Appendix

APPENDIX A

Table 20: Shareholding and tenure of reported coal resources and reserves

Complex   Name of right Type Status % attributable to Exxaro Expiry date Remainder attributable to  
Arnot Arnot (UG and OC) Arnot (325MR) mining right executed 100 05 Dec 2039    
Matla Matla (UG) Matla (327MR) mining right executed 100 05 Dec 2025    
Leeuwpan Leeuwpan (OC) Leeuwpan (157MR) mining right registered 100 23 Mar 2040    
    Leeuwpan Ext (171MR) mining right registered 100 23 Mar 2040    
Mafube Mafube (OC) Mafube (172MR) mining right registered 50 30 Jul 2030 Anglo American Coal Proprietary Limited  
  Nooitgedacht (10026MR) mining right registered 50 13 Nov 2043 Anglo American Coal Proprietary Limited  
North Block Complex (NBC) Glisa (OC) Glisa (326MR) mining right executed 100 12 May 2039    
  Strathrae (OC) Strathrae (328MR) mining right granted 100    
  Eerstelingsfontein (OC) Eerstelingsfontein (10068MR) mining right renewal submitted 100 06 Nov 2013    
  Paardeplaats (OC) Glisa South/ Paardeplaats (190PR) prospecting right renewal submitted – MR application submitted 100 29 Oct 2011    
    Glisa South ptn 13/ Paardeplaats (1734PR) prospecting right renewal submitted – MR application submitted 100 18 Jun 2010    
    Paardeplaats (10090MR) mining right new application 100    
Belfast Belfast (OC) Belfast (431MR) mining right registered 100 10 Aug 2043    
Grootegeluk Grootegeluk (OC Grootegeluk (46MR) mining right registered 100 29 Mar 2041    
Thabametsi Thabametsi (UG and OC) Thabametsi (10013MR) mining right registered 100 29 Jun 2046    
Waterberg prospecting Waterberg North (OC) Pentoville (10719PR) prospecting right executed 100 20 Feb 2020    
    Dartmore (10720PR) prospecting right executed 100 20 Feb 2020    
    Carolina (10718PR) prospecting right renewal submitted 100    
  Waterberg South (OC) Swelpan (10721PR) prospecting right renewal submitted 100    

PR – Prospecting rights
MR – Mining rights

Complex   Name of right Type Status % attributable to Exxaro Expiry date Remainder attributable to  
Tshikondeni Tshikondeni Tshikondeni (54MR) mining right granted 100    
  (UG and OC) Goni (34MR) mining right registered 100 31 Mar 2039    
Australian region Moranbah South (UG and OC) MDL277 and 377 mineral development licences submitted 50 31 Jun 2018 and
30 Sep 2018
Anglo American Coal Proprietary Limited  
  EPC 584 and 602 exploration permits executed 50 22 Feb 2017 and
31 Dec 2018
Anglo American Coal Proprietary Limited  
Exxaro Coal Central (ECC) Dorstfontein (OC and UG) Dorstfontein West + Vlakfontein (119MRC) mining right registered 74 06 Dec 2042 Mmakau Mining
Proprietary Limited
 
  Dorstfontein West (123MRC) mining right registered 74 06 Dec 2042 Mmakau Mining
Proprietary Limited
 
  Dorstfontein East (51MR) mining right registered 74 12 May 2036 Mmakau Mining
Proprietary Limited
 
  Rietkuil Vhakoni (1916PR) prospecting right registered 74 07 Oct 2015 Mmakau Mining Proprietary  
    section 102 new application 74 09 Jul 2015 Limited  
Exxaro Coal Central (ECC) Forzando (UG) ECC has an additional indirect 12,75% shareholding through Mmakau Coal – therefore a total interest of 86,75% Forzando South (380MR) mining right executed 86,75 27 Jun 2029 Mmakau Mining Proprietary Limited  
  Forzando North (381MR) mining right registered 86,75 27 Jun 2029 Mmakau Mining
Proprietary Limited
 
  Legdaar (1864PR) prospecting right renewal submitted 86,75 05 April 2015 Mmakau Mining Proprietary Limited  
  Kalabasfontein (1035PR) prospecting right registered 86,75 30 Jun 2018 Mmakau Mining
Proprietary Limited
 
  Kalabasfontein (1170PR) prospecting right registered 86,75 30 Jun 2018 Mmakau Mining
Proprietary Limited
 
