Exxaro Resources said on Wednesday an increased contribution from its equity-accounted investments in the six months to end-June helped offset lower revenue from managed operations, as it continues to battle with declining coal sales in SA.

Headline earnings per share for the period are expected to rise between 35% and 47% year on year, but earnings before interest, taxes, depreciation, and amortisation (ebitda) are expected to fall between 13% and 25%.

Earnings from the company's domestic sales business has been adversely affected by lower domestic sales volumes, lower average prices for exports and higher rehabilitation costs, the company said. This was somewhat offset by higher export volumes and a favourable exchange rate.

Exxaro did not go into further detail in Wednesday's trading statement, but has previously reported it was seeing declining demand from Eskom's Medupi power station.

Eskom’s dire financial position is said to be largely the result of massive cost overruns, lengthy delays and poor designs of its Medupi and Kusile power stations.

Exxaro operates five coal mines across SA, but also has hefty stakes in a number of noncoal-related mining enterprises.

This includes a 21% stake in the Sishen Iron Ore Company, a 26% stake in US-listed titanium producer Tronox, and a 26% stake in zinc-producer Black Mountain, a subsidiary of Vedanta.