Exxaro, a major player in mining and renewable energy, has stated that it is focusing on cost-containment efforts across the company to ensure financial stability. The company anticipates a decrease in its full-year production for the 2024 financial year.
Exxaro attributes this decline to logistical issues and low commodity prices. The company has shared a preview of its expected business performance for 2024.
Sales to Eskom and domestic demand are expected to decline, while export volumes are likely to increase due to global geopolitical uncertainties.
A key factor contributing to the operational challenges is the Grootegeluk mine, which has been averaging only three trains per week, significantly lower than the eight trains per week seen in Mpumalanga. This issue is linked to security concerns, vandalism, and shortages of locomotives.
