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News • 16 Sep 2022

Exxaro places host communities at heart of its business

Exxaro places host communities at heart of its business

On the back of a successful financial reporting period, reflecting a balance between profit and livelihoods, Exxaro Resources continues to positively impact its host communities. The mining resources and renewable energy solutions company - invested R700 million in socio-economic sustainability programmes for the first six months of 2022.

Exxaro Resources CEO, Dr Nombasa Tsengwa, said the company’s accomplishments in the areas of environmental, social, and corporate governance (ESG) over the past six months in terms of environmental conservation; emissions reduction, responsible management, and community development was an indication of its commitment to holistic sustainability.

“We continue with our community development and investment efforts aimed at alleviating the strain of poverty and reducing unemployment, by doing all we can to help our communities. Our community investments are focused on creating employment opportunities, procurement and enterprise development opportunities, education, and skills development, as well as provision of infrastructure projects”, adds Dr Tsengwa.

Highlights for the six-month period ended 30 June 2022 include the following:

Local economic development

Exxaro approved enterprise and supplier development funding of R115 million to more 10 small, medium, and micro enterprises (SMME) employing 255 people across its operating mining and energy regions. We achieved a local procurement spend of R564-million, which has empowered over 209 local black women-owned and black youth-owned SMMEs.

Exxaro’s wholly owned subsidiary and independent power producer, Cennergi, located in the Eastern Cape, provided support to eight enterprises on a financial excellence programme in partnership with the South African Institute of Chartered Accountants (SAICA) Enterprise Development and the Hope Factory at an investment of R400,000. It has spent R3.4 million in the first half of 2022 on enterprise development initiatives.

Social Labour Plans Initiatives

A total of R6.7 million was spent on infrastructure development through its Social Labour Plans initiatives, including a road rehabilitation project in Belfast, Mpumalanga which will improve road safety.

Cennergi’s Amakhala Emoyeni and Tsitsikamma wind farms spent R7.3 million on infrastructure development initiatives, including a water solution project. A total of 186 jobs were created and nine local SMMEs benefited from the projects.

Education and Training

The diversified minerals and renewable energy solutions company entered a relationship with the Youth Employment Service (YES), which aims to provide high-impact skills development and social entrepreneurship training worth R3.6 million. There are currently 100 learners, and this number will increase as recruitment initiatives are rolled out.

To develop a pipeline of future talent, Cennergi invested significantly in the bursary programme which currently supports 34 students from various host communities in Eastern Cape at an investment of R1.3 million.


The company continues with its portfolio optimisation, aiming for a 40% reduction in Scope 1 and 2 emissions by 2025. Among its achievements in the past six months there has been a 1% improvement in the rehabilitation of disturbed land; no level 2 and 3 findings regarding environmental incidents; a 0,7% reduction in carbon intensity and a 18% improvement in water intensity.

Exxaro is committed to ensuring the protection and conservation of biodiversity-rich ecosystems, including the protection of red data species, threatened and protected species and the management and control of alien invader species.

Dr Tsengwa said: “We aim to power better lives in Africa and beyond by responsibly investing in commodities that will sustain life on the continent. This goal is being realised by fulfilling basic and primary needs, the things that keep us functioning as a society.”