South African Business 2020 edition

28 October 2019. closer to the time.
FOCUS
With the Matla Power Station,
Meyer stressed that the work
being done to extract the coal
would help to power the area
until 2040.
“When people think about
their work in those terms it really
helps to establish for themselves
their purpose for being part of
a project,” said Meyer. “My role
as the executive overseeing the
whole project is to make sure that
they understand the purpose of
each of the projects because if
you involve people – and if they
understand – then they know
how to contribute.”
The Exxaro board has
made substantial investments
in terms of empowering local
communities, with R20-billion
being made available from
a strategic point of view to
implement various projects
across the group. Around R10-
billion was made available for
Grootegeluk in the Waterberg
region, along with R10-billion
being directed towards areas in
Mpumalanga. In Mpumalanga,
the R3.3-billion Belfast Mine
project (pictured) was given
the green light in November
2017 and the team delivered the
project on 12 September 2019…
a staggering six months ahead of
schedule. “It’s great to see that in
Africa we can still deliver projects
under budget and ahead of
time,” said Meyer. “We have
received the announcement
that the Matla expansion project was approved by Eskom, which is
incredibly exciting news.”
The Matla expansion project is designed to bring the coal into
the power station from below on conveyor belt, and the R3.5-billion
project is already in execution. Completed in 2018 was the joint R1.9-
billion project with Mafube in Mpumalanga, while across in Limpopo
the Grootegeluk Plant 6 (GG6) expansion project near Lephalale was
granted R4.8-billion in funds.
Also in development are the Semisoft Coking Coal Load Out
Station (SSCC LOS) and the D8 Load Out Station (D8 LOS), which
were commissioned in order to join the dots between producing
the product and getting it to the harbour. Also in the Waterberg is
the R3-billion Tabametsi Project, although that has yet to kick off
because of all the dynamics regarding the new IRP.
“Hands are needed to build stuff, so in the R20-billion expansion
project we have utilised 7 000 people and in that way we are
partnering with those who have the right skills to build a building
like this or a rapid load-out station or an underground mine. You
have to partner with the right skills,” adds Meyer.
Exxaro has an internal rule that they need to employ 70% of
local communities on each build, but there’s another essential rule
on these projects – the need to pay back the money.
“Our purpose is not to spend all R20-billion in the budget, and
most of the projects have been completed under budget. This is
important because the lower the capital investment, the less you
have to pay back in the long run, so it is strategically important
that we don’t spend all of our budget,” says Meyer. “Spend what
you need to create the value required – it’s a simple business
equation that you need to run with. Our CEO Mxolisi Mgojo knows
exactly what he wants and needs in order to drive the strategy of
the business, and I know what my role is in the broader strategic
environment in supporting the CEO. My mandate is to deliver the
project on time and on schedule and, hopefully, to give back some
money,” added Meyer.
At the heart of all these projects are thousands of South Africans
who have contributed to creating these vital links in the energy
chain, and it’s these people that make the real difference.
“Empowering communities is real in our space as 7 000 people
have helped us in building these projects. Partnerships and
bringing people on board – and building ‘stuff’ – is what excites
me,” adds Meyer .
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SOUTH AFRICAN BUSINESS 2020