“A new commitment to responsible mining”

After three years of negotiations and preparations, Kumba Resources finally entered into an empowerment deal with Anglo American, the Industrial Development Corporation and Eyesizwe Mining. The joint deal resulted in the formation of two companies, Kumba Iron Ore and Exxaro.

Exxaro is now the new operator of Tshikondeni underground coal mine, near Musina. Exxaro Tshikondeni Mine Manager Adrie Conradie briefed invited guests about the new company at a glittering ceremony held at Mbilwi High School Hall on Friday last week.

Conradie told delegates that Exxaro has reiterated its commitment to sustainable development in the Limpopo Province, following its recent listing on the JSE Limited. "Exxaro is South Africa’s flagship empowerment mining company and largest black-controlled diversified resources company which will continue to champion several sustainable development projects in the Limpopo Province that had been initiated under the Kumba Resources banner. As a mining group, the challenge we face is to demonstrate that the way we approach business contributes to sustainable development and that the social, environmental and economic impact of mining – both positive and negative – are accounted for and managed in a transparent and accountable way."

"At Tshikondeni, several projects are underway that demonstrate Exxaro’s commitment to responsible mining and to its sustainability strategy. These include a winter school that provides an educational enrichment programme, which the local department of education encourages learners to attend; a tourism project that involved the development of a marketable cultural accommodation attraction on the border of the Kruger National Park; and the establishment of the Makuya multi-purpose centre to serve the community through an effective public-private partnership between the mine, government and other stakeholders," Conradie added.

Exxaro currently employees about 8,000 people, 770 of which are employed at the Tshikondeni mine. The company will implement the Employee Empowerment Participation Scheme, which will result in Exxaro’s participating employees acquiring a 3% interest in Exxaro.

As South Africa’s largest black-controlled and empowered mining group, Exxaro is the fourth largest coal producer in South Africa. It is also the largest supplier of coal to Eskom and South Africa’s largest producer of metallurgical coal. Exxaro operates in South Africa, Namibia, Australia and China.

News - Date: 08 December 2006

Wilson Dzebu

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