Exxaro

Contact Information

Telephone: 012 307 5000
Fax: 012 307 5000
Website: www.exxaro.com

Company Profile

CORPORATE PROFILE

Exxaro Resources Ltd

Exxaro is one of the largest South African-based diversified resources companies, with a balanced portfolio including coal, mineral sands, base metals, industrial minerals and iron ore. It is a top 40 company listed on the Johannesburg Stock Exchange in terms of market capitalisation, with a geographic spread spanning South Africa, Namibia, Australia and China, and potential growth projects in other countries.

Coal

Exxaro is the second largest coal producer in South Africa. Eight managed coal mines produce 45,2Mtpa of power station, steam and coking coal annually, as well as char and related products for the rapidly growing ferroalloys industry. All of the power station coal is supplied to the national power utility and municipal power stations. Grootegeluk Coal Mine is one of the most efficient mining operations in the world, and boasts the world’s largest coal beneficiation complex. There is also a robust pipeline of greenfield and other expansion projects under way.

Mineral sands

Exxaro’s mineral sands operations include KZN Sands and Namakwa Sands in South Africa, and Australia Sands whose principal asset is a 50% share in the Tiwest joint venture with Tronox Inc.  With the acquisition of Namakwa Sands in October 2008, Exxaro became one of the world’s largest suppliers of titanium dioxide feedstock and zircon.

Base metals and industrial minerals

The Rosh Pinah zinc/lead mine in southern Namibia and the Zincor electrolytic refinery in Gauteng comprise some of the few integrated zinc mining and refinery operations in the world.  Exxaro also has an effective 22% interest in the Chifeng zinc refinery in China. A dedicated plant in Pretoria manufactures high-quality, gas-atomised ferrosilicon. The company also acquired a 26% stake in the Black Mountain zinc/lead mine and the Gamsberg zinc project in 2008.

Iron ore

Exxaro holds a 20% interest in Sishen Iron Ore Company (Pty) Limited (SIOC), a subsidiary of Kumba Iron Ore.

Strategy

To build solid foundations for the growth that lies ahead, the company aims to extract maximum value from the existing operating asset base, pursue expansion projects already under way and maintain a sound balance sheet structure.

Strategic focus areas:
•    Ensure Exxaro’s sustainability
•    Protect and build Exxaro’s reputation
•    Develop Exxaro’s leadership and people
•    Improve Exxaro’s portfolio
•    Achieve operational excellence

Growth

Exxaro’s growth portfolio is aimed at optimally positioning the group in the current economic climate. It provides a balance between the commodity and project portfolios and the company’s longer-term growth aspirations. Exxaro’s core growth areas will include:
•    Coal and reductants
•    The energy portfolio
•    Iron ore and ferroalloy projects

People
Exxaro takes pride in the skills and strength of its people and provides above-average training and development opportunities to its employees. Exxaro contributes more than 20% of all engineering learnerships registered with the MQA.

Sustainable development

The company’s approach to sustainable development is determined by formal charters that define its goals and commitment to stakeholders.  These charters are, in turn, guided by South African legislation, recommendations on corporate governance, the JSE Socially Responsible Investment index requirements and international benchmarks such as the Global Reporting Initiative (GRI), the United Nations Global Compact, and the International Council on Mining and Metals.