EXXARO IN 2024: LEADING THE CHARGE TOWARDS SUSTAINABILITY AND GROWTH THROUGH STRATEGIC PARTNERSHIPS
EXXARO IN 2024: LEADING THE CHARGE TOWARDS SUSTAINABILITY AND GROWTH THROUGH STRATEGIC PARTNERSHIPS
As one of South Africa’s largest and most progressive diversified resources companies, Exxaro has continued its upward trajectory in 2024, driving innovation, sustainability, and socio-economic development. Known for its leadership in the mining and energy sectors, Exxaro has also made substantial strides in creating a more sustainable future by integrating cutting-edge technology, strategic partnerships, and a people-focused approach.
In 2024, Exxaro has reinforced its commitment to environmental stewardship and community development, partnering with prominent companies like Ritluka Resources Pty and Modi Mining. Together, they are making a significant impact on the South African mining landscape while contributing to Exxaro's broader goals of sustainability and transformation.
A Year of Milestones: Sustainability at the Forefront
In 2024, Exxaro has reaffirmed its position as a leader in sustainability within the mining industry. The company’s overarching goal of reducing its environmental footprint while continuing to meet the country’s energy and resource needs has seen significant progress. Exxaro has made bold commitments to reducing carbon emissions and transitioning to cleaner energy sources, aiming for carbon neutrality by 2050.
“This year has been one of remarkable progress for Exxaro, not just in terms of operational success but also in our sustainability journey,” said Exxaro CEO Nombasa Tsengwa. “We are focused on ensuring that our growth is inclusive and beneficial to both the environment and the communities where we operate. Through our partnerships with companies like Ritluka Resources and Modi Mining, we’re able to push forward with our goals in an impactful way.”
One of the major milestones of 2024 has been Exxaro’s continued investment in renewable energy projects. The company
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has expanded its portfolio in wind and solar energy, building on its past success in establishing clean energy solutions that are set to power South Africa’s future. With ongoing projects across several provinces, Exxaro is helping to alleviate the country’s energy challenges while contributing to global efforts to combat climate change.
Tsengwa added, “Exxaro’s transition into renewable energy is not only about business diversification but also about securing a sustainable future. We are aware of our responsibility to ensure that South Africa’s energy landscape evolves in a way that supports both our economy and our planet.”
Partnership with Ritluka Resources Pty and Modi Mining: A Model for Strategic Collaboration
A key element of Exxaro’s success in 2024 has been its ability to forge strong partnerships that align with its values and goals. Two of its most significant collaborations are with Ritluka Resources Pty and Modi Mining, both of which have played vital roles in supporting Exxaro’s operational efficiency, community engagement, and sustainability targets.
Ritluka Resources Pty, a well-established mining services company, has been instrumental in helping Exxaro optimize its mining processes and improve productivity. The partnership has been particularly focused on enhancing coal mining operations at some of Exxaro’s flagship sites, ensuring that the company continues to meet its production goals while maintaining a strong commitment to safety and sustainability.
“This partnership has allowed us to bring cutting-edge technology and innovative mining practices to our operations, which in turn enables us to increase efficiency and reduce our environmental impact,” explained Tsengwa. “Ritluka Resources has proven to be an invaluable partner, helping us to not only meet our operational objectives but also align with our broader sustainability targets.”
Modi Mining, another critical partner, has focused on improving Exxaro’s community outreach programs and ensuring that the company’s mining activities create tangible socio-economic benefits. Modi Mining has been pivotal in helping Exxaro meet its social responsibility goals, especially in areas like employment, skills development, and local procurement.
“Our collaboration with Modi Mining is a prime example of how we aim to create value beyond the immediate economic benefits of mining,” said Tsengwa. “By working together, we are able to ensure that the communities surrounding our operations are empowered, skilled, and better positioned for long-term growth. This partnership is about more than just mining – it’s about uplifting people and creating sustainable livelihoods.”
Operational Success: Exxaro’s Robust Performance in 2024
Beyond sustainability and community development, Exxaro has also demonstrated strong operational performance in 2024. The company has maintained its status as a key player in South Africa’s coal industry, continuing to supply much-needed energy resources to the national grid. Despite global economic uncertainties and ongoing challenges within the mining sector, Exxaro has managed to stay on course, increasing its production volumes while keeping costs under control.
A key driver of this success has been Exxaro’s ability to integrate advanced technologies into its mining operations. The company has invested heavily in digital transformation, utilizing artificial intelligence, automation, and data analytics to optimize its processes, improve safety, and enhance decisionmaking.
“Digital transformation is a key component of our long-term strategy,” Tsengwa explained. “By harnessing the power of data and technology, we’re able to not only improve operational efficiency but also ensure that we’re making
informed decisions that are in the best interests of the environment and our stakeholders.”
Exxaro’s digital initiatives have included the development of smart mining systems that reduce waste and energy consumption, as well as advanced monitoring technologies that enhance worker safety by providing real-time data on mining conditions.
