JOHANNESBURG (miningweekly.com) – Impressive renewable-energy advances were graphically displayed by coal major Exxaro during its Capital Day on Monday, June 22.

The first was a wind turbine involving 600 m³ of concrete in a 25 m excavation, elevated by a 15 t steel centre on a 60 t steel base, and the second a huge solar plant supplying green electrons. (Also watch attached Creamer Media video.)

“So, there's 76 t of steel in there to anchor a wind turbine,” Exxaro CEO Ben Magara reported on the Kareebosch wind development before turning to the supply of 68 MW of solar power at the Johannesburg Stock Exchange-listed company's Lephalale coal hub. 

Exxaro is reducing its carbon intensity through what is described as an "accelerated and workable decarbonisation road map".

In the past year, Exxaro has doubled its renewable-energy business and concluded its manganese transaction, amid the company’s commitment to carbon neutrality by 2050 remaining unchanged.

“We’re unwavering at making sure we’re carbon neutral by 2050,” an adamant Magara told the event covered by Mining Weekly.

Exxaro’s last Capital Markets Day was hosted five years ago in 2021, when Exxaro was positioned for its low-carbon future.

As the world adopts a more pragmatic approach to energy security, Exxaro's own long-life coal assets remain critical in supporting global and domestic energy needs, and generating cash flows to invest in future-facing metals growth. This is envisaged against the expectation that the global runway for coal will likely extend beyond 2050.

“The world today is materially different from the one we faced in 2021. Globally, we’re seeing increasing geopolitical fragmentation and trade realignment,” Magara noted.

“Our renewable business represents an important growth platform, providing increased exposure to stable, predictable, and inflation-linked earnings, while supporting South Africa's transition to a low-carbon economy.

“We also have equity accounted investments in iron-ore and zinc. The addition of manganese and the growth of our renewable-energy business strengthen the diversification of our portfolio.

“Looking ahead to 2030, we expect energy and our future-facing metals to contribute more than half of the total group earnings, not by shrinking coal, but by growing others. So, importantly, coal stays the foundation of our portfolio, generating the cash flows required to fund the growth,” Magara explained.

November 2026 will be the twentieth anniversary of Exxaro’s JSE-listing in November 2006.

Current market capitalisation is R75-billion compared with R51-billion at the start of last year and R20-billion at the time of listing.

Figures displayed showed a business that supports more than 20 500 employees, including contractors.

More than R200-billion of stakeholder value has been created since listing with more than R85-billion rands in dividend distribution.

“As energy and metals grow, we’ll contribute a larger share of earnings from manganese and energy, including the iron-ore assets, to enhance that diversification and drive the resilience of our earnings, most importantly reducing the carbon intensity of our earnings profile. That's the aim for this diversification programme.

“This shift reflects growth in these businesses rather than a decline in coal, and we expect coal to remain a significant contributor to the portfolio, even as its share of earnings decreases over time,” Magara outlined.

In time, renewable energy and future-facing metals are expected to contribute more than half of the total group earnings.