Governance

The Exxaro annual estimation and reporting process is managed through the Exxaro geosciences policy and associated mineral resource and reserve reporting and estimation procedures. Both policy and procedures are aligned with the guidelines of JSE section 12, SAMREC Code 2016 and, for South African coal reporting, SANS 10320:2004.

The policy and procedures dictate technical requirements for estimation and reporting, and include guidelines on methodologies, processes and deliverables. Procedures are also implemented for the geophysical, rock engineering, geotechnical, structural geology, tenure management, hydro-geological, exploration and mine-planning disciplines that prescribe methodologies and minimum standards for compliance.

To align with the SAMREC 2016 code, Exxaro has updated its internal competent persons’ reports (CPRs) for applicable operations. No material changes as defined in the code have occurred, but we considered the introduction of the ‘if not, why not’ principle as significant enough to warrant the updates. The reports followed guidelines under appendix 1 of SAMREC 2016.

Table 1: Exxaro reporting structure

EXXARO REPORTING GOVERNANCE FRAMEWORK
REGULATORY     GOVERNANCE     DELIVERABLES     ASSURANCE
JSE Listings Requirements (section 12)     Geosciences policy     Annual resource and reserve estimation schedule     Annual review and update of procedures
2016 amendments to “minimum contents of annual report, point 12.13” were considered     2017 update to align with our functional model strategy was considered     2017 estimation schedule for operations under Exxaro control was followed     2017 update was considered
SAMREC Code (2016) table 1     Exxaro mineral resource and reserve reporting procedure     Mineral reserve fact packs     Competent person’s register update and review
2016 updated “table 1” was considered     2016 update was considered     Grootegeluk and Matla packs were updated     Updated for 2017
SANS (SANS 10320:2004)     Exxaro mineral resource estimation procedure     Annual operation/project mineral resource and reserve report     Annual individual mineral resource and reserve report review and lead competent person sign-off
      2016 update was considered           Concluded in February 2017
JORC Code (2012)     Exxaro mineral reserve estimation procedure     Consolidated mineral resource and reserve report (CMRR)     Applicable competent person and technical team sign-off
      2016 LoMP update was considered           Included in individual CPR reports, available on request
            When required: Mineral resource and reserve competent person report/s     Internal review and external audit process
            Given the new SAMREC code, we have updated individual CPRs for applicable operations     Resource audits were conducted on Grootegeluk and Forzando. Reviews were conducted at Grootegeluk, Matla and Dorstfontein

Comments on 2017 estimation shown in blue italics