Socio-Economic Impact: Uplifting Communities Through Skills and Employment
In 2024, Exxaro has continued to emphasize its commitment to social upliftment through job creation, skills development, and local procurement initiatives. The company has invested significantly in training programs aimed at empowering local communities, particularly young people and women, with the skills they need to participate in the mining sector and beyond.
Through its partnership with Modi Mining, Exxaro has launched a series of community development projects focused on improving education and employment opportunities. These projects have provided hundreds of local residents with access to training in critical skills, from mechanical engineering to environmental management, helping to create a more skilled workforce that can contribute to South Africa’s economic development.
“At Exxaro, we believe that the success of our operations is closely linked to the wellbeing of the communities in which we operate,” said Tsengwa. “That’s why we place such a strong emphasis on education, training, and empowerment. By investing in people, we are not only creating a stronger workforce but also fostering long-term prosperity for the regions where we work.”
Exxaro’s local procurement strategy has also yielded significant benefits, with the company spending millions of rand on goods and services sourced from local
suppliers. This approach has bolstered local businesses and supported economic growth in some of South Africa’s most underdeveloped areas.
A Focus on Health, Safety, and Wellbeing Safety has always been a top priority for Exxaro, and 2024 has been no exception. The company continues to uphold rigorous health and safety standards across all of its operations, ensuring that its workforce is protected in one of the world’s most challenging industries. Exxaro’s strong safety record is the result of continuous investments in training, technology, and safety culture.
“Our people are at the heart of everything we do, and their safety is our number one priority,” said Tsengwa. “We’ve made significant progress in reducing workplace incidents and ensuring that our employees go home safely at the end of each day. Our commitment to safety goes hand in hand with our focus on operational excellence.”
Exxaro has also expanded its employee wellness programs in 2024, offering comprehensive health services, mental health support, and wellness initiatives aimed at improving the overall wellbeing of its workforce. This holistic approach to employee care has further solidified Exxaro’s reputation as a responsible and people-centric employer.
Looking Ahead: A Bright Future for Exxaro
As 2024 progresses, Exxaro remains focused on achieving its long-term goals of sustainability, growth, and community impact. With strong partnerships, such as those with Ritluka Resources Pty and Modi Mining, and a clear vision for the future, the company is well-positioned to continue leading the mining industry in South Africa and beyond.
“We are incredibly proud of what we have achieved in 2024, but we know that there is still much more to do,” concluded Tsengwa. “Exxaro’s journey is about creating lasting value – for our shareholders, our communities, and our planet. We will continue to push the boundaries of innovation and sustainability as we work towards a brighter, more inclusive future.”
As Exxaro looks to the future, its 2024 achievements serve as a testament to its resilience, forward-thinking leadership, and unwavering commitment to creating positive change. With a focus on sustainability, community empowerment, and operational excellence, Exxaro is set to remain a driving force in South Africa’s mining and energy sectors for years to come.
www.exxaro.com
PIONEERING THE MINING SECTOR THROUGH PEOPLE
South Africa based Modi Mining has established itself as a key supplier to mining operators in underground and opencast mining services.
“Mining safely, responsibly, and efficiently has been the foundation of our success,” shared co-CEO, Sam Molefi.
Modi Mining offers a comprehensive suite of services for both capital and operational projects in both underground and opencast mining sectors.
Modi Mining’s underground mining services include conventional mining, tunnel developing, raise and winze developing, underground construction, equipping, drop raising, secondary support, and reclamation as well as sweeping and vamping.
In addition, Modi Mining offers trackless mining services such as tunnel developing, board and pillar mining, load and haul, belt cleaning services.
For open-cast mining, Modi Mining
provides topsoil stripping, overburden stripping, ore mining, load and haul, crushing, screening, material handling, stockyard management, and rehabilitation services.
“Our mission is to be catalysts of positive change in the mining sector and region by offering services and products of the highest quality and value, this helps us to positively impact our clients and the broader society for the long term,” he continued.
Uplifting People
A key value for Modi Mining is its ethos of ‘Winning with the People’.
“We value our people, and aim to lead them with clarity and collectively own successes,” shared Sam.
Modi Mining’s people focussed ethos expands beyond its employees, with
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the business enhancing the lives of the communities in which it works.
The business has implemented several social initiatives to support entrepreneurs, as well as offer additional support in education, and health and wellness.
Modi Mining’s work with Techno Girls supports STEM sponsorship for young women in education, giving them career opportunities. In addition, the business supports exposure to mining careers, as well as a student exchange program.
The business also financially supports women via the Isago Foundation, and supports NPO’s such as Jessica Motene, which facilitates Depression Awareness campaigns and provides sanitary wear within identified communities.
Further to this, Modi Mining contributes to the funding of SMME via the Black Umbrellas programme.
“Our interest stems from having undergone the programme ourselves and having benefited immensely from it,” explained Sam, “What better way to express our gratitude than paying it forward to emerging businesses”.
“Our social investment efforts are fuelled by our drive for impact and the belief that real success is success that is collectively owned. Modi is actively involved in a variety of initiatives the end goal of which is to positively and sustainably impact communities,” he added.
