![]() 1 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 #### ENVIRONMENTAL, SOCIAL #### AND GOVERNANCE REPORT 2024 #### NURTURING # growth ![]() 2 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT ### CONTENTS 01 #### OVERVIEW Purpose and scope of this report 2 Social, ethics and transformation committee chairman’s message 4 04 #### SOCIAL Safety and health 88 Our people 102 Communities 117 Making a positive contribution 135 05 #### GOVERNANCE Governance 155 Risk management 162 06 #### APPENDICES Independent assurance statement 167 Selected reporting criteria 172 Carbon accounting methodologies 175 Glossary 180 Corporate information 184 02 #### ESG IN CONTEXT About us 8 Our South African operations 11 Our Australian operation 12 Our strategy 13 Approach to ESG 15 Our 2024 performance 22 Our contribution to society 23 Chief executive officer’s review 24 Material matters 29 03 #### ENVIRONMENT Environmental stewardship 36 Air quality 39 Waste management 41 Water management 46 Climate change and energy 52 Mine closure and rehabilitation 74 Biodiversity 79 This report provides our stakeholders with a transparent account of our environmental, social and governance (ESG) approach and performance across our most material sustainability topics for the year ended 31December 2024. It incorporates our wholly owned operations and joint ventures where we have management control. We also include information about operations where we do not have management control but hold a significant interest. Included are our five wholly owned operations in South Africa, Ensham Mine in Australia and Mafube Coal Mining Proprietary Limited (Mafube), a 50% joint venture with Exxaro Coal Mpumalanga Proprietary Limited. At Mafube, we report on all sustainability indicators in full, with the exception of greenhouse gas (GHG) emissions and energy consumption, which are accounted for at 50%, in line with GHG Protocol guidance. This document incorporates data from our closing, care and maintenance sites as well as limited information from the Elders and Zibulo North projects. ESG data from other operations in which we have a shareholding but do not have operational control, such as the Richards Bay Coal Terminal and the Phola Coal Processing Plant, are excluded. PURPOSE AND SCOPE OF THIS REPORT This, the Thungela Environmental, Social and Governance Report, provides a transparent account of how we addressed our most material ESG matters in 2024. These were identified using a double materiality approach. This report is aligned with: • the Global Reporting Initiative’s (GRI) Sustainability Reporting Standards; • the GRI 12: Coal Sector Standard (2022); • the International Sustainability Standards Board’s (ISSB) International Financial Reporting Standards (IFRS) climate- related disclosure standard; and • the sustainable development principles and reporting framework of the International Council on Mining and Metals (ICMM). Deloitte & Touche provided an independent reasonable assurance (RA) opinion and a limited assurance (LA) conclusion over selected sustainability key performance indicators. The independent assurance statement can be found on page 167. ASSURANCE AND BASIS OF PREPARATION The board of directors delegated responsibility to the social, ethics and transformation committee to oversee the compilation of this report. The board has since collectively reviewed its contents and is satisfied that this document addresses Thungela's most material issues and provides a balanced and appropriate representation of sustainability performance. Tommy McKeith Social, ethics and transformation committee chairman 23 April 2025 #### BOARD RESPONSIBILITY STATEMENT ![]() 3 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 1 04. SOCIAL 05. GOVERNANCE 06. APPENDICES All images used in this document have been used with the permission of the subjects in them or their legal guardians, and with the understanding that they could be published widely, including online, and viewed worldwide. DISCLAIMER This document includes forward-looking statements. For information regarding these, please refer to page 184. FORWARDLOOKING STATEMENTS We are committed to accurate and transparent reporting and continuous improvement in our disclosure. The following ratings and certification were achieved in recognition of these efforts in 2024: EXTERNAL BENCHMARKING AND RECOGNITION We scored 3.5 out of 5 in 2024 (2023: 4) compared to the coal sub-sector average of 2.7. We achieved a rating of A in 2024 (2023: BBB) on a scale of AAA-CCC. Our score improved to 52 in 2024 (2023: 49) and we ranked second out of 52 companies. Our performance score improved to 38.5 in 2024 (2023: 33.7), placing us among the top five performers in the industry. We were certified for the third consecutive year. We maintained a B rating for climate change and achieved a B- for our inaugural CDP water disclosure. AGENCY RATINGS 2024 SOUTH AFRICA 1 Copyright and trademarks are owned by the Institute of Directors of Southern Africa NPC and all of its rights are reserved. This report forms part of our overall suite of reporting documents for the year ended 31December 2024, and should be read in conjunction with the Thungela Integrated Annual Report and the Thungela Annual Financial Statements. The reporting process for all our reports has been guided by the principles and requirements contained in the IFRS Accounting Standards, the IFRS Foundation's Integrated Reporting Framework, the GRI standards, the King IV™ Report on Corporate Governance for South Africa 2016 (King IV 1 ), the listing requirements of the London Stock Exchange and UK Disclosure and Transparency Rules, the Johannesburg Stock Exchange listing requirements and the South African Companies Act, 71 of 2008. For more information, visit https://www.thungela.com/investors/annual-reports. THUNGELA’S 2024 REPORTING SUITE ![]() 4 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT ### SOCIAL, ETHICS AND ### TRANSFORMATION #### COMMITTEE CHAIRMAN’S MESSAGE At Thungela, ESG is central to how we operate, with safety as the foundation and a strong focus on the ‘S’– our people and communities. Operating in diverse environments, particularly in South Africa, means recognising that we are part of a broader ecosystem. We work in communities’ backyards and being a responsible corporate citizen is not optional. It is essential. In our view, sustainability is about ensuring resilience and shared value, and enabling businesses to thrive across economic cycles. In a cyclical industry where prices fluctuate, maintaining a balanced and sustainable approach to ESG is critical. We are executing some really impactful initiatives, one of them being the Thungela Education Initiative, which we hope brings immense value to communities. This is especially important in areas where infrastructure and support are limited, which makes it challenging to drive meaningful change. Over the next five years, instead of focusing on infrastructure, we will support all the interconnected elements that strengthen education and empower young people – such as school governance and educator support. The goal is to set the foundation so that schools can build their own futures, while our mines are operational and then beyond. As several of our operations prepare for closure in the not-too-distant future, we are working on a legacy that extends past mining. This work is not just about reshaping land and planting grass, it is about mitigating the impact of these closures and their ripple effects on communities. The goal is to implement strategic legacy projects, foster economic diversification by supporting skills development, entrepreneurship and alternative industries that can sustain livelihoods long after mining ends. However, while some mines reach the end of their lives, others are only beginning and the global reality is that coal will remain a critical, albeit reduced, part of the energy mix for the foreseeable future. Many regions, particularly in developing economies, remain heavily reliant on coal and are still in the early stages of transition. Our role in this changing landscape is to navigate the transition in a way that ensures stability while advancing toward a lower-carbon future. This means operating responsibly and ensuring that our operations minimise environmental impact, produce high-quality coal that generates more efficient and lower-emission electricity, and target markets that will use it responsibly. Thungela’s purpose is clearly defined: ‘To responsibly create value together for a shared future’. This statement resonates because our work extends beyond mining – we are enabling energy access today while contributing to a cleaner, more sustainable future. #### Tommy McKeith Chairman of the social, ethics and #### transformation committee 23April 2025 ![]() 5 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 1 04. SOCIAL 05. GOVERNANCE 06. APPENDICES In my view, sustainability is about ensuring resilience and shared value, and enabling businesses to thrive across economic cycles. In a cyclical industry where prices fluctuate, maintaining a balanced and sustainable approach to ESG is critical. ![]() 6 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT ## ESG IN CONTEXT 02 About us 8 Our South African operations 11 Our Australian operation 12 Our strategy 13 Approach to ESG 15 Our 2024 performance 22 Our contribution to society 23 Chief executive officer’s review 24 Material matters 29 6 ![]() 7 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 1 04. SOCIAL 05. GOVERNANCE 06. APPENDICES 7 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 ![]() 8 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT ### ABOUT US We are unconditional about protecting the lives of all our people – at work and at home – in health and wellbeing. SAFETY We take responsibility for our decisions, actions and performance, to grow in success and learn in failure. ACCOUNTABILITY We are passionate about being the best at what we do and always seek to raise the bar. EXCELLENCE We show humanity to all through our commitment to making a positive impact where we can. CARE AND RESPECT We keep things simple and empower our people by enabling them to make quick decisions. AGILITY We have an owner’s mindset because we know that every small change adds to greater impact. ENTREPRENEURSHIP Thungela, which means ‘to ignite' in isiZulu, is a global pure-play producer and exporter of high-quality, cost-competitive thermal coal, with operations in South Africa and Australia. Our quality coal reserves and marketable production, position us as a key player in the global energy market as we deliver coal through world-class ports, powering nations. The Group owns interests in and produces its thermal coal from six mining operations located in Mpumalanga, South Africa, which consist of both underground and opencast mines, namely Goedehoop, Greenside, Isibonelo, Khwezela, Zibulo and Mafube. Thungela disposed of its controlling interest in the Rietvlei Colliery on 30 November 2024. In 2023, Thungela acquired 85% of the Ensham Mine in Queensland, Australia, marking a significant move towards executing one of the Group’s strategic pillars of geographic diversification. On 28 February 2025, a further 15% interest in the Ensham Mine was acquired. The establishment of Thungela Marketing International in Dubai underscores the Group’s commitment to capture the full margin on its products and engaging with the international commodities market as a global coal producer. In other parts of the value chain, Thungela holds a 50% interest in Phola Coal Processing Plant, and a 23.56% direct interest in Richards Bay Coal Terminal (RBCT). The terminal is one of the world’s leading coal export terminals, with an advanced 24-hour operation and a design capacity of 91million tonnes per annum. Thungela is committed to operating in a responsible way to ignite value for a shared future. We want to ensure that our mining activities positively impact our employees, shareholders and the communities where we operate. #### OUR VALUES Our people are the heartbeat of our organisation. Our high-performance culture values excellence, agility and accountability. OUR CULTURE A future-oriented, pure-play producer and exporter of thermal coal with an expanding global footprint. WHO WE ARE To create and deliver value for all our stakeholders. AMBITION ![]() 9 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 2 04. SOCIAL 05. GOVERNANCE 06. APPENDICES We are uncompromising about safety and it is our first consideration in everything we do. We hold ourselves to the highest governance principles by managing our impacts and mining responsibly. Being a responsible miner means being a responsible neighbour. We mine responsibly to ensure that host communities thrive and benefit from the positive impacts we create. We cannot do it on our own. That is why we collaborate, engage and build meaningful relationships with all our stakeholders. The value we create contributes to a brighter future for all of us. By achieving our goals together, we all face a future worth sharing. We want others to share in the value we create. From shareholders and employees to host communities, we want all our stakeholders to be better off because of our business. ### OUR PURPOSE #### TOGETHER FOR A SHARED FUTURE. #### RESPONSIBLY CREATING VALUE ![]() 10 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT ### OPERATING CONTEXT #### OUR OPERATING CONTEXT #### SOUTH AFRICA Our operations in South Africa are primarily based in Mpumalanga, the country’s second-smallest province, yet a key driver of economic activity. Within Mpumalanga, we operate in two key district municipalities: Gert Sibande and Nkangala, which together encompass six local municipalities. Gert Sibande, the province’s largest district by land area, has a diverse economy that includes a substantial underground mining industry, a strong agricultural sector, and major industrial sites linked to the petrochemical industry. On the other hand, Nkangala, known as the cultural heartland of Mpumalanga, is South Africa’s energy hub, with abundant coal reserves and power stations playing a critical role in the national energy landscape. A significant number of socio-economic challenges cut across both district municipalities. They are: • high unemployment; • inadequate infrastructure, including water and sanitation, energy, health, transportation and connectivity; • underperformance at primary and high school levels; • insufficient education and skills training facilities; • a lack of quality early childhood development; and • demand for opportunities for small, medium and micro-sized enterprises (SMMEs) that are heavily dependent on the mining sector. Coal mining, steel production and coal-fired power generation are the lifeblood of communities in these regions. This renders them heavily dependent on these sectors and their value chains for their livelihoods. They are particularly vulnerable to the transition away from fossil fuels and the closure of mines and power stations that are nearing the end of their economic lives. We operate in three local municipalities within the two districts. These are: YOUTH (AGE 15  34) 43% UNEMPLOYMENT 26.6% HIGHER EDUCATION 1 9.7% EMALAHLENI LOCAL MUNICIPALITY 553,562 ESTIMATED POPULATION ESTIMATED POPULATION 317,187 YOUTH (AGE 15  34) 40.7% UNEMPLOYMENT 23% HIGHER EDUCATION 10.9% STEVE TSHWETE LOCAL MUNICIPALITY ESTIMATED POPULATION 377, 446 YOUTH (AGE 15  34) 41% UNEMPLOYMENT 32.5% HIGHER EDUCATION 8.1% GOVAN MBEKI LOCAL MUNICIPALITY Source: 2022/2023 – 2026/2027 Integrated Development Plan 1 Higher education is the proportion of people over the age of 20 years in the local municipality with a tertiary education. Source: https://municipalities.co.za/. Source: 2022/2023 Integrated Development Plan Source: 2022/2023 Integrated Development Plan ![]() 11 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 2 04. SOCIAL 05. GOVERNANCE 06. APPENDICES #### OUR SOUTH AFRICAN OPERATIONS ISIBONELO COLLIERY Market Domestic Coal Resources Measured: 15.3Mt Indicated: — Coal Reserves Proved: 3.9Mt Probable: — Mining Method Opencast LOM 1 year 1 Resources and Reserves are shown at 100%. MAFUBE COLLIERY 1 Market Export Coal Resources Measured: 29.5Mt Indicated: 1.2Mt Coal Reserves Proved: 82.6Mt Probable: 33.0Mt Mining Method Opencast LOM 19 years ZIBULO COLLIERY Market Export and domestic Coal Resources Measured: 377.3Mt Indicated: 55.8Mt Coal Reserves Proved: 21.3Mt Probable: 22.0Mt Mining Method Underground – bord and pillar and opencast LOM 8 years GOEDEHOOP COLLIERY Market Export and domestic Coal Resources Measured: 236.5Mt Indicated: 9.0Mt Coal Reserves Proved: 2.6Mt Probable: 0.2Mt Mining Method Underground – bord and pillar LOM 1 year KHWEZELA COLLIERY Market Export and domestic Coal Resources Measured: 39.5Mt Indicated: 8.9Mt Coal Reserves Proved: 21.9Mt Probable: 1.5Mt Mining Method Opencast LOM 5 years GREENSIDE COLLIERY Market Export and domestic Coal Resources Measured: 7.9 Mt Indicated: 4.0Mt Coal Reserves Proved: 10.4Mt Probable: 1.9Mt Mining Method Underground – bord and pillar LOM 4 years Middelburg eMalahleni #### MPUMALANGA ![]() 12 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT #### OUR AUSTRALIAN OPERATION ENSHAM MINE Market Export Coal Resources 1 Measured: 4.5Mt Indicated: 465.4Mt Coal Reserves 1 Proved: 26.2Mt Probable: 42.6Mt Mining Method Underground LOM 20 years 1 Resources and Reserves are shown at 100%. #### QUEENSLAND Rail line (339km) Port of Gladstone Brisbane #### Ensham is located in the western part of the central Bowen Basin in Central Queensland. Its nearest townships include Emerald, approximately 35km to the west, and Blackwater, 49km to the southeast. The small township of Comet is located approximately 18km southeast of the project area. The project is wholly located within the Central Highlands Regional Council Local Government Area. Resource activities are common within the region. There are 13 other active mine sites located within 65km of the site. Ensham has been a significant contributor to the Emerald community since 1993, and for the past 25 years has supported regional employment and local businesses. Mining and agriculture account for 24% of all employment. The continuation of Ensham is paramount to provide both economic and workforce security for Emerald and the surrounding region. Predominant land uses within the wider region include cropping, grazing, and resource activities. Bowen Basin ![]() 13 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 2 04. SOCIAL 05. GOVERNANCE 06. APPENDICES OUR INVESTMENT EVALUATION CRITERIA Our investment evaluation criteria have been designed and implemented to optimally balance responsible stewardship with the need to upgrade our portfolio and create shareholder value. They have been and continue to be critical to all investment decisions, ensuring that any investment competes with additional shareholder returns. We continue to evaluate all merger and acquisition opportunities against these criteria. ### OUR STRATEGY We are continuously improving the competitive positioning and cash generation of the assets we own and operate today – through productivity initiatives and the execution of approved capital projects, on schedule and within budget. MAXIMISE THE FULL POTENTIAL OF OUR EXISTING ASSETS ESG remains at the heart of our strategy and informs our approach to our existing business, how we plan future projects, and how we evaluate potential acquisitions. We maintain a broad ESG perspective, recognising thesocio- economic implications in and around our business while managing a transition to a low-carbon future. DRIVE OUR ESG ASPIRATIONS Safety is our first value. We do not waver in our commitment to operating a business that is free of fatalities and injuries. SAFETY COST/MARGIN CURVE PAYBACK CAPITAL INTENSITY • Target lower half of global seaborne cost curve • Competitive capex per tonne when compared to alternative options • Target short payback periods ENVIRONMENTAL SOCIAL GOVERNANCE • Consider the impact on global carbon output • No net loss of biodiversity • Improved transparency and accountability • Support existing regional communities and the supplier base RESPONSIBLE STEWARDSHIP UPGRADE OUR ASSET PORTFOLIO NET PRESENT VALUE/ CAPEX INTERNAL RATE OF RETURN CLOSURE COSTS • Net present value • Capital efficiency • Cash flows to fund closure cost provisions beyond current life of mine • Internal rate of return higher than our nominal weighted average cost of capital MAXIMISE SHAREHOLDER VALUE Our five strategic pillars enable us to deliver on our purpose to responsibly create value together for #### a shared future. 1 2 3 4 5 We continue to develop a future pathway for our business by pursuing geographic diversification and leveraging our core skills. We also consider the divestment or winding down of high-cost tonnes or stranded resources within our portfolio. CREATE FUTURE DIVERSIFICATION OPTIONS The ongoing implementation of an efficient capital allocation strategy, based on our approved investment evaluation criteria, ensures that any capital allocation options compete with additional shareholder returns in the form of additional dividends and share buybacks. OPTIMISE CAPITAL ALLOCATION ![]() 14 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT #### STRATEGIC FOCUS AREAS SAFETY INITIATIVES OUTCOMES Relentless drive to operate a business free from fatalities and injuries • No fatalities in 2024 • Group total recordable case frequency rate of 1.93 DRIVE OUR ESG ASPIRATIONS INITIATIVES OUTCOMES Implement optimised rehabilitation and closure plans • Ongoing optimisation of rehabilitation activities, planning and associated costs Operate with a credible pathway to net zero by 2050 • 4 MW solar photovoltaic (PV) plant commissioned in November 2024 • Delivering carbon and energy intensity reductions across the business • Identifying emissions off-setting opportunities that support our strategy Continue to create shared value • R204 million total contribution to employee and community trusts 1 based on the 2024 financial performance MAXIMISE THE FULL POTENTIAL OF OUR EXISTING ASSETS INITIATIVES OUTCOMES Deliver productivity improvements • Productivity initiatives successfully implemented across our South African portfolio as well as at Ensham during 2024 Enable an optimised cost structure • Cost containment initiatives implemented during 2024, with a focus on targeting cost reduction across the Group Optimise use of rail and port infrastructure to enhance marketing optionality • Improved rail performance increases our ability to optimise our products to achieve improved realised prices • Thungela Marketing International achieved higher premiums and lower discounts in the second half of the year • Supported several Transnet Freight Rail (TFR) initiatives, through coal industry forums Develop and deliver production replacement and life extension projects • The Elders and Zibulo North Shaft projects are on schedule and in line with budget CREATE FUTURE DIVERSIFICATION OPTIONS INITIATIVES OUTCOMES Divestment of stranded resources and high-cost tonnes • Divestment of our 34% stake in Rietvlei Mining Company Proprietary Limited to a 100% historically disadvantaged South African company aligns with our focus on high-margin operations Geographic diversification • Ongoing evaluation of opportunities that includes Australia, given our presence in this region Diversification where we have demonstrated our 'right to win' • Ongoing evaluation of various options in accordance with our investment evaluation criteria OPTIMISE CAPITAL ALLOCATION INITIATIVES OUTCOMES Maintain liquidity buffer throughout the commodity cycle • The liquidity buffer remains in line with the needs of the Group Evaluate projects and acquisition opportunities which deliver superior returns over time • Several acquisition opportunities were evaluated during 2024, focusing on value-adding transactions • The Elders and Zibulo North Shaft extension projects remain on schedule and in line with budget Shareholder approval for share buybacks • Two share buybacks were completed in 2024, amounting to R441 million and R160 million, respectively. Announced a share buyback of up to R300 million 1 Sisonke Employee Empowerment Scheme and the Nkulo Community Partnership Trust. ![]() 15 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 2 04. SOCIAL 05. GOVERNANCE 06. APPENDICES ### APPROACH TO ESG We minimise our impact on the environment and operate to achieve sustainable outcomes Climate risk management Efficient use of resources Land stewardship and biodiversity We embrace strong corporate governance principles to manage risk and build trust Integrated risk management Governance and disclosure Ethical behaviour We empower our workforce and work with our stakeholders to deliver shared value safely Safety, health and wellbeing Inclusion and empowerment Community partnerships SUPPORTED BY Robust management systems Open and engaged leadership Values and code of conduct Effective and transparent stakeholder engagement Environmental stewardship Responsible decision- making and leadership Shared value for our stakeholders Driving our ESG aspirations is one of the five pillars of our business strategy. While we recognise that the demand for coal may decline over time, we firmly believe that while it is still in use, it is essential that coal be produced responsibly. Operating sustainably is an integral part of our way of doing business. Through our ESG framework, we have embedded ESG into how we work, across existing sites and in any new projects or initiatives we consider. We aim to minimise our impact and take care of the environment through all stages of the mining lifecycle, delivering shared value for all our stakeholders while providing a safe and decent working environment for our employees and contractors. We invest intentionally and meaningfully in host communities and adhere to the highest ethical standards. Our code of conduct is the foundation of our business culture and guides the behaviour we expect from all employees, business partners, board members and suppliers. We use strong management systems to oversee our risks and impacts, have committed and engaged leadership, and are committed to effective and transparent stakeholder engagement. Our aspiration is to ‘spike in the social element of ESG’. We do this by generating employment and economic opportunities in the regions where we operate, through the the taxes and royalties we pay, and the execution of our socio-economic development approach. The Sisonke Employee Partnership Scheme and the Nkulo Community Partnership Trust both receive dividend contributions, allowing employees and communities to benefit from our success. ESG issues are often interrelated and are part of a complex ecosystem that is continually evolving. Each element has the potential to influence others, similar to the energy trilemma. For example, a rapid and disorderly transition to variable renewable energy, while reducing carbon emissions, is likely to negatively impact energy security and grid stability, increase the cost of electricity and affect the most vulnerable people in society. Likewise, climate change, biodiversity and ecological services are intricately linked. Our approach to ESG dictates a balanced view, where all elements require careful management and consideration in the decisions we make. ![]() 16 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT ### ENVIRONMENTAL ### STEWARDSHIP We are committed to responsible environmental stewardship. This entails conserving natural resources, minimising mining’s inherent negative impacts and restoring the land we disturb for sustainable, productive use. Environmental stewardship Responsible decision- making and leadership Shared value for our stakeholders Climate risk management Efficient use of resources Land stewardship and biodiversity 16 ![]() 17 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 2 04. SOCIAL 05. GOVERNANCE 06. APPENDICES As a company that produces coal, we are acutely aware of our role in addressing climate change. This begins with the transparent disclosure of our climate-related risks and opportunities. We actively support the achievement of the Paris Agreement’s goals and are making progress toward our commitment to reduce Scope 1 and 2 greenhouse gas emissions by 30% by 2030. We have pledged to reach net zero by 2050. These targets have been set from a 2021 baseline. Developing countries will continue to rely on fossil fuels until at least 2070. It is therefore critical that we drive emission abatement technologies and we do this through our involvement with the FutureCoal Alliance, the Coal Industry Advisory Board and the Council for Geosciences in South Africa. Our climate risks and opportunities are featured in this report and align with the Task Force on Climate-Related Financial Disclosures (TCFD) and with reference to the IFRS ISSB climate-related disclosure standard. CLIMATE RISK MANAGEMENT We take a holistic approach to mine closure, which requires careful planning across multiple areas, including environmental rehabilitation, social transition and economic sustainability. A key challenge is ensuring the perpetual management of water from closed mines in a responsible and sustainable manner. In addition to using large-scale reverse osmosis technology, primarily at our eMalahleni Water Reclamation Plant, we are trialling nature-based solutions that are designed to operate with minimal human intervention, energy use and chemical input post-closure. New mines are built with closure in mind and each site has a comprehensive closure and progressive rehabilitation plan in place. These plans are aligned with the ICMM’s good practice on integrated closure. Our successful wetland restoration and phytoremediation projects are nature-based solutions to addressing mine- impacted water and residual impacts. We commit to no net loss of biodiversity and, where possible, to improving ecosystems through the implementation of restoration and offset projects. We also protect areas of high biodiversity value and design site-based rehabilitation efforts to conserve and restore biodiversity. LAND STEWARDSHIP AND BIODIVERSITY It is essential that our operations do not negatively impact natural resources or compromise their availability for other users. We operate in water-stressed regions where this may be further exacerbated by increased demand and the effects of climate change. This underscores the need for water stewardship. We aim to reduce our operations’ abstraction of fresh water and currently reuse and recycle more than 95% of the water in our operations. We aim to treat at least 40% of mine-impacted water annually and we are pioneering innovative nature-based water treatment solutions. Our sites are engaged in a number of energy efficiency initiatives to lower GHG emissions, and apply industry- leading standards and live monitoring technology to manage their impact on air quality. Additionally, we have committed to reducing the amount of waste we send to landfill by 50% by 2030 using 2021’s volumes as a baseline. EFFICIENT USE OF RESOURCES ![]() 18 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT ### SHARED VALUE FOR ### OUR STAKEHOLDERS We cannot create true value unless we protect employees from harm and ensure our operations contribute positively to the lives and livelihoods of people in host communities. Safety, health and wellbeing Inclusion and empowerment Community partnerships Environmental stewardship Responsible decision- making and leadership Shared value for our stakeholders 18 ![]() 19 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 2 04. SOCIAL 05. GOVERNANCE 06. APPENDICES INCLUSION AND EMPOWERMENT We actively work to build a diverse and inclusive working environment and celebrate all differences, including those of race, age, gender, sexual orientation and thought. One of our core values is Care and Respect, which sets the tone on how we engage with one another. We have a zero-tolerance stance on discrimination and promote equal opportunities. We also support the right to equal pay for equal work. Employees receive ongoing learning and development, which empowers them to grow, thrive and contribute meaningfully to our shared success. In South Africa, bargaining unit employees have a direct stake in the company’s success through our Sisonke Employee Empowerment Scheme. SAFETY, HEALTH AND WELLBEING No person should come to harm while earning a living for their family, nor should our activities compromise the health and safety of host communities. Safety is one of the five pillars of our business strategy. Our primary focus is on eliminating fatalities, preventing life-altering injuries, and addressing the insidious, long-term effects of occupational disease. Our risk-based approach is driven from the board through to frontline supervisory personnel, and hinges on every employee’s ability to identify, evaluate, and mitigate risks. Learning from incidents and deploying appropriate controls to ensure the safety