Mining rights continue to be a big issue for Exxaro Resources, says CEO Sipho Nkosi.

Nkosi says that Exxaro has had discussions this year with the Department of Minerals and Energy (DME) and new applications have also been made to the DME.

“We are very hopeful and optimistic that those will come at some point,” he says.

When that happens, Exxaro will be able to include Namakwa Sands, Mafube and Igoda into its own results.

The commitment DME director-general Sandile Nogxina has given to Anglo American bodes well as Exxaro is exercis- ing its option to acquire Namakwa

. With the assurance that Anglo will be receiv- ing new-order rights for all its operations by March 31, the rights for not only Namakwa operations will be obtained, but also those for Anglo Coal, which will help to bring the Mafube coal transaction to a formal conclusion.

Igoda is the joint venture that Exxaro has with Sasol Mining.

On the possibility of the DME’s Anglo decision favouring the granting of new-order rights to Exxaro, Nkosi says: “We are very hopeful of that.”

Anglo American is an Exxaro shareholder and Exxaro is its empowerment partner at Kumba Iron Ore.

“There are also arrangements between Exxaro and Anglo at Black Mountain and Gamsberg, Anglo’s South African zinc assets.

“I would assume that we will benefit from that,” Nkosi says of the “rights by March 31” commitment.

“Once we speak to Cynthia Caroll and find out from her what it is she did well, I think we will be in a better place to have certainty,” Nkosi says.

Meanwhile, the majority black share-holding within Exxaro will receive R297-million in dividends and Exxaro employees R17-million, half of which will first, however, go towards paying off the loan raised for the purchase of the shares.
“What has been very challenging for us is the skills profile in the country. The organisation, just like all other organisations, is battling with skills,” says Nkosi.

But the company spends substantially on training, “which is the contribution we make to the company and the country”. “As Exxaro, we take the issue very seriously,” he says.

“If you look at our organisation right now, there are quite a lot of vacancies that we have and that has caused quite a lot of delay.

“We all know that we have to grow the skills pool. It’s a national issue, it’s a national crisis,” Nkosi, who is also Chamber of Mines president, says.

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