South 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.
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
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.