and health of our employees and contractors is pivotal. This requires strong leadership, continuous engagement, and a culture that prioritises safety and health. We prioritise employee wellness and have made significant progress in combatting HIV/AIDS and TB through comprehensive testing, treatment and viral suppression. Our commitment extends to the treatment and prevention of non- communicable diseases and mental, financial and psychosocial wellbeing. COMMUNITY PARTNERSHIPS We cannot mine without the buy-in and support of host communities, upon which we rely to earn and maintain our social licence to operate. Engagement enables us to identify current and potential risks, impacts and opportunities, helps us strengthen relationships, and promote shared prosperity. In South Africa, this prosperity is driven through our socio-economic development approach which identifies four impact goals: • Improving access to quality education and skills development. • Improving access to quality community services. • Improving access to income-generation opportunities. • Reducing reliance on mines by strengthening the local SMME sector. Projects that address these core challenges are delivered through our mines’ Social and Labour Plans (SLPs) as well as through corporate social investment (CSI) and strategic programmes such as the Thungela Education Initiative and our enterprise and supplier development (ESD) programme, Thuthukani. As part of our efforts to improve community partnerships and to share the value we create in line with our purpose, we founded the Nkulo Community Partnership Trust. We contributed R102 million to the trust based on our 2024 performance. The trust has delivered its first two projects, with several more upliftment initiatives planned in 2025. ![]() 20 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT #### We embrace strong corporate #### governance principles to manage riskand build trust. ### RESPONSIBLE ### DECISIONMAKING ### ANDLEADERSHIP Ethical behaviour Governance and disclosure Integrated risk management Environmental stewardship Responsible decision- making and leadership Shared value for our stakeholders 20 ![]() 21 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 2 04. SOCIAL 05. GOVERNANCE 06. APPENDICES ETHICAL BEHAVIOUR We drive long-term performance through clear leadership, ethical conduct and robust governance frameworks that are aligned with the King IV principles. The board exercises oversight of our ESG strategy to ensure the effective implementation of our objectives in this critical area. This encompasses all dimensions of ESG, including climate change, as well as the ongoing assessment of our progress against established targets. With a dedicated and diverse management team, bolstered by an experienced and independent board, we prioritise transparency in executive remuneration with clear ties to ESG performance. Human rights are embedded in our code of conduct, values, policies and procedures, and are reinforced by our dedicated human rights policy. Our comprehensive approach includes implementing policies to safeguard whistleblowers, uphold tax transparency and prevent anti-competitive practices. To support this, we operate independently managed whistleblowing services to ensure accountability and ethical business practice. Strong governance and clear, honest reporting promote accountability and strengthen trust with our stakeholders. In our annual ESG report, we share our strategy, progress and goals on key sustainability issues. This year, we have integrated our climate report into this document. The information provided is aligned with the guidelines set by the TCFD and with reference to the IFRS International Sustainability Standards Board’s (ISSB) climate-related disclosure standard. Every year, we try to enhance the standard of our reporting and use various internationally recognised frameworks as a guideline. These include the International Finance Corporation’s performance standards, the United Nations Global Compact sustainability principles and the ICMM principles of good practice. We also participate in the CDP water and climate change disclosure initiative. GOVERNANCE AND DISCLOSURE INTEGRATED RISK MANAGEMENT ESG risk management is embedded into all aspects of our business, not just to prevent or mitigate harm but to foster sustainable practices that deliver lasting, positive impacts. Our business identifies, prioritises, evaluates and manages a broad spectrum of risks and ensures that awareness of these is clearly and effectively cascaded to all levels. We manage risk in two ways: integrated risk management (IRM) helps us tackle long-term strategic risks, while operational risk management (ORM) focuses on day-to-day risks to prevent incidents in real time. This process is supported by IRM policy and framework and ORM standards, which are aligned with the International Organization for Standardization (ISO) 31000 principles and guidelines. ![]() 22 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT ### PERFORMANCE DASHBOARD #### KEY PERFORMANCE INDICATORS Total recordable case frequency rate (TRCFR) 1 2023: 2.80 1.93 LA SAFETY AND HEALTH GJ - Gigajoule | ML - Megalitre | kt CO 2 e - kilotonne carbon dioxide equivalent PEOPLE Women in management (%) 2 2023: 34 35% SOCIAL Host community procurement (%) 2 2023: 21% 24% WELLNESS ENVIRONMENT Freshwater abstraction (ML) 1 2023: 718 1,170 LA Water reused/recycled (%) 2 2023: 96 97% LA Fatality 1 2023: 1 0 RA Historically disadvantaged persons in management (%) 2 2023: 65% 67% Number of incidents with social consequences level 3, 4 or 5 2 2023: 16 16 LA Total energy consumed (millionGJ) 1 2023: 3.37 3.74 RA Number of level 3, 4 or 5 environmental incidents 1 2023: 2 1 LA Total Scope 1 and 2 emissions (kt CO 2 e) 1 2023: 845 1,065 1 KPI reflects a Group total, including Ensham. The 2023 outcome includes Ensham for the four months from the date of acquisition (1 September 2023), apart from the TRCFR where the 2023 outcome reflects the full 12 months. 2 Key performance indicator (KPI) for South Africa only. Total percentage of employees who know their HIV status 2 2023: 98 98% Water treatment (%) 2 2023: 56 64% ![]() 23 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 2 04. SOCIAL 05. GOVERNANCE 06. APPENDICES ### OUR CONTRIBUTION TO SOCIETY SOCIOECONOMIC DEVELOPMENT R61 #### MILLION LA (2023: R126 million) SISONKE EMPLOYEE EMPOWERMENT SCHEME R102 #### MILLION (2023: R156 million) TOTAL TAXES AND ROYALTIES R4.5 #### BILLION (2023: R5.6 billion) NKULO COMMUNITY PARTNERSHIP TRUST R102 #### MILLION (2023: R156 million) TOTAL WAGES AND BENEFITS R6.7 #### BILLION (2023: R4.7 billion) GROUP SUPPLIER SPEND, WITH % LOCAL SPEND (2023: R9.6 billion, 21%) R9.7 #### BILLION 24% B-BBEE - Broad-based black economic empowerment LEVEL 5 ACHIEVED FOR 2024 AHEAD OF TARGET DATE (2023: level 5) #### BBBEE LEVEL 5 5 ![]() 24 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT ### CHIEF EXECUTIVE ### OFFICER’S REVIEW Supporting a responsible transition means addressing the needs of those who rely on our industry today and forging a new path built on sustainable practices, technological innovation and long-term energy security.” “ #### JULY NDLOVU I am pleased to share our 2024 Environmental, Social and Governance Report, which sets out our approach and performance across our material ESG topics. Our unwavering commitment to our purpose – to responsibly create value together for a shared future – underpins our achievements for the year. The business continued to demonstrate operational excellence together with the disciplined execution of our strategic priorities. We firmly believe that while there is a demand for coal, it should be produced responsibly and safely. A RESPONSIBLE EMPLOYER Safety remains our first value and we are unconditional about protecting the lives the of people who work for us. I am pleased to report that this commitment is exemplified by a business that has operated fatality-free for more than two years. Our increased focus on accountability, culture and critical controls is yielding meaningful improvements in our safety performance. The Group total recordable case frequency rate (TRCFR) improved to 1.93 LA compared to 2.80 in 2023. South Africa achieved a record low TRCFR of 1.07 compared to 1.40 in 2023 and Australia also showed significant improvement to 13.21 from 22.63 in 2023, reflecting its strengthened focus on critical controls, leadership visibility and improving conditions. Our approach to ESG is driven by a deep commitment to the ‘S’. This means prioritising the social impact of our operations, from enhancing employee wellbeing to fostering the long-term prosperity of local communities. Building on this commitment to our people, we strive to cultivate a workplace where they can grow and thrive. Our recognition as a Top Employer for the third consecutive year reflects the progress we have made in leadership, career development and fostering a diverse, inclusive and equal place of work. By continuing to invest in our people, we are strengthening our organisation from within and ensuring a more engaged, resilient workforce. A RESPONSIBLE STEWARD OF THE ENVIRONMENT Our overarching commitment is to zero harm, not just in safety and employee health, but also in our interactions with the natural environment and our host communities. We remain committed to achieving our targets of reducing Scope 1 and 2 emissions by 30% by 2030 from a 2021 baseline, and to net zero by 2050. Following the acquisition of Ensham, we have updated our baseline to include its emissions in accordance with the GHG Protocol and ISO 14064. Total Scope 1 and 2 emissions for the Group in 2024 were 1,065 kt CO 2 e compared to the adjusted baseline of 1,331 kt CO 2 e. In line with our pathway to net zero, we commissioned a 4 MW solar PV plant at Zibulo in November 2024. In South Africa, our continued focus on energy efficiency and productivity improvements have delivered significant reductions in carbon and energy intensity both year-on-year and since listing. Carbon intensity has improved 25% and energy intensity 20% since listing in 2021. During the year, we recorded one LA level 3 environmental incident compared to two in 2023. Our goal remains to learn from every incident, prevent repeats and drive continuous improvement. This means refining the way we work and leveraging technology to bring about lasting progress. One example of how we are harnessing technology is our introduction of real-time dust monitoring to reduce operational impacts on host communities. By measuring dust in real time and sending instant alerts to site management teams, we have adopted a much more proactive approach, leading to a sharp reduction in exceedances. ![]() 25 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 2 04. SOCIAL 05. GOVERNANCE 06. APPENDICES As a business, we take pride in our efforts to conserve water and reduce our reliance on freshwater sources. Our eMalahleni Water Reclamation Plant continued to alleviate pressure on severely constrained municipal reservoirs and met 16% of the municipality’s daily water demand in 2024. Our operations achieved a water reuse and recycling rate of 97% LA . We are making progress with our nature-based solutions and they are yielding positive results. We have planted over 250,000 trees as part of our phytoremediation programme and are also undertaking a techno-economic feasibility study to determine the plausibility of scaling up our passive treatment demonstration plant at suitable sites. We approved a non-mineral waste policy based on the waste hierarchy – avoidance, reduction, reuse, recycling, recovery and treatment, with disposal as a last resort. A RESPONSIBLE SOCIAL PARTNER We differentiate ourselves through the positive impact we make in host communities. This is what we refer to as ‘spiking on the S’ in ESG. In early 2024, we launched the R160 million Thungela Education Initiative, a five-year partnership with the Department of Basic Education aimed at improving the educational outcomes of learners at 45 primary schools. Focused on the foundation to intermediate phase (Grade R to Grade 4), the initiative supports children through critical learning and developmental transitions. By strengthening the quality of education at these key stages, we are helping to build a foundation for long- term success. As our mines approach closure, we are committed to diversifying local economies and reducing community dependence on our operations. Through our Thuthukani ESD programme, we are providing local people with business skills training, mentorship, technical enablement, and facilitating access to loan funding at preferential rates. A major milestone in 2024 was the signing of a R200 million co-funding agreement with Absa to enhance access to finance for SMMEs in our host communities. This initiative helps emerging enterprises overcome funding barriers, secure contracts, and ultimately drive economic growth beyond mining. The Nkulo Community Partnership Trust delivered its first two projects during the year, with several more planned for 2025. The Trust received R102 million in 2024, demonstrating Thungela’s commitment to sharing value with our stakeholders. The economies of host communities in the areas we operate are deeply tied to coal mining, steel production, and coal-fired power generation, making them highly reliant on these industries for employment and economic stability. As the global shift towards a low-carbon future accelerates, these communities face significant challenges, compounded by the fact that many regional mines and power stations are approaching the end of their operational lifespan. To strengthen their resilience, we are adopting a holistic approach to mine closure planning that prioritises social transition. Our goal is to work alongside communities to create regenerative landscapes that support long-term economic opportunities. COAL IN TRANSITION Balancing the world’s immediate energy needs with long-term sustainability goals requires a nuanced and pragmatic approach – one that accounts for economic realities, technological advancements and social impacts. Despite global efforts to enforce a rapid transition to cleaner energy sources, coal demand is expected to remain at near-record levels over the next five years, driven by the burgeoning demand for electricity. According to the International Energy Agency, global demand in 2024 grew 1.2% to reach a record 8.8 billion tonnes, driven primarily by increased consumption in China and India. Coal is forecast to represent 35% of the energy mix in Southeast Asia by 2030 and is expected increase still further to 49% a decade later. Meanwhile, wind and solar PV are experiencing remarkable growth, having contributed approximately 13% to global electricity generation in 2023. Current projections indicate that by 2030, wind and solar PV will account for 30% of the global electricity demand with renewable sources such as hydropower and bioenergy increasing this to 46%. Energy security, economic stability and industrial dependence – not to mention the current geo-political landscape, present constraints that cannot be ignored. Meeting today’s energy demands and preparing for a low-carbon future requires acknowledging these complexities and exploring solutions that will avert the consequences of a hasty and disorderly retreat from coal. Phasing out coal is accompanied by several inconvenient truths that are often overlooked. Due to their lower average load factors and intermittent output, variable renewable energy sources cannot alone fully address our global energy challenges. We should not forget that coal is also a critical input in producing many of the materials needed for renewable energy systems. As industries explore ways to reduce emissions, alternative methods are emerging but, for now, coal continues to underpin key sectors of the energy transition. Over and above the fundamental requirement for baseload power and the grid stability concerns brought about by the increasing contribution of variable renewable electricity, we cannot ignore the inevitable economic and social disruption that would come with an exit from coal. In developing countries – which already suffer under the burdens of unemployment, poverty and inequality, the impact would be severe, exacerbating economic hardship, deepening social instability, and limiting still further, opportunities for development. These harsh realities make it clear why coal remains a vital commodity in many parts of the world, yet the fact remains: a shift is needed. 2024 was the hottest on record, with global temperatures averaging 1.5°C above pre-industrial levels. This unprecedented heat contributed to a series of extreme weather events, ranging from searing drought in Italy, Greece and Spain to floods in other parts of Europe, Nepal and Sudan, and cyclones in the United States and Philippines. ![]() 26 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT We fully support the goals of the Paris Agreement and stand behind COP 28’s emphasis on a just, orderly and equitable transition. This includes the need to accelerate efforts to reduce reliance on unabated coal power. The answer, we believe, lies in the wider utilisation of technologies that will allow coal, still the most abundant and affordable fuel source available, to fully align with environmental sustainability. That way, it can continue to support economic growth while reducing its impact on the planet. This means accelerating efforts to reduce emissions and improve efficiency. Technologies that are available today can abate up to 99% of emissions. These include innovations such as supercritical and ultra-supercritical coal-fired plants, integrated gasification combined cycle systems, fluidised bed combustion and carbon capture, utilisation and storage (CCUS). CCUS saw significant growth in 2024, with 50 facilities now in operation and 44 more under construction which, combined, will store over 100 million tons of carbon dioxide per annum. During the year, we signed a memorandum of understanding with the Council for Geoscience to advance research into CCUS in South Africa. The council has concluded the first phase of its Leandra CCUS project, where scientists have determined that 34 billion tonnes of carbon could be safely stored in relatively small, deep geological formations. It believes that this capacity could sustain the region’s coal industry for more than 100 years. RESPONSIBLE AND ETHICAL GOVERNANCE We operate with integrity, accountability, and maintain a focus on long-term sustainability. By upholding the highest standards, we build trust with our stakeholders, navigate evolving regulations, and create an environment where responsible business practices thrive. Ethical leadership helps us prevent risks. More than that, it ensures our ESG commitments lead to real impact—not just words. As we continue to grow, we remain committed to balancing business success with social and environmental responsibility, in the knowledge that strong governance drives resilience, innovation, and long-term value. I invite you to read this, our fourth Environmental, Social and Governance Report, and welcome your feedback. #### July Ndlovu #### Chief executive officer 23April 2025 26 ![]() 27 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 2 04. SOCIAL 05. GOVERNANCE 06. APPENDICES 27 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 ![]() 28 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT Our materiality approach is driven by material matters that significantly influence our ability to create and preserve value over the short, medium and long term. We apply the double materiality lens in our materiality assessment. This allows us to identify material matters that have a significant bearing on enterprise value (financial materiality) as well as the broader impact we have on society and the environment (impact materiality). Workshops are conducted annually, involving senior internal stakeholders representing a diverse range of functions in the business. The process culminates in material matters being identified, prioritised and grouped into key themes based on the double materiality lens, which takes into account financial materiality and impact materiality. The material matters identified during the workshops are reviewed by the Group executive committee and proposed to the board for final approval. THE MATERIALITY DETERMINATION PROCESS ### MATERIAL MATTERS Identification: External and internal analysis, stakeholder engagement, and a review of global, local and industry-specific matters 1234 Impact assessment: Internal stakeholders evaluate the impact by applying the double materiality lens Prioritisation: Ranking discussed in a multi-disciplinary material matters workshop Integration: Review and approval of the matters solidifies alignment with our strategic priorities 28 ![]() 29 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 2 04. SOCIAL 05. GOVERNANCE 06. APPENDICES #### MATERIALITY MATRIX #### Material matters ranked by relevance for Thungela and its stakeholders 1 2 3d 3a 3b 3c 4a 4c 4b 5 6a 6b Thungela Safety Eliminating fatalities Rail infrastructure Reliability of rail infrastructure (TFR) Stewardship a. Responsible mine closure and environmental provisions b. Engaging our employees c. Empowering sustainable communities d. Complying with regulation and practising good governance Capital allocation and shareholder returns a. Driving business resilience b. Maintaining production profile c. Price and foreign exchange Growth Successfully integrating and ramping up of Ensham Climate change a. Reducing operational GHG emissions (Scope 1 and 2) b. Executing on our pathway to net zero 1 2 3 4 5 6 KEY MATERIAL THEME MATERIAL MATTER The most recent workshop resulted in the identification of 12 material matters,which are grouped into six overarching themes. #### KEY MATERIAL THEMES ![]() 30 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT Material matter Impact on value creation Our response Eliminating fatalities All employees and contractors return home safely every day Introduced safety as a standalone strategic pillar to reinforce it as our first value Safety is included as a metric on the business performance scorecard and is a metric that is included for all employees as a performance measure Developed a safety strategy Link to strategy Link to top 10 key residual risks UN SDG Safety Employee safety and health Material matter Impact on value creation Our response Reliability of rail infrastructure in South Africa (TFR) The performance of rail networks operated by TFR materially affects our ability to export coal to customers Created additional stockpile capacity, utilising physical infrastructure advantages, such as rapid load-out terminals Managed stockpile capacity with free- on-truck sales Engaged industry and supported TFR through the procurement of batteries and locomotives as well as signalling and security interventions Link to strategy Link to top 10 key residual risks UN SDG Maximise the full potential of our existingassets Create future diversification options Coal transport networks #### SAFETY #### RAIL INFRASTRUCTURE ![]() 31 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 2 04. SOCIAL 05. GOVERNANCE 06. APPENDICES Material matter Impact on value creation Our response Responsible mine closure and environmental provisions Our proactive approach in going beyond compliance impacts financial performance and our reputation. Our purpose is intrinsically linked to our social licence to operate An integrated approach to mine closure planning Execution of concurrent rehabilitation and closure plans Understanding the impact of the National Environmental Management Act (NEMA) Financial Provisioning Regulations Achieving our ESG scorecard targets Cash collateralisation of environmental liability over time Engaging our employees The value of engaged employees is evidenced in higher productivity and improved performance Enhancing value for employees through the Sisonke Employee Empowerment Scheme Fostering a high-performance and inclusive culture that drives performance through the contributions of diverse people Recognised as a ‘Top Employer’ in South Africa Empowering sustainable communities Community investment aligns with our purpose and is linked to reputational value Enhancing value for communities through the Nkulo Community Partnership Trust Preferential local procurement Enterprise and supplier development through Thuthukani Community projects as part of Social and Labour Plans and corporate social investment Complying with regulations and practising good governance Compliance with regulatory and governance practices is key to ensuring the Group’s operational and financial position, and maintaining our reputation with stakeholders Evolving governance frameworks Enhancing risk management and internal controls Independent board evaluation Code of Ethics training Compliance awareness across multiple jurisdictions Link to strategy Link to top 10 key residual risks UN SDG Drive our ESG aspirations Environmental management Employee safety and health Community relations Legislative risk #### STEWARDSHIP ![]() 32 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT Material matter Impact on value creation Our response Driving business resilience Long-term growth and profitability Reaffirming our commitment to the dividend policy and capital allocation framework Maintaining adequate balance sheet flexibility, including an appropriate liquidity buffer Reserving cash for the execution of key life extension projects Share buybacks Maintaining production profile Impact on the Group’s operational and financial performance, as well as the credibility of management Productivity improvements at Ensham and at our South African operations Extended life of mine and the competitiveness of the South African portfolio with the Elders and Zibulo North Shaft projects Price and foreign exchange Impact on earnings and cash flow Thungela Marketing International commenced with the marketing functions of our South African and Australian assets Maintain appropriate cash buffer Link to strategy Link to top 10 key residual risks UN SDG Maximise the full potential of our existingassets Commodity price and foreign exchange rate fluctuations Create future diversification options Optimise capital allocation #### CAPITAL ALLOCATION AND SHAREHOLDER RETURNS ![]() 33 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 2 04. SOCIAL 05. GOVERNANCE 06. APPENDICES Material matter Impact on value creation Our response Reducing operational GHG emissions (Scope 1 and 2) Costs to meet intermediate emission reduction target Reducing carbon intensity of existing operations annually Improving ESG performance Executing on our pathway to net zero Declining coal demand in the long term Developing a detailed climate strategy and pathway to achieve net zero by 2050 Setting intermediate emission reduction target for 2030 Increased ESG and climate- related disclosures, including the recommendations of the TCFD Link to strategy Link to top 10 key residual risks UN SDG Drive our ESG aspirations ESG and climate change Environmental management #### CLIMATE CHANGE Material matter Impact on value creation Our response Successfully integrating and ramping up of Ensham Geographic diversification strengthens our business and resilience, positively impacting our operational and financial performance and benefiting our stakeholders The benefits of Ensham’s full integration include system standardisation and consistency in reporting and operational practices Link to strategy Link to top 10 key residual risks UN SDG Create future diversification options Strata and geotechnical failure #### GROWTH ![]() 34 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT Environmental stewardship 36 Air quality 39 Waste management 41 Water management 46 Climate change and energy 52 Mine closure and rehabilitation 74 Biodiversity 79 ## ENVIRONMENT 34 ![]() 35 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 2 04. SOCIAL 05. GOVERNANCE 06. APPENDICES 35 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 ![]() 36 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT ### ENVIRONMENTAL ### STEWARDSHIP We are committed to sound environmental stewardship and strive to use natural resources responsibly, to minimise the impacts of our operations on surrounding communities and the environment, and to carefully restore landscapes for sustainable use. #### MANAGEMENT APPROACH Our overall goal is zero harm, not just in safety and employee health, but also in our interactions with the natural environment. We have ESG targets for water, waste, biodiversity, and climate change to uphold our commitment to responsible stewardship of natural resources, while minimising environmental risks to host communities. We aim to surpass legal requirements and ensure that the benefits of our activities substantially outweigh their negative impacts. Our operations are guided by our safety, health and environment (SHE) policy, standards and guidelines, which are premised on the precautionary principle. These – together with our ISO 14001:2015 certified environmental management systems at each operation 1 – ensure we have processes in place to identify and assess potential risks and impacts, implement mitigation and management measures, and apply monitoring and evaluation programmes to avoid and, where we cannot prevent, manage potential impacts. This section outlines our commitments, progress and approach to: Key elements in our approach include efficient resource use, the protection of biodiversity, waste management, land stewardship and restoration, water management, community engagement, compliance with regulations, and the use of innovative technologies that minimise our environmental footprint. If not managed with the utmost care, our mining activities may result in adverse environmental impacts: (page 46) WATER MANAGEMENT (page 52) CLIMATE CHANGE AND ENERGY (page 74) MINE CLOSURE AND REHABILITATION (page 79) BIODIVERSITY (page 41) WASTE MANAGEMENT (page 39) AIR QUALITY 1 Ensham mine has not been ISO 14001:2015 certified. • Water consumption or withdrawal from surface and underground sources within our community catchments, which could deplete a shared resource. • Environmental incidents, including spillages of hydrocarbons and mine-impacted water, which could pollute surface and groundwater sources, impact aquatic life, fauna and flora, and land and soils. • Dust from our mineral residue facilities, blasting and roads, which could have a negative effect on ambient air quality. • Noise and vibration from blasting activities that may impact neighbouring communities. • Disturbance of land for mining activities that can impact biodiversity and livelihoods post-mining. ![]() 37 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 3 04. SOCIAL 05. GOVERNANCE 06. APPENDICES APPROACH Each of our mines is governed by environmental permitting and licensing conditions and commitments tied to the management of their impacts. Adherence to these is paramount as failure to comply could jeopardise their legal and social licences to operate. To ensure strict compliance, sites undergo rigorous internal and third-party audits on an annual basis. External audits are conducted by independent consultants and regulatory bodies that assess compliance and pinpoint gaps to inform the development and implementation of action plans to rectify shortcomings. Audit findings and their action plans are documented on our integrated SHE management platform and progress on remedial actions is reported to the SHE steering committee, executive committee and the relevant regulatory authorities. Delays experienced in the processing of environmental authorisations by the Department of Mineral and Petroleum Resources (DMPR) and the Department of Water and Sanitation (DWS) are one of our key business risks. Members of our environmental function continually engage with authorities to discuss pending applications. They also participate in the Minerals Council South Africa’s environmental committee which discusses and addresses generic permitting and licensing challenges. No repeats Simple, non-negotiable standards A zero- harm mindset Our SHE policy is founded on the following three pillars: Eliminating, avoiding, minimising, mitigating, remediating or rehabilitating, and offsetting impacts that arise from our activities, products and services. A ZEROHARM MINDSET Learning from every incident, audit finding and non-conformance to prevent repeats. NO REPEATS Using simple, non-negotiable systems and standards to achieve legal compliance, as a minimum. SIMPLE, NONNEGOTIABLE STANDARDS The findings of the National Environmental Management Act (NEMA) Regulation 34 audits on all operations are published on our website: https://www.thungela.com/esg/environmental-compliance. #### ENVIRONMENTAL COMPLIANCE AND INCIDENTS ![]() 38 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT Total number of environmental incidents 2023: 404 181 Level 3 to 5 incidents 