Background
Exxaro Resources Limited (Exxaro) is among the top five coal producers in South Africa. Since 2006, Exxaro gained a reputation for being the largest black-empowered diversified mining company. The group is listed on JSE Limited (JSE) Top 40 Index and among the top 30 in the FTSE/JSE Socially Responsible Investment Index. Exxaro is more than a mining business: we strongly believe in making a positive impact in the world. Our purpose: Power Better Lives in Africa and Beyond supported by Vision: Resources powering a clean world, through responsible investments. Exxaro endorses the United Nations Sustainable Development Goals (UN SDGs), benchmarking our performance against global best practices, and participates in the National Business Institute (NBI) to ensure the 17 SDGs align with the country’s National Development Plan (NDP) for our Exxaro 2026 strategy.
Our asset portfolio comprises interests in thermal and metallurgical coal, renewable energy (Cennergi), ferrous (FerroAlloys) and equity-accounted investments in iron ore, zinc, residual pigment 26% direct interest in KZN Sands and Namakwa Sands, as well as 10.38% interest in Tronox, manufacturing. Our interest spans globally in Europe (marketing and logistics office in Switzerland), Australia ( Moranbah coal mine joint venture with Anglo Coal, the United States of America (through Tronox Holdings plc).
Exxaro’s total carbon dioxide equivalent (CO2e) emissions in 2020 were 70255 kilotonnes (kt) compared to 72 029kt (2019). The decrease of 5% reflects our commitment to improvement our carbon neutrality. Our short-term carbon intensity target is -5% across the group. On 12 March 2020, we published our Climate Change Position Statement, which contains our aspirational target to be carbon neutral by 2050. The report also contains our firm support to the Task Force on Climate-related Financial Disclosures (TCFD) recommendations and alignment of our internal and external governance and reporting processes to the TCFD recommendations. We published our Climate Change Response Strategy and Results of our TCFD recommendation alignments performance. The insight from this report will further enhances our climate change disclosure and responsibility.
Renewable Wind Energy Exxaro contributes renewable wind energy to the national energy supply through Cennergi Proprietary Limited (Cennergi). Total generation output at 553GWh for the nine-month period offsetting coal emissions. We acquired Tata Power 50% interest effective 1 April 2020, for 100% ownership.
Operating Coal Assets Our coal operations are mainly located in Mpumalanga and Limpopo regions. In 2020 produced a total 47.4 million tonnes (Mt) of coal (2019: 45.6 Mt ). The local sales volumes of 46.8Mt are mainly utilized by Eskom, a state-owned utility for power generation and this account for over 98 % of our GHG emission profile.
Non-Operating Assets (Underground Mines In Closure) Tshikondeni, Hlobane, Durnacol are all in the mine closure process supported with a strong rehabilitation and land management strategy aligned to support climate change.
Challenge
Exxaro are looking for innovators/experts who can help them understand the source of emissions (and where it enters) in their processes. This will allow them to see where improvements can be made, and how they can assist and influence their partners and suppliers to help them fight climate change.
Carbon emissions have negatively impacted the entire globe as evident by climate change. If this is not addressed in the next 9 years, the impact of climate change will be permanent. Due to pressures placed on fossil fuels, and specifically coal mining, decreasing the carbon emissions and intensity of operations have become critical in ensuring future operations.
"What gets measured gets managed”. The need to understand the carbon intensity of their operations is becoming more and more critical to ensure they combat climate change by understanding the origin of their emissions.
What's in it for you?
Depending on the maturity of the solution pitched, the innovator could benefit in one or more of the following ways:
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Entering into a commercial agreement with Exxaro Resources to deploy, test and scale the successful solution
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Collaboration to develop and build the required tool in the form of a strategic partnership