PURPOSEFUL MINING FOR THE BETTERMENT OF SOUTH AFRICA, AND BEYOND
PURPOSEFUL MINING FOR THE BETTERMENT OF SOUTH AFRICA, AND BEYOND
South Africa’s mining sector has an outsize impact on its economy. It employs around half-a million people extending to manufacturing, infrastructure, export revenue, and energy generation. The country’s coal industry contributes about 3.5% of the world’s coal resources, around 72% of South Africa’s primary energy supply and 90% of the country’s electricity. Today, the coal industry is a more important contributor to South Africa’s economy than gold.
Exxaro Resources Limited (Exxaro) is one of the largest mining companies in South Africa. The diversified mining and energy solutions company has an asset portfolio that includes coal operations, as well as investments in iron ore, wind, and solar energy.
Listed on the Johannesburg Stock Exchange (JSE) Top 40 Index and the Socially Responsible Investment Index, Exxaro has a $3.48 billion (R64.28 billion) market capitalisation and is one of the top five producers of coal in South Africa. In the last decade and a half, Exxaro has established itself as an organisation that is respected by its peers for its innovation and commitment to people development.
The organisation achieved this by acknowledging that it exists in a greater context, in line with its purpose to powering possibility in Africa and beyond.
EXXARO PROJECT DIRECTED BY: JAMIE
WAITE
WRITTEN BY: LAURA GREEN
Supporting a Sustainable South Africa and Africa
“We are on a journey to support a sustainable South Africa and Africa through an unwavering focus on powering better lives,” explains Rivoningo Mnisi, Chief Strategy Officer at Exxaro.
“Our people and communities inspire every decision we make and every action we take. We achieve this by responsibly investing in resources powering a cleaner world,” he continued.
As part of its Sustainable Growth and Impact strategy, Exxaro is committed to becoming carbon neutral by 2050. The organisation is changing the way it does business and has embarked on a programme of reducing the life of mine of core assets by pursuing the highest quality product within its mining areas, thereby reducing net emissions.
It has commenced the transition of its product portfolio by disposing of non-core coal assets, leveraging its balance sheet and capabilities to grow the diversity of its mining operations. Exxaro is also targeting minerals that will be critical in supporting South Africa’s low-carbon future and is developing employees and the communities in which it operates to ensure they are a part of the transition journey.
Rivoningo says, "We are currently looking into opportunities for merger and acquisition within manganese, copper, bauxite, and other minerals critical to the low-carbon economy. We are also implementing measures to achieve our short-term decarbonization target of reducing emissions by 40% by 2026.
This includes decreasing fossil fuel usage, optimizing fleet efficiency, and consistently seeking to lower energy consumption across our operations."
Exxaro was a proactive early implementer of transitioning to a low-carbon future, starting as early as 2009. Cennergi is a standalone energy business that now supplies 229MW of clean energy to South Africa’s national grid and has begun construction of further solar PV projects to supply Exxaro’s operations directly.
“Cennergi has grown to be one of the largest energy companies in South Africa, developing some of the most innovative and largest private off-take energy projects on the continent. What began as a novel idea to explore renewables, has grown to be something significant that can effect change in South Africa and the broader global community”, adds Rivoningo.
Diversifying its sustainable offering, Exxaro is also committed to using water as efficiently as possible. At its Grootegeluk Mine in South Africa’s Limpopo province, the business has constructed cyclic ponds that reclaim all water and material from the mine’s fines complex. In addition, its Matla Coal Mine in Mpumalanga province uses desalination technology to convert water from its underground mine into drinking water. In doing so, Matla has released over three million kilolitres of safe water into the Olifants catchment.
“At the core of our business is our vision to empower people within South Africa and beyond, enabling us to support a sustainable country and continent,” shared Rivoningo.
Underground
Underground
Ventilation
Technical
The Mining Company Going Beyond Words
From its very name, 100% black-owned contract mining services business, Ritluka, is focussed on sustainable and responsible mining.
Based in South Africa, Ritluka means “leaf” in the language of Xitsong, emphasising the firm’s commitment to sustainability, collaborating with its clients to meet ESG targets.
“For us, Ritluka is a sign of life, growth, and new hope,” explained Ritluka’s Managing Director and co-founder, Rhandzu Ngobeni, “we work closely with our clients to ensure they are not only compliant to regulation, but also are mining responsibly across their business,”.
Founded in 2015, the business began by offering small scale technical services to mining companies.
Rhandzu explained how Ritluka received its “big break” from Exxaro three years later, where it was given the opportunity to mine and produce coal using its mechanised coal mining method.
Since then, it has partnered with Exxaro on a variety of projects, including a major open-cast mining project, which Rhandzu said “opened doors, and enabled us to compete with major players in the industry”.