2023: 2 1 LA #### PERFORMANCE In 2024, we recorded 181 environmental incidents (cumulative total) compared with 404 in 2023. Previously, non-conformances and hazards were reported as ‘incidents’, when in fact they were concerns that could lead to an incident if not addressed. These are now categorised as ‘environmental hazards’ or ‘non-conformances’ on our environmental management system. This approach was trialled at Isibonelo and Mafube in 2023 and rolled out to other operations last year, resulting in the substantial decrease in incidents recorded. In 2024, we recorded 253 environmental hazards and non-conformances. The majority of level 1 and 2 incidents recorded throughout the year were attributed to overflows and leaks involving mine-impacted water, hydrocarbon spills in refilling stations and workshops, incorrect waste storage and disposal, silted water infrastructure and air quality exceedances. In 2024 we had one LA level 3 incident (2023: 2). This occurred when water from a seepage collection trench at the base of a mineral residue facility overflowed into a neighbouring farm dam during an extreme rainfall event. The event was caused by the collection trench’s reduced capacity due to siltation and the pump’s reduced throughput from cavitation. Immediate actions included the installation of a diesel pump to move water from the trench to a pollution control dam (PCD), transferring water from the farm dam back to the mine’s PCD, flushing the farm dam with clean water, and adding neutralisation blocks to the dam to address any residual acidity. Subsequent action items involved the implementation of a de-silting regime for collection trenches, the installation of electronic monitoring equipment at seepage collection compartments and trenches, and a review of the adequacy of critical controls. The DWS was notified of the incident and no directives or fines were issued. No level 4 or 5 incidents occurred in 2024. Compliance audits were carried out by regulators at our operations during the year. No regulatory stoppages or pre-directives were issued in South Africa or at Ensham. #### LOOKING AHEAD Many of our operations are in the process of renewing their integrated water use licences. We are engaging with the DWS on a case- by-case basis. ![]() 39 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 3 04. SOCIAL 05. GOVERNANCE 06. APPENDICES Operational emissions such as dust, particulate matter and greenhouse gases can negatively impact the environment and human health. This is a material issue in South Africa, where communities are in close proximity to some of our operations. We limit our contribution to regional air quality challenges by both modelling and monitoring air quality conditions and implementing pre-emptive mitigation measures and critical controls. #### OUR APPROACH Our air quality emissions standard, together with our air quality performance and emission guideline, provide a set of mandatory operational requirements and targets for emissions, and are aligned with national legislation. Sites perform self-assessments against the standard on an annual basis. We rolled out ElementAir dust and particulate matter monitoring systems at all South African sites in 2023. The system is certified to measure particulate matter (PM) down to 2.5 micrometres and provides a live feed of priority pollutants while measuring wind direction, wind speed, temperature, humidity and barometric pressure, all of which help to pinpoint dust sources. Alerts are sent to operational managers so that issues can be promptly dealt with. Ensham does depositional dust monitoring on a monthly basis and calculates contributions to PM 10 and PM 2.5 using conversion factors as part of the National Pollutant Inventory submitted annually to the regulator. Ensham is a remote mine, where the nearest town is 35km away, thus air quality is not as material as it is in the South African context. Multiple physical controls are implemented to reduce dust and particulate matter. These include the use of chemical dust suppressants on haul roads, scheduled water suppression on unpaved roads and water sprayers at crushers, tipping and loading facilities. Unvegetated overburden, topsoil stockpiles and rehabilitated areas can also create dust. We therefore use hydroseeding — the application of seeds in a mix of water and appropriate nutrients — to stimulate growth and reduce dust. To control spontaneous combustion, which is not only a source of dust and other emissions, but is also a safety risk, we use water sprayers and cladding of burning areas with inorganic material to starve them of oxygen. Additionally, water is used in drilling, while blasting is optimised to reduce dust. We have a no-blasting rule in high wind conditions. GOVERNANCE Operations are responsible for the implementation of emissions controls, reporting to authorities and engagement with stakeholders. Interdepartmental social performance management committee meetings ensure that community complaints are adequately addressed at the right level. Site general managers take accountability for dust and their performance scorecards include dust indicators. An aggregated view of site and business performance is prepared for internal monitoring and reporting to the SHE steering committee and the board’s health, safety, environment and risk committee. ### AIR QUALITY #### We aim to reduce emissions at source and make use of digital technologies to improve our #### performance. SO 2 tonnes generated 2023: 1.83 1.85 NO 2 tonnes generated 2023: 1,860 1,876 PM 2.5 exceedances 2023: 23 7 PM 10 exceedances 2023: 38 16 #### PERFORMANCE ![]() 40 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT During the year, we noted a marked reduction in PM 10 exceedances from 38 in 2023 to 16 in South Africa. Exceedances in PM 2.5 also declined from 23 in 2023 to 7 in 2024. This was due to improved interrogation of real-time data by management teams on site, which are notified via mobile phone when exceedances are reached. Cameras situated at strategic locations are contributing to an improvement in response times and mitigation measures at Isibonelo. We received 18 dust and blasting related complaints from surrounding community members compared to 20 the previous year. All sites have grievance mechanisms in place to capture, investigate and address community concerns, including those relating to dust. Exceedances are fully investigated through our learning-from-incidents process, and action plans are developed to address their root causes. Ensham does not currently have any opencast mining activities, although rehabilitation activities can cause dust. Monitoring through the year indicated that this was not a nuisance to sensitive receptors. In 2024, we generated 1.85 tonnes of sulphur dioxide (2023: 1.83 tonnes) and 1,876 tonnes of nitrogen dioxide (2023: 1,860). These emissions are generated during diesel combustion. COAL BENEFICIATION We pride ourselves on being a producer of high-quality, low-sulphur export coal. To ensure the quality of our product, we beneficiate the coal we mine to remove undesirable elements. Coal beneficiation entails the selective washing of run-of-mine coal to remove rock and undesirable elements in the combustion process. These include contaminants found in poor grade coals with a high ash and sulphur content. This process enhances desirable qualities, including carbon, for better combustion efficiency. #### LOOKING AHEAD In the year ahead, we will continue to monitor our real-time data and alerts, implementing corrective actions where necessary. AIR QUALITY 40 ![]() 41 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 3 04. SOCIAL 05. GOVERNANCE 06. APPENDICES Our commitment is to reduce the hazardous and general waste we send to landfill by 50% by 2030, using 2021’s volumes as a baseline. We prioritise waste reduction, reuse and recycling, while pursuing circular economy solutions and opportunities for community upliftment. #### OUR APPROACH Our approach is guided by our non-mineral waste policy, which is based on prevailing legislation and the waste hierarchy – to avoid, reduce, reuse, recycle, recover, treat and, as a last resort, dispose. The policy was approved in 2024. Our target applies to our South African operations while opportunities to reduce waste to landfill at Ensham are under development, along with the establishment of a baseline. We are investigating enhancements to awareness campaigns that will drive behavioural change and build a waste-to-value culture. Sites separate waste at source using different coloured bins, designated skips and cages and work with small, medium and micro-sized enterprises in local communities for the collection of recyclables that are taken to buy-back centres and ultimately used in the manufacture of new products. Suppliers have been asked to do away with unnecessary packaging and are, in many instances, contractually obliged to remove waste materials from our sites. We are collaborating with the eMalahleni Local Municipality to reduce the illegal dumping of waste in local communities. HAZARDOUS WASTE MANAGEMENT The management of hazardous waste is strictly regulated and controlled both at our operations and at the licensed hazardous facilities that receive our waste. These are regularly audited by external parties. Hazardous waste can only be stockpiled on site for a limited period before it must be sent to legal landfill. Disposal by reputable waste management service providers is tracked and safe disposal certificates are kept. Each mine records the amount of waste disposed. Bioremediation is used to treat hydrocarbon spillages rather than disposing of affected soil in hazardous landfill. 1 2023 values have been restated to include data from Ensham for the four months from the date of acquisition. #### OUR PERFORMANCE #### South Africa Australia Non-hazardous waste 1, 4 31 Hazardous waste to legal landfill (tonnes) - Group (2023: 1,077) 1 1,0 92 LA Non-hazardous waste to legal landfill (tonnes) - Group (2023: 1,840) 1 2,886 LA Non-hazardous waste 1,455 Hazardous waste 827 Hazardous waste 264 ### WASTE MANAGEMENT #### NONMINERAL WASTE 2024 TOTAL WASTE TO LANDFILL (TONNES) ![]() 42 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT We have reduced waste to landfill in South Africa by 3.4% from a 2021 baseline of 2,332 tonnes. Non-hazardous waste to legal landfill decreased slightly from 1,442 tonnes in 2023 to 1,431 tonnes in the reporting period, while hazardous waste to legal landfill fell to 827 tonnes (2023: 889 tonnes). The addition of Elders and Zibulo North to our reporting framework meant that we did not see a significant decline in volumes. Improved reporting from the eMalahleni Water Reclamation Plant also contributed to this, as did the clean-up of historical waste at certain mines. Opportunities remain to enhance recycling and eliminate certain types of waste, such as single-use plastic bottles and oil drums through the introduction of tanker deliveries. The closure of operations is expected to initially increase waste disposal during the decommissioning process. Thereafter, waste sent to landfill is expected to decrease. Sites have made a concerted effort to identify waste recycling opportunities, which reflects in the numbers below. The gumboot recycling project at Zibulo, Greenside and Goedehoop has resulted in the cumulative recycling of more than eight tonnes of gumboots since 2021. #### LOOKING AHEAD We continue to explore recycling and reuse off-take solutions for certain challenging waste streams. Not all our waste can be recycled or reused because the technology to do so is simply not yet available. We keep abreast of changes in waste management options and will continue to engage with the relevant experts and authorities. WASTE MANAGEMENT WASTE RECYCLED 2024 2023 2022 Hazardous waste recycled 720 390 5 Non-hazardous waste recycled 1,785 1,683 1,534 Goedehoop has introduced reverse vending machines as an engaging way for #### employees to make a positive impact on the environment by exchanging trash for "cash". #### RECYCLING REVOLUTION The partnership between the mine and green technology company Imagined Earth began in July 2024 and has received an enthusiastic response. The vending machines accept any recyclable with a barcode – glass bottles, cold drink cans, tins, plastic bottles, paper packaging and milk and juice cartons. In return, rewards are loaded into employees’ digital wallets and can be cashed in as vouchers for data and airtime. To extend the impact beyond the mine gate, employees are encouraged to bring in their recyclables from home. Since the initiative began, Goedehoop employees have kept 254kg of recyclables out of landfills and prevented four tonnes of carbon dioxide from being released into the atmosphere. The inspiration behind the initiative came from Isibonelo, where employees diverted almost three tonnes of recyclables from landfills in just under a year. ![]() 43 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 3 04. SOCIAL 05. GOVERNANCE 06. APPENDICES We are committed to the responsible management and storage of mineral waste required to prevent impacts on health, safety, the environment, communities, cultural heritage and infrastructure. Mineral waste from coal processing includes low-quality discard coal and fines. This waste is disposed of in engineered, licensed facilities referred to as mineral residue facilities (MRFs). Coal MRFs contain predominantly coarse coal discard and much smaller volumes of fine coal slurry. Some facilities operate with dry co- disposal of filtered fine and coarse discards. The outer walls of MRFs are constructed with compacted coarse coal discard and are substantially wider than conventional tailings facilities in other commodities, making them more robust. Discard in these facilities is also tightly compacted to prevent the ingress of oxygen, which could result in spontaneous combustion. The risk of a dam breach from an MRF is therefore extremely low. We have four MRFs currently in operation, a number of inactive, dormant or rehabilitated MRFs and 33 dams under our charge. The biggest risks associated with MRFs and dams are inundation, dam breaches, groundwater contamination, dust and spontaneous combustion. #### OUR APPROACH Our approach to MRF and dam management is guided by the Thungela Technical Standard for MRFs and Water Containment Structures. This standard applies to all MRFs, water containment and water diversion structures, either temporary or permanent and is applicable throughout a facility’s life, from site selection and early studies, through to design, operation, closure and post-closure. Peer-reviewed by international specialists, the standard guides the siting, safe design, monitoring, inspection and surveillance of these structures and is followed as a minimum practice. Each MRF is evaluated and assigned a consequence classification rating ranging from insignificant, minor and moderate to high and major. These ratings determine the design, monitoring and surveillance requirements of each structure and are reviewed every year. All dams are operated within the recommended factors of safety and are monitored by an engineer of record (EOR). Dam breach analysis and inundation studies have been carried out on all facilities rated ‘high’ and ‘major’. #### MINERAL WASTE ![]() 44 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT #### ASSURANCE AND GOVERNANCE A competent person and EOR assurance on each facility’s structural integrity and works with operational personnel to ensure that disposal takes place in line with design specifications. The EOR is a licensed professional who is legally responsible for the design, specifications and overall engineering integrity of a specific facility. They assume primary responsibility for the engineering aspects and are accountable for ensuring that the design meets applicable codes, standards, and regulations. They must also ensure that the relevant studies, risk assessments, permits, incident registers, and emergency response and preparedness plans are in place. Furthermore, an independent technical review panel made up of senior multidisciplinary specialists is mandated to conduct systematic and ongoing reviews, particularly at facilities with ‘high’ and ‘major’ consequence ratings. This panel reviews the design, operating and management systems and provides recommendations and assurance to the business. GOVERNANCE PROCESSES AND OVERSIGHT OF ACTIVE FACILITIES INCLUDES: • daily and weekly oversight and inspections, all of which are logged onto our SHE management system by site personnel; • monthly monitoring and assessment of performance parameters for MRF discard deposition; • Monthly meetings with sites and contractors; and • Quarterly and annual EOR inspections and reporting, with actions tracked on our SHE management system. #### REMINING OF MINERAL RESIDUE #### FACILITIES We are currently re-mining two active MRFs at Greenside and Goedehoop. This process offers several benefits, including maximising resource use by extracting coal and minerals. In turn, this reduces the need for new mines, creates employment opportunities and stimulates economic growth. Re-mining active MRFs also frees up space for newly generated waste, minimising the need for additional disposal sites and mitigating environmental impacts such as soil erosion and water pollution. #### LOOKING AHEAD In 2025, we will continue to focus on compliance with our MRF standard and external technical oversight through our technical review panels. We will also review and update the consequence classification ratings of dam structures to ensure that risks are well- controlled and managed. WASTE MANAGEMENT: MINERAL WASTE ![]() 45 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 3 04. SOCIAL 05. GOVERNANCE 06. APPENDICES 45 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 ![]() 46 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT #### OUR APPROACH Our approach to water is guided by our water policy, the Thungela Water Management Strategy and a set of best-practice technical management standards and guidelines that set out the minimum requirements for the business. These documents address all key aspects of efficient water management, including water supply and security, hydrology and hydrogeology, mine dewatering, water collection, storage, uses and discharge, water quality and potential environmental impacts. We also promote sustainable and socially responsible water use throughout the mining lifecycle. We do this by: • securing water without compromising access for other users; • preventing harm to the environment; • proactively engaging for effective water partnerships; • minimising risk to protect and enhance value, while not externalising impacts; • buffering operations against external water demand, costs and climate change; and • being open and transparent in our water management practices with all stakeholders. ### WATER MANAGEMENT Our business is committed to the responsible use of natural resources and to preventing pollution and degradation by exercising our duty of care in respect of water quality. Our South African mines are situated in the Olifants River catchment in Mpumalanga, specifically in and around eMalahleni, Middelburg and Secunda. According to the World Resources Institute (WRI) Aqueduct Risk Atlas, these are all areas of high (Secunda) to extremely high (eMalahleni and Middelburg) water stress. This is due to historical coal mining impacts compounded by impacts from agriculture, industry and sewage. Ensham is located in the Nogoa River catchment, which forms part of the Fitzroy Basin and is classified as a low-medium water-stress area by the WRI. Although we use water in our mining and processing activities, large volumes of groundwater flow into operational areas, making our mines water-positive. This means that we must manage excess water by dewatering or through stormwater management to enable safe, productive and environmentally sound operations. Water is an increasingly precious resource that is essential to our operations, surrounding communities and to the functioning of healthy ecosystems. We recognise access to clean, reliable water as a fundamental human right. ![]() 47 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 3 04. SOCIAL 05. GOVERNANCE 06. APPENDICES #### VISION To become a responsible water steward by enabling mining while seeking to achieve no long-term net harm where we operate and reducing our long-term liability through effective use of knowledge, partnerships and innovative technology. Thungela Water Policy Thungela Water Management Standard and Specifications Site water management procedures Applicable Thungela policies and standards OPERATIONAL EXCELLENCE DRIVING TECHNOLOGY AND INNOVATION PARTNERSHIPS AND ENGAGEMENTS OPERATIONAL EXCELLENCE The operational excellence pillar of our strategy focuses on compliance with standards and regulations, best-practice water and discharge management, and the rigorous management of data. It also promotes the implementation of the hierarchy of controls to enable mining to be conducted in such a way that we avoid long-term harm. All our sites have a risk-based water management plan that is informed by their water balance. These plans include the management of excess water, a water quality monitoring programme for both underground and surface water, and an approach to dealing with mine- impacted water. They regularly review and update their water balances so that they can adequately determine future treatment, storage, conservation and recycling needs. Sites undertake extensive water monitoring of both volumes and quality, with the latter extending to off-site water bodies to ensure that mine-affected water does not impact the surrounding environment. Although our mines are water-positive, we have set clear targets to reduce our use of freshwater, including water treated to potable standards at our eMalahleni Water Reclamation Plant (EWRP), which provides clean water to the severely constrained local municipality and catchment. We also conduct progressive rehabilitation to reduce the ingress of water into mine workings. Reuse, recycling and treatment play an important role in minimising our use of imported clean water. DRIVING TECHNOLOGY AND INNOVATION We aim to reduce our long-term liabilities and ensure that the most sustainable and cost-effective water treatment solutions are implemented by driving innovation and technology development in partnership with industry, academia and government. These solutions seek to treat water to qualities that meet compliance criteria for discharge, support our social obligations and provide fit-for-purpose water where appropriate. We are actively piloting and demonstrating nature-based water treatment solutions, which are described on page 50. WATER MANAGEMENT STRATEGY Our strategy ensures that we are a responsible water steward by enabling mining while seeking to achieve no long-term net harm. We reduce our long-term liability through the effective use of knowledge, partnerships and innovative technology. ![]() 48 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT WATER MANAGEMENT PARTNERSHIPS AND ENGAGEMENT Water is a shared resource, which means that effective and regular engagement with stakeholders is critical to our success. We interact proactively with relevant government departments, catchment management forums, communities and peers. We also partner with various academic, government and industry bodies to fuel innovation. These include the University of Pretoria, University of the Witwatersrand, Mintek, the Technology Innovation Agency, the Water Research Commission and the Water Institute of South Africa. WATER GOVERNANCE The board’s health, safety, environment and risk committee has oversight of water management and receives quarterly updates on performance and water-related incidents from the executive head of technical, who is accountable for water at an executive committee level. Each mine has a designated water lead responsible for ensuring the implementation of our water standards and guidelines. Sites reduce their reliance on fresh water by enhancing reuse and recycling rates within their production cycles and prioritise minimising their potential impacts on surrounding water courses. Water management is incorporated into operational activities, sustainable closure planning, and the design and development of new projects. These planning cycles also consider potential water-related risks due to climate change. Significant focus is placed on monitoring and reporting, both of which are aided by annual internal and external audits and gap analyses. Annual internal audits are also carried out on the implementation of the water management standard. INTEGRATED WATER MANAGEMENT South Africa is a water-stressed region, something that is likely to be further exacerbated by increasing population growth, urbanisation and the effects of climate change. As local communities live in close proximity to several of our mines, we need to ensure that we do not infringe on their right to a clean, safe and affordable water supply. Although surface water is scarce, large volumes from groundwater sources accumulate in mining areas. To ensure safe and productive mining, this water must be pumped into PCDs and other storage facilities before being either reused in production processes such as coal washing and dust suppression or sent to the EWRP for treatment. The EWRP has the capacity to treat up to 50 megalitres (ML) per day. A portion of the treated water is sent back to our Greenside, Khwezela and Zibulo sites and centralised services departments for reuse, while the balance is channelled into the severely constrained eMalahleni Local Municipality’s reservoirs and into the water- stressed upper-Olifants river catchment (2024: 827 ML). The mines using water from the EWRP operate independently from the municipal water grid. The EWRP currently meets 16% of the municipality’s daily needs and supplied 7,082 ML in 2024 (2023: 6,581 ML). Water management at Ensham is focused on underground dewatering, storing the sodium-rich mine-affected water in old opencast pits and releasing it into the Nogoa River when the river is in flood, in accordance with licence conditions . The mine has an allocation to abstract fresh water from the Nogoa River for use underground as the elevated sodium content in the mine-affected water renders it unusable in underground machinery. Freshwater abstraction (South Africa) 2023: 369 ML 373 ML Target: maintain water reuse and recycling levels above 75% 2023: 96% 97% LA Potable water abstraction from the EWRP 2023: 1,255 ML 1,097 ML LA Target: treat 40% of mine-impacted water 2023: 56% 64% Level 3 incident 2023: 2 level 3 incidents 1 LA #### OUR PERFORMANCE ![]() 49 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 3 04. SOCIAL 05. GOVERNANCE 06. APPENDICES Three of our South African operations, as well as Ensham in Australia, use fresh water from external sources. The total freshwater abstraction for the Group was 1,170 ML LA in 2024 compared to 718 ML in 2023. The reason for the increase is that 2023 only includes Ensham data from the date of acquisition of 1 September 2023. To replace freshwater and EWRP abstraction targets, which ran until 2023, we set a new reduction target of 2.5% annually, relative to the previous year. After achieving a 64% reduction in freshwater abstraction in 2023 from a 2015 baseline across the South African operations, levels remained relatively stable in 2024 at 373 ML (2023: 369 ML), unfortunately not achieving the year-on-year target. Greenside, Khwezela and Zibulo achieved their annual target by bringing down their combined water-use 13% from 1,255 ML in 2023 to 1,097 ML LA in the reporting year. Reuse and recycling rates increased to 97% LA in 2024 from 96% in 2023, exceeding our water efficiency target of 75% by a significant margin. Water treatment substantially mitigates of the risk of uncontrolled discharge, particularly during periods of high rainfall. Through treatment, we are able to manage water levels in our dams within acceptable limits and convert mine-impacted water into potable water. An overall treatment rate of 64% was achieved in 2024 against a target of 40%. In 2024, Ensham withdrew 797 ML from the river for operational use. Additionally, 2,538 ML of water was pumped from underground workings. During the reporting year, Ensham discharged 292 ML into the Nogoa River in line with its Environmental Authority discharge licence. We did not meet our target of zero level 3 (or greater) water incidents. A level 3 incident occurred when water from a seepage collection trench at the base of a mineral residue facility at Khwezela overflowed into a neighbouring farm dam during an extreme rainfall event. More detail on the event and corrective actions can be found on page 38 under environmental stewardship. This incident demonstrated the need for tighter control over dewatering and rainfall readiness to ensure that containment facilities have sufficient handling capacity, particularly as extreme rainfall events become more frequent with climate change. ![]() 50 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT #### WATER TREATMENT Mine-impacted water can be treated using both active and passive technologies aimed at mitigating water risks spanning a site’s entire operational life and extending into the post-closure phase. Our approach to financial provisioning for water treatment aligns with the NEMA Financial Provisioning Regulations which require costs to be based on currently available technologies that the DMPR has approved, based on evidence that it is able to consistently achieve the discharge requirements. Thungela is actively working to prove the efficacy of passive treatment technologies in collaboration with academia and the relevant government departments. On 1 February 2024, the Minister of the DFFE gazetted a notice to defer the transition date of the NEMA Financial Provisioning Regulations, however a revised date was not published. Mining companies will not be required to comply with the NEMA Financial Provisioning Regulations until a new transition date is published by the Minister. NATUREBASED SOLUTIONS Nature-based solutions offer a holistic and sustainable approach to water treatment as they address multiple environmental, social and economic challenges simultaneously. By integrating natural processes into water management practices, we can improve water quality, protect ecosystems and build resilient communities for the future. Water treatment facilities that use reverse osmosis technology will continue to play a significant role in how we purify mine-affected water. However, they require full-time operation, ongoing maintenance and significant chemical and energy inputs. Moreover, they are vulnerable to vandalism and theft, particularly in remote areas. Nature-based solutions use natural processes that harness vegetation, soil and microorganisms to treat water. This approach requires substantially reduced energy inputs and produces lower carbon emissions. They are more cost-effective and systems such as wetlands and forests enhance the resilience of water treatment systems to the impacts of climate change, such as increased flooding, droughts and water quality fluctuations. In addition, many nature-based solutions restore or preserve natural habitats which support the conservation of biodiversity. Years of research and development conducted in partnership with a variety of technology and academic partners have resulted in the implementation of both engineered and natural solutions to address water treatment post-closure. These include phytoremediation, biological sulphide reduction, and the restoration of wetland systems. A large-scale phytoremediation project that will see our South African business plant one million indigenous trees is a key component of our long-term post-closure water management strategy. Four tree species, including the Searsia lancea, or Karee tree, have been selected for their ability to absorb mine-impacted water. These trees are propagated at a purpose-built nursery at Greenside before being planted at closing sites, including Khwezela’s Kromdraai mine. To date, more than 140,000 trees have been planted at Kromdraai alone, where, once fully implemented, the project will cover a total area of approximately 350 ha. A team of 60 fieldworkers from the local community is currently planting at a rate of approximately 2,000 trees each weekday, while the Greenside nursery has created employment for 11 people from the local community. Over a quarter of a million trees have been planted across our sites so far. As they mature, the trees will form canopies reaching up to 8 metres in height. Beyond their essential role in water management, they will contribute to carbon sequestration and enhance biodiversity. This initiative is being carried out in partnership with researchers from the University of the Witwatersrand’s School of Animal, Plant and Environmental Sciences. PHYTOREMEDIATION WATER MANAGEMENT ![]() 51 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 3 04. SOCIAL 05. GOVERNANCE 06. APPENDICES #### LOOKING AHEAD In 2025, we will continue to focus on the rollout of our phytoremediation project at key sites, the development of additional wetlands at Goedehoop using Dongalock™ technology and, pending approval from the DWS, the initiation of an irrigation trial at Isibonelo using sodium-rich water. A techno-economic assessment of the biological sulphate reduction passive treatment plant will be carried out to determine the feasibility of scaling the plant up for field application. Ensham will be investigating a water treatment facility to improve its water efficiency and reduce the volumes of water extracted from the Nogoa River. We are also continuously working to improve our water data quality. Another nature-based solution we are trialling is biological sulphate reduction. A 50,000-litre per day passive water treatment facility that uses this technology has been operating continuously since 2023. This facility treats acidic, sulphate-rich water to produce a product suitable for agricultural use. Developed in collaboration with the Technology Innovation Agency, Mintek, the South African Department of Science and Technology, The Moss Group and the University of Pretoria’s Faculty of Natural and Agricultural Sciences, cloSURE® technology uses bacteria to remove sulphate, neutralise water and eliminate metals. Initial results show an 81% reduction in sulphate levels and a pH improvement from 3.5 to 7.3. Treated water is used in irrigation trials to assess its impact on soil and crop health and will continue for a full year to test seasonal crops. By-products of the treatment process, including impure sulphur, are being explored as a fertiliser for sulphur-poor soils. The project’s goal is to turn mine-impacted water into a valuable resource for agriculture on rehabilitated mine land. The passive nature of the system means it requires minimal electrical input, no chemical additives and only occasional maintenance, which makes it a sustainable and cost-effective solution for long-term water management. BIOLOGICAL SULPHATE REDUCTION ![]() 52 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT ### CLIMATE CHANGE AND ENERGY #### OUR POSITION ON CLIMATE CHANGE AND ENERGY TRANSITION We support the goals of the Paris Agreement (Article 2), to limit the increase in the global average temperature to well below 2°C above pre-industrial levels and pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels. The world is moving into an ‘age of electricity’, where increased demand for electricity is expected to be six times the increase in overall energy demand due to the growing uptake of electric vehicles, air conditioning, artificial intelligence and data centres. This trend further entrenches the need for all sources of electricity generation, all low-carbon technologies and for the transition to low-carbon energy systems to be just, orderly and equitable. We recognise the common but differentiated responsibilities and capabilities of domestic economies in pursuit of climate objectives, and believe that actions to limit temperatures must support the United Nations Sustainable Development Goals (UN SDGs), including sustained, inclusive economic growth and universal access to clean, affordable energy. Energy security and affordability are essential measures that must be balanced with the rate of transition. Given the unique challenges presented by the transition, we anticipate that it will not be linear and will depend heavily on individual countries’ ability to transition away from fossil fuels in energy systems. Thermal coal for electricity generation remains a necessary source of energy in many of the markets we serve. It provides grid stability and supports energy access and security, which, in turn, contribute to socio-economic development. We continue to advocate for a technology- and fuel-agnostic approach to achieving the least-cost path to emission reductions. 