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The 2017 Integrated Report Has Been Released

About this report

Exxaro’s integrated report covers our financial and operational, governance, social and environmental performance as well as the challenges and opportunities ahead.

In line with our corporate value of honest responsibility, this report reflects our commitment to sustainable development, given the South African socio-economic and environmental context, and determination to entrench effective governance and global best practices in all operations. It also reflects maturing reporting processes and confidence in our ability to set and measure progress towards targets. We disclose key performance indicators across the six sustainability capitals, with targets and actual performance, for an informed evaluation of our progress.

This report covers the financial year to 31 December 2017, as well as key subsequent developments, and follows the 2016 report. It should be read with the full annual financial statements, comprehensive supplementary report, and mineral resources and reserves statement on our website.

Notice of the group annual general meeting, form of proxy and summarised financial statements were mailed to shareholders as statutorily required.

Content is guided by our strategic objectives, legislative and regulatory requirements, including the Companies Act of South Africa No 71 of 2008, as amended (Companies Act), the mining charter and the JSE Limited Listings Requirements. We are also guided by global best practice standards, including the International Integrated Reporting Council’s (IIRC) framework for integrated reporting, United Nations Global Compact, Global Reporting Initiative (GRI), King Report on Governance for South Africa 2016 (King IV) and AccountAbility 1000SES.

The audited group and company annual financial statements are prepared according to International Financial Reporting Standards (IFRS).

Board Responsibility

The board acknowledges its responsibility for the integrity of Exxaro’s integrated and supplementary reports.

Although the process of integrated reporting is still evolving, we have applied our collective mind to the preparation and presentation of information in this report, guided by the IIRC framework. Continuous efforts are made to incorporate best practice and improve our level of reporting, including an independent assessment of key aspects of sustainability reporting and disclosure by PricewaterhouseCoopers Incorporated (PwC).

Together with management, and reflecting on our operating context, strategy and value creation model, we believe this integrated report addresses all matters that have, or could have, a material effect on our ability to create value.

The board reviewed and approved the content of the integrated report and accompanying statutory information (mailed to shareholders) prior to publication.

Scope and boundary

Under the reporting requirements of the Department of Mineral Resources (DMR) for the mining charter scorecard, Exxaro discloses its performance per mining right for the review period on its website. Group performance against the scorecard is disclosed in this report (page 131).

This report, produced in English, has been prepared against the GRI’s new standards application level, and the GRI index is on our website. The supplementary report provides detailed disclosure on key aspects of our operations. Methods for determining specific GRI indicators are summarised in the text or detailed in our glossary.

Each year, key indicators are selected for external assurance. Where possible, we present comparable information for trend analysis. Corporate activity since Exxaro’s inception makes data comparability challenging in some areas; this is explained where it will aid understanding.

This report includes limited information on operations where we do not have management control but have a significant equity interest or joint control, namely Cennergi Proprietary Limited (Cennergi) and Sishen Iron Ore Company Proprietary Limited (SIOC). We reduced our holding in Tronox Limited significantly in the review period.

Materiality

Materiality is determined by careful analysis of our risks, strategic goals and outcomes of ongoing consultation with stakeholders. The top risks facing our group are summarised on page 57 and discussed under the appropriate material issue.