Exploration was significantly impacted by the COVID-19 pandemic. We, however, prioritised activities to support the most pertinent objectives of the 2020 plans.

In 2020 we continued with our strategic strive towards development and utilisation of innovation in the execution of our exploration activities. In 2019, we indicated that a number of initiatives were implemented including the centralised managed acQuire database and the EQuIS groundwater database system. We reaped the benefits during 2020, increasing the ease and speed of core logging-and-sampling but importantly improving our data validation processes and subsequent integrity of our data. We have during the reporting year also enhanced the capabilities of our database system to accommodate compositing of the complex sample data at the Grootegeluk mine and improved the standardisation functionality for this data.

In addition to the implementation of the EQuIS groundwater database, the installation of telemetry systems for real-time data acquisition ensures fast and effective decision making regarding water management as well as empowering us in taking proactive steps to with regard to compliance to our water use licence requirements. COVID-19 travel restrictions hampered the implementation of the telemetry system for real-time field data acquisition at Grootegeluk. Proof of concept was, however, demonstrated at Matla and Belfast during the reporting year. We will focus our efforts in 2021 to complete the roll out of this system and improve our monitoring capabilities. Improved reporting capabilities through visual dashboards are planned for 2021 to make water data more accessible throughout the company.

All exploration holes, aligned with our exploration procedure, are downhole geophysically logged using density and gamma probes for validating borehole depths and geological contacts. In 2019, we also started surveying selective holes using optical televiewer (OTV), acoustic televiewer (ATV) and Sonic to obtain geotechnical information of the rock mass. We use the above mentioned techniques to allow us to conduct repeatable measuring of the physical properties of the undisturbed rock mass down the borehole wall and through the application of empirical methods obtain required geotechnical parameters. Advantages of applying these techniques include non-destructive, quick, precise, repeatable, and continuous surveying along the depth of the borehole (including weak zones). COVID-19 restrictions have, however, limited our access to sites and in 2020 we only conducted ATV surveys at Leeuwpan mine. We envisaged that due to eased access to exploration sites ATV surveys will increase and both OTV and sonic will be added to the suite of surveys.

The Coal Resource in the various operations were reviewed in 2020 to identify and outline geological challenges. We use a matrix, the RODA to outline geological challenges and predict their impacts. Based on this review, an integrated exploration plan is compiled that includes activities required to address Coal Resource and metallurgical characterisation, overburden characterisation, geological structure as well as rock engineering and hydrogeological data requirements. The plan is dynamic and additional activities are included when unforeseen complexities are encountered.

Exploration plans have been aligned at the start of 2020 with the newly introduced early value exploitation strategy at various operations. The exploration focus was adapted to support the updated optimised mine layouts and schedules and to support the potential value that the strategy aims to unlock. A good example of this could be observed at Grootegeluk mine where large diameter resource drilling in the latter part of the LoM was changed to core and open hole drilling in the now much-earlier introduced turnaround box-cut position.

The execution of our exploration plans were suddenly and significantly impacted by the outbreak of the COVID-19 pandemic. The outbreak coincided with the dry season at our operations, typical the period in which we conduct drilling, surface geophysics and other field exploration activities. Drilling programmes were, as would be expected, postponed at the first lockdown and we only started with limited exploration activities later in the year when access to the sites were again allowed although under very strict health regulations. The operational exploration teams have, however, reacted extremely well in refocusing plans and activities in April/May 2020 to support the most pertinent objectives of original 2020 exploration plans.

The updated exploration plans were primarily focused to improve geological confidence in the new mine plans to enhance geological modelling and estimation as well as to support operational mining developments. These boreholes are depicted in the relevant locality maps in the ancillary section. A limited amount of geotechnical and hydrogeological drilling was conducted to improve mine-planning parameters and is included in exploration (Table 78).

No exploration was conducted on areas not included in the Coal Resource statement. The exploration costs reflected at Thabametsi are related to the continuous reworking of exploration data to support scenario planning, identify information gaps to plan future exploration activities, as well as for the compilation of reports associated with legal reporting.

Exploration at the Grootegeluk mine was significantly impacted by COVID-19 lockdown. The team concluded a number of large diameter (122mm) cored exploration boreholes to increase geological confidence before operations were closed down. Prioritisation of activities resulted in a focus change concentrating on the turnaround box-cut position and the northern pit area. We plan to drill 54 holes in 2021 targeting resource, overburden, geological faulting as well as geotechnical and hydrogeological aspects of the coal deposit. Large diameter cored drilling will be focused in the northern pit box-cut position with open holes (non-cored percussion holes, geophysically logged) positioned in both the northern and southern pits to investigate structural challenging areas.

At Matla mine, exploration activities were interrupted by the lockdown and only approximately 30% of the planned holes could be completed. The drilling was primarily focused at Mine 3 low seam where derisking of geological challenges like faulting, presence of sills and dykes and basement highs disrupted seam thickness continuity and impacting coal qualities.

A major achievement this year was the successful execution of surface-to-seam directional drilling at Mine 2 north-west access project. The targeted S4 resource area present challenging geological structural conditions and a number of long directional drilled traces assisted hugely to optimise the access and mine panel layouts. This drilling methodology proved to be vital for Matla's other mine developments areas. The proposed drilling programme for 2021 to 2023 focuses on Mine 1 and Mine 3. Mine 1 is due to reopen in 2023/24, requiring additional exploratory work to be conducted to derisk some of the operational areas. Future exploration drilling in 2021/2022 will be conducted across the planned Mine 1 mining area, utilising vertical and inclined surface and underground horizontal drilling methods.

Infill drilling of the two box-cut areas at Belfast mine in 2019 underpinned the importance of adequate infill drilling during box-cut positioning and design. Exploration in 2020 mainly focused on infill drilling in these two pits as well as pits 4 and 4B on the western side of the resource that forms part of the new updated mine plan. The objective, similar as in 2019 was to derisk the box-cut areas regarding seam thickness variability, weathering and overburden characteristics. A number of holes were drilled in the northern Belfast expansion area where environmental approvals as well as surface access have been secured. Infill drilling and Resource drilling inside Belfast expansion project will continue in 2021.

Drilling at Leeuwpan mine was executed to improve the confidence of coal seam continuity, coal qualities and geological structure in the OL Resource area. The 2021 exploration strategy aims to increase the confidence level of the OI Inferred Resource and to delineate geological structures known to exist within this area.

Exploration activities at ECC focused as in 2020 on derisking the first five-years in the LoM plan. A significant number of boreholes were drilled at Forzando East to investigate dyke and sill occurrence as well as geological faulting. Drilling at Dorstfontein was primarily conducted at Dorstfontein East, to the north of Pit 1, as well as to the west of Pit 2 where ECC will expand into an underground operation.

A number of exploration activities were conducted at our Moranbah South joint venture project in Australia's Bowen Basin. A large 3D seismic geophysical survey was completed during the reporting year improving our understanding of the geological faulting within the project area. We also conducted a review of the 2012 3D seismic survey results applying the latest technology and innovative techniques. The integrated optimised 2012 and new 2020 survey results will be used in the update of the geological structural and resource models in 2021. In addition to the 2020 seismic survey, a number of large as well as thin size cored holes were drilled investigating a suite of coal quality, metallurgical and coking characteristics. We will continue with exploration activities during 2021.

Table 73: Summary of exploration expenditure for coal