JOHANNESBURG (miningweekly.com) – Cash of R6.8-billion generated by the operations of Exxaro Resources was 23% higher in the 12 months to December 31, when net operating profit increased by 17% to R6.1-billion.

Revenue rose 9% to R22.8-billion buoyed by the coal business, which benefitted from higher selling prices and volumes.

Total dividends paid in 2017 amounted to R2 227-million, made up of a final dividend of R1 284-million, which related to the year ended 31 December 2016, paid in April 2017, as well as an interim dividend of R943-million, paid in September 2017.

A special dividend of R4.5-billion out of income reserves from the sale of a portion of its interest in US mineral sands producer Tronox was declared earlier this week.

The JSE-listed company's results were impacted by the costs associated with the implementation of its R4 339-million replacement black economic empowerment (BEE) transaction, which provides a 30% BEE credential for the company, and a net gain realised on the partial disposal of its shareholding in Tronox for R5 191-million.

"The results show great performance driven by strong production, aided by improved coal demand and improved commodity prices," Exxaro CEO Mxolisi Mgojo said in an early morning media conference in which Mining Weekly Online took part.

Mgojo, who wants the company to intensify its position in renewable energy as well as food security and water excellence, described Exxaro as a more resilient business.

"We continue to focus on business excellence, innovation and digitalisation," Mgojo added.

While the lost time injury frequency rate had been reduced from 0.29 in 2012 to 0.12 in 2017, the JSE-listed company suffered a fatality at its Matla coal mine earlier this year.

"Safety remains a priority for our sustainability," Mgojo told journalists.

One of South Africa's largest and foremost black-empowered mining companies, Exxaro, is implementing a five-year, R20-billion capital expenditure programme on coal mining projects in Limpopo and Mpumalanga and has seven coal projects under way - four in Limpopo's Waterberg region and three in Mpumalanga.

The largest capital project is the R4.8-billion, 1.7-million-tonne-a-year GG6 project at Grootegeluk, in the Waterberg, where first production of semisoft coking coal is expected in the company's 2020 financial year.

The project programme will provide the company - which last year signed a ten-year coal export transportation agreement with State rail enterprise Transnet to increase coal volumes from the Waterberg to Richards Bay Coal Terminal - with additional export volumes and more power station coal.