Mike Teke, CEO,

SERITI

"Beyond coal, we will look for opportunities in, for example, manganese mining and others."

Can you give an overview of Seriti and the company’s role in the South African mining industry?

Seriti is a 91% black-owned and controlled South African mining company co-owned by four anchor shareholders - Community Investment Holdings, Masimong Group Holdings, Zungu Investments Company, and Thebe Investment Corporation. These shareholders came together when the opportunity arose to acquire Anglo American’s coal assets in 2017. We successfully secured three collieries - New Vaal, New Denmark, and Kriel - which are dedicated to supplying coal to Eskom power stations. In the transaction, we were also able to acquire the New Largo asset, a resource of 585 million mt and the potential to become a large-scale, long-life coal mine, able to supply Eskom’s adjacent Kusile power station with around 12 million mt/y of thermal coal over 50 years.

Having operated these three mines successfully for three years, Seriti made an offer to acquire South32’s SA Coal Holdings Proprietary Limited (SAEC). Seriti sees it as a good opportunity to grow and enter the export market. SAEC been renamed Seriti Power.

Beyond coal, we will look for opportunities in, for example, manganese mining and others.

What investments is Seriti exploring to increase the company’s presence in the renewable energy space?

If the opportunity arises for Seriti to become a player in the alternative energy generation space, we will not hesitate to take it. South Africa will, however, continue to depend on coal-fired power for at least another 20 years. The energy transition will reduce local demand for coal, but the export market will continue to offer opportunities.

Mxolisi Mgojo, CEO,

Nombasa Tsengwa, CEO-designate and Managing Director of Minerals,

Sakkie Swanepoel, Group Manager Marketing,

EXXARO RESOURCES

"The commissioning of our wind farms demonstrates that we are committed to powering a clean world with a portfolio of clean energy resources."

Can you give an overview of Exxaro and the company’s history in the region?

MM: Exxaro was established in 2006 and has grown to become one of the largest black-empowered diversified mining companies in South Africa with an asset portfolio that includes coal operations and investments in iron ore and zinc, residual pigment manufacturing, and renewable energy.

Can you elaborate on Exxaro’s ESG strategy?

NT: We want to ensure that our revenue is primarily generated from low-carbon business operations while moving towards carbon neutrality (scope 1 and 2) by 2050. We are committed to meeting our carbon neutrality target by consistently reducing our direct emissions and partnering with our suppliers and customers to reduce our indirect emissions. We have already started to move to electric vehicles and are conducting in-pit crushing to reduce our emissions.

MM: The just transition to a low-carbon business envisages social inclusion that will make our business resilient to climate change transitional and physical risks, sustain and create employment opportunities, and increase the adaptive capacity of communities relying on our operations.

The commissioning of our wind farms demonstrates that we are committed to powering a clean world with a portfolio of clean energy resources.

SS: With coal’s uncertain future, we must focus on our control over how we exploit our resources and what we do with these resources to leverage from where the value is in the market. We have thus implemented an Early Value Strategy that will optimize our coal resources to focus on realizing maximum value in the shortest period.