  Schurvekop ptn 24
(4627PR)
prospecting right granted 86,75 30 Sept 2020 Mmakau Mining
Proprietary Limited
 
  Schurvekop (1063PR)
Mmakau Coal
prospecting right registered 49 27 Nov 2016 Mmakau Mining
Proprietary Limited
 
  Schurvekop (1063PR) Mmakau Coal mining right new application 49 21 Nov 2016 Mmakau Mining
Proprietary Limited
 
Exxaro Coal Central (ECC) ECC Brakfontein (624PR) prospecting right relinquished 100 26 Jun 2017    
Exxaro Coal Central (ECC) Tumelo (UG) Boschmanskop (116MR) mining right renewal submitted 49 12 Nov 2015 Mmakau Mining
Proprietary Limited
 

PR – Prospecting rights
MR – Mining rights

Table 21: Shareholding and tenure of reported mineral sands and base metals resources and reserves

Complex Name of right Type Status % attributable to Exxaro Expiry date Remainder attributable to  
Mineral sands Hillendale Mine + Braeburn + Braeburn Extension converted right executed 43,51 closed Tronox  
  Block P converted right executed 43,51 24 Mar 2035 Tronox  
  Fairbreeze A+B+C+D converted right executed 43,51 24 Mar 2035 Tronox  
  Fairbreeze C ext converted right executed 43,51 04 Aug 2039 Tronox  
  Port Durnford project converted right executed 43,51 06 Mar 2018 Tronox  
  Namakwa Sands mine converted right executed 43,51 17 Aug 2038 Tronox  
  Namakwa satellite deposits (Houtkraal and Rietfontein) prospecting right MR application submitted 43,51 29 Mar 2046 Tronox  
  Cooljarloo mining licence executed 43,51 31 Jan 2020 Tronox  
  Jurien mining licence executed 43,51 12 Nov 2031 Tronox  
  Dongara mining licence executed 43,51 30 Mar 2029 Tronox  
  Cooljarloo west mining licence executed 43,51 17 Mar 2036 Tronox  
  Cooljarloo north-west project retention licence executed 43,51 07 Jul 2019 Tronox  
Base metals Deeps and Swartberg (zinc, lead, copper and silver) converted right executed 26 30 Sept 2038 Vedanta Resources plc  
  Gamsberg North and Gamsberg East prospecting (zinc) converted right executed 26 18 Aug 2038 Vedanta Resources plc  

