Exxaro sets sights on coal big league

Exxaro Resources has set its sights on being a big player in coal, marking an exit from its mineral sands investment and outlining coal investments of more than R14bn. On Thursday, CEO Mxolisi Mgojo said the regulatory environment in SA prevented the mining industry from realising its potential. The delay of the Mineral and Petroleum Resources Development Act was a deterrent for investment needed to make the industry function, he said. Exxaro ran into a storm of criticism from Eskom when its black economic empowerment (BEE) level dropped to 30% from more than 50%. Eskom wants its coal supplies to come from 51% black-owned companies. "Current contracts with Eskom are not affected by the decision to reduce our BEE shareholding," Mgojo said. Eskom sales accounted for 17% of revenues in 2016.

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