Exxaro & Transnet sign agreement regarding performance

Exxaro & Transnet sign agreement regarding performance

Exxaro Resources Limited (Exxaro) and Transnet have signed an agreement aimed at enhancing operational efficiency and logistics. The collaboration, announced on July 2, 2025, is part of Exxaro's broader strategy to optimize its Market-to-Resource initiatives and improve stakeholder value creation.

According to the agreement, Transnet will work closely with Exxaro to streamline logistics and improve the efficiency of rail transportation for Exxaro's products. This partnership is particularly significant given the challenges posed by global and domestic macro-economic conditions, which have led to operational inefficiencies and increased costs.

The agreement comes on the heels of Exxaro's robust interim performance for the six-month period ended June 30, 2025. The group reported an 8% increase in revenue to R20.6 billion, a 10% rise in Group EBITDA to R5.6 billion, and a 13% increase in Headline Earnings per Share (HEPS) to R17.24 per share [1]. The strong performance was driven by operational efficiency and marketing excellence, despite persistent headwinds.

Exxaro's coal business was a key driver of this success, with its EBITDA increasing by 10% year-on-year to R5.6 billion, primarily due to higher export and domestic sales volumes and a 96% price realization in a softer commodity price environment [1].

The agreement with Transnet is expected to support Exxaro's ongoing efforts to operationalize its decarbonization roadmap. By improving logistics and reducing transportation costs, the partnership can help Exxaro focus on medium to long-term technologies to reduce Scope 1 emissions. Additionally, the agreement aligns with Exxaro's broader strategy to deliver sustainable growth and impact, as outlined in its recent financial results and announcements.

Exxaro's focus on safety and operational efficiency has been further bolstered by the launch of its refreshed safety strategy, the One Voice Safety Strategy, which has been rolled out across its operations. The organization remains three years fatality-free and has achieved a loss time injury frequency rate (LTIFR) of 0.05 for the first half of 2025 [1].

In summary, the agreement between Exxaro and Transnet is a significant step forward in Exxaro's ongoing efforts to optimize its operations and improve stakeholder value. By enhancing logistics and operational efficiency, the partnership is expected to support Exxaro's broader strategy of delivering sustainable growth and impact.

References:
[1] https://www.exxaro.com/media-and-insights/press-releases/exxaro-delivers-a-resilient-2025-half-year-performance-driven-by-a-focus-on-safety-market-to-resource-optimisation-strategy-proactive-marketing-and-logistics-and-decisive-strategy-execution/
[2] https://africanminingmarket.com/exxaro-delivers-a-resilient-1h-2025-performance/23348/