Exxaro nevertheless has approved policies and practices
for spending with locally based suppliers at all significant
locations. We also encourage our suppliers to transform
their operations and comply with new empowerment legislation.
In 2007, we met our target for discretionary spending
with HDSA suppliers of 35%, representing R1,97 billion
with HDSA-owned, -empowerment and -influenced companies.
In categories where no HDSA companies are found, Exxaro
engages with existing suppliers to transform. The intended
HDSA status is thus contracted and monitored for progress
to ensure total compliance and the presence of HDSAs
in all procurement categories.
Despite the industry-wide challenge of accurately tracking
spending on suppliers by category, as required by the
mining charter, annual targets are shown here, and reporting
is in line with the requirements of the charter.
Significant indirect economic impacts
In attempting to quantify the significant indirect economic
impact of our activities, we have concentrated on optimal
use of resources and continuous exploration.
To ensure the optimal use of resources available to
Exxaro, a forum of all role players was established towards
the end of the review period. This forum is mandated
to formalise and embed mineral resource management policy
across the group. Examples of the practical application
of the concept include Rosh Pinah, where the low-grade
orebody has been remodelled and evaluated ahead of a
feasibility study on its economics and mineability. This
could, if proved viable, extend Rosh significantly. Equally,
at North Block Complex, the previously discarded number
3 and 4 seams are now being mined. Apart from using resources
more efficiently and economically, both initiatives secure
jobs in support of regional economic stability.
Continuous exploration is the lifeblood of any mining
group. Exxaro presently has 29 granted prospecting rights
in South Africa and a prospecting joint venture in Moranbah,
Australia with Anglo Coal (read more).
During the year, exploration activities confirmed substantially
larger coal reserves at Eerstelingsfontein (Mpumalanga)
and a large resource of mineral sands at Port Durnford
(KwaZulu-Natal), while drilling increased the Inyanda
coal mineral resource by 20% during the commissioning
of the mine. Social impact assessments were completed
for both Port Durnford and Inyanda. Exxaro also has an
option to participate in a joint venture with GVM Metals
to explore coal resources in the Soutpansberg area (Limpopo).
Although many of Exxaro’s operations are in remote
development impact is particularly significant to stakeholders,
the specialised nature of these operations makes it difficult
to channel 100% of our expenditure to local suppliers.
Across the group, the percentage spent with local companies
is 30%. Each mine’s materials development department
to identify local suppliers that can be used immediately
to supply goods and services. Where entrepreneurial spirit
and talent are identified, these departments collaborate
to develop these individuals into sustainable suppliers.
Examples of these initiatives include furniture manufacturing,
needlework, manufacture of cleaning chemicals, civil
construction, supply of mining spares and consumables. |
