Early value stratergy

EXXARO CONDUCTED A PROCESS ACROSS ALL ITS OPERATIONS DURING 2019 TO EXTRACT HIGHER VALUE EARLIER IN THE LIFE OF OPERATIONS. AT THE BEGINNING OF 2020, THE STRATEGY WAS FINALISED AND APPROVED FOR THE VARIOUS BUSINESS UNITS. TO ENSURE THESE STRATEGIC PLANS ARE CAPTURED, IT WAS REQUESTED THAT THE PLANS ARE INCLUDED IN THE LoM PLANS AS WELL AS THE BUSINESS PLANS AND BUDGETS.

These strategies have been included in the LoM plans for Grootegeluk and Belfast. The strategy for Grootegeluk entailed a pit-shell redesign to target high-value areas in the LoM plan. The most prominent aspect resulting from the early value layout is the reduction in indentation in the middle pit that was previously designed. This improves pit bottom liberation in the first few years of the schedule. The revised pit shell eliminates high stripping areas and low-quality areas, and targets high-value areas in the LoM plans. The revised LoM schedule has shown that the mine will be able to satisfy its contractual obligations for the LoM. The strategy for Belfast entailed targeting the high-value areas earlier in the LoM plan. Based on these identified high-value areas, a revised sequence was determined to target these areas sooner. The LoM plan has been revised and the mining schedule has been run to facilitate extraction of the high-value areas sooner in the LoM. This schedule has not impacted the Reserves for Belfast but, by applying the revised sequence, the net present value of the operation has been substantially improved.

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