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Coal miner looks to bauxite, copper and manganese

South Africa-based coal miner Exxaro Resources has unveiled plans to diversify, saying it wants to hold a “future-facing portfolio” by investing in operating bauxite, copper and manganese assets.
Coal miner looks to bauxite, copper and manganese Coal miner looks to bauxite, copper and manganese Coal miner looks to bauxite, copper and manganese Coal miner looks to bauxite, copper and manganese Coal miner looks to bauxite, copper and manganese

Exxaro has outlined plans to diversify in line with the global energy transition

Staff reporter

CEO Mxolisi Mgojo said the acceleration towards a net zero economy was one of the forces shaping its strategy to provide a "Just Transition".

"We have a responsibility to use the coal assets to build a sustainable business for our investors, employees, communities and a sustainable future for the planet," he said.

Its new Exxaro Minerals business could represent 50% of expected coal EBITDA within 10 years, CEO-designate and MD minerals Dr Nombasa Tsengwa said in a capital markets day presentation yesterday.

In terms of manganese, she said there were "attractive opportunities in our own backyard" and cited a forecast shortfall of 2 million tonnes per annum by 2035.

In copper, Exxaro had "identified a favourable entry point in the 2nd and 3rd quartile of the cost curve".

In bauxite, there was an opportunity to capitalise on declining supply in China and with a forecast supply gap of 65Mtpa by 2045, "Exxaro's timing will be critical to its success", according to the presentation.

The black-empowered miner was also aiming to be carbon neutral by 2050.

Its shares (JSE: EXX) remain near the upper end of a one-year range but closed 2.85% lower yesterday to ZAR175.85, valuing it about ZAR64 billion (US$4.3 billion).