1 International Energy Agency (IEA) (2024), World Energy Outlook 2024, IEA, Paris https://www.iea.org/reports/world-energy-outlook-2024, Licence: CC BY 4.0 (report); CC BY NC SA 4.0 (Annex A). As the world moves towards a low-carbon economy, we recognise the role we must play in reducing our emissions and supporting the accelerated rollout of a fuel-agnostic, technology-driven approach to reducing global emissions. ![]() 53 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 3 04. SOCIAL 05. GOVERNANCE 06. APPENDICES MINE CLOSURE AND RESPONSIBLE SOCIAL TRANSITION Notwithstanding climate change, coalfields and power stations have finite lives. This is particularly relevant in South Africa in the Highveld coalfields in the Mpumalanga region, where communities are heavily dependent on both mining and coal-fired power generation for their livelihoods. A coordinated and strategic approach to social transition and diversification of the economy in this area is critical. A multi-stakeholder approach is needed for this transformation to maximise the opportunities and mitigate the risks. Engagement with national and regional governments, affected communities, workforces, trade unions and civil society groups to consider options to address the socio-economic consequences arising from mine closure is vital to a just and orderly transition, and to creating diversified economies that will persist in the long term. Our vision is to collaborate with host communities to establish regenerative landscapes that create sustainable livelihoods through economic diversification. We aim to leave a positive legacy through the integration of mine closure planning, with the repurposing of rehabilitated land and the conservation of biodiversity for the benefit of communities and the environment. We are investigating a wide range of post-closure land use options, with a view to developing a responsible mine closure strategy and maximising our climate change opportunities. #### GOVERNANCE Thungela’s board has ultimate responsibility for promoting and safeguarding the business’s long-term success and for ensuring that the company acts in the best interests of its stakeholders. The board has delegated responsibility for oversight of our climate-related impacts, risks and opportunities to the health, safety, environment (HSE) and risk committee, while the social, ethics and transformation committee (SETCO) has oversight of sustainability-related disclosures, including those related to climate change. The HSE and risk committee's climate-related responsibilities include reviewing and monitoring progress on the Thungela pathway to net zero and our 2030 target, and monitoring performance against key climate and energy indicators. Matters relating to climate change are included in quarterly reports to the committee, and as standalone items on the agenda where necessary. The HSE and risk committee chairperson provides a summary of the committee’s discussions to the board, which addresses the most material issues raised by the committee. The SETCO’s primary purpose is to ensure that we comply with the laws, codes and standards that apply in the running of a principled and socially responsible business, focusing on ethics, stakeholder relationships, corporate citizenship, inclusion and diversity, human rights, and social transition associated with mine closure and the transition of the globe to a low-carbon future. ![]() 54 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT CLIMATE CHANGE AND ENERGY MARCH 2024 In March, the full-year performance for 2023 against carbon and energy intensity targets was presented and discussed. Additionally, a presentation was given to the board on global progress on carbon, capture, utilisation and storage (CCUS) based on the Global Carbon Capture and Storage Institute (GCCSI) Global Status of CCS 2023 Report. Specific progress on CCUS in South Africa and China, by China Energy and the China Huaneng Group, was provided. The board expressed interest in the CCUS project in South Africa and how Thungela could be involved. MAY 2024 Progress against carbon and energy intensity targets, energy efficiency projects implementation and the status of the 4 megawatts (MW) solar photovoltaic (PV) plant at Zibulo was presented to the board. JUNE 2024 A board strategy session was held, and progress on the pathway to net zero — particularly short- term activities — was discussed. Projections on the 2030 target of a 30% reduction in Scope 1 and 2 emissions from the 2021 baseline were presented and the company’s approach to Scope 3 emissions discussed. AUGUST 2024 Progress against carbon and energy intensity targets and energy efficiency project implementation were presented and an update on the Zibulo and Elders 4 MW solar PV projects provided. There was also a discussion on Ensham’s emissions and energy intensity as well as the implications of the safeguard mechanism for Ensham with projections to 2030. NOVEMBER 2024 A presentation was given on the Global Status of CCUS 2024 report published by the GCCSI in October. The board was informed that a memorandum of understanding with the Council for Geoscience was signed in September to formalise collaboration between Thungela and the council on advancing CCUS research in South Africa. An update was provided on progress against carbon and energy intensity targets, energy efficiency and renewable energy project implementation. MARCH 2025 The board was provided with an update on how the pathway to net zero had been updated to reflect the progression to being a global company, including the removal of the South Africa-specific inflection point related to energy security, which has stabilised in the last year. An update on the revision of the 2021 Scope 1 and 2 emissions baseline to include Ensham, along with updates to fuel combustion emission factors in line with the Greenhouse Gas Protocol and ISO 14064, were presented and discussed, together with projections of emissions profiles that include Ensham to 2030 with respect to the 2030 target. The full-year 2024 performance update on carbon and energy intensity targets, the renewable energy strategy and the commissioning of the Zibulo 4 MW solar plant were provided. The board was informed of and supported the intention to integrate the climate change report into the environmental, social and governance report. #### BOARD DISCUSSIONS ON CLIMATE CHANGE ![]() 55 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 3 04. SOCIAL 05. GOVERNANCE 06. APPENDICES EXECUTIVE REMUNERATION Our commitment to delivering on key priorities is reflected in our incentive structures. We hold our leadership team accountable for aligning business practices with our climate change ambitions. A total of 10% of the value of their long-term incentive plan (LTIP) awards relates directly to our decarbonisation and net zero journey. A further 10% of the LTIP relates to reducing freshwater abstraction, which is closely linked with climate-related risk. for more information, please see the remuneration report on page 98 the Integrated Annual Report. In addition, the bonus scheme outcomes for all employees are tied to the organisation’s performance, which includes annual energy intensity reductions. This is factored into our annual short-term incentive scheme. BOARD CLIMATE CHANGE CAPABILITY All directors have timely access to the information required to discharge their responsibilities fully and effectively. Following appointment and as required, directors receive training appropriate to their level of experience and knowledge. This includes a comprehensive, tailored induction and individual briefings with members of the executive committee and their teams. The board has held briefing sessions with key external and internal subject matter experts on various sustainability-related issues. TRANSPARENCY AND DISCLOSURE We believe that it is only through accurate and transparent reporting that shareholders, potential investors, lenders, business partners, advocacy groups, communities and many other stakeholders can make an informed assessment of our business. We published standalone climate change reports that are aligned with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) in 2022 and 2023. This year, we have integrated our climate-related disclosures into this report. Our disclosures remain aligned with the recommendations of the TCFD and have been compiled with reference to the International Sustainability Standards Board’s S2 disclosures. A TCFD index can be found in our ESG data book on the Thungela website: https:// www.thungela.com/investors/annual-reports. We also participate in the CDP climate change and water disclosures and in 2024, maintained our ‘B’ rating for climate change and received a ‘B-’ rating for our water disclosures. We recognise the evolving interests and expectations of investors on our approach to climate change and continue to engage with them on ESG- and climate-related issues. ASSURANCE We have internal and external review and assurance programmes in place to ensure that priority catastrophic and sustainability-related risks (including climate-related risks) are identified and that adequate controls are in place. Deloitte & Touche was commissioned to conduct independent, third-party assurance on selected ESG information in this report for the financial year that ended 31December 2024. The full assurance statement can be found on page 167. Reasonable assurance was performed on Scope 1 and 2 emissions and energy data and limited assurance was performed on Scope 3 emissions. Deloitte & Touche issued an unqualified opinion and concluded that the key performance indicators in scope were prepared in accordance with the defined reporting criteria and are free from material misstatement. ![]() 56 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT #### OUR CLIMATE CHANGE ADVOCACY POSITION We are committed to being transparent about our political engagement. We prohibit political donations in any circumstances, either directly or through third parties. We engage constructively with policymakers both directly and through industry associations to advocate for our position on matters relating to climate change and our business. Any climate-related advocacy that we undertake or that is undertaken on our behalf through a third party, such as an industry association, should be in line with the letter and the spirit of our stated policy positions, and supportive of the goals of the Paris Agreement. We believe that effective policy is essential for providing the right framework of drivers and incentives to encourage coordinated, efficient and equitable response measures. There may be times when our views diverge from those of our trade association partners, in which instance we aim to ensure our views are noted and recorded. We advocate for the accelerated deployment of all emission reduction technologies (per Article 10.2 of the Paris Agreement), including coal abatement technologies such as high-efficiency, low-emission coal-fired power plants and CCUS. We also encourage the development of low- and lower-carbon sectors such as renewables and gas, respectively. In all our climate advocacy activities, we are committed to compliance, transparency and accountability. We transparently disclose our memberships of industry associations. Each entry below explains why we are a member of that association, any positions of responsibility that Thungela employees hold and our annual financial contribution. This disclosure enables interested parties to review our memberships and raise any questions or concerns. #### ADVOCACY FUTURECOAL GLOBAL ALLIANCE We are a member of, and currently hold the chairmanship of, FutureCoal, a think tank of forward-focused participants across the coal value chain, driven to ensure that coal prospers sustainably from producer to end user. It represents industry leaders committed to building a sustainable pathway for the global coal value chain. FutureCoal recognises the objectives of the Paris Agreement and acknowledges the global shift towards decarbonised energy systems. However, coal remains responsible for 36% of global electricity production. It therefore advocates for an inclusive all-fuels and all-technologies international policy framework to support the sovereign rights of all coal-producing and consuming nations, and those nations that genuinely seek to support them. FutureCoal recognises that we must modernise and mobilise to demonstrate coal’s versatility as a commodity that can provide long-term energy security, emissions abatement and sustainable development in line with a number of the UN SDGs. The organisation engages with members, governments and industry bodies to deliver the sustainable future that clean coal can bring to both economic growth and everyday life. FutureCoal is actively driving Sustainable Coal Stewardship (SCS), which provides a pathway that supports extracting more value per tonne of coal. Value is determined and measured in both economic and environmental benefits. SCS does not prescribe what abatement opportunities should be adopted by any nation or company and encourages collaboration across the value chain to advance a progressive, innovation- and technology- led coal industry. It supports the right to choose and establish a coal ecosystem that includes options of efficiency, process improvements, health and safety, emissions reduction including carbon abatement, waste management and recycling, land rehabilitation, technology advancement and innovation. SCS comprises a range of initiatives in pre-combustion, combustion and post-combustion phases. In 2024, FutureCoal published a report entitled Roadmap for a Sustainable Coal Value Chain that highlights the pivotal role of advanced coal technologies in today’s rapidly evolving global landscape. #### MEMBERSHIPS AND ASSOCIATIONS ![]() 57 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 3 04. SOCIAL 05. GOVERNANCE 06. APPENDICES MINERALS COUNCIL OF SOUTH AFRICA We are a member of Minerals Council South Africa (MCSA), an organisation that advocates for its members’ needs. It represents 73 members, comprising 90% of South Africa’s mineral production by value across a range of commodities. The council takes on an advisory and leadership role, monitors progress and provides support for climate change challenges, promoting a just transition to a decarbonising economy and advancing the adoption of climate change mitigation and adaption efforts. MCSA and its members are committed to participating in a responsible transition to a net zero carbon economy, prioritising climate resilient development. The MCSA board has adopted individual member commitments, which include a requirement for members to develop a climate change response with near-term (five to 15 years) Scope 1 and 2 emission reductions and net zero emissions by 2050. Members must also collaborate with supply chain partners to reduce Scope 3 emissions in their value chains and improve the transparency of their public reporting relating to climate change. MCSA has developed a Climate Change Framework for the mining industry to assist members as they fulfil these commitments. The framework includes mitigation (reduction of Scope 1, 2 and 3 GHG emissions), adaption (risk mapping, planning for increased variability and intensity in weather patterns and shifting portfolio to adapt to changing demand for minerals) and just energy transition (minimising impact on employees, community engagement and public awareness, ensuring procedural justice is achieved and refining mine closure planning to account for the impacts of the energy transition). Thungela provided technical comments on the adjustments to the emission factors for fugitive emissions proposed by National Treasury in the Draft Taxation Law Amendment Bill, Draft Sectoral Emission Targets for the mining sector, carbon budget allocations for the coal mining sector and the draft discussion paper on phase two of the carbon tax. BUSINESS UNITY SOUTH AFRICA We participate in the Business Unity South Africa (BUSA) environmental sub-committee and climate change working group in our capacity as a member of MCSA. BUSA’s members are committed to working with government to move South Africa onto a path towards net zero and build resilience to the impacts of climate change. One of BUSA’s strategic objectives looks at the just transition towards low-carbon, climate-resilient and ecologically sustainable economies and societies. In 2024, we provided technical comments on adjustments to the emission factors for fugitive emissions proposed by National Treasury in the Draft Taxation Law Amendment Bill, Draft Sectoral Emission Targets for the mining sector and the draft discussion paper on phase two of the carbon tax. COAL INDUSTRY ADVISORY BOARD The Coal Industry Advisory Board (CIAB) is an advisory board to the IEA and is made up of a group of high-level executives from coal-related enterprises across the value chain. Its 26 members, including Thungela, are drawn from 13 countries that represent just under 80% of global coal production and consumption. The CIAB’s role is to advise the IEA of developments on various aspects of coal, including production, transportation, trade and utilisation. This informs the IEA’s projections and advisory work with member governments. Thungela took over the chairmanship of the CIAB in November 2024. We participated in a work programme study focused on recent advances in CCUS using two case studies in China. Workshops were held with the IEA during the year on grid stability and energy security, critical minerals and advances in CCUS. ![]() 58 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT INDUSTRY TASK TEAM ON CLIMATE CHANGE Thungela is a member of the Industry Task Team on Climate Change (ITTCC), which is a non- profit association that includes a number of large companies. The organisation is supportive of South Africa’s international commitments to meet its climate change goals and gradual transition to a lower carbon economy. The ITTCC has commissioned studies on carbon pricing, the just transition, GHG pathways scenario development, and a post-2020 climate change mitigation system, among others, to input into policy development. The organisation encourages the knowledge sharing of best-practice approaches adopted by ITTCC companies. Thungela participated in monthly industry information sharing sessions, including discussions on IFRS S2 reporting, carbon market mechanisms such as offsets and renewable energy credits, adaptation, CCUS and updates on the latest developments in climate change science. NATIONAL BUSINESS INITIATIVE The National Business Initiative (NBI) is a voluntary coalition of South African and multinational companies working towards sustainable growth and development. The NBI has multiple projects and partnerships designed to help member companies build their capacity to respond, and ultimately work collectively with government to develop solutions to climate change and emissions mitigation in South Africa. The NBI is a regional partner to We Mean Business and provides links with South African business and policymakers working on climate change and business. The NBI represents South African companies who have signed up to commitments by pledging their support for a low-carbon future. The NBI is also a local partner of the CDP, which has successfully integrated climate change into mainstream business thinking. The organisation informs members on how to respond to growing environmental and economic risks and opportunities that arise from climate change, the just transition, biodiversity loss and water security. Thungela participated in NBI workshops and thought leadership sessions and provided input on climate adaptation and resilience in industry, and European and United Kingdom carbon border adjustment mechanisms. ENERGY INTENSIVE USERS GROUP We are a member and hold the chairperson’s position at the Energy Intensive Users Group (EIUG), a voluntary and non-profit association established in 1999. The EIUG has a strong technical background and engages with government departments on the need for a cohesive approach to energy supply to ensure security of supply, stable pricing and a clear path forward on policy, within a just transition framework. The EIUG works in collaboration with the ITTCC and is fully committed to the transition toward a low-carbon economy. The EIUG aims to ensure that this is done in a manner and within a timeframe that protects and maintains the competitiveness of our economy. The group engages directly with government departments, Eskom and the National Energy Regulator of South Africa. EIUG co-hosted its inaugural conference in 2024 with the C&I Solar and Storage Summit. The conference focused on various aspects of the South African energy industry, including the importance of decarbonisation, energy security, demand side management, and a long-term perspective on South Africa’s energy sector. ![]() 59 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 3 04. SOCIAL 05. GOVERNANCE 06. APPENDICES #### MEMBERSHIP FEES We pay annual membership fees to industry associations, with the amount based on each association. We also pay extra fees for specific projects when needed. Association 2024 Membership (Rand million) FutureCoal 1.9 Coal Industry Advisory Board 0.3 Industry Task Team on Climate Change Nil National Business Initiative 0.22 Minerals Council South Africa 9.53 Energy Intensive Users Group 0.29 Business Unity South Africa N/A As a large mining company, we face numerous risks, many of which are volatile and uncertain. Managing these risks effectively requires agile decision-making and effective risk management strategies that mitigate exposure and harness available opportunities. The board’s sub-committees oversee the integrated risk management process and receive regular feedback from management on all risk-related activities. They regularly assess all risk governance structures and lines of defence to ensure that roles, responsibilities and accountabilities for identifying, managing, mitigating, reporting and escalating risks and opportunities within the business are appropriately defined and responded to. Climate risks are integrated into the baseline risk registers at all sites, and are managed as part of the integrated risk management process. Thungela’s risk management approach is described in more detail on page 164 of this report and on page 34 of the Integrated Annual Report. UNDERSTANDING OUR EXPOSURE TO CLIMATERELATED RISKS AND OPPORTUNITIES The future pathway of climate-related risks and opportunities remains highly uncertain. We have used broad scenarios, as defined by the Intergovernmental Panel on Climate Change (IPCC) and the IEA, as potential pathways (defined on page 60) to help understand the potential risks and opportunities our business is exposed to with respect to climate change over two timelines: near- term (2030) and long-term (2050). This quantitative assessment included an examination of relevant acute and chronic physical climate risks, as well as market and regulatory risks, and changes in exposure under various climate scenarios. These are grouped into two categories: • Transition risks: These relate to the potential impacts on product demand, as well as impacts on the costs of production across our value chain associated with regulatory, technological and behavioural changes in the transition to a low-carbon economy. • Physical risks: These relate to the potential impact on our operations, supply chain and surrounding communities from acute extreme weather events, as well as chronic shifts in climate patterns. We address the resilience of our operations and host communities by ensuring that our sites include climate risk as part of their baseline risk assessments, and that our technical standards and guidelines include climate risks and responses. Furthermore, we aim to ensure that Social and Labour Plan (SLP) and corporate social investment (CSI) projects address climate-related risks and contribute to climate adaptation and resilience. #### RISKS AND OPPORTUNITIES ![]() 60 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT PHYSICAL SCENARIO 1 RCP 8.5/SSP 5 ~3.2 o C – 5.4 o C RCP 4.5/SSP 2 ~2.5 o C – 2.7 o C RCP 2.6/SSP 1 ~1.7 o C – 1.8 o C Transition scenario 2 Stated Policies Scenario Announced Pledges Scenario Net Zero Scenario Key outcomes Physical risks dominate • Emissions are curbed based on existing policies and announced national commitments to reduce emissions, but fall short of meeting the Paris Agreement. • Continued use of fossil fuels and energy-intensive activities. • Effects of climate change require investments in adaptation measures to protect assets, infrastructure and communities. Insufficient decarbonisation • Slow implementation of policies due to political, institutional and societal barriers. • The transition to a low-carbon economy is disorderly, uncoordinated and delayed. • Transition happens faster in certain regions and slower in others, leading to differences in regional policies and implications on the cost of doing business and global trade. Transition risks and opportunities dominate • Globally coordinated effort to reduce emissions to net zero by 2050. • Accelerated transition to renewables and electrification, and aggressive regulations limiting the extraction and use of fossil fuels in all major economies. Risks and opportunities • Flood and extreme precipitation. • Extreme heat and wildfires. • Sea level rise. • Water stress. • Carbon pricing policies. • Energy policies. • Litigation risks. • Flood and extreme precipitation. • Extreme heat and wildfires. • Sea level rise. • Water stress. • Carbon pricing policies. • Regulatory risk. • Reputational risk and opportunity. • Flood and extreme precipitation. • Extreme heat and wildfires. • Sea level rise. • Water stress. Projected coal demand • Continued fossil fuel investments. • Slow decrease in demand for fossil fuels. • Coal demand in 2030: 5,149 Mtce. • Coal demand in 2050: 3,828 Mtce. • Reduced fossil fuel investments. • Modest decrease in demand for fossil fuels. • Coal demand in 2030: 4,539 Mtce. • Coal demand in 2050: 1,613 Mtce. • No oil, natural gas and coalfields developed due to reduction in demand. • Falls in fossil fuel prices due to lower demand. • Coal demand in 2030: 3,024 Mtce. • Coal demand in 2050: 539 Mtce. Thungela position Extended fossil fuel market Slow transition Accelerated decarbonisation 1 The physical scenarios are based on the Intergovernmental Panel on Climate Change’s (IPCC) Assessment Report (AR) 5 Representation Concentration Pathways (RCP) and AR6 Shared Socio- economic Pathways (SSP). 