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Exxaro looks to renewables for greener future
Diversified mining company, Exxaro, hosted a capital markets day where they outlined their plans for growing its renewables energy business and expanding the existing coal and minerals division. Joining CNBC Africa for more is Mxolisi Mgojo, CEO, Exxaro.
Mon, 20 Sep 2021 16:59:34 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Exxaro is diversifying its business by shifting towards renewable energy and reducing investment in coal.
- The company has been involved in renewable energy since 2009 and has made significant investments in wind and solar projects.
- Exxaro aims to leverage its mining expertise to explore minerals that support a clean energy economy and is committed to ESG principles for sustainable business practices.
Exxaro, a diversified mining company, recently hosted a capital markets day where they highlighted their strategic shift towards growing their renewable energy business while expanding their existing coal and minerals division. The CEO of Exxaro, Mxolisi Mgojo, emphasized the importance of addressing climate change issues and reducing the company's reliance on fossil fuels. Exxaro has been actively involved in renewable energy since 2009 and has made significant investments in wind and solar projects. In 2019, Exxaro acquired 100% of the renewable energy business through a partnership with Tata Power. The company aims to leverage its mining expertise to explore opportunities in minerals that support a clean energy economy. Exxaro's transition is also guided by a strong focus on Environmental, Social, and Governance (ESG) principles to ensure a sustainable future for all stakeholders, including local communities and workers. The CEO highlighted the company's commitment to upskilling communities and creating new employment opportunities as part of their renewable energy expansion. Despite the risks associated with transitioning to a new business model, Exxaro has been proactive in diversifying its portfolio and managing costs effectively. The company has demonstrated a keen understanding of the renewable energy market and has already established a strong presence in the sector. With an EBITDA contribution from renewable energy business at an 80% margin, Exxaro is well-positioned to capitalize on the growing demand for renewables, particularly in distributed energy and mining sectors. By leveraging their existing capabilities and learning from past experiences, Exxaro is confident in their ability to navigate the transition towards a more sustainable future. Moving forward, Exxaro plans to focus on identifying the right commodities and implementing a measured approach to business growth over the next decade. The company looks forward to providing regular updates on their progress and engaging with stakeholders to drive positive change in the industry.
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