mining recognises the importance of giving back to the communities in which it operates. One of its key community initiatives is the Mandela Day Blanket Drive, which aims to support vulnerable groups, including children, the elderly, and those in need.

The company firmly believes that its success should extend beyond business operations and positively impact society. By actively engaging with local communities and contributing to social causes, Modi Mining reinforces its core value of “Winning with Our People”. This approach not only strengthens relationships with local stakeholders but also ensures that the benefits of the company’s growth are shared more broadly.

Innovation and Technology: Shaping the Future of Mining

Remaining competitive in the modern mining industry requires continuous innovation and the integration of new technologies. Modi Mining is focused on improving operational efficiencies, streamlining processes, and enhancing collaboration through technological advancements.

By adopting modern mining techniques, data-driven decision-making tools, and improved resource management systems, the company aims to optimise performance and reduce operational costs. These efforts align with Modi Mining’s broader goal of maintaining highquality service delivery while adapting to the ever-changing demands of the industry.

Looking Ahead to 2025 and Beyond

As Modi Mining moves towards 2025, it remains committed to achieving its strategic objectives while upholding its core values. Through a strong focus on client satisfaction, safety, operational excellence, and community involvement, the company is well-positioned for continued success.

By fostering meaningful partnerships, investing in its workforce, and embracing innovation, Modi Mining is not only securing its place in the industry but also contributing to the long-term sustainability of mining operations. With a clear vision and a determined approach, the company is ready to navigate the challenges and opportunities that lie ahead.

Modi Mining: Community and Social Development

Modi Mining has been instrumental in ensuring that Exxaro’s mining activities result in tangible socio-economic benefits. The partnership has focused on:

• Employment creation in local communities

• Skills development programs for youth and women

• Local procurement initiatives to empower small businesses

These collaborations underscore Exxaro’s commitment to inclusive growth, ensuring that the benefits of mining extend beyond the corporate level to grassroots communities.

Digital Transformation: The Future of Mining

A core component of Exxaro’s future strategy is digital transformation, which enhances efficiency, safety, and sustainability. The company has invested in:

• AI and automation to optimize mining processes

• Data analytics for real-time monitoring of mine conditions

• Smart mining systems that reduce waste and energy consumption

According to CEO Nombasa Tsengwa, these technologies will modernize South Africa’s mining industry while supporting Exxaro’s sustainability goals.

Socio-Economic Impact: Uplifting Communities

Exxaro’s corporate vision extends beyond business growth—it is committed to empowering the people of South Africa through education, skills development, and economic opportunities.

Job Creation and Skills Development

Exxaro has invested heavily in training programs that equip South Africans with skills in:

• Mechanical engineering

• Environmental management

• Mining safety and operations

By partnering with local institutions, Exxaro ensures that individuals in mining communities are job-ready and equipped for long-term careers.

Local Procurement and Economic Growth

Exxaro has implemented a local procurement strategy, ensuring that a significant portion of its spending benefits small and medium-sized enterprises (SMEs) in South Africa. This approach strengthens local economies while fostering entrepreneurial development.

Safety and Employee Wellbeing

Safety remains a top priority for Exxaro. The company has maintained a strong safety record by:

Implementing advanced safety monitoring systems

• Providing continuous health and safety training

• Expanding employee wellness programs to include mental health support

Exxaro’s holistic approach to employee care ensures that workers operate in a safe, healthy, and supportive environment.

Exxaro’s Global Influence

Beyond South Africa, Exxaro’s leadership is gaining international recognition. Rivoningo Mnisi was recently invited to participate in the World Economic Forum’s Industrial Strategy Meeting in New York, where he joined 250 global strategy leaders in discussing corporate transformation and sustainable business practices.

Such recognition positions Exxaro as a global thought leader in sustainable mining and energy transition.

Looking Ahead: Exxaro in 2025 and Beyond

As 2025 unfolds, Exxaro remains committed to:

• Expanding renewable energy investments

• Strengthening strategic partnerships to drive inclusive economic growth

• Advancing digital mining technologies to enhance efficiency and reduce environmental impact

• Supporting South Africa’s transition to a low-carbon economy

CEO Nombasa Tsengwa’s Vision

“We are incredibly proud of our journey, but we recognize that there is much more to achieve,” said Tsengwa. “Exxaro’s legacy is about creating lasting value—for our stakeholders, our communities, and our planet. We will continue to lead the charge in sustainable mining and empower South Africa and beyond.”

Exxaro is at the forefront of purposeful mining, setting a benchmark for sustainability, community impact, and innovation in South Africa’s mining industry. With a clear focus on carbon reduction, economic empowerment, and technological advancement, the company is shaping the future of mining for the betterment of South Africa and beyond.

As it moves toward 2025 and beyond, Exxaro’s commitment to people, the planet, and prosperity remains unwavering—ensuring that mining continues to be a force for good in the world.

www.exxaro.com

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