2 These transition scenarios are based on those set out in the IEA’s World Energy Outlook, 2022. Mtce: Million tonnes coal equivalent THE SCENARIOS Three types of physical risk climate scenarios capturing low, moderate and high emission futures were used for the analysis, applying the IPCC’s AR5 Representative Concentration Pathways (RCP) and AR6 Shared Socio-economic Pathways (SSP) reports. These scenarios align with those used for the transition risk analysis, which are based on the scenarios set out in the IEA’s World Energy Outlook (WEO), 2022. The combination of these formed the basis for the development of our approach to net zero. ![]() 61 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 3 04. SOCIAL 05. GOVERNANCE 06. APPENDICES CLIMATE CHANGE POLICY IN SOUTH AFRICA South Africa has committed to net zero by 2050 and updated its mitigation targets, which represent a significant progression from the first NDC. The country has committed to a fixed target for greenhouse gas (GHG) emissions levels of 398–510 Mt CO 2 e by 2025, and 350–420 Mt CO 2 e by 2030. Effective public policy is essential for providing the right framework of drivers and incentives to encourage coordinated, efficient and equitable response measures by all stakeholders. The Climate Change Act was signed into law on 23 July 2024. The purpose of the Act is to enable the development of an effective national climate change response, and a long-term just transition to a low-carbon and climate-resilient economy and society for South Africa in the context of sustainable development. The Act proposes to assign carbon budgets to companies to ensure the country achieves its NDCs. It also places a legal obligation on every organ of state to coordinate policies and programmes to ensure that climate change risks and vulnerabilities are acted upon. We have an approved carbon budget and pollution prevention plan for the period 2021 to 2025. Our 2023 pollution prevention plan progress report was approved by the Department of Forestry, Fisheries and Environment (DFFE) in 2024. The mandatory Carbon Budget and Mitigation Plan Regulations will exist under the Climate Change Act and are expected to be published for public comment before the end of May 2025. A company will be required to prepare and submit a five-year GHG mitigation plan to the Minister of DFFE for approval. Thungela continues to engage with the DFFE on the allocation of carbon budgets to the coal sector. We are liable to pay carbon tax on the fugitive methane emissions from our underground mines and have a carbon tax forecast model based on legislation and anticipated carbon prices. This is incorporated into discounted cash flow models for all projects. Phase one of the carbon tax was extended to December 2025 and the second phase will take effect from 1 January 2026. National Treasury released a draft Carbon Tax Discussion Paper for phase two on 13 November 2024, with proposed adjustments to the tax-free allowances. Subsequent to public consultation on the initial proposal, some of the changes initially proposed were revoked or tempered during the 2025 budget speech. This included maintaining the current basic tax-free allowance until 31 December 2030 rather than reducing it as initially proposed, and a less extreme increase of the carbon offset allowance from 5% to 10% for fugitive emissions rather than the 20% in the original proposal. The carbon tax levy on fuel, which is included in the fuel price paid at the pump, increased to 11c for petrol and 14c for diesel from April 2024. CLIMATE CHANGE POLICY IN AUSTRALIA The Australian Climate Change Bill was passed into law in September 2022. This legislates the country’s commitment to net zero emissions by 2050 and a 43% reduction in emissions by 2030, from 2005 levels. Each Australian state has set its own interim emission targets, with Queensland committing to a 30% reduction by 2030 and a 75% reduction by 2035 from a 2005 baseline. Several domestic programmes have been launched through the Clean Energy Regulator, including the Safeguard Mechanism, which requires Australia’s largest GHG emitters (emitting more than 100 kt CO 2 per annum) to keep their net emissions below a baseline emission intensity, based on Scope 1 emissions. Ensham is included in the Safeguard Mechanism and its baseline intensity was approved in 2024. Entities are expected to achieve a 4.9% reduction in intensity annually until 2030. Safeguard facilities that exceed or expect to exceed their baseline must manage their excess emissions. Australian carbon credits or safeguard carbon credits can be surrendered to this effect. Governments have responded to the climate crisis in various ways. We are directly exposed to the climate-related policies, legislation and Nationally Determined Contributions (NDCs) in our countries of operation and those of the markets we serve. NDCs are integral to the Paris Agreement and outline each country’s targets to reduce national emissions. #### TRANSITION RISKS ![]() 62 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT RISK DESCRIPTION OUR MITIGATION MEASURES Policy and legal New or more stringent carbon pricing mechanisms such as carbon tax, emissions caps or limits on emissions intensity, energy regulation, carbon trading and use of carbon offsets, both in our host countries and in export destinations, may increase the cost of production and reduce margins. • We actively monitor changes in domestic and global policy relevant to carbon emissions and engage with policymakers, either directly or via industry associations. • We are committed to achieving net zero Scope 1 and 2 emissions by 2050, and reducing these by 30% by 2030 from a 2021 baseline. • A 4 MW solar plant at Zibulo was commissioned in 2024. • We have reduced our carbon intensity at our South African operations by 25% since 2021 through the implementation of energy efficiency initiatives. Changing regulations may impact our ability to obtain, or delay, necessary project permitting approvals. • We provide transparent disclosure on our climate change position and strategy. • We integrate climate change considerations such as decarbonisation, the use of renewable energy and climate adaptation into permit applications. Increase in litigation in which climate change and its impacts are a contributing or key consideration. • We monitor legal developments and seek advice on these as necessary. The Mpumalanga region is heavily dependent on coal mining for employment, both directly and indirectly. Increased carbon pricing and regulatory mechanisms as described above may impact our employees and communities through job losses and reduced total procurement spend. • We continuously train and upskill our workforce using programmes that are recognised across the mining industry. • Our operations offer a range of mining and non-mining skills training programmes to unlock employment opportunities for young local people who do not have the financial means to further their education. Read more on page 110. • We have identified four socio-economic impact goals, two of which aim to reduce the reliance of communities on coal mining for their livelihoods by improving access to income generating opportunities and incorporating a green economy lens into our enterprise and supplier development programme, Thuthukani. • With several of our operations approaching their end of life, there are opportunities available through intentional planning and collaboration to repurpose rehabilitated areas to create sustainable businesses and economic diversification, where this will not contravene our obligations for site restoration, for the benefit of the communities surrounding our mines. • The Nkulo Community Partnership Trust, which received R102 based on our 2024 performance, will make a meaningful and lasting impact on the lives of host communities. ![]() 63 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 3 04. SOCIAL 05. GOVERNANCE 06. APPENDICES RISK DESCRIPTION OUR MITIGATION MEASURES Market changes In response to ongoing decarbonisation of global energy supply, there may be a structural decline in global demand for thermal coal, which may in turn drive downward pressure on global coal prices. Over time, coal’s share of primary energy demand is expected to decline. The global coal market is however dynamic and subject to changes in the geopolitical and energy landscapes. • We have committed to net zero by 2050, and have developed a scenario- based approach to achieve this. Our scenario-based approach provides two distinct pathways informed by the climate scenarios and provide us with a framework for agile decision-making. • Our strategy and investment evaluation criteria are designed to optimally balance responsible stewardship with the need to upgrade our portfolio and create shareholder value. • Our buy-versus-build strategy using investment evaluation criteria ensures that new carbon units are not added to the global footprint through greenfield projects. • We focus on producing high-quality export coal with improved energy efficiency and lower pollutant content that is better suited to shifting customer needs. • We advocate for a technology agnostic-approach to decarbonisation, which includes abatement of emissions from coal combustion. Given the continued increase in global coal demand, technologies such as CCUS are becoming increasing critical to achieving the goals of the Paris Agreement. • We signed a memorandum of understanding with the Council for Geoscience to collaborate on advancing CCUS research in South Africa. • We completed detailed scenario analysis within our key export markets to test our portfolio’s resilience, and to inform future strategic decision-making. We revisit this as needed and monitor market drivers closely. Reputation Availability of, and access to, financing and key services such as insurance may reduce, and the cost of these services may increase. • We are now fully self-insured in South Africa where we have contributed R1.5 billion to a self-insurance structure. In Australia, we are covered by the traditional insurance market. • The R3.2 billion facilities with two South African banks with whom we have had a long-standing relationship have been extended until 2028. These facilities strengthen our balance sheet as we continue to migrate our capital structure in a manner that would enhance returns to shareholders over time. In addition, this seeks to provide sufficient liquidity to complete our capital projects and to navigate uncertainty across a number of external factors. Changing stakeholder expectations and lack of acceptance over the role of high-quality coal in supporting the transition to a lower carbon future may impact our industry’s reputation and delay the environmental permit approval process. • We are committed to transparent disclosure and engage with our key stakeholders on climate change and broader ESG issues in a clear, meaningful and transparent manner. • We are committed to fulfilling our purpose and being responsible miners. Our performance since we listed has demonstrated our commitment as reflected in our environmental, social and governance report and the favourable ESG ratings received in 2024. ![]() 64 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT RISK DESCRIPTION OUR MITIGATION MEASURES Physical (chronic) Sea level rise The frequency of the current 1-in-100-year storm surge event at Richards Bay is projected to become more frequent across moderate (1-in-18 years) and high (1-in-11years) emissions scenarios by 2050. This may cause increased exposure to coastal inundation and potential damage to port facilities, which may cause delays to product transportation or damage to port infrastructure. • Richards Bay Coal Terminal has emergency preparedness and response systems as well as meteorological monitoring and early warning systems in place. • The Port of Gladstone has a sustainable maintenance dredging strategy as part of their 2050 long-term sustainability plan. Dredging assists with climate resilience by maintaining the depth of navigation channels, allowing ships to access the port even as sea levels rise due to climate change, preventing disruptions to trade and supply chains, and enabling the potential for beneficial reuse of dredged sediment to protect coastlines from erosion and enhance coastal ecosystems. Increased average rainfall Total annual rainfall is projected to increase across all scenarios by 2050. This may cause operational disruptions due to flooding and inability to access mine workings, and increase operational costs associated with managing water. The risks to communities of increased rainfall may include discharge of mine-impacted water, increased occurrence of sinkholes or subsidence, disruptions to transportation due to road damage, which in turn may undermine food security. • Our water management strategy considers potential climate change-related risks. • We review our water balances annually and proactively manage water on site. We track and report site water withdrawals, consumption, discharges and reuse/recycling, and water treatment in line with the ICMM and the Minerals Council of Australia Water Accounting Framework. • We undertake annual rainfall readiness reviews and have developed trigger action response plans (TARPs) to address excess rainfall. • We monitor and track the magnitude and frequency of climatic events and we are working towards building a central repository for this data. • We undertake annual reviews and audits on the integrity of our mineral residue facilities and dams. • Areas that are at risk for subsidence or sinkholes are fenced off and declared ‘red areas’ and are inaccessible to communities and employees alike. • We have an integrated emergency preparedness response plan that considers the potential effects of catastrophic events at sites, including those that may be associated with climate change. Increased drought Increase in the number of consecutive dry days may place additional pressure on the already water-stressed catchment. • We have reduced freshwater consumption at our South African operations by 64% since 2015. • We maximise water efficiency by reusing and recycling water in our coal processing plants using thickeners and filter presses. We achieve reuse and recycle rates of approximately 96% annually. • The EWRP can treat up to 50 ML per day of mine-impacted water and provides potable water to the local municipality. The EWRP supplied 16% of the municipality’s needs in 2024. • In South Africa, we have included criteria that assess a CSI or SLP project’s ability to increase the resilience of the community to physical climate risks into our decision-making framework. • We have water management initiatives in place, which drive the optimisation of operational processes and reduce water use on site. This is supported by our investment model for new/alternative technology that optimises the use of water. Physical climate risks have been consolidated into chronic (increased average rainfall and sea level rise) and acute (storms and extreme weather events) risks, with flooding and landslides considered secondary impacts of these risk categories. The likelihood of these risks is low for operations that will reach the end of their lives before 2030 and will be higher for operations with longer life of mine. Our current assessment of the acute and chronic physical risks related to climate change does not require us to make additional financial provisions for our operations or adjust the estimated useful lives of specific assets. The socio-economic context of host communities, discussed on page 10 of this report, increases their vulnerability to climate risks. #### PHYSICAL RISKS ![]() 65 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 3 04. SOCIAL 05. GOVERNANCE 06. APPENDICES RISK DESCRIPTION OUR MITIGATION MEASURES Physical (chronic) Extreme temperatures Increased average temperatures will result in an increased number of heat waves and extreme heat days. This poses a risk to the success of rehabilitation and may result in equipment operational issues. • Our operations each have a mandatory code of practice for thermal stress, which includes monitoring and interventions or TARPs when temperatures exceed certain levels. Physical (acute) Storms and extreme weather events Extreme rainfall intensity across all Thungela sites is projected to increase over multiple scenarios and time horizons. Storms and extreme weather such as high winds and severe lightning could cause flash flooding of mine sites and transportation networks, infrastructural damage and operational disruptions resulting from unsafe working conditions and inundation. • Every site has an emergency response plan, technical standards on managing inrush, and extreme rainfall TARPs. • We have an integrated emergency preparedness response plan that considers the potential effects of catastrophic events at sites, including those that may be associated with climate change, and on the communities around our operations. • We have extensive internal standards, systems and procedures to manage hazards on site, and have reviewed these to ensure that they include potential climate change-related risks. • In South Africa, social performance teams have incorporated projects into their SLP’s that improve the resilience of communities to physical risks. • We safeguard our assets and infrastructure through robust engineering design and construction standards, aligned with national design and construction standards, regulatory requirements and enhanced through Thungela’s internal standards, systems and procedures. • Flooding in excess of six metres at Ensham results in the activation of a flooding TARP that limits operations. floods above 11.5m result in the evacuation of the mine. ![]() 66 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT The rate at which demand will decline in future years depends on the stringency with which countries pursue climate targets. Despite thermal coal demand growing 25% between 2010 and 2023, the IEA STEPS scenario continues to show a reduction in demand in 2030 to just slightly higher levels than were seen in 2010. The IEA’s Coal 2024 report expected global coal demand to reach a new peak in 2024, but then to plateau until 2027. This means that, to meet the STEPS scenario demand in 2030, coal demand would have to reduce by roughly 25% in three years, which is unlikely to occur. The outlook for coal demand remains firm, with many developing nations, particularly in South Asia, still using coal as a primary fuel source. Large importing nations, such as China and India, continue to invest in new coal-fired power stations to meet the energy needs required to sustain economic growth. Global supply is presenting a growing challenge, with limited access to funding and insurance, increasingly stringent regulatory requirements, and widespread social and political opposition to the development of new coal mines. This provides companies like Thungela, with established high-quality coal operations and access to existing reserves, with a significant structural advantage. There is a growing acknowledgement that energy security and affordability are essential criteria that need to be carefully balanced with the rate of transition. Increasing electricity demand combined with increasing levels of variable generation sources highlight the need for secure, resilient and flexible power systems. While batteries are scaling up to provide some short-term flexibility, thermal power and hydro power will continue to be the main source of seasonal flexibility through to 2050 1 . Variable renewable energy deployment continues to increase, accounting for 13% of global generation in 2023 and this contribution is anticipated to nearly triple by 2030. The clean energy transition must be orderly, just and equitable to minimise the impact on energy security and the most vulnerable people in society. RESILIENCE OF OUR BUSINESS MODEL Our business focus is on producing high-quality export coal, which is increasingly preferred over lower grades. This is particularly true for customers in our export markets as they make the shift to improved efficiency power stations where lower pollutant content in coal is preferred. Our tier 1 assets operate in the lower half of the cost curve, which, coupled with our commitment to responsible production of a high-quality product, contributes to our business’s resilience. CCUS facility development saw significant growth in 2024, with 50 facilities now in operation and 44 more under construction. The CCUS project pipeline now includes 628 projects, a 60% year- on-year increase, with a capture capacity of nearly 420 million tonnes of CO 2 2 . Steps (WEO 2022) Steps (WEO 2024) APS (WEO 2022) APS (WEO 2024) NZE (WEO 2022) NZE (WEO 2024) 6000 5000 4000 3000 2000 1000 4069 5079 2954 2398 117 7 985 409 20502040203020232010 GLOBAL COAL DEMAND AND SUPPLY (MTCE) #### GLOBAL TRENDS IN 2024 Regulatory decisions across the globe are likely to drive coal price and demand. The IEA publishes an updated WEO annually. The most recent report (2024) projects higher demand for coal in 2030 than used in our scenarios, but lower demand in 2050 under all three scenarios. These updates are depicted below: 1 IEA (2024), World Energy Outlook 2024, IEA, Paris https://www.iea.org/reports/world-energy-outlook-2024, Licence: CC BY 4.0 (report); CC BY NC SA 4.0 (Annex A) 2 Global Status of CCS Report 2024, global Carbon Capture and Storage Institute. ![]() 67 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 3 04. SOCIAL 05. GOVERNANCE 06. APPENDICES #### OUR CLIMATE CHANGE STRATEGY MANAGING OUR EMISSIONS In the short- to medium-term, our strategy is to reduce our own Scope 1 and 2 emissions through the implementation of energy efficiency and productivity improvement projects across our operations, the installation of at least 19 MW of renewable energy, and the responsible closure of mines as they reach the end of their operational lives. PATHWAYS TO NET ZERO In the longer term, we have adopted a scenario-based approach to chart our path to net zero, using the IEA World Energy Outlook 2022 scenarios (see page 60 for the scenario analysis). It is important to remember that scenarios are not forecasts or predictions and that accurately predicting the future is challenging, even in the short term. Scenario analysis assists us in identifying key drivers of change and enables us to inform decision-making and evaluate business resilience against a set of divergent, but plausible, futures. It also highlights the potential risks and opportunities associated with these. To meet our 2050 net zero target, two distinct pathways are available, and are informed by climate scenarios. The route we take relies on a critical inflection point — the pace of decarbonisation globally. Given uncertainty over the future, these pathways provide us with a framework for decision-making based on triggers that may occur. Global trends and dynamics are reviewed annually to ascertain which plausible pathway we may be on so that we can be agile and adaptive in our decision-making. The STEPS and APS both see coal demand declining more moderately than the net zero pathway and have been combined in our pathways as ‘slow transition’. The ‘accelerated decarbonisation’ pathways are aligned with the NZE. S L O W T R A N S I T I O N A C C E L E R A T E D D E C A R B O N I S A T I O N Carbon offset projects 15 MW renewable energy solution Electricity generation using methane at Ensham 2026-2030 Methane monitoring and reporting system Agree on carbon reduction strategy for Mafube with Exxaro Complete coal bed methane project study, define plant size, type and optimal energy mix Feasibility study for electricity generation using coal mine methane at Ensham 2025 No further coal expansion Evaluate commodity diversification options Partner with IPPs, use or invest in green energy Implement feasible energy storage solutions 2031 - 2040 Wheel excess green energy to local communities or industries Bank/sell carbon credits Solve for remaining emissions from the eMalahleni Water Reclamation Plant (EWRP) 2041 - 2050 Offset M&A or projects with renewable energy or other emission reduction projects tailored to life of mine and community needs Evaluate commodity diversification options Invest in energy storage solutions 2031 - 2040 2041 - 2050 #### The pathways give us the flexibility to adjust our approach to achieving our net zero target as the #### world evolves. OUR TARGETS (from a 2021 baseline) Reduce Scope 1 and 2 emissions by 30% by 2030 Achieve net zero emissions (Scope 1 and 2) by 2050 ![]() 68 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT #### OUR PERFORMANCE BASELINE UPDATE In 2023, we published our target to reduce our Scope 1 and 2 emissions by 30% by 2030 (from a 2021 baseline), and our pathway to achieve net zero by 2050. In line with the GHG Protocol and ISO 14064, we have updated our baseline to include Ensham’s 2021 emissions. We have also updated liquid fuel combustion emission factors to improve the accuracy of our reporting and be aligned with emission factors from 2023. The chart below shows these changes. The 2021 baseline has increased from 819 kt carbon dioxide equivalent (kt CO 2 e) to 1331 kt CO 2 e. Ensham contributes 496 kt CO 2 e, while the emission factor update contributes 16 kt CO 2 e to the increase. Fuel combustion emission factors have been updated from 2021 onwards and the relevant metrics have been restated. Total Scope 1 and 2 emissions for the Group in 2024 were 1,065 kt CO 2 e, 20% lower than the 2021 adjusted baseline. The emissions from fossil fuel combustion have been restated for 2023 to include the four months from the date of acquisition of Ensham. #### CLIMATERELATED METRICS TOTAL SCOPE 1 AND 2 EMISSIONS (kt CO 2 e) South Africa Emission Factor Adjustment Australia 20 21 2022 2023 2024 819 49616 729 10313 741 324 74 8 0 200 400 600 800 1,000 1,200 1,400 1,600 GHG Emissions (kt CO 2 e) 2024 2023 2022 2021 Scope 1 emissions — Group 596 RA 397 308 808 South Africa 318 309 308 378 Australia 277 87 430 Scope 2 emissions — Group 470 RA 448 440 523 South Africa 423 433 440 457 Australia 46 15 66 ![]() 69 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 3 04. SOCIAL 05. GOVERNANCE 06. APPENDICES RELATIVE CONTRIBUTIONS OF EMISSION SOURCES TO TOTAL SCOPE 1 AND 2 SOUTH AFRICA Fossil fuel combustion Fugitive emissions 57% 25% 18% 0.01% Process emissions Electricity RELATIVE CONTRIBUTIONS OF EMISSION SOURCES TO TOTAL SCOPE 1 AND 2 AUSTRALIA Fossil fuel combustion Fugitive emissions Electricity 14% 7% 79% In South Africa, total Scope 1 and 2 emissions were 741 kt CO 2 e, remaining relatively stable from 743 kt CO 2 e in 2023. Scope 2 emissions are the largest contributor to emissions in South Africa, followed by fugitive emissions and then fossil fuel combustion. A decrease in Scope 2 emissions achieved through energy efficiency projects and the commissioning of a 4MW solar plant at Zibulo in November 2024 was offset by an increase in underground production that increased fugitive emissions. Carbon intensity was 3.6% lower at 3.50 kg CO 2 e per total tonne moved compared to 3.63 kg CO 2 e per total tonne moved in 2023. Total Scope 1 and 2 emissions at Ensham were 324 kt CO 2 e in 2024 compared to 496 kt CO 2 e in 2021. The reason for the 35% decrease is that the mine moved into a methane-rich area in 2021, and was only able to commence with pre-draining and flaring the methane towards the end of 2021. The mine has since implemented a system of pre-drainage and flaring of the methane ahead of mining in each section, resulting in the sustained reduction of these emissions. Fugitive emissions in Australia account for the largest proportion of the Scope 1 and 2 emissions at 79%. Emissions from electricity account for 14% and fuel combustion contributes 7%. #### SOUTH AFRICA AUSTRALIA METHANE EMISSIONS Methane is emitted from coal seams during the mining process. The methane content of coal seam gas varies from region to region. In South Africa, where the geology is relatively old, and the coal seams are relatively shallow, the coal seam gas methane concentrations are low in comparison to those found in coal seams in Australia. We have historically reported methane as a CO 2 equivalent in our fugitive emissions. Fugitive emissions comprise CO 2 and methane (CH 4 ). In South Africa we use a Tier 2 emission factor to calculate the fugitive emissions, which gives a combined value for these. At Ensham, the fugitive emissions are measured using a continuous monitoring system. We continue to consider and improve our reporting of methane, and have separated the methane component from fugitives and combined this with the methane component from fuel combustion in the figures below. The methane values here are included in the reported fugitive emissions, but are shown separately here in the interest of improving our disclosures. We recognise the importance of accurate measurement of methane emissions. As such, we installed continuous methane monitoring on the ventilation shafts in South Africa in 2024, with the intention of using the data from these systems for reporting in 2025. Methane Emissions (tCH 4 ) 2024 2023 South Africa 7, 313 7, 811 Australia\* 8,729 2,606 Group total 16,042 10,417 \* Methane in Australia in 2023 is shown for the four months from date of acquisition (1 September 2023 to 31 December 2023) ![]() 70 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT Scope 3 emissions (kt CO 2 e) 2024 2023 2022 2021 Category 1: Purchased goods and services 22 30 5 31 Category 2: Capital goods 12 12 9 Category 3: Fuel- and energy-related services 76 65 544 679 Category 4: Upstream transportation and distribution 237 238 287 40 Category 5: Waste generated in operations 2 1 5 7 Category 6: Business travel 1.52 0.94 Category 7: Employee commuting 21 19 Category 8: Upstream leased assets 0.54 0.48 Category 9: Downstream transportation and distribution 2,265 1,789 1,12 3 1,466 Category 10: Processing of sold products N/A N/A N/A N/A Category 11: Use of sold products 44,184 29, 816 35,072 63,863 Category 12: End-of-life treatment of sold products N/A N/A N/A N/A Category 13: Downstream leased assets N/A N/A N/A N/A Category 14: Franchises N/A N/A N/A N/A Category 15: Investments 56 62 35 Total Scope 3 emissions 46,877 LA 32,033 37, 071 66,096 Our Scope 3 emissions increased to 46,877 kt CO 2 e LA in 2024 from 32,033 kt CO 2 e in 2023 due to the addition of Ensham Scope 3 emissions. For consistency, Ensham’s Scope 3 emissions were also added to 2021. Category 11 for Ensham (use of sold products) contributes most significantly to the increase. Saleable coal production also increased in South Africa in 2024, further contributing to the increase in category 11. We also engaged our suppliers to better understand their emissions and associated emission reduction commitments. We mapped the top 60% of our supplier base by spend in 2024, and reviewed their reporting on Scope 1, 2 and 3 emissions. The mapping covered purchased goods and services, capital goods and upstream transportation. Approximately half of the suppliers mapped currently track their emissions and have targets in place. We signed a memorandum of understanding with the Council for Geoscience to advance research into emission reduction technologies, focusing on CCUS. This collaboration aligns with our position and advocacy for accelerated deployment of technologies — including CCUS — that mitigate the emissions from coal combustion. This strategic partnership aims to invest in geoscience-based solutions that support national priorities and international climate agreements, including South Africa’s NDCs under the Paris Agreement. For further information, please refer to our ESG data book: https://www.thungela.com/investors/annual-reports. In 2024, we undertook a Scope 3 assessment on Ensham and have included this in the data presented below. All 15 of the Scope 3 categories have been assessed for applicability and, where relevant, have been included. #### SCOPE 3 EMISSIONS ![]() 71 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 3 04. SOCIAL 05. GOVERNANCE 06. APPENDICES 71 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 ![]() 72 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT ### ENERGY MANAGEMENT #### Mining is an energy intensive process, and the unit costs of energy are ever increasing. Changing geology, longer hauling distances and increasing mine depths tend to increase energy requirements further. In this context, the efficient use of energy and optimising our use of energy sources is an ongoing priority. Additionally, managing our energy is an important element of decarbonising our operations and achieving our target of a 30% reduction in scope 1 and 2 emissions by 2030 on our path to net zero. #### OUR APPROACH ENHANCING ENERGY EFFICIENCY Thungela’s technical standard and related guideline on energy and carbon emissions’ management sets out the requirements to drive energy and carbon savings across the business. We have implemented a range of efficiency and productivity improvement initiatives across our operations. Current projects focus on improving the efficiency of large energy users such as processing plants, ventilation systems at underground operations and load and haul equipment at opencast mines. Projects that have been implemented on opencast operations include idle time reduction on haul fleets and dozers, improving road conditions to reduce rolling resistance and diesel consumption and the reduction of haul route distances. Our underground mines continued their focus on ventilation system optimisation in 2024. Ventilation interventions included the sealing of underground sections to reduce ventilation requirements, fan blade adjustments to reduce fan input power, optimising vent fan speeds and optimising section layouts to enable a reduction in the number of fans operating, without compromising ventilation. These initiatives are supported by a robust project execution framework which includes management commitment, scheduled reviews with energy champions, performance reviews and forums to share and reapply learnings within the business. SUPPLEMENTING ELECTRICITY WITH RENEWABLE SUPPLY Central to our net zero pathway is the incorporation of a minimum of 19 MW of renewable electricity before the end of 2026. We are proud to report that a 4 MW solar PV plant was commissioned in the fourth quarter of 2024. The plant generated over 1,154 MWh in 2024 and contributed to a saving of R3.5 million in electricity costs. A feasibility for a further 4 MW solar PV plant at the Elders project has been completed and the external permits, approvals and rezoning applications are in progress. We are evaluating the strategic balance between a self-build approach and sourcing renewable energy through a power purchase agreement. #### PERFORMANCE Total Group energy consumption increased to 3.74 million gigajoules (GJ) RA , compared to 3.37 million GJ in 2023. This increase is due to the inclusion of Ensham for the full year in 2024 compared to the inclusion of the four months from the date of acquisition in 2023. Our energy efficiency and energy reduction projects resulted in savings of almost 25 kt CO 2 e and 86 thousand GJ. In South Africa, energy intensity improved by 3.5% to14.79 Megajoules per total tonne moved (MJ/TTM) in 2024 (2023: 15.33 MJ/TTM). Since 2021, energy efficiency has improved by 22%. Total energy consumption remained relatively stable at 3.13 million GJ in 2024 (2023: 3.14 million GJ). ![]() 73 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 3 04. SOCIAL 05. GOVERNANCE 06. APPENDICES #### LOOKING AHEAD In 2025, we will develop a strategic approach to rolling out the remaining 15 MW of our renewable energy commitment. We will continue to investigate and implement energy-saving projects, particularly for large energy users, to enable a year-on-year reduction in our carbon and energy intensities, with a particular focus on Ensham. We will also be investigating the feasibility of generating electricity using coal mine methane at Ensham. We will continue with the optimisation of the continuous methane monitoring system to ensure data quality and availability meet the requirements for reporting to the DFFE. We will be investigating carbon offset opportunities, through both purchases and project development on our closing operations in South Africa. These initiatives will be accompanied by the continued evolution of reporting and disclosure practices, and engagement with stakeholders on our climate change journey. For further information, please refer to our ESG data book: https://www.thungela.com/investors/annual-reports. 