Saturday, October 16, 2021

Exxaro is going greener with its diversified climate change portfolio - IOL

Last updated Wednesday, September 22, 2021 02:54 ET , Source: NewsService

EXXARO Resources is becoming greener. The group told investors during its Capital Markets Day this week it was diversifying its portfolio to consist of renewable energy and minerals, with a focus on wind and solar power, bauxite, copper and manganese in response to climate change.

Exxaro said at the core of its strategy was managing the embedded risk of carbon by diversifying earnings away from carbon-based commodities while also reducing the company’s carbon footprint.

Financial director Riaan Koppeschaar said Exxaro had a strong balance sheet and cash generative coal operations at the core of its business and the group was among the world’s most efficient and low-cost coal producers.

“However, we have a long-term vision and need to adapt to the dynamics of a low carbon future.

“Exxaro will utilise its mining skills to supply minerals that power a cleaner world while providing shareholders with superior returns from the combination of the minerals business representing 50 percent of expected coal earnings before interest, taxes, depreciation and amortisation within 10 years and the predictable cash generation of the renewable energy business.

“Our improved governance process, reinforced from past learnings, will be a key foundation for our success,” said Koppeschaar.

Exxaro is Eskom’s biggest supplier and operates among others the Grootegeluk, Leeuwpan and Mafube coal mines.

Chief executive designate and managing director for minerals Nombasa Tsengwa, said the group...

Read Full Story: https://www.iol.co.za/business-report/companies/exxaro-is-going-greener-with-its-diversified-climate-change-portfolio-8f805988-7fec-48be-82c0-ff3ef1b2dcde

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