Full Circle
Experiencing being offered support in the industry itself, Modi Mining established its relationship with Exxaro in 2023, initially with two key projects in South Africa. The first being appointed to execute stockyard management and material handling services, and most recently 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 helped us to establish and improve our cash flow,” said Sam.
“Exxaro is a fantastic client to serve. Where some businesses would consider us a contractor, Exxaro treats Modi Mining as a partner - in words and in action,” he added.
Whilst Exxaro has provided up and coming mining companies with industry opportunities, Modi Mining is determined to continue the trend within South Africa,
providing mentorship opportunities to junior entrepreneurs as subcontractors and supporting others under our supplier development initiatives.
“We have been able to give opportunities to up and coming business to work with us on Exxaro projects, where we have supervised, guided, and managed them, to ensure our client’s high standards are met,” explained Sam.
Entrepreneurial Recognition
CEO Sam has worked within the industry for 28 years, starting his career with Gold Fields Academy, qualifying as a mine engineer from Wits Technikon.
Holding a mine manager’s certificate of competency, he has managed local and international projects, including managing a mining explosives manufacturing plant, providing up the hole and down the hole services to Randgold Resources’ mines in Mali Republic.
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Sam further worked as long-term planner with Anglo American Platinum, and served as a Mine Manager to other mines that includes PTM Maseve shaft sinking project, Crocodile River Mine and International Ferro Chrome.
With the leadership of Sam, Modi Mining has been awarded several industry accolades, including being recognised as 2018’s Entrepreneurs of the Year® by Business Partners and Sanlam, alongside his business partner, Motlapele Molefi.
The judges of Entrepreneurs of the Year® were particularly impressed by the business’ ability to achieve an average growth rate of over 30% per annum since starting operations in 2011, despite operating within an industry that faced high levels of volatility.
Commenting on the recognition, Sam said: “Being awarded the highly-esteemed title of Entrepreneur of the Year® confirms that we are on track to realising our overall business objective, which is to be the supplier of choice to the mining industry,”.
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 bidding for new opportunities and selection of new clients that meet its risk metrics.
www.modimining.co.za
A BUSINESS IS ONLY AS GOOD AS ITS PEOPLE: 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.
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Since then, it has partnered with Exxaro on a variety of projects, including a major open-cast mining project, which Rhanzu 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 Malta 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”.
Seeking to make a positive impact
throughout every touch point of the business, this ethos forms part of the rationale behind Ritluka’s choice of world-class equipment alongside its commitment to provide industry-leading customer service.
With nearly a decade in the industry, the business provides a range of services across open-cast mining, drill and blast, underground mine support, underground contract mining, trading, technical services, and ventilation services.
A Circular Approach to Opportunities
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.
Further to the opportunities it is offering South African people within the mining industry, Ritluka has developed a number of initiatives to support the local community from a wider perspective.
“Our company values are rooted in playing our part to uplift the communities we operate in, and the success of our company to date is rooted in our people,” shared Rhandzu.
Included in Ritluka’s impactful initiatives are its donation projects. One such project saw Ritluka donate car wash and sewing equipment to two local companies.
The donation has assisted the businesses (which are 51% black female-owned) in expanding and developing their operations. Continuing its circular approach to the local economy, Ritluka now procures its PPE from one of these companies.
Donating to a more social initiative, Ritluka also makes monthly grocery donations to a local nursing home in Kriel, having already donated cooking equipment and food parcels to the facility.
Another social initiative, in 2020 Ritluka hosted a football tournament, as the
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official sponsor of the Kriel Football Association. The firm donated ten football kits to all the teams in the league.
Throughout all the matches played in the season, Ritluka provided refreshments, transportation, and any other assistance required by the Kriel Football Association.
From an educational perspective Ritluka has paid focus to upskilling local young women.
“The objective of the training was to equip these young ladies with ADT licences so that they can have access to employment opportunities,” added Rhandzu.
The business has also sponsored over a 100 students from the University of Witwatersrand to attend a mine tour hosted by various mines. By attending these tours, the students had a first hand experience of how the operations of the companies are carried out.
MINING RITLUKA
Caring for People and the Planet
While social impact is considered a priority for Ritluka, the mining firm is an advocate for advancing environmental, social and governance responsibilities within the industry and the region.
“We are committed to causing no harm to the environment by ensuring that we proactively mitigate environmental impacts,” said Rhandzu.
Working collaboratively with its clients, Ritluka also ensures that it adheres to the environmental policies of its clients.
Ritluka’s health and safety track record incorporates best-in-class corporate practices, enabling it to deliver the excellent customer service it is committed to, all whilst ensuring the highest levels of safety for our employees and communities at large.
“We live by the responsible management of health and safety, ensuring zero harm is caused,” added Rhandzu.
Finally, Ritluka is proudly a 100% black owned entity, with a strong corporate governance. The business ensures that best practices are carried out throughout its operations, as well as committing to complying with industry requirements.
“Our company policies have zero tolerance for unethical practices,” 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 Rhanzdu.
www.ritluka.co.za