1 All 2023 values have been restated to include data from Ensham for the four months from the date of acquisition. 2 All 2021 values have been restated to include Ensham for the full year, as part of the GHG baseline update. ENERGY CONSUMPTION AND ENERGY INTENSITY  SOUTH AFRICA Energy consumption — Group 2024 2023 2022 2021 2020 Total energy consumption (million GJ) 1,2 3.74 RA 3.37 3.01 4.09 3.87 Energy from electricity (million GJ) 1,2 1.74 1.57 1.50 1.87 1.78 Energy from fossil fuel use (million GJ) 1,2 1.99 1.79 1. 51 2.22 2.09 Electricity consumption (MWh) 1,2 484,256 437,612 415 ,732 57 7,73 9 434,916 Diesel consumption (kl) 1,2 54,007 49,17 7 41,800 67, 27 7 51,285 Energy Consumption million GJ Energy Intensity MJ/TTM 20 18 16 14 12 10 8 6 4 2 0 4 3.5 3 2.5 2 1.5 1 0.5 0 19.04 3.42 2021 16.16 3.01 2022 15. 33 3.14 2023 14.79 3.13 2024 Total Energy used Energy Intensity ![]() 74 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT #### MINE CLOSURE AND REHABILITATION #### OUR APPROACH We consider mine closure an integral part of our core business. Our approach to planning for closure ensures that the full spectrum of opportunities, risks and liabilities is effectively identified before a mine is opened and throughout its life. Plans are fully costed and adequate provision is made for premature closure. Integrating mine closure planning into our operational strategy is the best way to address many of our mine closure risks and opportunities, particularly through the rehabilitation of land in parallel with mining activities. Setting performance targets for the implementation of progressive rehabilitation is core to our rehabilitation strategy and is included as a metric in the chief executive’s scorecard and long-term incentive plan. Five of our seven mines have opencast mining areas. This makes rehabilitating the land we disturb to the level of post-mining land use agreed with stakeholders a material issue. Our approach to mine closure and rehabilitation is guided by our technical standard for mine closure, a mine closure toolbox, and a technical standard and guideline for rehabilitation, all of which incorporate regulatory requirements and best practice guidance from the ICMM. We actively work with our stakeholders to address social impacts and rigorously manage our financial liabilities. Our mine closure toolbox is a cradle-to-cradle approach and ensures that long-term business plans consider how mines will close before they even start operating. This includes stakeholder engagement and social transition and incorporates our integrated closure planning system, which is centred on integrating multi-disciplinary closure planning and execution. The toolbox provides a single, consistent framework for closing mines and guides operations on how to meet our closure standard. PROGRESSIVE REHABILITATION Our operations are required to implement progressive rehabilitation. This includes closure-related technical studies and designs, the remediation of contaminated areas, the decommissioning and removal of redundant infrastructure, reshaping of in-pit waste rock, topsoiling and revegetation. Our team models rehabilitation designs on various platforms to provide an ecologically acceptable blueprint that considers watersheds, land capability and landforms, ultimately creating sustainable post-mining landscapes. Well-executed rehabilitation establishes post-mining landscapes that are ecologically functional and support our goal of no net loss of biodiversity. Each site has a detailed rolling five-year rehabilitation plan which is updated annually. These plans outline targets, monitoring, maintenance and management programmes and allow for adaptive management where required. MINE CLOSURE PLANS Each operation has a mine closure plan that is aligned with national legislation and the mine closure toolbox. As an operation progresses towards closure, the plan becomes more detailed. These plans are updated annually to reflect any material changes, including permitting amendments, mine expansions and environmental impact assessment reviews. Closure plans outline a vision, goals and objectives across every aspect of closure, including physical stability, water and soil quality, vegetation intensity, biodiversity, health and safety, aesthetic quality and social factors such as employee relations and socio-economic development. They feature measurable and time-bound targets in the form of a master action plan that is tracked regularly on our SHE management system. Plans also have pre-determined success criteria, the fulfilment of which should indicate that mine closure has been effective. We reduce our footprint from project design through to operation and closure and identify, manage and address potential impacts by applying the mitigation hierarchy’s principles – to avoid, minimise, restore (or mitigate) and offset. We aim to leave a positive, sustainable legacy by integrating mine closure planning with concurrent rehabilitation, conserving and restoring biodiversity and using non-operational land for the benefit of communities. We commit to managing the land we own in a productive and sustainable manner, #### ensuring proactive stewardship during each phase of the mining lifecycle. ![]() 75 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 3 04. SOCIAL 05. GOVERNANCE 06. APPENDICES SOCIAL CLOSURE Our vision is to partner with host communities to establish regenerative landscapes that can drive economic diversification and lead to sustainable livelihoods after our mines close. Our sites that are nearing their end-of-life are preparing to implement elements of the closure plans that will mitigate risks and impacts to surrounding communities. Social aspects are integrated into the overall mine closure plan. As part of this process, we reviewed our closure risks and impacts and undertook a socio-economic baseline assessment related to these elements in the areas around our operations. Key risks identified are stakeholder engagement and management, water, land, skills development and security. We are actively exploring opportunities to repurpose existing assets and infrastructure to develop programmes that support the sustainable closure of these mines. A pilot site at Goedehoop has been identified and a detailed framework of potential initiatives has been created. Strategies for stakeholder engagement on the topic of mine closure have been developed to ensure that all interested, affected or influential parties are included. GOVERNANCE The board’s health, safety, environment and risk committee has oversight of mine closure and rehabilitation, with progress reported on a quarterly basis. Each operation has a multi-disciplinary mine closure committee, comprising representatives from key departments, including environmental, social performance, survey, human resources, supply chain, mining and engineering. These committees provide strategic guidance for the implementation of closure plans and ensure that adequate funding is allocated to support the closure planning process. They also develop management plans that ensure that closure is integrated into overall project and mine planning as well as monitor, review and report on performance to the general manager and other internal and external stakeholders. #### PERFORMANCE Our closing collieries, care and maintenance unit, which is dedicated to the physical rehabilitation and closure of areas where mining has ceased, continued to make great strides in the rehabilitation and closure of Khwezela’s Bokgoni and Kromdraai sites. We currently have 70,047 hectares (ha) under our charge (2023: 53,666 ha) which includes 14,833 ha in Australia. A total of 17,017 ha have been disturbed by mining, processing, mineral waste disposal and supporting infrastructure (2023: 7,524 ha) and 7,886 ha has been rehabilitated. We are updating our land management database to reflect changes in land and asset ownership. We focus on rehabilitating mining land concurrently and returning it to the state agreed upon in environmental permits. This approach results in significant financial and environmental benefits and can reduce long-term closure liabilities. As a Group, a total of 328 LA ha were reshaped, 173 LA ha were topsoiled and 310 LA ha were seeded in the reporting year. In South Africa in 2024, we reshaped 199 ha (2023: 223 ha). Topsoiling of reshaped areas increased substantially to 104 ha compared with 60 ha the previous year. Seeding rose to 241 ha from 163 ha in 2023. Ensham met all its 2024 progressive rehabilitation and closure plan requirements, successfully reshaping 130 ha and seeding 70 ha. It has also exceeded its cumulative target. #### PROGRESSIVE REHABILITATION PROGRESS AT ENSHAM ![]() 76 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT MINE CLOSURE AND REHABILITATION #### CLOSURE LIABILITIES AND CORRESPONDING #### FINANCIAL PROVISIONS A third party updates our closure liabilities annually as required by legislation. Assessments are based on commitments made in various permits and authorisations, as well as in the design criteria for final closure. Financial provisions are made annually based on the legal obligations under the existing MPRDA regulations and are reviewed and audited against internal and external requirements. Financial provisions are provided once we receive DMPR approvals of liability estimates. These are adjusted based on our interpretation of the likely increase in costs required to transition to the new NEMA Financial Provisioning Regulations, such as costs related to the ongoing pumping and treatment of polluted or extraneous water. The proposed 2015 NEMA Financial Provisioning Regulations have yet to be promulgated. On 1 February 2024, the Minister of the Department of Forestry, Fisheries and the Environment postponed implementation to a date yet to be advised. It is important to note that financial provisioning as specified in the regulations does not translate into the environmental provisions recognised by the Group, but rather the level of cash or other funding that must be made available to the DMPR to fund the closure of operations should we not be able to do so. Financial provisioning required by the current MPRDA regulations amounts to R4,807 million (2023: R4,536 million), compared to the total environmental provisions recognised by the Group of R7,973 million (2023: R7,841 million) for our South African operations. This difference is due to the additional costs we believe we are likely to incur through our interpretation of the regulations and actual costs to be incurred in the period up to, and post-mine closure, most significantly in relation to water treatment. We have provided for water treatment costs using a combination of active and passive methods, based on research, development and demonstration activities at our operations. The NEMA regulations require that provisions for water treatment be based on currently available technologies that the DMPR has approved based on evidence that the technology to be implemented consistently achieves discharge requirements. Further information about our passive treatment initiatives can be found on page 50. #### SOUTH AFRICA We currently maintain the financial provisions required by the DMPR and NEMA through two mechanisms: environmental rehabilitation trusts and guarantees with financial institutions. These funds cannot be accessed for general use. The rehabilitation trust’s value as at 31December 2024 was R4,266 million (2023: R3,740 million). Guarantees of R3,221 million (2023: R3,221 million) are primarily in place to meet any immediate obligations under the existing regulations and are issued in favour of the DMPR. All operations’ closure liabilities are fully provided for in terms of the MPRDA. During the year, we contributed an additional R204 million (2023: R205 million) into long-term investments referred to as the green fund. This was done through two financial institutions to secure the guarantees required to further furnish financial provisioning. These investments are held as collateral in favour of the financial institutions for the guarantees provided to the Group. Further information on our financial provisions can be found on pages 134 to 141 of the Thungela Annual Financial Statements. ![]() 77 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 3 04. SOCIAL 05. GOVERNANCE 06. APPENDICES REGULATORY ENVIRONMENT Coal mining is an ‘environmentally relevant activity’ requiring an environmental authority under the Environmental Protection Act (EPA) 1994 (Queensland) before a mining lease can be issued under the Mineral Resources Act 1989 (Queensland). Large coal mines must submit a progressive rehabilitation and closure plan for approval, detailing milestones to maximise land rehabilitation to a stable condition. The rehabilitation and closure plan must be prepared in accordance with the requirements set out in the EPA and a statutory guideline issued by the Department of Environment, Science and Innovation (DESI). These may be amended based on changes in the operation’s life of mine (LOM) plan. DESI determines the environmental rehabilitation costs for the mining activity being undertaken. The application must state the period to be covered in the determination, as well as the estimate of the total cost of rehabilitation for the period, calculated according to the methodology set out in the statutory guidelines. The environmental rehabilitation cost determination remains current for the determination period, unless an application for a new determination is made at least three months before the determination period ends, in which case the environmental rehabilitation cost determination will remain current until the new determination has been made. The most recent environmental rehabilitation cost determination for Ensham, which was issued in December2022 and remains in force until 30 June 2025, amounts to approximately R3,196 million (AUD274 million) (2023: R3,414 million or AUD274 million), on a 100% basis. Holders of environmental authorities for resource activities must contribute to the financial provisioning scheme established under the Mineral and Energy Resources (Financial Provisioning) Act 2018 (Queensland) and the Mineral and Energy Resources (Financial Provisioning) Regulations 2018. The nature and amount of the contribution to be made is determined by the scheme manager, and is based on their assessment of the State of Queensland’s risk of incurring costs and expenses because the holder has not rehabilitated or restored the environment. The scheme manager may determine that this contribution is to be made by way of a payment into a pooled fund or the provision of a financial surety, or both. #### AUSTRALIA ![]() 78 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT MINE CLOSURE AND REHABILITATION ENVIRONMENTAL PROVISIONS FOR ENSHAM An assessment of the environmental liability for the rehabilitation of Ensham’s opencast area was prepared by an independent consultant in 2024. This assessment was conducted from first principles based on an understanding of various inputs, including the volume of material to be moved, the distance it is to be moved and the method by which rehabilitation is to be completed, together with the related costs. The costs to be incurred for rehabilitation will be spent over the course of the rehabilitation and closure plan as agreed with DESI, which impacts the net present value of the liability recognised in the statement of financial position. Based on the assessment performed, the environmental provisions recognised on the statement of financial position amount to R3,977 million (2023: R3,855 million). Sungela, as the new owner of a portion of the mining leases related to Ensham, has not yet been accepted into the Queensland pool, however, this acceptance is being actively pursued. On this basis, we are required tomaintain financial surety for the current environmental rehabilitation cost determination of $3,196 million or AUD274million (2023: $3,414 million or AUD274 million), on a 100% basis. The Group has invested R970 million in long-term investments through three financial institutions to secure the required financial surety, issued in favour of the State of Queensland. These investments are held in the name of the financial institutions to build up the required cash collateral for the rehabilitation liability over the remaining LOM. We will continue to assess the rehabilitation activities required and ensure that rehabilitation costs and methods are optimised in line with existing methods. #### LOOKING AHEAD With Goedehoop going into closure in 2025, our focus will be on commencing with the successful closure of this mine. As a business, we will continue to drive progressive rehabilitation to reduce our environmental liabilities. Additionally, we will initiate projects and programmes at all closing sites in collaboration with surrounding communities to stimulate economic diversification. ![]() 79 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 3 04. SOCIAL 05. GOVERNANCE 06. APPENDICES ### BIODIVERSITY We recognise the interconnectedness of biodiversity with climate change and other ecosystem elements such as water, air and human activities. We undertake continuous monitoring of the environment, including ecological, groundwater, soil, noise and air monitoring and use this data to embed biodiversity conservation into our activities through adaptive environmental management practices. We also engage our stakeholders and form partnerships to help achieve effective and long-lasting outcomes. We are committed to not conducting any exploration, drilling or mining in World Heritage areas and International Union for Conservation of Nature (IUCN) category I-IV protected areas, and to not putting the integrity of such properties at risk. We conduct our work with respect for legally designated areas. #### We are committed to no net loss of biodiversity and, where possible, to improving biodiversity #### wherever we operate. ![]() 80 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT #### OUR APPROACH Given the potential of mining activities to affect habitats through land disturbance, land use change and pollution, we have continued to implement biodiversity management plans (BMPs). BMPs set the minimum requirements for managing biodiversity throughout the mining lifecycle by mitigating impacts and enhancing ecosystem services. In 2021, our South African operations completed detailed biodiversity assessments, defining significant biodiversity features to protect and restore, and developed site-specific BMPs to guide progress towards achieving no net loss of biodiversity. These BMPs informed the development of a regional management plan, which optimises the potential for balancing losses against contributions to biodiversity, rather than confining attainable results to specific sites. We can create maximum benefit on a regional scale by protecting remaining areas of high biodiversity value and designing site-based rehabilitation efforts to conserve and restore biodiversity. Our BMPs identify risks to biodiversity and set objectives to mitigate these. They are divided into three categories: • no net loss of natural habitats; • maintaining or improving the value of significant biodiversity features in the local study area; and • maintaining or improving ecosystem service delivery. When implementing BMPs, we track site-specific indicators quarterly, half-yearly or annually as per the approved site plan. Indicators are integrated into the SHE performance management system. These plans can include measures such as preliminary clearing works, habitat relocation, flora and fauna conservation, invasive species control and fire and grazing management. BMPs must be reviewed and updated internally on a three-year basis, or when there is a significant change in the site’s footprint, area of influence or understanding of relevant biodiversity impacts. Each site must identify and implement priority biodiversity projects that contribute to our no net loss target for biodiversity. These are linked to our SHE management system for monitoring and analysis of data, adaptive management and continuous improvement. Where residual impacts on significant biodiversity features remain after the application of the mitigation hierarchy, biodiversity offsets must be implemented in accordance with national legislation. Clearly documented roles and responsibilities for work at both site and regional level ensure the appropriate allocation of expertise to the management actions identified. Our approach is strengthened through the implementation of our biodiversity standard. This standard is supported by a biodiversity guideline for implementation and outlines a systematic approach to identifying and setting targets for significant biodiversity features, identifying actions to meet these targets, and tracking progress to achieve no net loss through monitoring programmes. Each operation continues to identify opportunities to implement additional conservation actions that meet the requirements of the biodiversity standard. These actions will also assist the operations in meeting their environmental authorisation conditions as they relate to biodiversity, such as alien species management, erosion control and protected species management. While Ensham does not have a BMP, it does undertake alien invasive and feral animal management as required and has identified a tree species in the mine life-extension area that is classified as a threatened ‘ecological community’ under the Environment Protection and Biodiversity Conservation Act 1999. These trees are protected from harm by clearing or subsidence. Ensham engaged an ecologist to undertake a baseline pre-mining assessment of the species. This has been deemed its priority biodiversity project and will be tracked by management. Biodiversity management extends beyond the duration of our mining activities. Therefore, our no-net-loss goal and related biodiversity objectives are integrated into closure plans through a commitment to establish stable and sustainable landforms, to monitor these and offset where impact is unavoidable. GOVERNANCE The board’s health, safety, environment and risk committee has oversight of biodiversity and progress on biodiversity priority projects is reported quarterly. Mine management reports on priority projects to the executive committee at monthly performance reviews. Each site is audited annually against the biodiversity standard and develops action plans to address any gaps identified. BIODIVERSITY ![]() 81 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 3 04. SOCIAL 05. GOVERNANCE 06. APPENDICES 81 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 ![]() 82 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT RISKS AND OPPORTUNITIES Thungela faces both risks and opportunities related to biodiversity. Habitat destruction, leading to the loss of biodiversity and the potential endangerment of local flora and fauna, is a key risk related to our mining operations. Investing in habitat restoration and conservation programmes, including setting aside land for conservation, reintroducing indigenous and/or endemic species and undertaking progressive land rehabilitation, helps to mitigate the impact of our operations on biodiversity. Rehabilitated areas also present opportunities for the integration of objectives for the conservation of faunal species of concern in mine closure plans. Mining-related activities can also affect water resources, contribute to the release of dust and other emissions, and potentially facilitate the spread of invasive species, all of which can adversely impact local ecosystems. By adopting responsible and sustainable practices, engaging with stakeholders, and investing in biodiversity stewardship, we aim to mitigate risks and contribute positively to biodiversity protection and management. We have a significant opportunity to balance losses against contributions to biodiversity by managing it at a regional scale. We can protect remaining areas of high biodiversity value and design site-based rehabilitation efforts to conserve and restore biodiversity. The proximity of our operations to those of our peers presents an opportunity for the development of partnerships to reduce fragmentation in the landscape, create corridors that allow for the movement of larger animals – which is essential for maintaining genetic diversity – and collaborate on catchment-level wetland rehabilitation and offset strategies. BIODIVERSITY 82 ![]() 83 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 3 04. SOCIAL 05. GOVERNANCE 06. APPENDICES #### PERFORMANCE PARTNERING FOR BIODIVERSITY On 14 February 2024, we officially opened a fish-breeding facility at Loskop Dam. The first-of-a-kind facility was established to help reintroduce fish species into the Olifants-Wilge River system that was impacted by an incident at our Kromdraai site in February 2022. We partnered with the MTPA on the facility, which aims to bolster native fish biodiversity conservation, enhance public awareness and support the breeding of vulnerable species that have not been bred in captivity before. To date, 6,500 fish have been released, including tilapia, yellowfish and small barbs. We have also continued to drive our nature-based solutions to treating and managing mine-impacted water as well as addressing topsoil availability issues. Read more about passive water treatment solutions on page 50. Biodiversity management often requires coordinated efforts across multiple stakeholders, including government agencies, businesses, NGOs, local communities and indigenous groups. Partnerships play an essential role by fostering collaboration, innovation, scalability, shared responsibility and capacity building. By working together, stakeholders can address the complex challenges of biodiversity conservation and achieve more sustainable outcomes for both people and the planet. We are members of the National Biodiversity and Business Network (NBBN), which enables us to contribute to the industry becoming a positive force for nature conservation in South Africa. The network – which falls under the ambit of the Endangered Wildlife Trust – works with companies across industry sectors to help them lessen their impacts on the natural environment and identify more sustainable ways of operating. We continue to participate in the NBBN’s working group for the mining sector, which comprises representatives from major mining companies and the South African National Biodiversity Institute. Our business aims to explore common challenges and risks, share best practices and develop collaborative solutions to shared challenges, while facilitating important interactions with key local and international stakeholders such as the JSE Limited, government and the IUCN. During the year, we partnered with the Mpumalanga Tourism and Parks Agency (MTPA) on the development of a fish-breeding facility at Loskop Dam. This will become a centre of learning on indigenous fish species and will go on to replace stocks of fish lost not just to the Olifants-Wilge catchment, but to similarly affected river systems across the country. We also contributed to the agency’s black- footed cat breeding programme and a project that has seen the reintroduction of Nile crocodile to the region. ![]() 84 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT #### BIODIVERSITY PRIORITY PROJECTS All operations embark on an annual project with tangible and measurable positive outcomes on biodiversity. These projects focus on enhancing biodiversity with the objective of either supporting ecosystems or specific species and are linked to their BMPs. #### CHEETAH OUTREACH TRUST PROJECT The Waterberg Estate has lent its support to the Cheetah Outreach Trust to #### help conserve South Africa’s free-roaming cheetah population. The 15,000 ha estate in Lephalale, Limpopo, is home to our ongoing coal bed methane exploration programme and houses our long-standing sable antelope and buffalo breeding projects. The farm is rich in biodiversity and supports a variety of wildlife, including zebra, giraffe, eland, nyala and kudu. It also hosts endangered species such as pangolin, the African giant bullfrog and cheetah. A coalition of cheetahs that roam the estate and surrounding bushveld attracted the attention of the Cheetah Outreach Trust. The trust gathers scientific data on the country’s free-roaming cheetah population – cats that occur in farmland areas outside the confines of formally protected areas. Joined by researchers from Ashia Cheetah Conservation, the University of Stellenbosch and the University of Groningen in the Netherlands, the trust captured, collared and released five cheetahs back onto the estate. It has also embarked on a census using camera traps that will gather precise insights into cheetah behaviour and the dynamics of human-cheetah interactions in farm areas. The estimated global cheetah population has dwindled to around 6,600 animals due to shrinking habitat, declining natural prey numbers and conflict with human activities. The project aims to create an environment in which farming and wildlife conservation can co-exist and we are delighted to have been able to support its efforts. We are currently working on an arrangement to provide formal assistance to this worthy cause. BIODIVERSITY ![]() 85 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 3 04. SOCIAL 05. GOVERNANCE 06. APPENDICES In 2024, researchers from the University of Pretoria investigated the presence of small mammals at one of Khwezela’s rehabilitated sites. Funded by the Coaltech Research Association, a non-profit organisation that meets the South African coal industry’s research needs, the study aimed to determine the effectiveness of current rehabilitation practices and how they can be tailored to attract further biodiversity. Our South African mines are situated in the Highveld grassland biome, large portions of which have been disturbed by agriculture and mining. These operations have an exceptional opportunity to restore these habitats post-mining, and bring back species that once thrived. The presence of small mammal populations provides an excellent indicator of the current state of a biome and its future potential. By understanding what native animal species prefer, rehabilitation can be specifically designed to meet their needs. The study was carried out by the university’s Mammal Research Institute, using a variety of research methods. These included acoustic recorders to monitor bats, cameras and small mammal traps which were systematically placed across various parts of Khwezela’s rehabilitated Schoongezicht pit. Small mammals were captured and identified, measured and sexed before being released back into the environment. To ensure humane conditions, traps were placed out of direct sunlight and checked early in the morning, before the heat of the day. The findings were encouraging and compared well with the old Umlalazi Game Reserve, which served as a control site as it has not been directly impacted by mining. Researchers confirmed the presence of several species of mongoose, various bat species based on their echolocation calls and several types of rodents, including the pygmy mouse. Biodiversity attracts biodiversity, which means that as small mammal populations like mice and other rodents grow, we can expect more birds, more reptiles and other species to make their return to rehabilitated sites. #### SMALL MAMMAL PROJECT AT KHWEZELA ![]() 86 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT #### USING NATURE TO CREATE TOPSOIL Closure specialists are working towards reshaping the way we return mine land to sustainable use with a trial that uses Fungcoal and rock mulch produced on site. One of the biggest challenges our business faces in returning mine land to sustainable use is the availability of topsoil. This finite commodity is extremely