Shareholders are advised that in line with South Africa’s national state of disaster, and the lockdown which commenced at midnight, Thursday 26th March 2020 and which lasts to midnight on Thursday 16th April 2020, the Company deemed it appropriate to make a statement regarding the actions that Exxaro is taking to ensure business continuity, crisis management and the mitigation of health and business risks during this period.
This decisive action by both the public and private sector is necessary to fundamentally disrupt the chain of transmission across the country. Exxaro has undertaken to act responsibly and to do its part in preventing further spread of the virus.
Therefore, the Company has implemented its Crisis Management Plan (CMP) and Business
Continuity Plan (BCP) across the breadth of its businesses that includes Health and Safety controls and preventative measures to be implemented immediately.
These measures are necessary to sustain our business in order to ensure that we continue to serve stakeholders, as well as protect and support employees and their families. Additionally, it is important to recognize the impact on the South African economy and the cumulative negative impact of this lockdown.
Key considerations for this lockdown period include the following business and disease prevention guidelines from the Department of Mineral Resources and Energy Minister, Mr Gwede Mantashe:
The need for energy security to ensure the availability of essential services during the lockdown and hence we will maintain our coal supplies to Eskom and other energy generating customers.
The need to minimize the economic impact of the lockdown by continuing with the generation of foreign exchange which will provide the financial capacity for the state to respond to the crisis by continuing, to the extent it is possible, with our coal exports to offshore customers. However, this will be subject to Covid-19 responses in those markets which may prevent the delivery of coal; and
The above production activities to be carried out with the minimum staff levels in order to maintain the guidelines of social distancing and safe health practices to prevent the transmission of the corona virus both inside and outside work areas.
Exxaro will be able to continue with its production activities subject to the approval of an application that demonstrates that these activities are essential and that the necessary measures have been taken to prevent possible corona virus infections.
The Company head office, the Connexxion is closed as of 26th March 2020 and most employees have been enabled to work from home. Arrangements are in place for business continuity and necessary protocols have been activated across all Operations and Business Units ensuring efficient and safe ways of working. Additional preventative disease transmission protocols have been implemented in all coal mining operations.
Exxaro is closely monitoring all updates and advice from relevant organisations, including the National Department of Health, the Department of Minerals Resources and Energy and Minerals Council South Africa.
Additionally, all essential operating teams are working across the organisation and together with key stakeholders to continuously assess the situation. This is a rapidly evolving situation and the Company will keep shareholders updated.