Exxaro Resources Limited 1

Exxaro Resources Ltd (“Exxaro”) was formed in 2006, following the unbundling of Kumba Resources Ltd.1 Exxaro is listed on the JSE.

Exxaro produces power station, steam, and coking coal. Most of Exxaro’s power station coal is supplied to Eskom. Semi-coke and related products are produced for the ferroalloys industry.2

Operations

Grootegeluk3

  • Location: 22km west of Lephalale, in Limpopo.
  • Type of mine: Opencast.
  • Current status: Operational.
  • Size: No publicly available information on size of mining right.
  • Life of mine: 24+ years.

Leeuwpan4

  • Location: South-east of Delmas, in Mpumalanga.
  • Type of mine: Opencast and underground.
  • Current status: Operational.
  • Size: No publicly available information on size of mining right.
  • Life of mine: 13 years.

Matla5

  • Location: West of Kriel, in Mpumalanga.
  • Type of mine: Underground.
  • Current status: Operational.
  • Size: No publicly available information on size of mining right.
  • Life of mine: 8+ years.

Thabametsi6

  • Location: West of Lephalale, in Limpopo.
  • Type of mine: Opencast.
  • Current status: Feasibility concluded.
  • Life of mine: 29+ years.

Arnot7

  • Location: South of Middelburg, in Mpumalanga.
  • Type of mine: Opencast and underground.
  • Current status: Closed.
  • Size: No publicly available information on size of mining right.

Belfast8

  • Location: South of Belfast, in Mpumalanga.
  • Type of mine: Opencast mine.
  • Current status: Feasibility concluded.
  • Life of mine: 17 years.

Tshikondeni9

  • Location: East of Musina, in Limpopo.
  • Type of mine: Opencast and underground.
  • Current status: In closure.
  • Size: No publicly available information on size of mining right.

Zonderwater10

  • Location: West of Lephalale, in Limpopo.
  • Type of mine: Underground.
  • Current status: Concept phase.
  • Life of mine: Not clear yet.

North Block Complex (includes mining areas of Glisa, Strathrae, and Eerstelingsfontein)11

  • Location: West of Belfast, in Mpumalanga.
  • Type of mine: Opencast.
  • Current status: Operational.
  • Size: No publicly available information on the size of the mining rights.
  • Life of mine: 0.5 years.

A sale and purchase agreement has recently been entered into for the acquisition of the assets of the North Block Complex. Universal Coal will buy the assets through a 49% owned subsidiary. The balance of the North Block Complex will be controlled by Ndalamo Resource. Universal Coal will manage the North Block Complex.12

Joint Ventures

Dorstfontein Complex13

  • Ownership: 74% interest under Exxaro Coal Central.  Mmakau Mining (Pty) Ltd is Exxaro’s joint venture partner for Dorstfontein.14
  • Location: West of Kriel, in Mpumalanga.
  • Type of mine: Opencast and underground.
  • Current status: Operational.
  • Size: Mining right covers 20.66km2.15
  • Life of mine: 15 years.

Forzando Complex16

  • Ownership: 74% interest under Exxaro Coal Central.
  • Location: 10km north of Bethal, in Mpumalanga.
  • Type of mine: Underground.
  • Current status: Forzando South is in operation. Forzando North is under care and maintenance.17
  • Size: Mining right covers 121.13km2.18
  • Life of mine: 20 years.

Mafube19

  • Ownership: 50:50 joint venture with Anglo American.
  • Location: East of Middleburg, in Mpumalanga.
  • Type of mine: Opencast.
  • Current status: Operational.
  • Size: No publicly available information on size of mining right.
  • Life of mine: 12 years.

Eloff20

  • Ownership: 51% owned by Exxaro.
  • Location: South-west of Delmas.
  • Type of mine: Opencast and underground.
  • Current status: Concept phase.
  • Life of mine: Not yet clear.

Tumelo21

  • Ownership: 49% owned by Exxaro.
  • Location: East of Middleburg, in Mpumalanga.
  • Type of mine: Underground.
  • Current status: On care and maintenance.
  • Size: No publicly available information on size of mining right.
  1. http://www.exxaro.com/about/company-profile
  2. http://www.exxaro.com/operations/portfolio
  3. Exxaro 2016 Integrated Report, at page 9.
  4. Exxaro 2016 Integrated Report, at page 9.
  5. Exxaro 2016 Integrated Report, at page 9.
  6. Exxaro 2016 Integrated Report, at page 9.
  7. Exxaro 2016 Integrated Report, at page 9.
  8. Exxaro 2016 Integrated Report, at page 9.
  9. Exxaro 2016 Integrated Report, at page 9.
  10. Exxaro 2016 Integrated Report, at page 9.
  11. Exxaro 2016 Integrated Report, at page 9.
  12. http://www.miningmx.com/trending/32072-universal-coal-buy-exxaros-north-block-complex-r172m/ and https://www.worldcoal.com/coal/08032018/universal-coal-enters-sale-and-purchase-agreement-for-north-block-complex/
  13. Exxaro 2016 Integrated Report, at page 8.
  14. https://www.srk.co.za/sites/default/files/File/South-Africa/publicDocuments/Dorstfontein/499507.2017.10.25.EIA_and_EMPr.Dorstfontein._Final.Cond_.pdf
  15. https://www.srk.co.za/sites/default/files/File/South-Africa/publicDocuments/Dorstfontein/499507.2017.10.25.EIA_and_EMPr.Dorstfontein._Final.Cond_.pdf
  16. Exxaro 2016 Integrated Report, at page 8.
  17. Exxaro 2015 Consolidated Resource Report, available at: http://www.exxaro.com/assets/files/Consolidated_Mineral_Resources_Ore_Reserves_Report.pdf.
  18. Exxaro 2015 Consolidated Resource Report, available at: http://www.exxaro.com/assets/files/Consolidated_Mineral_Resources_Ore_Reserves_Report.pdf.
  19. Exxaro 2016 Integrated Report, at page 9.
  20. Exxaro 2016 Integrated Report, at page 9.
  21. Exxaro 2016 Integrated Report, at page 9.