expensive, and taking it from ‘borrow’ pits means creating one environmental challenge to address another. The trial is a partnership between our business and the Coaltech Research Association and is being undertaken at Kromdraai which, like many older closing sites, has a significant topsoil deficit. In 2013, Thungela, together with Rhodes University and Coaltech, began research into the use of biological mechanisms to create self- cladding covers that can sustainably support vegetation. The result was Fungcoal technology, a bioprocess that harnesses the ability of certain fungi to rapidly convert waste coal into soil-like material that is rich in fulvic and humic acids, acting as a natural fertiliser. This technology was patented after more than a decade of research and development by our business and Rhodes University’s Institute for Environmental Biotechnology. Rhodes has since completed a technology transfer, which has resulted in the patent being licensed for manufacturing and sale by commercial partner Ravfin Industries. Under this agreement – the first of its kind in the university’s 119-year history – Fungcoal is available to Thungela at cost price, while 10% of any profits made by Ravfin are ploughed back into our Nkulo Community Partnership Trust. At Kromdraai, the growth medium being used is levelled overburden spoils, which is crushed in situ to create mulch. Crushing rock close to the surface has the benefit of reducing potential damage to agricultural implements once land has been turned back to productive use. The trial covers an area of 45 ha and aims to prove that land rehabilitated in this way is suitable for agriculture. Indigenous and pasture grass appear to be thriving, and will be monitored to determine nutrient levels, and address toxicity concerns and the land’s suitability for agricultural equipment use. The next step will be to engage the DMPR and the DFFE so that they have sufficient data to consider and, ultimately, approve the use of Fungcoal and rock mulch as a sustainable solution for opencast mines – not just in our own business but further afield. #### LOOKING AHEAD In 2025, the regional BMP will be updated by a third-party specialist to include site specific information and performance indicators and to outline the approach to measuring our progress against our no net loss target. We will continue our focus on enhancing spatial biodiversity data while tracking and auditing biodiversity projects. BIODIVERSITY ![]() 87 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 3 04. SOCIAL 05. GOVERNANCE 06. APPENDICES ## SOCIAL Safety and health 88 Our people 102 Communities 117 Making a positive contribution 135 04 87 ![]() 88 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT Our risk-based approach is driven from the board and its health, safety, environment and risk committee to the executive committee, site management teams and frontline supervisory personnel. Safety and health begin with every employee and contractor’s ability to identify, assess and control workplace risks. Achieving this requires ongoing leadership focus on building a strong safety and health culture through regular engagement with our workforce, comprehensive training in operational risk management and the allocation of necessary resources to achieve legal compliance. Key to our approach is the rigorous reporting of safety and health high-potential hazards (HPHs), the analysis of leading and lagging indicators, and a structured process for learning from incidents to prevent repeats. ### SAFETY AND HEALTH Every person that works for Thungela must be able to earn a living for their family without the risk of harm – whether from workplace safety risks or from long-term exposure to occupational health hazards. Our integrated approach to the management of occupational safety and health risks is based on the following principles: A zero-harm mindset and the belief that all accidents and occupational illnesses can be prevented. A ZEROHARM MINDSET Learning from incidents to prevent repeats. NO REPEATS Simple, non-negotiable standards applied consistently throughout the organisation. SIMPLE, NONNEGOTIABLE STANDARDS No repeats Simple, non-negotiable standards A zero- harm mindset ROBUST SYSTEMS Clear accountability and commitment are supported by a robust set of systems that specify the requirements for managing health and safety risks. These include the Thungela Safety, Health and Environment (SHE) Policy, the International Standards Organization’s ISO 45001 occupational safety and health management system and a suite of technical and SHE standards and specifications that address key risks. During the year, all South African mines received and maintained their certification to the ISO 45001 standard and once again implemented SHE management plans to address and facilitate continuous improvement. OPERATIONAL RISK MANAGEMENT Operational risk management (ORM) enables us to proactively identify and mitigate hazards that cause injury and illness. All leaders are trained in the four layers of our ORM process – continuous, task, issue-based and baseline risk management, to better enable them to make informed decisions, manage risks effectively, and protect the wellbeing of their teams. The goal is to effectively manage all forms of risk, with special emphasis on the elimination of fatalities, life-altering injury and disabling occupational illness. Critical controls are identified through the ORM process and are implemented to prevent priority unwanted events. These controls involve one or a combination of acts, objects, engineered solutions or systems. ORM is integrated into all tasks through job risk assessments, which are present at work execution through a summarised and effective work execution document. ![]() 89 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES MANAGING INCIDENTS Leading and lagging indicators, including HPHs and high- potential incidents (HPIs), are investigated and analysed to inform the ongoing development of site safety and health interventions. Importantly, incidents are also discussed in monthly ‘learn and share’ sessions attended by the executive committee, site management teams and subject matter experts. A learning-from- incidents standard guides the process to be followed to investigate and address findings to prevent repeats or similar events. During the year, we conducted an internal audit to bring about improvements in our learning-from-incidents process. We actively encourage the reporting of safety and health-related HPHs at all levels so that hazards can be removed before an incident occurs. During the year, employees reported and dealt with 2,867 (2023: 2,444) safety and health-related HPHs. AN ALIGNED WORKFORCE When it comes to matters of safety and health, there is no distinction between our permanent workforce and full-time contractors. All individuals follow the same practices, procedures and policies, participate in the same training and medical surveillance processes, and have equal access to chronic disease management services and mental health support. This aligned approach brings about consistency in both the management and mitigation of health and safety risks. All workers have the right to refuse unsafe or unhealthy work or conditions without fear of recrimination. We regularly create awareness of this right to ensure that it is enacted by employees and respected by managers. EMERGENCY PREPAREDNESS AND RESPONSE Following an explosion at Grosvenor mine in Queensland, Australia, where all emergency protocols were followed and the workforce was safely evacuated without injury, we conducted a review of our own preparedness for an incident of this magnitude. While we have emergency preparedness and response plans in place, it is important that they and critical controls be tested under a full mine evacuation drill, with the relevant service providers that would be involved in such an emergency. This was done in 2024 and will be repeated annually. This includes simulations on proto fans and/or blowers and refuge bay pressurisation for life sustainability. We are also assessing risks and integrating learnings from a Coaltech refuge bay life sustainability study. ASSURANCE We conduct internal and external assurance audits to ensure that our operations meet the necessary safety and health standards and comply with relevant legislation. By conducting regular audits, we monitor performance and implement necessary changes to mitigate risks and improve overall compliance. Assurance takes place at three levels, starting with first level assurance in which employees and managers are empowered to take ownership of risks, self-correct deviations and demonstrate how safety and health objectives can be achieved in their daily activities. Second level assurance sees functional owners and subject matter experts provide monitoring, analysis and support to ensure the achievement of these objectives across the organisation. Third level assurance is conducted by independent auditors and assurance services that provide an objective, external assessment of governance and risk management practices. ![]() 90 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT PERFORMANCE This shift – together with the inclusion of a standardised and more specific set of safety key results areas in leaders’ performance contracts, was made in response to a regression in our safety performance in 2023. The findings of investigations into HPIs during this period revealed that these occurrences were, almost without exception, the result of individuals’ failure to check and/or apply critical controls. Over and above our own ongoing critical control verification process, we contracted an independent team to commence a rigorous testing and assurance process to identify potential risks and provide valuable recommendations to improve our critical control processes. We are pleased to report that these and other actions contributed to a significantly improved safety performance with, first and foremost, zero loss of life. The Group total recordable case frequency rate (TRCFR) improved from 2.80 in 2023 to 1.93 LA in 2024. Group total recordable injuries fell from 48 in 2023 to 26 in 2024, while total work related injuries (including first aid cases) dropped to 186 LA in 2024 from 234 in 2023. In South Africa, the TRCFR declined 23% to 1.07, from the previous year’s 1.40 and two HPIs occurred in 2024 compared to 10 in 2023. In Australia, Ensham achieved a radical improvement in its TRCFR which stands at 13.21 (2023: 22.63). This step-change was brought about by a focus on improving and maintaining conditions underfoot, a concerted effort to enhance leadership visibility in the workplace and by ensuring the effective implementation of controls. A ‘stop and reset’ process has been introduced. This requires work groups to stop, discuss, reflect and act, even when a minor incident occurs. While we recognise and value this progress, we remain acutely aware that safety is an ongoing journey. Achieving our goal of a zero-harm business will require sustained efforts and commitment from every employee and manager, continued investment in innovative technologies and a deeply embedded safety culture. \*per million hours worked. ### SAFETY In 2024, safety became an additional pillar of our business strategy, reinforcing its significance to our business. By making it our first strategic pillar, we sent a clear message to all levels of leadership that the elimination of harm comes before all else. 2024 Safety performance 2024 2023 2022 2021 2020 Fatality 0 RA 1 0 1 1 TRCFR\* 1.93 LA 2.80 South Africa 1.07 1.40 1.41 1.35 1. 51 Australia 13.21 22.63 Lost-time injury frequency rate (LTIFR)\* 1.23 LA 2.17 South Africa 0.66 0.97 0.85 0.81 0.85 Australia 8.58 19.20 Lost-time injuries 26 48 15 15 17 Medical treatment cases 15 13 10 9 12 Total recordable cases 41 62 25 25 30 TRCFR (Per million hoursworked) 2023: 2.80 1.93 Fatality 2023: 1 0 LTIFR (Per million hoursworked) 2023: 2.17 1.23 HPIs 2023: 10 2 ![]() 91 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES #### STRATEGY #### Our safety strategy is based on three key areas: getting the basics right, work management #### and sustainable risk reduction through culture change. The basics are the fundamental principles that, when consistently adhered to, ensure that no employee comes to harm in the execution of their duties. These include the Six Essentials for safe production, namely: • rigorous planning; • safe work area design; • systematic change management; • effective supervision; • correct tools and equipment; and • creating a competent workforce. Employees must also abide by the 13 life-saving Eyethu Rules created in 2017, as a collective effort by leadership and labour to eradicate fatalities in the workplace. Before their inception, safety rules were exclusively set by management and often felt distant and unclear to the general labour force. The Eyethu Rules marked a pivotal shift, as unions and management collaborated to develop clear, easy-to- understand and universally owned safety guidelines that address priority unwanted events. These include fall of ground, contact with mobile machinery and failure to lock out. ‘Eyethu’ is the Zulu word for ‘ours’ and underscores a collective responsibility for safety. Other basics include the requirement for all leaders to undertake routine focused leadership interactions in the field, high-risk work verifications for non-routine tasks, critical control monitoring and HPH reporting and incident management. GETTING THE BASICS RIGHT Work management is an operating model that integrates ORM into the planning of all tasks. Fully implemented at four of our South African sites, it establishes a structured framework for the approval, planning, resourcing, scheduling and execution of all work through a centralised, site-based work management hub. Planning, resourcing and scheduling were previously managed by frontline leaders who faced considerable pressure balancing these duties while overseeing safety. The model alleviates this burden and enables leaders to focus on more effectively supervising their teams. It also facilitates high-quality planning, which is statistically proven to be 75% safer, 30% more productive and 20% more cost- effective than unplanned work. Further supporting this model is the deployment of intrinsically safe mobile devices for employees working underground and in the field. These devices enable real-time task management, reducing reliance on office-based functions and freeing up time for employees to focus on managing safety within their teams. WORK MANAGEMENT To build a strong safety culture, our frontline leaders must be well- equipped to lead effectively. In 2024, we launched a survey to establish a baseline of our safety culture on the frontline. The goal is to understand how frontline leaders view themselves and how their teams experienced their leadership. The survey is based on our new frontline leadership development programme, the DuPont Sustainable Risk Reduction principles we introduced in 2018 and 2019, and the Six Essentials. Nearly 70% of frontline leaders were evaluated last year, with the remaining assessments planned for 2025. The intention is to provide each leader with information to inform the creation of a personal development plan. For supervisors who have completed the formal training, this serves as a refresher, helping them to revisit key topics and structure their focus areas. For those who have not completed the training, the baseline provides a clear starting point and highlights specific areas to prioritise during training and coaching. The overall results identify trends across operations, highlight challenges for frontline supervisors and inform site-specific action plans to strengthen support. These assessments will be conducted annually to track individual and operational progress over time. SUSTAINABLE RISK REDUCTION THROUGH CULTURE CHANGE ![]() 92 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT TRAINING Frontline leaders are accountable for ensuring that our safety strategy is effectively applied in working areas and are instrumental in driving a strong safety culture. We continued with the implementation of our frontline leadership programme which empowers supervisory personnel with the knowledge and skills to enhance safety communication and engagement, role modelling and accountability within their teams. Employees who have completed the programme undergo an evaluation process to monitor their progress, identify areas for improvement and trigger interventions to improve their performance. We also provided learning-from-incidents training to colleagues in middle management and above, while all employees receive training in ORM. Every two years, underground workers in South Africa visit Kloppersbos, a fire and explosions testing, training and research facility managed by the Council for Scientific and Industrial Research. This facility plays a crucial role in enhancing safety in industries susceptible to fires and explosions, with awareness on mine fire and explosion safety. The unique location and size of the facility allow for the demonstration of large-scale detonations, so that trainees witness first-hand the devastating consequences that methane and coal dust explosions can have on people and their environments. SAFETY AWARENESS Safety awareness and communication are prioritised throughout the year and are intensified during high-risk periods. Historical data in the mining industry reveals that accidents and incidents are more likely to occur in the run-up to the festive season and then, again, as employees return to work early the following year. To maintain high levels of safety energy and engagement, each mine developed a tailored campaign aimed at fostering increased participation through games and challenges that reinforce daily health and safety practices. For example, Greenside introduced T-Uno, a Thungela twist on the classic card game Uno, to help employees refresh their understanding of critical controls relevant to their sections. Similarly, Goedehoop’s football-themed initiative encouraged employees to identify and report HPIs for a chance to score and win. Isibonelo’s campaign was centred on Snakes and Ladders, with the snakes representing workplace risks and hazards, while the ladders symbolised the controls that guide employees to the safe completion of every task. ![]() 93 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES COMPLIANCE In South Africa, safety and health are regulated under the Mine Health and Safety Act, while Ensham is regulated under the Queensland Coal Mining Act 1999 and Regulations 2017. We maintain a strong, collaborative relationship with the Department of Mineral and Petroleum Resources and its safety inspectorate. In 2024, the regulator issued one safety-related Section 54 notice. A Section 54 is a provision under the South African Mine Health and Safety Act that grants the Chief Inspector of Mines the authority to suspend operations at a mine or specific section if there is an immediate threat to the health and safety of workers. To promote accountability and transparency, we have an internal Section 54 process that stops sections, departments or equipment based on the risks identified so that these can be resolved before work continues. This is followed by an internal review process of the stoppage, an investigation into why risks were present and actions to prevent them from occurring again. #### LOOKING AHEAD We will focus on the fundamentals and ensure that the right routines are in place to support management, that systems are optimally used and that we leverage the data we have at our disposal to improve safety. Operations took full ownership of their SHE campaigns and plans for the second year in 2024, and we will continue to monitor their progress. Assurance, oversight and governance will continue from a central level. ![]() 94 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT ### HEALTH AND WELLBEING #### We prevent and mitigate occupational health risks and help employees to achieve optimal #### physical, mental, financial and psychosocial wellbeing. This involves: • making people aware of the health risks present in their working environments; • eliminating or mitigating these risks by applying robust systems, standards and controls; • implementing technical solutions to engineer out hazards; • real-time monitoring of exposure levels and ongoing progress against industry milestones; and • providing resources to help employees effectively manage their personal health. Primary workplace health risks include respirable dust and noise, followed by ergonomics, thermal stress and, increasingly, mental stress due to a combination of work and personal pressures. During the year, five LA employees were diagnosed with noise-induced hearing loss (NIHL), and one with chronic obstructive airways disease (COAD). ERGONOMICS THERMAL STRESS MENTAL STRESS NOISEDUST ![]() 95 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES #### APPROACH TO #### OCCUPATIONAL HEALTH Unlike workplace injuries and fatalities, which have immediate and visible impacts, the effects of occupational illness manifest over time with potentially devastating outcomes. Therefore, health must be approached with the same uncompromising standards as safety. This requires rigorous hazard identification and control, comprehensive incident reporting and investigation, and a commitment to learning from past cases to generate ongoing improvements in our performance. MEDICAL SURVEILLANCE Monitoring worker health is a vital part of our approach as it enables us to screen and address early illness due to lifestyle and workplace factors. It also enables us to assess the effectiveness of our controls so that existing health management strategies can be reinforced and refined. All new employees and contractors undergo an initial medical assessment to establish their baseline health. This is followed by examinations for the annual medical certificate of fitness. Our in-house medical service and occupational health centre in South Africa make use of an advanced digital health and hygiene linkage system that enables health professionals to capture, track and analyse each employee’s exposure profile over time. Possible cases of occupational disease are investigated so that appropriate actions can be taken. MANAGING OCCUPATIONAL EXPOSURE Our most critical workplace health risks are coal dust and noise. Coal dust, due to its potential to cause occupational lung diseases such as coal workers’ pneumoconiosis and COAD, and noise, which poses a significant risk for permanent hearing loss over time. Our goal is to eliminate these hazards by engineering them out at source, however, where this cannot be done, they should be reduced to levels as low as may be reasonably practicable. We assess the effectiveness of controls through continuous real-time monitoring and the critical control verification process. Employees receive regular training and awareness on occupational health risks and how they should be dealt with. We also strictly enforce the use of personal protective equipment (PPE) where occupational exposure levels exceed set limits. PPE, including customised hearing protection and items specifically designed for women, meets national and international quality standards. REALTIME MONITORING Recent developments in sampling technology enable real-time dust monitoring, which allows workers to respond immediately when thresholds are reached. In the past, exceedances were only identified through the use of retrospective laboratory testing, which resulted in a far more reactive response. These technologies monitor environmental conditions and the performance of engineering controls and trigger alerts when controls fail. This prompts early root-cause analysis to prevent repeats. During the year, employees were trained on how to respond to audible and visual alerts as per the trigger action response plan for dust. HAZARD REPORTING Employees are encouraged to report not only high- potential safety hazards but also health hazards that may result in negative outcomes. During the year, members of the workforce reported and dealt with 362 HPHs (2023: 124). This marks a significant improvement in reporting and demonstrates employees’ growing commitment to addressing these hazards. ![]() 96 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT #### MANAGING DUST Long-term exposure to coal and crystalline silica dust heightens the risk of occupational lung diseases such as coal workers’ pneumoconiosis, COAD and occupational tuberculosis (TB). To mitigate these risks, we place strong emphasis on proactive risk management, regulatory compliance and early detection. Underground workers in high-risk exposure groups now carry hand-held real-time dust monitors to alert them of an exceedance, while static real-time dust monitoring devices have been installed in continuous mining machines and at intake airways. Goedehoop, which received a CoalSAFE award for its proactive work on reducing exposure, trialled a foam additive to aid suppression in hotspots such as belt drives and conveyor transfer points. Apart from using less water, the foam being tested provides seven times more coverage around airborne particles than traditional systems and remains effective for up to three hours after application. Enhancements like these will continue to drive a steady reduction in the number of employees who are exposed to respirable hazards. In 2024, a total of 396 LA employees in South Africa operated in areas classified in the homogenous exposure group (HEG) A-Category compared with 522 the previous year and 639 in 2022. Our mines ordered 47 internal stoppages to address failures in dust and noise controls. These proactive holds are viewed in a positive light as they demonstrate site teams’ dedication to prioritising health over production. We received an application for certification of a class action from Richard Spoor Incorporated on behalf of various applicants and potential claimants in relation to coal miners’ pneumoconiosis with or without COAD. This is one of four such applications that have been filed against several current and historical coal mining companies. We, like other respondents, have filed an answering affidavit. Richard Spoor Incorporated, on behalf of the applicants, may now file replying affidavits and related processes to which we will respond appropriately. The applications are under judicial case management. We anticipate that should the certification applications proceed, these may be considered by the court in November 2025. #### HEARING CONSERVATION The potential for NIHL is a concern we manage through ongoing education and awareness, engineering controls and the mandatory use of hearing protection in areas where employees are exposed to noise levels of 85 A-weighted decibels (dBA) or more. Annual and ad hoc audiometric screenings also provide early warning of hearing deterioration, allowing for timely corrective action. Each of our sites has an equipment noise register to record noise sources, sound pressure levels and control measures. Our primary focus remains on controlling exposure at source and protecting employees who work in environments where noise levels exceed an eight-hour time-weighted average (TWA) of 85 dBA. The incidence of exposure to levels greater than 85 dBA over an eight-hour TWA in South Africa increased to 3,706 LA in 2024 from 3,622 in 2023. ![]() 97 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES #### PROGRESS AGAINST TARGETS PROGRESS AGAINST THE MHSC’S 2024 OCCUPATIONAL HEALTH MILESTONES Progress against the Mine Health and Safety Council’s (MHSC) targets on noise and dust which ran until December 2024 is shown below. The MHSC recently released new milestones for 2034. We will work towards these with sustained focus and diligence to ensure continuous improvement and compliance. We have exceeded the targets set for TB and HIV. \*Previously unexposed individuals were not exposed to mining dust before December 2008 (equivalent to a new person entering the industry in 2009). Noise-induced hearing loss Milestone Performance against target To eliminate noise-induced hearing loss by December 2024. • No new cases of NIHL by December 2024. • Total noise emitted by any piece of equipment may not exceed a milestone sound pressure level of 107 dBA. • No employee’s standard threshold shift should exceed 25 dBA from the baseline when averaged at 2,000, 3,000 and 4,000 hertz in one or both ears. • Five LA cases of NIHL recorded in 2024 (2023: 2). • No equipment emitting sound pressure levels above 107 dBA. • No workers fall under HEG category A. • Employees exposed to noise above 85 dBA over an eight-hour TWA are provided with custom-made hearing protection devices. Coal workers’ pneumoconiosis Milestone Performance against target To eliminate coal workers’ pneumoconiosis by December 2024. • No new cases of coal workers’ pneumoconiosis by December 2024. • 95% of exposure measurement results for coal dust will be below the milestone level of 1.5 mg/m 3 and for crystalline silica dust below the milestone level of 0.05 mg/m 3 by December 2024. • Using current diagnostic techniques, no new cases of pneumoconiosis will occur among previously unexposed individuals\*. • We have not recorded any cases of coal workers’ pneumoconiosis since 2019. • Due to the implementation of control measures, we have seen a continued reduction in the number of people in the HEG A-category. 94% of coal dust measurement results in 2024 were below 1.5 mg/m 3 compared to 88% in 2023. 