Table 22: 2017 competent persons’ register

    Mineral resources         Ore reserves    
Operation/ project Name Relevant experience (years) Job title Registration     Name Relevant experience (years) Job title Registration  
Lead CP, Exxaro JH Lingenfelder 22 Group manager geosciences SACNASP (400038/11)     C Ballot 21 Group manager mining ECSA (20060040)  
Arnot mine MV Sambo 10 Senior geologist, ECC SACNASP (400369/12)     n/a        
Belfast project G Gcayi 10 Resident geologist, NBC SACNASP (400299/11)     PDM Lourens 12 Principal mining engineer SAIMM (702550)  
Glisa South project G Gcayi 10 Resident geologist, NBC SACNASP (400299/11))     n/a        
Grootegeluk coal mine CW van Heerden 15 Resident geologist, Grootegeluk SACNASP (400069/04)     R van Staden 14 Manager mining operations ECSA (20050123)  
Leeuwpan coal mine M Steenkamp 7 Resident geologist, Leeuwpan SACNASP (400173/13)     M Sethethi 10 Mine manager, Leeuwpan mine. ECSA (20095030)  
Matla TF Moabi 12 Senior geologist SACNASP (400067/08)     B Young 21 Planning and optimisation manager PLATO, PMS (0182)  
NBC G Gcayi 10 Resident geologist, NBC SACNASP (400299/11)     E Bergh 18 Manager, mineral coal resource management SAIMM (705991)  
Thabametsi project JH Lingenfelder 22 Group manager geosciences SACNASP (400038/11)     C Ballot 21 Group manager mining ECSA (20060040)  
Dorstfontein, Forzando, Eloff, Tumelo G Bittah 10 Resident geologist, ECC SACNASP (400217/12)     Gunn Ndebele 26 MRM manager, ECC SACNASP (400107/10)  
Waterberg North project JH Lingenfelder 22 Group manager geosciences SACNASP (400038/11)     n/a        
Waterberg South project JH Lingenfelder 22 Group manager geosciences SACNASP (400038/11)     n/a        
Mafube (Nooitgedacht and Wildfontein) D Xaba 18 Geology manager, Anglo Coal SACNASP (400019/05)     D Xaba 17 Geology manager, Anglo Coal SACNASP (400019/05)  
Mafube mine (Springbok-laagte) D Xaba 18 Geology manager, Anglo Coal SACNASP (400019/05)     D Xaba 17 Geology manager, Anglo Coal SACNASP (400019/05)  
* Address for Exxaro Resources is Roger Dyason Road, Pretoria West, 0183
* Address for South African Council for Natural Scientific Professions: Private bag x540, Silverton, 0127, Gauteng, South Africa
* Address for Engineering Council of South Africa: Private bag x691, Bruma, 2026, Gauteng, South Africa
    Mineral resources         Ore reserves    
Operation/ project Name Relevant experience (years) Job title Registration     Name Relevant experience (years) Job title Registration  
Moranbah South, Australia AJ Laws 22 Specialist resource geologist, Anglo American Coal AusIMM (209913)              
Hillendale mine, Extension D Sibiya 22 Geologist, Tronox SACNASP (400294/06)     C Philander 21 Manager, Tronox SACNASP (400181/15)  
Fairbreeze A+B+C+C Ext D Sibiya 22 Geologist, Tronox SACNASP (400294/06)     C Philander 21 Manager, Tronox SACNASP (400181/15)  
Block P and Block extension D Sibiya 22 Geologist, Tronox SACNASP(400294/06)     C Philander 21 Manager, Tronox SACNASP (400181/15)  
Port Dunford D Sibiya 22 Geologist, Tronox SACNASP (400294/06)     C Philander 21 Manager, Tronox SACNASP (400181/15)  
Fairbreeze D D Sibiya 22 Geologist, Tronox SACNASP(400294/06)     C Philander 21 Manager, Tronox SACNASP (400181/15)  
Namakwa Sands C van Vuuren 15 Geologist, Tronox SACNASP (400111/96)     C Philander 21 Manager, Tronox SACNASP (400181/15)  
Cooljarloo, Australia P Stevenson 32 Manager resource development, Tronox AusIMM (107759)     P Stevenson 32 Manager resource development,Tronox AusIMM (107759)  
Jurien, Australia P Stevenson 32 Manager resource development, Tronox AusIMM (107759)     P Stevenson 32 Manager resource development, Tronox AusIMM (107759)  
Dongara, Australia P Stevenson 32 Manager resource development, Tronox AusIMM (107759)     P Stevenson 32 Manager resource development, Tronox AusIMM (107759)  
Black Mountain S Jenniker 18 Mineral resources manager, Vedanta SACNASP (400129/08)     S Jenniker 18 Mineral resources manager, Vedanta SACNASP (400129/08)  
Gamsberg S Jenniker 18 Mineral resources manager, Vedanta SACNASP (400129/08)     S Jenniker 18 Mineral resources manager, SACNASP (400129/08)  
* All competent persons are Exxaro employees except where otherwise stated

Table 23: Coal production figures (kilotonnes)

Operation Product 2016   2017   FC 2018* FC 2019*  
Grootegeluk Thermal coal 20 616   23 405   26 672  27 083   
Grootegeluk Metallurgical coal 1 985   2 132   2 453  2 738   
Matla Thermal coal 7 900   7 400   7 091  7 098   
ECC Thermal coal 3 904   4 060   3 860  3 893   
Leeuwpan Thermal coal 3 774   3 355   4 099  5 322   
NBC Thermal coal 2 857   2 963   2 489     
Mafube Thermal coal 1 760   1 660   1 192  1 552   
* Forecast

Table 24: Considerations for reasonable prospects for financial economic extraction

