In a world marked by economic volatility, geopolitical shifts and growing environmental concerns, it is critical for businesses to adapt and innovate to build resilience today for a better tomorrow. The complex operating landscape within which the mining industry exists, demands agility and an aptitude to evolve to remain competitive and relevant. As Exxaro, we are redefining our role within the mineral resources space by embracing a forward-looking diversification strategy that prioritises sustainable and long-term growth, while addressing global challenges and contributing to more sustainable economies.
As we transition at speed and scale towards alternative energy solutions that enable carbon reduction, we recognise the need to embrace our transformed business model, which is deeply rooted in our Sustainable Growth and Impact (SG&I) Strategy. This means that we are actively working towards transitioning our business with measured urgency given the growing need for a low-carbon future. We will do this while creating positive social impact. Additionally, we will leverage our innovation, organisational intelligence and learning culture to navigate this transition.
Cennergi, our energy subsidiary, is one example of how we are diversifying and making progress in generating clean energy. This energy solutions business operates the Amakhala Emoyeni and Tsitsikamma Community wind farms; projects that now supply 229MW of clean energy to the national grid. We have also begun construction of a 68MW solar PV plant in the Limpopo province to supply our operations directly. These efforts contribute to reducing South Africa’s carbon footprint and underscores our commitment to environmental stewardship. Looking ahead, we have ambitious plans to expand our greener portfolio by exploring new opportunities in solar and wind energy while integrating low carbon solutions into our mining operations as we position ourselves as a leader in South Africa’s energy transition journey.
Another pillar of our diversification is the strategic focus on exploring critical minerals essential for the future such as manganese and copper. We are making some significant strides in working towards an acquisition of critical minerals. We look forward to sharing more developments on this front and remain steadfast in achieving our diversification strategy.
We recognise the need for climate action. For over 15 years, we have partnered with top universities to growing the industry’s collective knowledge base and drive research in fields of study related to climate change. We are active members of several key industry bodies and we have been advocating for positive change in South Africa's climate policy. As Exxaro, we are participants in the international arena through our involvement in the United Nation's annual conferences and other key discussions. By proactively surveying the environment using scientific data and analytical insights, adapting to global trends, and investing in sustainable solutions, we are demonstrating that traditional resource companies can be agents of positive change in unlocking the green economy. We are already well underway in implementing our climate change focused plans of achieving carbon neutrality by 2050.
Our investment towards diversification is also aligned to our broader Environmental, Social and Governance (ESG) considerations. It is deeply embedded in expanding the portfolio all while balancing profitability with environmental and social sustainability. As catalysts for positive impact, economic growth, and environmental stewardship, we aim to work with our ecosystem to drive sustainable operations, scalable socio-economic upliftment, and prosperity. This approach reflects our deep understanding that business success requires a holistic approach that considers financial, social, and environmental factors. We also continue to develop our employees and host communities to ensure that they are a part of our transition journey and included in our current and future business success.
Our strong balance sheet and operational excellence have put us in a position where we have a distinct competitive advantage to deliver on our objectives. By staying true to our purpose of Powering Possibilities and embracing the opportunities of a greener economy, we are charting a course that others in the resource sector would be wise to follow. We are a key role player in powering South Africa’s economy and will leverage our innovation, organisational intelligence and learning culture to navigate this transition and remain committed to the execution of our Sustainable Growth & Impact Strategy in order to create value for our stakeholders.
Riaan Koppeschaar: Acting CEO and Finance Director, Exxaro