Insight
Exxaro commits
to sustainable expansions
M
The primary
goal of 2018 is
for the mining
industry and
government to
work together,
writes Mzila
Mthenjane.
ining in South Africa exists in a
changing political landscape. The
primary goal of 2018, it seems, is
for the mining industry and government to
work together to provide certainty. Up until
now (before the inauguration of President
Cyril Ramaphosa as president of South
Africa), high levels of uncertainty, paired
with record lows in sentiment, resulted in
poor levels of investment. Tackling this issue
head-on rests largely on the shoulders of the
new, renegotiated Mining Charter.
Early in 2018, the US dollar weakened, and the
rand strengthened, which is not always beneficial
as it affects mining in the form of lower export
revenues, although it results in lower fuel costs and
cheaper imported goods. An optimal and fairly
priced currency, among others, is what is required
for sustainable growth of the mining industry,
which plays a significant role in uplifting several
other sectors of the economy. All will be affected if
exports are severely affected due to the weaker US
dollar and resulting stronger rand.
Being relatively young in the mining industry
has given Exxaro the advantage of agility
— without any legacy issues. There exists an
opportunity to do things differently, and the
organisation subscribes strongly to this principle.
It will certainly be a strong focus moving further
into 2018.
Coal remains a key commodity for the group.
We have looked at the resource from every angle
and considered all its possibilities. Our resolution
is that it is the fuel that the organisation will
continue to use to power itself, and the country,
for the foreseeable future — in a consciously
sustainable manner.
At the same time, to cultivate a better level
of efficiency by improving volumes without
increasing costs, the coal mining company will be
pursuing and implementing innovations, while
maintaining the highest standard of safety and
working conditions for employees. The overall
supply chain stands to benefit greatly, this due
to the rise of innovations such as the Internet of
things (IoT).
Embracing leaps in technology will open
doors for improved interconnectivity between
the various activities in the mining value chain;
for example, by allowing a much better flow
of information from one activity to another.
This will enable more informed and quicker
decision-making, enhanced insights and
understanding of reserves (in both quality and
[40] MINING MIRROR APRIL 2018
quantity), and better communication with and
service to our stakeholders.
All these innovations are being pursued
without forgetting the many communities Exxaro
serves. Unemployment and other social issues
are a focus for the organisation, and as such there
are several people-focused initiatives in place to
tackle these concerns head-on.
Enterprise and supplier development, for
example, pays attention to the people close to the
organisation’s operations to ensure that in 10–15
years’ time, they will no longer remain dependent
on coal mining for a livelihood. Instead, they
will use mining as a springboard for their own
development. Working closely with our suppliers
will be critical to achieving this goal.
Another initiative realises the huge need
for early childhood development and the
organisation is tying into South Africa’s National
Development Plan. We are doing what we can to
provide a foundation for the nation’s youth today,
so that they are equipped with tools to enact
change in the nation tomorrow.
Despite our best effort s, there is the growing
realisation and acceptance that the challenges the
country faces cannot be solved by government
or business alone. As a result, in 2017 we joined
a collaborative development platform with other
mining companies, civil society groups, and
provincial government, to create a model that
has the potential for regional socio-economic
development impact and application in other
parts of South Africa, and even other countries.
Collaboration and innovation is certainly a must
moving forward.
Although coal remains our primary business
commodity (with expansion of over R10-billion
planned over the next four to five years), that is
not to say that other opportunities are not being
explored. We are an agile and purpose-driven
business; we aim to seek, develop, prioritise, fund,
and commercialise new business opportunities
within a rapid stage-gate governed process,
which will impact positively on people’s lives. In
anticipation of potential threats to coal mining,
we are looking at renewable energy solutions, in
addition to our Cennergi investment, to find new
ways to generate and supply energy and manage
energy consumption. b
About the author
Mzila Mthenjane is the executive head of
stakeholder affairs at Exxaro.