            ARNOT     BELFAST
ITEM     CRITERIA     CRITERIA     COMMENT     CRITERIA     COMMENT
Geological data     Data has been validated and signed-off by competent person     Yes     Geological structure and depositional extend , seam thickness >1,80m (UG) and >1,0m (OC), <35% ash content, 10% geological loss.     Yes     Geological structure and depositional extend, seam thickness >1,0m, 5% geological loss, <35% ash content
Geological model     Geological model was considered and signed off     Yes         Yes    
Structural model     Structure model was considered and signed off     Yes         Yes    
Mining     Mining assumptions considered and defined     Yes     OC and UG     Yes     OC and UG
Assurance     Minimum Tier 1 assurance (Exxaro governance)     Yes     2015     Yes     2016
Economic evaluation     A concept level exploitation with economic and mining assumptions, including geotechnical and geohydrological assumptions     Yes     Feasibility study     Yes     Feasibility and Concept study for phase 2
Environmental     Reasonable demonstration that environmental approvals can be obtained within the context of local, regional and national governmental legislation     Done     A dispute emanating from the Exxaro/Eskom Coal Supply Agreement is the discussion surrounding the shortfall on the rehabilitation financial provision. This dispute will go in arbitration during the first quarter of 2018. The approval of the consolidated environmental management plan (EMP) is pending due to the outstanding conclusion of the dispute. Land acquisition and environmental approval in the potential open-cast and underground resource areas have a reasonable expectation to be concluded if a favourable market agreement is in place     Done     All approvals in place for phase 1. Environmental approvals and land acquisitions for phase 2 (area to the north of the current LoMP) can be reasonably demonstrated within the context of the existing approvals and of local, regional and national governmental legislation
Tenure     Formal tenure must be demonstrated. Reasonable demonstration that a mining right approval can be obtained within the context of local, regional and national governmental legislation     Yes     Mining right. In closure     Yes     Mining right (30 years)
Infrastructure     Assumptions used should be reasonable and within known/assumed tolerances or have examples of precedence     Done     Current infrastructure     Done     Current infrastructure
Market     A potential market for the product with a reasonable assumption that this market is sustainable     Done     Potential market exists     Done     Potential market exists

 

            GROOTEGELUK     THABAMETSI
ITEM     CRITERIA     CRITERIA     COMMENT     CRITERIA     COMMENT
Geological data     Data has been validated and signed-off by competent person     Yes     Geological structure and depositional extend, seam thickness >0,5m, geological losses (0,5% and 1% (measured) and 0,75% and 1,5% (indicated and inferred) for Volksrust and Vryheid respectively. Model estimation error factor as calculated per mining bench     Yes     Geological structure and depositional extend, seam thickness >1m, 5% geological loss
Geological model     Geological model was considered and signed off     Yes              
Structural model     Structure model was considered and signed off     Yes         Yes    
Mining     Mining assumptions considered and defined     Yes     OC     Yes     OC and UG
Assurance     Minimum Tier 1 assurance (Exxaro governance)     Yes     2016     Yes     2016
Economic evaluation     A concept level exploitation with economic and mining assumptions, including geotechnical and geohydrological assumptions     Yes     Life-of-mine study     Yes     Studies that underpin the IPP and mine works programme
Environmental     Reasonable demonstration that environmental approvals can be obtained within the context of local, regional and national governmental legislation     Done     Approvals (outside LoMP) can be reasonably demonstrated within the context of the existing approvals and of local, regional and national governmental legislation     Done     Approvals and land ownership in place
Tenure     Formal tenure must be demonstrated. Reasonable demonstration that a mining right approval can be obtained within the context of local, regional and national governmental legislation     Yes     Mining right (30 years)     Yes     Mining right (30 years)
Infrastructure     Assumptions used should be reasonable and within known/assumed tolerances or have examples of precedence     Done     Current infrastructure     Done     Current infrastructure
Market     A potential market for the product with a reasonable assumption that this market is sustainable     Done     Potential market exists     Done     IPP and current GG steam coal market

 

            DORSTFONTEIN     FORZANDO
ITEM     CRITERIA     CRITERIA     COMMENT     CRITERIA     COMMENT
Geological data     Data has been validated and signed-off by competent person     Yes     Geological structure and depositional extend, >0,50m (O/C) and >1,20m (U/G), <50% ash content, <24% dry ash-free volatiles (DAFV), applied geological loss domains     Yes     Geological structure and depositional extend, >0,50m (O/C) and >1,20m (U/G), <50% ash content, <24% dry ash-free volatiles (DAFV), applied geological loss domains
Geological model     Geological model was considered and signed off     Yes         Yes    
Structural model     Structure model was considered and signed off     Yes         Yes    
Mining     Mining assumptions considered and defined     Yes     UG and OC     Yes     UG and OC
Assurance     Minimum Tier 1 assurance (Exxaro governance)     Yes     2017     Yes     2017
Economic evaluation     A concept level exploitation with economic and mining assumptions, including geotechnical and geohydrological assumptions     Yes     Life-of-mine exploitation study     Yes     Life-of-mine exploitation study
Environmental     Reasonable demonstration that environmental approvals can be obtained within the context of local, regional and national governmental legislation     Done     Current approvals in place. Environmental approvals and land acquisitions can be reasonably demonstrated within the context of the existing approvals and of local, regional and national governmental legislation     Done     Current approvals in place. Environmental approvals and land acquisitions can be reasonably demonstrated within the context of the existing approvals and of local, regional and national governmental legislation
Tenure     Formal tenure must be demonstrated. Reasonable demonstration that a mining right approval can be obtained within the context of local, regional and national governmental legislation     Yes     Three mining rights (30 years), one prospecting right (pending S102)     Yes     Two mining rights (16 years), four prospecting rights
Infrastructure     Assumptions used should be reasonable and within known/assumed tolerances or have examples of precedence     Done     Current infrastructure     Done     Current infrastructure
Market     A potential market for the product with a reasonable assumption that this market is sustainable     Done     Current infrastructure     Done     Current infrastructure

