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Employee share ownership scheme brings about more stability

South Africa based mining group Exxaro has introduced an employee share ownership scheme, its chief executive told delegates at the 33rd Coaltrans World Coal Conference in Berlin.

Sipho Nkosi admitted that South Africa has had a “very volatile” labour situation in the past few months, but assured delegates that there was currently much more “discussion and engagement” with workers.

“One of the things that we have done in our organisation is to create a structure where all employees have some stock in the organisation,” he said.

“It’s critical for them to feel that this is my business and therefore I can make things happen. This brings quite a lot of stability.”

Mr Nkosi, who has been in the coal business since the 1980s and was a keynote speaker at the event, added that he thought it was important for the coal sector to continue to reduce its carbon footprint and deal with environmental issues.

“All of us are always under siege and attack because of not being environmentally sensitive,” he said. “We’re looking at issues of underground coal gasification.”

The company is now moving more coal to the Asian market as opposed to the European one, with more coal coming from Waterberg in the northern side, which Exxaro estimates contains about 64 per cent of South African coal reserves.

“That is where we are going to be mining a lot of coal, but the biggest challenge that has always faced Waterberg has been the availability of the infrastructure and of the rail line and there is more work now going on in terms of unlocking that one,” added Mr Nkosi.

He said that the country has produced a National Development Plan, which among many other issues, deals with infrastructure, especially ports and railways, which will help South Africa to turn a corner.

Exxaro is the second-largest South African coal producer with capacity of 47 million tonnes per annum and the third-largest global producer of mineral sands.
This content is provided by Coaltrans Conferences for informational purposes only, and it reflects the market and industry conditions and presenter’s opinions and affiliations available at the time of the presentation.

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