Further to this, Ritluka unlocked 10 million tonnes of coal for Exxaro at Marla Mine, in turn extending the life of mine, by providing specialised underground tunnelling services .
“Exxaro have supported us since the beginning, and enabled us to make many achievements,” shared Rhandzu, “they have truly walked the road with us, offering the business assistance and upskilling opportunities where required”.
Going full circle, Ritluka is offering opportunities to up-and-coming entrepreneurs in the mining sector with apprenticeships and incubation opportunities. As well as up-skilling the local people in the regions it works, it has also made a commitment to utilise the local supply chain.
“As much as we can, we purchase consumables, ancillaries, additional labour, and so forth, from the local supply chain, supporting the region's economy,” explained Rhandzu.
As it approaches its 10 year anniversary, Rhandzu and his team now have their sights set on growing from a contract mining service provider, to a mine owner and operator.
“We are looking at both green and brownfield opportunities, exploring the opportunity of partnerships and acquisitions,” said Rhandzu.
Positioning Exxaro for a Secure Future
For the last seven, before being appointed Chief Strategy Officer (CSO) in August 2023, Rivoningo, has been supporting Exxaro in its strategic development as Manager of Business Optimisation and Manager, Mining prior to that.
With more than 15 years of experience in the mining industry and 5 years in the manufacturing industry, Rivoningo has accrued many achievements, including Accenture’s Rising Star in Mining & Minerals (2020) and 17th Annual National Business Awards Winner - Innovation (2019).
Having achieved a degree in Industrial Engineering from the University of Johannesburg followed by an MBA from the GIBS Business School, both in South Africa, he values continued learning and collaboration as the keys to success.
Rivoningo Mnisi's exceptional calibre in his field has earned him recognition on multiple international platforms, where he is sought after to engage as a subject matter expert. A prime example of this is Mnisi's recent participation at the World Economic Forum's "Industrial Strategy Meeting" held in New York from May 6-8, 2024. This exclusive conference provided a platform for only 250 Chief Strategy Officers from around the world to convene and engage on critical corporate strategy matters. This latest achievement underscores Rivoningo's reach and influence within his professional domain.
"Leveraging my skills and experience, I collaborate with key stakeholders to develop impactful strategies for the business. This includes our people development and diversification strategies in the pursuit of continuous improvement.” shared Rivoningo. With plans for a sustainable, decarbonised future at its core, Exxaro also recognises the value of digital transformation to support this transition.
“We continue to build Exxaro into a sustainable and impactful business that catalyses economic growth, environmental stewardship, and positive change within South African and aspires to do the same across the continent and beyond.”
Rivoningo Mnisi Chief Strategy Officer
Exxaro Resources
Catalysing Growth in South Africa
Supporting Exxaro in its pursuit of energy security in South Africa is its partner Modi Mining.
“Exxaro is a great client to serve. Where some businesses would consider us a contractor, Exxaro treats Modi Mining as a partner, in words and in action,” said Modi Mining Founder and Managing Director, Sam Molefi.
Launched in 2011, Modi Mining supports operators in underground and open cast mining sectors, through its safe and cost-effective mining services, whilst assisting clients in meeting their ESG commitments.
Establishing its relationship with Exxaro in 2022, Modi Mining has since supported the firm in two key projects in South Africa. The first providing Stockyard Management and Material Handling at Matla Coal Mine, and most recently coal mining at Exxaro’s Belfast Coal Mine.
“Working on these projects with Exxaro has had great benefits for our business. Not only has it helped to put Modi Mining’s name on the map, but it has also contributed in improving our economic position, as well as securing sustainable job opportunities for our host communities” said Sam.
Whilst Exxaro has provided up-and-coming mining companies with industry opportunities, Modi Mining is determined to continue the trend within South
Africa, by providing mentorship and development opportunities to junior entrepreneurs. This has been through inclusive procurement process by sourcing goods from local suppliers, especially youth and women owned businesses.
“We have been able to give opportunities to upand-coming businesses to work with us on Exxaro projects, where we have supervised, guided, and managed them, to ensure our client’s high safety standards and production requirements are met,” explained Sam.
Working further with the communities in which it operates, Modi Mining has implemented several social initiatives to support young people in the fields of education, health and wellness.
Modi Mining’s partnership with Techno Girls Foundation is aimed at introducing young female learners to STEM.
“As Modi Mining, we afford these leaners exposure to mining careers, as well as supporting the student exchange programs,” highlighted Sam.
With 13 years in business, Modi Mining is continuing to work hard to establish a long-term sustainable business by targeting an addition of one new project per annum to its business, through careful selection of clients that meet its risk metrics.
Sam Molefi Modi Mining (Pty)
Ltd
www.exxaro.com
