Ichor Coal N.V.

Climate Impact & Sustainability Data (2013)

Fully met obligations in environmental protection and rehabilitation; Section 6b site well on its way to rehabilitation.

Launched an employee wellness program at the beginning of 2014, focusing on preventive care, disease screening, financial fitness, and life skills; Provided support to local schools, kindergartens, and small enterprises in and around Ermelo; Funded an embroidery machine for a local business; Supported Highveld Tourism Mpumalanga in delivering examples of craftsmanship to Europe; Renovated toilets and equipped the school kitchen at Camden Combined School.

Strengthened Management Board with the appointment of Nonkululeko Nyembezi-Heita as CEO and Andries Engelbrecht as COO (beginning of 2014); Successfully completed a share capital increase; Successfully issued corporate bonds.

Long-term Goals:

Consider expansion into coking coal; Potentially invest outside of South Africa in the longer term.

Medium-term Goals:

Annual production of 15 million tonnes of coal within the next five years; Establish IchorCoal as a mid-tier enterprise in the South African market; Achieve world-class performance levels in health, safety, and production costs.

Short-term Goals:

Achieve sustainable ROM output of 200,000 tonnes of coal per month at Vunene Mine; Reach agreement with previous mining right holders on prerequisite arrangements for underground mining at Vunene.

14% decline in coal production at Vunene mine due to delays in obtaining permits for opencast mines Block D and Portion 9; Challenges accessing the C lower seam at Block D due to inaccurate information on previously mined C upper seam; Depreciation of the South African rand; Potential for government restrictions on coal exports; Labor turmoil in the South African mining industry; Need for additional rail connections to major coal centers.

Delayed opencast mining until all approvals were granted; Implementing precise methods of work and careful planning at Block D; Hedging against currency fluctuations through coal exports; Closely monitoring government regulations and developments; Actively working towards a better industrial relations climate; Closely watching Transnet Freight Rail’s plans regarding additional rail capacity.

Sourced services from local, black-owned companies in the Ermelo community; Provided training in financial and personnel management to develop sustainable small enterprises.

Frameworks Used: IFRS

Third-party Assurance: Ernst & Young