Exxaro Resources

Exxaro Resources Limited is a large, diversified resources company based in South Africa and listed on the JSE. The company was formed in November 2006 through the unbundling of Kumba Resources Limited's coal and other assets, which then merged with Eyesizwe Coal. This established one of the country's largest black-empowered mining companies.

While coal remains the core of its business, making it one of the top five coal producers in South Africa, Exxaro is actively diversifying its portfolio. The company's business model is focused on a strategic transition from a coal-based entity to a diversified minerals and renewable energy business, aiming to thrive in a low-carbon future. This strategy includes strengthening its current operations while expanding into minerals like manganese, bauxite, and copper. Revenue is primarily generated from coal sales to both domestic and international markets, with a significant portion supplying South Africa's national power utility, Eskom. Additional income is derived from its renewable energy division and equity-accounted investments.

Exxaro's product and service portfolio reflects its diversified approach. The primary offering is thermal and metallurgical coal from its various mines, including the major Grootegeluk operation. The company also operates a growing renewable energy business, Cennergi, which became a wholly-owned subsidiary in 2020 and manages wind and solar power projects. Beyond its core operations, Exxaro holds equity investments in ferrous metals (iron ore) and base metals (zinc). The company serves a wide range of industries, including public utilities, steel, manufacturing, and chemicals, with a global presence that includes a marketing and logistics office in Switzerland and a joint project in Australia.

The company's leadership reflects a blend of deep industry experience and a forward-looking perspective. Dr. Nombasa Tsengwa, the current CEO, brought a unique background to the mining sector. With a PhD in Agronomy and early career experience in government environmental affairs, she joined Exxaro's predecessor, Kumba Resources, in 2003, focusing on safety, health, and the environment before rising through various operational and leadership roles. Her predecessor, Mxolisi Mgojo, who became CEO in 2016, was instrumental in driving the company's digital transformation, including the development of a fully digital mine. Mgojo joined Exxaro at its inception, having previously been with Eyesizwe Coal.

Keywords: diversified resources, coal mining, renewable energy, black-empowered, JSE listed, thermal coal, metallurgical coal, Cennergi, sustainable mining, Eskom supplier, Grootegeluk mine, energy transition, South African mining, iron ore investment, zinc investment, manganese, corporate social responsibility, carbon neutrality, resource management, wind energy