Exxaro Resources Diversifies Beyond Coal in South Africa

Exxaro Resources CEO Ben Magara detailed the company’s plan to expand beyond coal mining in South Africa, focusing on renewable energy, critical minerals, and logistics improvements. Speaking from the newly completed Lephalale Solar Project in Limpopo, Magara explained Exxaro is evolving into a diversified natural resources company.

Magara noted a shift in global attitudes towards coal, citing geopolitical events and renewed interest in energy security as factors. While acknowledging coal’s continuing role, he emphasized the potential of renewable energy, with plans to increase generation capacity to 1.6GW by 2030.

Exxaro intends to finance this transition using profits from its existing coal operations, while also investing in manganese, iron ore, and zinc. Magara stressed that improved rail infrastructure is crucial for realizing the full potential of the Waterberg coalfields and ensuring efficient commodity transport. The company is closely watching the restructuring of Eskom, questioning the financial viability of its separated divisions.