 

            LEEUWPAN     MATLA
ITEM     CRITERIA     CRITERIA     COMMENT     CRITERIA     COMMENT
Geological data     Data has been validated and signed-off by competent person     Yes     Geological structure and depositional extend, seam thickness >1m (in resources OJ,OL,OI,MV) and >2m in UB. 5% geological loss     Yes     Geological structure and depositional extend, seam thickness >1,8m, dry ash-free volatiles <26%, air-dried CV <15MJ/kg, 10% geological loss
Geological model     Geological model was considered and signed off     Yes         Yes    
Structural model     Structure model was considered and signed off     Yes         Yes    
Mining     Mining assumptions considered and defined     Yes     OC     Yes     UG
Assurance     Minimum Tier 1 assurance (Exxaro governance)     Yes     2017     Yes     2017
Economic evaluation     A concept level exploitation with economic and mining assumptions, including geotechnical and geohydrological assumptions     Yes     Life-of-mine exploitation study     Yes     Life-of-mine exploitation study
Environmental     Reasonable demonstration that environmental approvals can be obtained within the context of local, regional and national governmental legislation     Done     Current required approvals in place     Done     Current required approvals in place. Additional requirements can be demonstrated within the context of local, regional and national governmental legislation. Land acquisitions for future stoping can be achieved based on current acquisition strategy
Tenure     Formal tenure must be demonstrated. Reasonable demonstration that a mining right approval can be obtained within the context of local, regional and national governmental legislation     Yes     Valid mining right (30 years)     Yes     Mining right (10 years)
Infrastructure     Assumptions used should be reasonable and within known/assumed tolerances or have examples of precedence     Done     Current infrastructure     Done     Current infrastructure
Market     A potential market for the product with a reasonable assumption that this market is sustainable     Done     Potential market exists     Done     Current coal supply agreement

 

            TUMELO     NBC
ITEM     CRITERIA     CRITERIA     COMMENT     CRITERIA     COMMENT
Geological data     Data has been validated and signed-off by competent person     Yes     Geological structure and depositional extend, seam thickness >1,20m (U/G), <50% ash content, <24% dry ash-free volatiles (DAFV), applied geological loss domains     Yes     Geological structure and depositional extend, seam thickness >0,50m (O/C), <50% ash content, geological loss factors of 5%, 10% and 20% of measured, indicated and inferred categories respectively
Geological model     Geological model was considered and signed off     Yes         Yes    
Structural model     Structure model was considered and signed off     Yes         Yes    
Mining     Mining assumptions considered and defined     Yes     UG     Yes     OC
Assurance     Minimum Tier 1 assurance (Exxaro governance)     Yes     2017     Yes     2015
Economic evaluation     A concept level exploitation with economic and mining assumptions, including geotechnical and geohydrological assumptions     Yes     Concept study     Yes     Life-of-mine exploitation study
Environmental     Reasonable demonstration that environmental approvals can be obtained within the context of local, regional and national governmental legislation     Done     Current required approvals in place     Done      
Tenure     Formal tenure must be demonstrated. Reasonable demonstration that a mining right approval can be obtained within the context of local, regional and national governmental legislation     Yes     Mining right renewal pending. Care and maintenance     Yes     Mining right (Glisa 11 years), Glisa South new mining right pending
Infrastructure     Assumptions used should be reasonable and within known/assumed tolerances or have examples of precedence     Done     Current infrastructure     Done     Current infrastructure
Market     A potential market for the product with a reasonable assumption that this market is sustainable     Done     Potential market exists     Done     Potential market exists