JOHANNESBURG (miningweekly.com) – JSE-listed diversified miner Exxaro Resources increased headline earnings by 4%, exported 15% more coal in the 12 months to December 31 and has increased its dividend by 10%.

The company, headed by CEO Sipho Nkosi, has now had no fatalities in 14 months and chalked up a 34% improvement in its lost-time injury frequency rate to 0.19.

Exxaro, which produced 3% more coal at 38.7-million tons, exported 4.5-million tons and headline earnings a share were 1 463c.

A final dividend of 315c a share has been declared, bringing total dividend for the year to 550c a share, up 10%.

Net operating profit was R759-million lower at R2 658-million, mainly as a result of the exclusion of the discontinued operations in the 2013 results.

The operating loss was partially offset by a 32% increase in coal’s net operating profit as well as R157-million lower costs.

Headline earnings were R5 194-million or 1 463 c a share, representing a 4% increase on 2012, mainly owing to the 32% increase in the coal business net operating profit.

Cash generated from operations of R2 159-million was used primarily to fund net financing charges of R192-million, taxation payments of R158-million and dividends of R1 387-million.

A total of R4 764-million was spent on buying property, plant and equipment of which R3 507-million was invested in new capacity and R1 257-million applied to sustaining and environmental capital.

Of the funds spent on new capacity, R1 812-million was for the Grootegeluk expansion and R1 613-million for the Mayoko iron-ore project in the Republic of Congo.

Dividends from Sishen Iron Ore Company of R2 664-million and Tronox of R507-million helped to restrict net cash outflow to R1 058-million for the year.

Net debt increased to R3 377-million, reflecting a net debt to equity ratio of 10%.

The company has disposed of the Zincor zinc refinery and signed an agreement to sell the New Clydesdale colliery.

Exxaro’s wetland strategy is in its final stages of development, with the completion of a detailed wetland study for all business units to mitigate the impact of mining on water resources.

This proactive approach to sensitive ecosystems and water resource management is being used internally to guide the company's growth plans and water stewardship in addition to considering the environmental regulatory landscape.

Water is crucial to the sustainability of our business and Exxaro uses a holistic water management programme to manage water-related risks, minimise the potential negative impact of our activities on water resources and operate efficiently through water-reduction plans, re-use and recycling.

Group-wide water conservation plans aligned to the national water management strategy are expected to be finalised in the first quarter of 2015.

Two water treatment plants, at Matla and North Block Complex, will be commissioned in the second and fourth quarters.

Exxaro with the financial services firm KPMG has conducted a social return on investment assessment of its social and labour plan projects, providing clear means of determining which social projects add value to a community.

Exxaro will invest R299-million in 63 local economic development projects over the next five years.

The Leeuwpan mine in Delmas, Mpumalanga, handed over 25 houses valued at some R6.5-million to residents of the nearby Botleng community as part of the social plan, benefitting 100 beneficiaries.

Five local contractors have been empowered with skills development when they were appointed to each build five of the 25 houses.