Saturday, October 16, 2021

Coal miner looks to bauxite, copper and manganese - www.mining-journal.com

Last updated Tuesday, September 21, 2021 02:03 ET , Source: NewsService

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).

Read Full Story: https://www.mining-journal.com/sustainability/news/1418075/coal-miner-looks-to-bauxite-copper-and-manganese

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