EXXARO Resources has recorded a roughly 50% improvement in direct coal railings from its Grootegeluk mine in the Waterberg coalfield in Limpopo to Richards Bay, CEO Ben Magara said, as improving Transnet performance helps the miner increase exports from the Waterberg.
Magara said in an interview on Thursday that train frequency improved from roughly three trains a week to five.
“We had a massive improvement – almost 50%. Yes, it’s off a low base,” Magara said, but added that Exxaro ultimately wanted between seven and 10 trains a week.
In the six months ended 30 June 2026, Exxaro reported a 20% fall in headline earnings per share to R13.77 – from R17.24 a year earlier, despite an improvement in operating performance.
Headline earnings declined 22% to R3.22bn, largely because of weaker contributions from its Sishen Iron Ore Company and Black Mountain investments.
The miner cut its interim dividend 17% to R7 a share.
“Our Heps were impacted by our associates,” he said, while the stronger rand against the dollar impacted revenue, which rose 7%.
“Our revenue would have been bigger had it not been for the exchange rate,” Magara said.
Transnet Freight Rail (TFR) delivered 30.95Mt to Richards Bay Coal Terminal during the six months to June, equivalent to an annualised 59.9Mt – up 5% from its 56.8Mt annual performance in 2025.
“I’m pleased with the railing performance,” Magara said, “but we continue to use our multi-modal channels, which are more costly, with diesel prices so high.
“If it weren’t for coal prices moving up a good 15%, we would not have moved that coal on road.”
Diesel prices increased 21% during the period under review, pushing logistics costs considerably up.
Exxaro’s coal exports increased to 3.9Mt – up 15% in the first half, supported by improved TFR performance and alternative logistics.
The company kept its full-year export forecast of 7.3Mt to 8Mt.
Manganese portfolio
Exxaro also recorded its first earnings contribution from the manganese assets acquired in February.
“On a 100%-basis, manganese production was up 11%,” Magara said.
Magara said Exxaro had meanwhile reached an “in-principle agreement” over the outstanding Mokala manganese acquisition and the transaction was now with lawyers as the parties worked towards a binding agreement.
Mokala is a manganese mine in South Africa’s Northern Cape and forms part of the Kalahari Manganese Field.
Exxaro is seeking to add a 51% interest in Mokala to the manganese portfolio it is building through its acquisition of manganese assets that include an effective controlling stake in the larger Tshipi Borwa mine.
On Exxaro’s longer-term push into copper, Magara indicated the company would not pursue an acquisition at any price.
“If we find it, good,” he said. “If we don’t, we focus on the growth potential of manganese.”
