Prospecting and mining tenement information

Mineral resources and reserves quoted for Exxaro-managed assets fall within existing Exxaro mine or prospecting rights. Rights are of sufficient duration (or convey a legal right to convert or renew for sufficient duration) to enable all reserves to be mined in accordance with current production schedules. The only exceptions are the Grootegeluk (executed March 2011 for 30 years), Matla (executed March 2015 for 10 years) and Forzando (executed June 2013 for 16 years) operations where adequate reserves exist for LoMPs extending well beyond the period for which they were granted. Significant developments within the mineral right authorisations are discussed. Our prospecting and mining authorisations are managed to ensure reporting compliance as required by the Mineral and Petroleum Resources Development Act (MPRDA) and the National Environmental Management Act (NEMA).

The status of prospecting and mining rights indicating the right type, name, reference number, status, expiry date and ownership (% attributable to Exxaro) is presented in table 20. The prospecting and mining right boundaries are shown in the discussion of individual operations and projects in the auxiliary section, chapter 9.

Mpumalanga

Exxaro manages several operations in Mpumalanga: Leeuwpan, Matla, Dorstfontein, Forzando, Tumelo, Arnot, Belfast, North Block Complex (Glisa, Strathrae, Eerstelingsfontein, Glisa South) (Figure 5).

Arnot is currently under care and maintenance. The converted mining right for Arnot is executed but registration is pending. The right was timeously submitted for registration but referred to correct historical property-naming conventions. The corrections were made and the right was resubmitted for registration; we await an execution date from the applicable authorities. Exxaro is engaging the Department of Minerals Resources (DMR) on the outstanding approval of the consolidated environmental management plan (EMP) for consolidation of the current Arnot mine EMP and the Mooifontein open-cast areas as well as conclusion of financial provisions for both Arnot and Mooifontein.

The converted mining right of Matla mine was executed in March 2015 and timeously submitted for registration, which is pending. Matla encountered a similar historical property-naming correction request as at Arnot. The corrections were made and the right was resubmitted for registration. Approval for a ministerial consent (section 102) to update the mining works programme and EA to include stoping was submitted in the reporting period. Exxaro reasonably expects that approval will not be withheld.

The converted mining right and adjacent new mining right at Leeuwpan mine have both been executed and registered. Approval of a ministerial consent (section 102) submitted to amalgamate the two rights has been granted, and execution is expected in the first quarter of 2018. The consolidated EMP for Leeuwpan was approved in April 2017 and the EA amendment for the Leeuwpan OI expansion project was approved in November 2017.

Locality map for ECC mining and prospecting rights

North Block Complex (NBC) includes the mining areas of Glisa (converted mining right), Strathrae (converted mining right) and Eerstelingsfontein, an executed new mining right. Strathrae is on care and maintenance and mining only occurs at Glisa and Eerstelingsfontein. Environmental approvals for Eerstelingsfontein have been granted and approval for renewal of the mining right, timeously submitted in March 2013, is pending. In addition, a renewal for a prospecting right and an application for a new mining right for the Glisa South project area, adjacent to Glisa mine, was submitted in November 2013. The IWUL and rezoning application for this project was submitted and the administrative process is ongoing. Appeals received on the mining right application are being addressed through the regional mining development and environment committee.

The Belfast mining right was executed in October 2013 and registered in March 2015. All pending licensing appeals lodged against the operation were resolved in the reporting period and construction activities started in October 2017.

The Exxaro Coal Central (ECC) complex comprises the Dorstfontein, Forzando and Tumelo operations. The Tumelo mining right was registered in January 2013 but lapsed in 2015. A renewal was timeously submitted and approval is pending. The operation is currently under care and maintenance.

The Dorstfontein complex comprises three mining rights. The mining rights of Dorstfontein West (123MR – executed June 2012), Dorstfontein West and Vlakfontein (119MR – executed June 2012) and Dorstfontein East (51MR – executed June 2006) were granted for 30 years. A ministerial consent (section 102) application to include the Rietkuil Vhakoni (1916PR) prospecting right into the Dorstfontein West mining right was timeously submitted in July 2015 and approval is pending. Amendments to the IWUL for both Dorstfontein East and West were approved in the reporting period.

The Forzando complex consists of two mining rights, Forzando South (380MR) and Forzando North (381MR), both executed in June 2013 for 16 years. The application to renew the prospecting right of Legdaar (1846PR) was submitted in early 2015 and approval is pending. Forzando North and South amendments to their IWULs were approved in April and June 2017 respectively.

ECC also holds a 49% interest in the prospecting right of Schurvekop (1063PR), with Mmakau Coal is the majority owner. A mining right was submitted by Mmakau Coal in 2017 and approval is pending. The legislative process following submission is progressing well.

ECC holds a 51% interest in the Eloff prospecting right, near the town of Delmas and close to Exxaro’s Leeuwpan operation. A mining right application, compiled in the reporting year, was submitted in early 2017. Exxaro has, however, divested from the Eloff right and ceding of the right is under way. The prospecting right of Brakfontein (624PR) lapsed in June 2017. ECC relinquished the right and is in the process of closure.

Locality map for Limpopo mining and prospecting rights

Limpopo

Exxaro manages four operations in Limpopo: the Grootegeluk complex (Grootegeluk and adjacent Thabametsi mining rights), the Tshikondeni mining right and the Waterberg North and South prospecting rights.

The converted mining right of Grootegeluk mine (46MR) was executed in March 2011 and registered in May 2012 for a period of 30 years. The Grootegeluk short-term stockpile EIA and IWUL were approved in May and June 2017 respectively, while the appeal against the Grootegeluk atmospheric emissions licence (AEL) was dismissed. An approval for ministerial consent (section 102) was submitted in September 2017 to include two mine dump areas that currently fall outside the mining right. Approvals are pending and the legislative process following submission is under way. Thabametsi mine, a development adjacent to Grootegeluk, was granted a mining right (10013MR) for 30 years. The mining right was executed in June 2016 and registered in July 2016. A section 102 of the MPRDA submitted to include several additional minerals to coal, to correct an administrative error, was granted in July 2017 and executed in November 2017.

Tshikondeni mine comprises two mining rights, the original Tshikondeni converted mining right and the new-order Goni mining right. The mine was under care and maintenance but after a closure EMP was approved in the reporting period, closure and rehabilitation activities are in full process.

The Waterberg prospecting rights are grouped in two projects: Waterberg North and Waterberg South. Two of the Waterberg North prospecting rights (Pentoville: 10719PR and Dartmore: 10720PR) renewals have been granted and executed in March 2017. The remaining two Waterberg prospecting rights (Carolina: 10718PR and Swelpan: 10721PR) are pending renewal. A section 11 of the MPRDA to cede the rights to a prospective party for the Waterberg South project was halted after cancellation of the commercial agreement. All prospecting rights of the Waterberg North and South will lapse in 2018 and a decision on these assets will be taken in the first half of 2018.

Limpopo

Figure 8: Locality of the Australian MDL and EPC’s

Australia

The Moranbah South project area in Australia includes two mineral development licences (MDLs 277 and 377) and two exploration permits for coal (EPCs 548 and 602). The current terms of both mineral development licences will expire in 2018; MDL 277 on 31 July 2018 and MDL 377 on 30 September 2018. The current term of EPC 548 expires on 22 February 2017 (renewal application lodged 11 November 2016). The current term of EPC 602 expires on 31 December 2018. Exxaro reasonably expects that approval of the renewal of EPC 548 will not be withheld. Exploration activities comply with all licence requirements and renewals will be timeously submitted.