Apart from coal, Exxaro has interests in iron ore, mineral sands and renewable energy. In the year to December coal contributed 98% of its revenue and 81% of its operating profit. Mgojo, who was speaking at the Gordon Institute of Business Science forum on Wednesday, said Exxaro had held discussions in November with a broad group of internal and external stakeholders to consider the future of the company. At that time Exxaro’s shares were about R40 from a high of more than R200 in 2012, its black empowerment transaction was under water and commodity prices were weak. Discussions centred on whether Exxaro could exist beyond coal mining and whether it should remain largely South African or play a greater role beyond its borders. Coal would be needed by customers in SA for the next 20 years, but comprised a small portion of the new power that the government was commissioning, Mgojo said. "Today, we have abundant coal and it is cheap but it will be displaced. It is just a question of wh...
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