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Stakeholder engagement

At Exxaro, stakeholder engagement is the process of ensuring that we create a transparent dialogue between ourselves and internal and external parties about our operations and the consequences of those operations. Our stakeholder engagement policy defines the concept of stakeholders and the nature of engagement with those stakeholders, and applies to all employees at all Exxaro centres.

Drivers for stakeholder engagement
Building long-term, stable and mutually-beneficial relationships with stakeholders is a business imperative for Exxaro. Stakeholder engagement is therefore governed by the following protocols:

the King II Report on Corporate Governance
Global Reporting Initiative (GRI)
The Mineral and Petroleum Resources Development Act.

Effective stakeholder engagement is designed to:

Give Exxaro an opportunity to explain at local, regional and national level the nature of its decisions and the financial, environmental and social consequences of those operations
Sensitise Exxaro to concerns that may exist within the communities or investor bodies, and to address those issues
Enable Exxaro to influence government and other stakeholders
Provide the opportunity to brand Exxaro externally and facilitate more accurate and favourable reporting in the media
Facilitate the ability to raise capital for projects by providing investors with better information and understanding
Facilitate decision-making inside and outside Exxaro by ensuring the flow of accurate information.

Stakeholder identification

A stakeholder is defined as any person or body with a direct or indirect interest in Exxaro operations, or with the ability to affect Exxaro operations, or who is required to be informed of our operations.

Internal stakeholders

Employees – All employees and their representative bodies
Exxaro board – the board is required to make strategic decisions on direction, and must be well-informed on factors which may affect its decisions and impact on represented interests.

External stakeholders

Local, provincial and national government bodies

National government bodies make decisions and formulate policies that impact directly on our operations
Provincial government bodies develop regional growth and development strategies with consequences for Exxaro centres in that region
Local government bodies are primarily concerned with the impact of Exxaro operations in the local community. These bodies affect our operations as they control land zoning and service provision, including water and electricity supplies

Media – Greatly influences the image of Exxaro in the outside community, making it imperative to ensure the media has accurate information on our operations
Investors – Include shareholders, fund managers and analysts. Investors have a direct financial interest in our revenue and profitability, and are thus concerned about the sustainability of operations, making it crucial that they are well informed of our policies, strategy and operations
Customers – Prefer to deal with a company with a good track record in product stewardship. An understanding of our policy and strategy helps develop long-term relationships with customers
Suppliers – Prefer to work with a company that will deal responsibly with their products and services. Stakeholder engagement ensures we inform suppliers of our ethical and governance standards and avoid potential damage to our reputation
Business partners – Companies need to understand the strategy, ethics and governance of their partners to develop a business relationship. Inaccurate information can result in failed partnerships with damaging consequences
Local communities – Are directly affected by Exxaro operations (work opportunities, environmental impact and development opportunities). Interaction is essential
Non-government organisations – NGOs include charities, pressure groups, environmental groups and other non- profit structures whose objective is to influence policy and decisions on a particular subject. Interaction with NGOs ensures we are aware of each other' s concerns
Other industry players – Organised business chambers, competitors, employer associations, research organisations and standards-generating bodies. Industry players need to interact with one another on standards, benchmarking, lobbying and other activities of mutual interest.

MULTI-STAKEHOLDER MODEL
Exxaro's approach to sustainability rests on a multi-stakeholder model, acknowledging that our primary responsibility is to investors but that this duty cannot be fulfilled without a considered regard for the interests of other stakeholders, including:

Stakeholder	Representative/s	Primary issues
National government	Department of Minerals and Energy Department of Trade and Industry Department of Education Department of Agriculture Department of Labour	Compliance with mining charter Alignment with national growth and development strategies Partnerships in enterprise development Employment opportunities through local economic development Partnerships in formal education support Employment equity and other labour related issues
Provincial and local government	Regional Department of Minerals and Energy office Department responsible for growth and development	Compliance with mining charter Partnerships/assistance with local economic development Employment opportunities created through local economic development
	Land Bank	Agricultural local economic development projects
	Local municipality	Local economic development
Media	National broadcasters Media groups, including financial press	Newsworthy items, particularly empowerment activities Reputation management Financial performance from investors' perspective
Investors	BEE Holdco Anglo American Exxaro Employee Empowerment Participation Scheme Minority shareholders	Growth Return on investment
Customers	Eskom	Major coal purchaser
Suppliers	Transnet Other vendors	Major supplier Transportation of raw material Any developments that affect Kumba requirements and thus their own income Sole suppliers Preferential procurement
Business partners and industry participants	Chamber of Mines Chamber of Commerce	Economic development in southern Africa
Communities, non-governmental bodies and community organisations		Socio-economic development Environmental issues
Internal stakeholders	Employee representatives	Service conditions, employer relations, socio-economic development

COMMUNICATING WITH STAKEHOLDERS
Exxaro initiates numerous activities to engage stakeholders at a national level.

	Description	Audience	Frequency	Distribution/location
National Exxaro stakeholder engagement forum	National forum chaired by senior manager, covering sustainability focus areas	All national and regional stakeholders	Quarterly	Exxaro Corporate Centre
Stakeholder forum reports	Summarised report of topics and discussions from stakeholder engagement forum	All national and regional stakeholders	Quarterly	Posted/emailed one week after forum meeting
Kumba internet site	Stakeholder forum reports Share prices News releases	All stakeholders	Ongoing	Electronic www.exxaro.com
One-on-one meetings	Meetings with specific stakeholders on pertinent issues	Determined by requirement	As needed	As needed
Annual report	Publication that covers progress in all areas of sustainability for the preceding year	All national and regional stakeholders	Annual	Posted

CONTACT
Dr Nombasa Tsengwa
Executive General Manager Safety and SD
Tel: +27 12 307 3416
Fax: +27 12 307 5329
nombasa.tsengwa@exxaro.com

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