98% of crystalline silica dust measurement results in 2024 were below 0.05 mg/m 3 compared to 98% the previous year. New cases of occupational disease 2024 2023 2022 2 021 2020 Noise-induced hearing loss 5 LA 2 2 2 1 6 Chronic obstructive airways disease 1 0 1 0 0 Occupational TB 4 2 1 0 0 Occupational asthma 0 0 0 0 0 Coal workers’ pneumoconiosis 0 0 0 0 0 ![]() 98 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT #### HIV We have made tremendous strides in the fight against HIV/AIDS. Our strategy on HIV is aligned with UNAIDS’ 95-95-95 goals. A total of 98% (2023: 98%) of permanent employees underwent voluntary HIV counselling and testing (HCT) in 2024. Of all employees who live with HIV, 96% are on treatment and of these, 83% have suppressed viral loads. We are pleased to report that new infections came down to eight from 20 in 2023 and 33 the previous year. The MHSC’s 2024 target for HIV in the mining industry was to offer HIV HCT to 100% of employees annually and that all eligible employees should be on an antiretroviral treatment programme. #### TUBERCULOSIS The mining industry in South Africa was historically a high-risk sector for TB transmission, driven by long-term exposure to silica dust, high HIV co-infection rates and poor living conditions. Targeted efforts to address these factors have led to significant progress, with the industry surpassing the MHSC goal to reduce TB incidence to below national levels. For more than two decades, our business has maintained a strong focus on TB management. This commitment has led to a substantial reduction in TB incidence to 114 cases per 100,000 employees. This is significantly lower than both the industry and national averages of 278 per 100,000 and 537 per 100,000, respectively. We remain committed to eliminating TB through a rigorous approach that includes regular screening, contact tracing and treatment. Collaboration remains a cornerstone of our strategy, with key partnerships including the Department of Health (DOH) and community- based organisations such as The Employment Bureau of Africa (TEBA), which plays a vital role in tracing and treating infected employees, contractors and dependents. During the year, our medical service partnered with the Maternal, Adolescent and Child Health Institute (MatCH) to provide computer-aided detection for TB. This screening uses artificial intelligence to analyse chest X-rays to detect TB-related abnormalities. This enhanced both our screening programme and collaboration with the DOH. In the past year, four cases of cardio-respiratory TB were identified (2023: 2). We have not reported a single TB-related death within our permanent workforce since 2018. ![]() 99 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES #### EMPLOYEE WELLBEING Wellness is a core part of our value of Care and Respect. Therefore, we are dedicated to supporting our employees in achieving optimal wellbeing across all aspects of their lives. These include optimum physical and mental health, financial stability and psychosocial wellbeing. When employees achieve these, they are able to contribute to a positive workplace culture, enhanced productivity and a safer working environment. Our wellness policy commits to: • fostering a work environment that supports activities, choices and lifestyles that lead to a state of holistic health; • ensuring physical, psychosocial, occupational and financial wellbeing; • fostering an organisational climate and culture that improves health, wellness and maximum productivity; • a preventative wellness programme that reduces health risks and supports treatment; and • ensuring a non-discriminatory workplace for employees with all health conditions. PHYSICAL HEALTH In addition to annual examinations for the medical certificate of fitness, employees and contractors are actively encouraged to undergo a series of physical health checks. These activities are critical as non-communicable diseases, including heart disease, diabetes and cancer, kill 41 million people each year, and now account for 74% of all deaths worldwide. In our South African business, these checks are referred to as the ‘Vital Six’ and are undertaken by members of our in-house health service during visits to mines and centralised service departments. They include body mass index, blood pressure, blood sugar, cholesterol, HIV counselling and testing, and screening for TB, all of which contribute to early diagnosis and improved overall health outcomes. During the year, 98% (2023: 98%) of permanent employees underwent these checks. This success would not be possible without the dedication of site Be Well teams, comprising employee volunteers who proactively organise health campaigns and activities to encourage employees to undergo health tests. They offer information on monthly health topics, encourage diet and exercise and arrange periodic sports events. Their enthusiasm and commitment are commendable and deserve recognition. Sites also receive regular visits from the Cancer Association of South Africa which offers screenings for skin, breast, cervical and prostate cancer. ![]() 100 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT MENTAL HEALTH At the end of 2024, Reality Wellness took over the management of our long-standing employee assistance programme, which offers professional and confidential support to employees and their registered beneficiaries across a range of issues. One of the new programme’s key features is on-site counselling, which provides greater accessibility to support services. During the year, the most prevalent concerns among employees included stress, health and safety, absenteeism, partner or spousal issues, and trauma. Each of our operations have volunteer mental health first-aiders who help colleagues access the support they need from internal and external health and wellness channels. ![]() 101 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES FINANCIAL WELLNESS Our Bokamoso financial wellness programme in South Africa has delivered substantial financial benefits to employees, with nearly 1,100 individuals receiving assistance in 2024. Collectively, employees saved R13.7 million through various financial services and refunds. These include R8.7 million saved through debt relief instalments, R4.2 million from interest on debts and R825,000 gained through savings from loan audits and tax refunds. In addition to direct financial savings, debt relief solutions had a tangible effect on employees’ lives as four were able to save their homes from repossession, four retained ownership of their vehicles and a further four received debt clearance certificates. Bokamoso’s educational programmes have played a crucial role in empowering employees with financial knowledge. Throughout the year, more than 1,000 individuals received training on financial literacy, retirement planning and wills. While debt counselling remains a fundamental aspect of Bokamoso, retirement planning gained increased attention, particularly with the introduction of the country’s new two-pot system. Since Bokamoso’s inception in 2017, a significant transformation has been made in employee financial health. At the time, just 19% of employees were found to be in a healthy financial position, 15% were borderline healthy and an alarming 66% in an unhealthy predicament. The past few years have seen a financial transformation with 66% of the workforce now enjoying a healthy financial lifestyle, 25% borderline healthy and just 10% unhealthy. #### LOOKING AHEAD In 2025, we aim to enhance screening and the linkage to care for employees with non-communicable diseases so that they are able to manage their health effectively. 101 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 ![]() 102 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT To achieve our objectives, we must attract and retain a team of high-calibre individuals, something that is aided through our ongoing participation in the international Top Employer Institute’s certification programme. This body recognises organisations that are committed to meeting the highest standards across their people practices. We were certified as a Top Employer for the third time in 2024 and made considerable improvements in key areas such as leadership, career development, diversity, equity and inclusion, and wellbeing. ### OUR PEOPLE As a leading organisation, we rely on a workforce that is committed to operational excellence and the achievement of our ESG commitments within a safe and supportive working environment. WORKPLACE CULTURE Our values form the foundation of our organisational culture and should be upheld by all employees. Leaders, in particular, are expected to model these values through their daily actions and decisions. Embedding our values and their associated behaviours remains a major priority. In 2024, this was achieved through various initiatives. For example, it has become customary to open meetings with a ‘values share’, while a strong values component has been integrated into our leadership development and performance management programmes. Additionally, we introduced a monthly segment called Values Stars in our weekly employee newsletter to recognise employees and contractors who exemplify our values in their daily work. To deepen employee engagement, we also hosted our inaugural choir competition, Values Through Song. Culture champions are tasked with implementing targeted actions to address deficiencies that were identified during an employee survey and baseline culture assessment at our mines. Further surveys to track employee satisfaction levels and progress on embedding our culture are planned for 2025. ![]() 103 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES Living the shared values ensures the desired culture is embedded Leaders role model the values and shape the culture #### To responsibly create value, together, for a shared future Safety Care and respect Accountability Excellence Agility Entrepreneurship We Enrich Safety Drive our ESG aspirations Maximise the full potential of our assets Optimise capital allocation We Energise We Embrace We Empower We Engage We Care Create future diversification options 321 Our culture allows us to achieve our five-pillar strategy. The values that guide our behaviour. How we behave every day is The Thungela Way. This is our culture. EMPLOYEE RECOGNITION By valuing team and individual efforts, we not only boost morale but also inspire a shared commitment to our success. Our #ThungelaTogether Entrepreneurship Challenge in South Africa encouraged employees at all levels to implement projects and ideas for safer, more productive and cost-effective ways of working. The initiative was founded on the understanding that those working on the frontline know their jobs best and have a central role to play in the organisation’s achievements. Winning innovators were awarded cash prizes and received well-deserved recognition for their contributions. Our annual long-service awards are a highlight of our calendar and honour the loyalty, commitment and dedication of long- serving employees and the support they have been given by their families over many years. In 2024, we celebrated 82 long-serving employees with a combined 2,500 years of service. TALENT ATTRACTION AND RETENTION Our success begins with securing exceptional individuals who are capable of taking our business forward. In a highly competitive talent market, this requires more than attractive remuneration and benefits. It demands a strong employer brand, opportunities for professional growth and development, and a workplace culture that fosters engagement and innovation. Additionally, ESG considerations play an important role in the attraction and retention of talent, particularly as younger employees seek to align their professional and personal values. Core elements of our employee value proposition are work environment, career growth, benefits, reward and recognition. ![]() 104 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT • A values-driven culture • Ethics, integrity and social responsibility • Market position • Leadership behaviour that drives excellence • We deliver on commitments and are responsible and accountable for our actions • We embrace diversity • Corporate social responsibility • We celebrate success • Energised company • Employer of choice • Alignment across people, organisational culture, values and principles • Shaped by our ambition, values and goals • A shared sense of purpose • Inspires innovation and values ongoing learning, career growth and development • Agile decision-making and open communication • Mental and physical wellness programmes • Support healthy work-life balance #### Culture Work environment Benefits We Embrace We Empower We Engage We Enrich We Care • Industry competitive remuneration • Performance bonuses • Retirement, medical aid/insurance, death and disability cover • Paid annual and maternity leave exceeding legal requirements • Increases and career progression • Share schemes • Career growth and development • A learning culture that encourages continuous and anywhere learning • High-performance culture with continuous feedback • Ongoing career discussions • Individually tailored development plans • Stretch assignments • Linear and non-linear career paths • Education assistance #### Reward and recognition Career growth #### OUR EMPLOYEE VALUE PROPOSITION C u l t u r e W o r k e n v i r o n m e n t B e n e fi t s R e w a r d a n d r e c o g n i t i o n C a r e e r g r o w t h ![]() 105 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES #### THIS IS THE THUNGELA WAY WE ENRICH We offer an enriching world of work in which employees are encouraged to fulfil their potential. Individual development plans, exciting career paths and opportunities to stretch themselves all unlock meaningful growth and development. WE ENGAGE We support agile decision-making and honest, open communication. Our leaders strive always to be engaged and open to ideas, including dissenting views. This is how we grow together. WE EMPOWER We empower our employees with the trust and autonomy they need to achieve results. Where possible, we have flexible, productive working arrangements. We also support a healthy work-life balance. WE EMBRACE Being a good employer means creating a sense of belonging where people can bring their whole selves to work. We believe in embracing the differences that make our people, and our business, unique. WE ENERGISE We are bold, ambitious and driven by an owner-mindset. This means having an engaged workforce with a high-performance culture. WE CARE Core to our culture is the value of Care and Respect. Apart from caring for our people’s safety and overall wellbeing, we care for our environment and host communities. ![]() 106 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT Our centralised learning and development centre, along with dedicated training facilities at each mine, ensure that employees have the necessary support to excel in their roles. All our training facilities in South Africa hold ISO 9001:2015 certification, which underscores our commitment to quality and continuous improvement. These sites received updated approvals from the Mining Qualifications Authority at the end of 2024. During the year, we invested R194.5 million in training, which accounts for 4.6% of our wage bill, compared with the previous year’s R185.5 million and 4.4%. The average training time per employee came down to 222 hours (2023: 271) and our investment in per-employee training to R20,614 (2023: R23,085). These reductions are largely attributed to the increased use of virtual training through our online learning platform. Women accounted for 51% of total training hours. #### LEARNING AND DEVELOPMENT Ongoing learning and development supports safety and regulatory compliance, improves productivity, enhances leadership and boosts employee retention. Number of employees trained Investment in training (2023: 8,014) (2023: R185.5 million) 9,435 R194.5 M Average spent on training per employee Total training hours (2023: R23,085) (2023: 1.97 million) R20,641 2.1 M 106 ![]() 107 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES LEARNERSHIPS AND INTERNSHIPS In 2024, 44 people joined our mining and engineering learnership programme, bringing the total number of learners currently enrolled to 229. This programme provides a structured pathway for participants to gain both theoretical knowledge and practical workplace skills ultimately leading to a National Qualifications Framework-registered qualification. Learnerships are aligned with site Social and Labour Plans and help grow our pool of qualified artisans while attracting talent both from within the organisation and host communities. Of the current cohort, 98.6% are black South Africans, 36% are women, and 51% are community recruits. We also support students who need practical experience to complete their qualifications through our internship programme. Over the year, 55 interns gained valuable, hands-on experience at our sites. STUDY ASSISTANCE We encourage employees to further their qualifications and provide financial support through our part-time study assistance scheme. During the year, the scheme enabled 83 individuals across multiple levels and disciplines to further their tertiary education. Of these, 92% are black South Africans and 55% women. Qualifications were earned in four core areas of study, including, supply chain management, human resources, engineering and business administration. LEADERSHIP AT THE FRONT LINE More than 40% of supervisory personnel have completed our five- day frontline leadership development programme. This programme was introduced to address the key capability gaps that were identified during day-in-the-life assessments conducted at three of our mines. It strengthens key foundational areas such as change management, team performance, accountability, planning and decision- making, while reinforcing our core values and The Thungela Way. Additionally, it incorporates a robust safety component aligned with our three-pillar safety strategy, getting the basics right, work management and culture change. For further details, refer to page 91. Coaches work closely with each delegate in their respective work environments, helping them apply skills and knowledge gained in the training room to real-world scenarios. During these sessions, coaches also identify and document additional support needs to ensure that each leader successfully meets the programme’s objectives. TALENT DEVELOPMENT AND SUCCESSION PLANNING We take a strategic approach to performance management, career development and succession planning, all of which are aimed at building a strong, agile and capable workforce that is aligned with our values and goals. The starting point in our talent management process begins with identifying current and future leaders, supporting their growth potential and bringing in fresh talent to enhance the depth and diversity of our team. This approach is closely aligned with our business’s evolving needs and strategic direction. Significant emphasis is placed on succession planning to ensure stability and continuity as employees retire, resign and transition into new roles. This is particularly relevant in business-critical functions. Succession planning is aided by an annual personal development planning process in which employees and their managers set career goals, track progress against these and create personalised plans to develop the necessary skills and experience to achieve their ambitions. DEVELOPING OUR TALENT PIPELINE Our bursary scheme in South Africa is one of the primary ways we build a pipeline of future leaders and technical talent and is open to school leavers who are interested in pursuing qualifications in technical fields. These include mining, electrical, mechanical, metallurgical, industrial and rock engineering, geology, mineral surveying, the environmental sciences and ventilation and occupational hygiene engineering. Of the 33 bursars currently in the programme, 24 come from local communities and 42% are women. The scheme covers tuition, academic resources, accommodation and living expenses, and includes industry-relevant experience through paid six- to eight-week periods of employment at our sites during university vacations. Importantly, the programme administrator provides psychosocial support to help students navigate their years at university. Our two- to three-year professional-in-training (PIT) programme equips university graduates with the hands-on skills and experience they need to step into their roles. Under the guidance of seasoned mentors, they put into practice what they have learned at university, while gaining the exposure and confidence required to excel in their chosen fields. Each PIT undertakes a business improvement project which they present to the company’s senior leadership team. In many instances, their fresh insights and perspectives are adopted as viable solutions to long-standing business challenges. Our PIT programme currently comprises 48 graduates, 47% of whom are women. Some 54% of PITs originate from local communities. ![]() 108 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT The Thungela Leadership Academy, which is run in partnership with the University of Pretoria’s Gordon Institute of Business Science, entered its third year and continues to enhance the depth of leadership talent across the organisation. The academy currently offers five core programmes, namely: Ascend for young leaders and PITs, Explore for middle managers, Exceed for senior managers and GM Accelerate for current and future general managers. In 2024, we introduced a new offering, ‘Women Empowered: Rise, Lead and Transform’ for female managers in collaboration with Duke Corporate Education. Programmes are continually reviewed and refined to ensure that delegates gain the maximum value from their learning experience, while the business achieves a strong return on its investment in leadership development. One of the academy’s key objectives is to build leadership capability focused on our values and culture. In 2024, we implemented a 360-degree impact assessment that will enable us to measure meaningful shifts in leadership behaviour. #### THE THUNGELA LEADERSHIP ACADEMY 93 employees graduated from the leadership academy in 2024 (2023: 81). MINERALS EDUCATION TRUST FUND We contributed R3.8 million to the Minerals Education Trust Fund, an industry initiative in South Africa that supports and enhances university education for the next generation of mining professionals. This funding enables universities to attract and retain top-tier faculty members who specialise in a range of disciplines, including mining, metallurgical engineering and geological sciences. The initiative benefits approximately 5,600 undergraduates at nine universities nationwide. Thungela holds a position on the fund’s board. DIGITAL HUMAN RESOURCES We have made significant progress in the shift towards digital human resources that improve the efficiency of people processes and enhance employees’ experience of the world of work. Individual development planning and talent and performance management are all facilitated online, while our learner experience platform has become an indispensable tool for a growing number of employees who use it to advance their personal and professional development. Apart from its role in streamlining mandatory training online, the platform offers more than 45,000 courses that enable interested employees to learn in their own time and at their own pace. Offerings may take between 20 minutes and 12 months to complete, depending on the skills or competencies being developed, and each successfully completed course comes with a certificate of completion. In 2024, we recognised the platform’s most prolific users. One employee has completed 60 courses on, among other things, the fundamentals of finance, the Lean Six Sigma, business analytics, Microsoft Excel and a variety of short modules on health and wellness. Our learning and development centre, which trains approximately 2,300 employees in person every year, has implemented electronic attendance registers, while delegates complete flagship courses using digital tablets. Trainers also use tablets in the marking of practical assessments. A significant focus for us in the coming years will be to address the gap between digitally enabled employees and those who do not have direct access to computers due to the nature of their work. We are in the process of exploring a mobile platform that will ultimately provide these employees with the same 24/7 self- service options their computer-enabled colleagues enjoy. For example, checking leave balances, updating contact information and banking details, and downloading pay slips, tax documents and increase letters. Another digital innovation in the people space is the introduction of facial recognition at shaft entrances at two of our sites. ![]() 109 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES PERFORMANCE MANAGEMENT In 2024, we introduced SAP’s SuccessFactors performance and goal management solution to better manage individual and team performance. This digital system enables managers and employees to track progress on key results areas and development needs through regular check-ins and year-end reviews. A culture of continuous feedback is central to this approach and ensures ongoing engagement and improvement. The system is aligned with our performance management framework which, for PITs and employees in middle management and above, is linked to a variable pay component or short-term incentive. This is based on a 30:70 split between individual and team performance, with ESG metrics making up 20% of the team performance measure. For details, please refer to the remuneration report in our integrated annual report. Skilled and semi-skilled levels benefit from performance-based production bonuses. 109 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 ![]() 110 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT COMMUNITY SKILLS COMMUNITY SCHOLARSHIP SCHEME Improving access to quality education and skills and reducing the reliance of host communities on our mines through small business development are two of our four socio-economic development goals. Vocational training equips people with practical, marketable skills that enhance their ability to access employment or start their own business ventures. Our programmes not only help participants secure jobs during our mines’ operational lives but also prepare them for sustainable opportunities beyond closure. Occupational areas include operator training, security, hair and beauty, solar panel installation, baking and cookery, plumbing, tiling, electrics, bricklaying and sewing. By providing hands-on training – often accompanied by modules on entrepreneurship, we help empower individuals to build resilient futures and enable them to contribute to their communities in the longer term. Mafube, for instance, partnered with a local technical training college to enable 100 individuals to earn certified qualifications in tiling, bricklaying, hairdressing and the installation of renewable energy systems, while a further15 people became professional bakers. Zibulo gave 10 school leavers from Mabande High School an opportunity to become fully-trained seamstresses, while Isibonelo provided security learnerships for 26 individuals. Looking at technology, Khwezela invested in a six-week coding course for 10 unemployed youths. On completion of the programme, two participants were awarded an opportunity to join AfriCAN Code as facilitators for coding and robotics. During the year, our sites trained 359 people from host communities. One of the educational initiatives we are most proud of is our community scholarship scheme, which has paved the way for 112 bright young people to achieve qualifications from tertiary institutions. More than 50% of these qualifications have been gained in commerce and engineering, with 17% in the sciences, 13% in health and related disciplines and 5% each in law and information technology. These scholarships are awarded exclusively to local school leavers who come from economically challenging backgrounds. Unlike the Thungela Bursary Scheme, the programme does not require students to pursue mining-related fields. Nor do they have a service obligation to the company upon graduation. At the end of 2024, we connected with our most recent scholars at a gathering organised to introduce them to our business. Dr Kabelo Mashego earned his medical degree on a community scholarship and described it as ‘the lifeline to his future’. “Studying medicine demands long hours, intense dedication and resilience. With the financial assistance provided, I was able to focus entirely on my studies. The scholarship hasn’t just changed my life, but the lives of my family and, one day, the patients and communities I will serve.” students supported 157 million investment over 10 years R67 ![]() 111 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES LEARNERSHIPS FOR PEOPLE WITH DISABILITIES We completed the fourth instalment of our 12-month learnership programme for people with disabilities. Applicants are sourced exclusively from host communities and are all under the age of 35. This year, 55 participants gained National Qualifications Framework level four and five qualifications in supply chain, project management and business administration. The initiative has benefited 150 people with disabilities since its inception in 2021. Breakdown on learning and development Expenditure (Rm) No of participants\* Historically disadvantaged persons (HDP) (%) Women (%) Programme 2024 2023 2024 2023 2024 2023 2024 2023 Bursaries 16.5 16.2 16 4 177 92 97 54 59 Internships, learnerships andPITs 115.8 110.3 535 549 98 96 47 48 Work-integrated learning (accredited learning) 18.45 14.4 1,476 1,293 93 92 29 26 Informal training (external providers) 28.3 36.7 2,999 3,206 90 90 25 23 Informal training (internal trainers) 15.4 7.5 4,261 2,789 87 89 26 23 \*The number of participants is greater than the total number of employees trained as some employees attend more than one programme. ![]() 112 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT Permanent employees 2024 2023 2022 2021 2020 Zibulo 886 915 949 896 925 Khwezela 575 562 557 545 980 Greenside 775 809 875 792 775 Goedehoop 715 777 783 797 799 Isibonelo 382 403 422 424 356 Mafube 419 424 427 410 378 Rietvlei 25 34 30 16 21 Head office and centralised services 509 507 549 566 642 Thungela Australia head office 11 10 0 0 0 Ensham 442 400 0 0 0 Thungela Marketing International 15 0 0 0 0 Total own employees 4,754 4,431 4,592 4,446 4,876 Mining contractors 2 ,112 1,855 1,760 1,825 2,269 Capital projects contractors 237 282 223 175 101 Total contracting staff\* 2,349 2 ,137 1,983 2,000 2,370 Total workforce 7,10 3 6,568 6,575 6,446 7,246 \* Numbers based on a fixed-term equivalent basis. WORKFORCE DISTRIBUTION #### OUR WORKFORCE In 2024, our workforce comprised 4,754 permanent employees and 2,349 contractors based across three countries. Additional information can be found in our ESG data book available on our website https://www.thungela.com/ investors/annual-reports During the course of the year, our South African business welcomed 179 new employees, while voluntary labour turnover increased to 4.1% in 2024 compared to 3.8% last year. The ratio of permanent employees to fixed-term contractors is 1:16 (2023: 1:16). 112 ![]() 113 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES #### CREATING AN INCLUSIVE AND DIVERSE WORKFORCE We strive to create a workplace where every individual feels valued, respected and free to be their whole, authentic selves regardless of race, nationality, gender, age, religion, ability, sexual orientation or identity. Our commitment is underpinned by our values and code of conduct, which form the foundation of our inclusion and diversity policy. In South Africa, fostering a workplace that values and respects each individual is not only the right thing to do but is also a legislative requirement. This commitment includes prioritising the inclusion of designated groups such as women, people of colour and individuals with disabilities, as outlined in the country’s Employment Equity Act. In November 2024, we introduced unconscious bias training to help raise awareness of the biases that may influence how individuals interact with others in professional settings. The training will continue to be rolled out in 2025. We also celebrate national and international Pride Month in solidarity with the LGBTQIA+ community. We aim to create a workplace where every person feels safe and is able to contribute fully and thrive. Our inclusion and diversity policy is supported by the code of conduct and our policy on bullying, harassment and victimisation (BHV). ZEROTOLERANCE STANCE ON DISCRIMINATION, BULLYING, VICTIMISATION AND HARASSMENT We are committed to fostering a safe, respectful and inclusive workplace for all employees and have zero-tolerance for any form of discrimination and BHV. Discrimination involves the direct or indirect unfair treatment of another based on a prohibited ground such as race, gender, religion, disability or sexual orientation, while BHV, as a form of discrimination, is conduct that impairs another employee’s dignity. In August 2024, the Department of Mineral and Petroleum Resources issued a guidance note for the management of gender- based violence and femicide (GBVF) and safety and security challenges for women in the mining industry. This was issued under the Mine Health and Safety Act and led to the drafting of a mandatory code of practice. This focuses on, among other things, reporting systems and support mechanisms, gender sensitivity training, secure facilities, surveillance systems, and integration with community efforts. A guideline has been developed to ensure adherence. Training on BHV now includes a discrimination component and awareness of GBVF. It was completed by 95% of connected employees and is rolled out to other levels during annual induction training. During the year, one case of BHV was reported, investigated and the necessary action taken. ![]() 114 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT CODE OF CONDUCT Every year, employees and major suppliers must complete training on our code of conduct, business integrity policy and the Voluntary Principles on Human Rights. Over the past three years, 93% of permanent employees have received training on the code via online and face-to-face sessions. We fully adhere to the principles outlined in the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work. Among these are each employee’s right to a safe and healthy working environment, equal pay for equal work and freedom of association and collective bargaining. We do not tolerate discrimination in any form or the use of child and forced labour. EMPLOYMENT EQUITY Our transformation strategy continues to yield significant progress in improving the representation of historically disadvantaged South Africans across all job levels. These efforts are driven by compliance with targets set by the Department of Employment and Labour (DOEL) and our own internal benchmarks. Employment equity targets are fully embedded in internal and external recruitment processes, including those for new hires and the selection of candidates in our bursary, learnership and leadership development programmes. In the past year, representation at senior management levels (excluding the executive committee) rose from 67% to 69%, while the number of historically disadvantaged South Africans in middle management climbed from 74% to 77%, and junior management remained unchanged at 85%. Historically disadvantaged persons inmanagement(%) 2024 2023 2022 2021 2020 Top management (executive committee) 38 38 38 38 33 Senior management 69 67 62 59 58 Middle management 77 74 72 70 66 Junior management 85 85 82 80 76 Core and critical 89 89 88 87 86 ![]() 115 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES PEOPLE WITH DISABILITIES We are committed to increasing our employment of people with disabilities. In 2023, the percentage of employees in this category rose from 0.3% to 1.5%, and reached 1.7% during the period under review. To support ongoing growth in this area, all sites were subject to an accessibility audit in 2023 and have since made several improvements to accommodate people with disabilities. These changes were reviewed in 2024, with 80% found to be fully compliant with the audit’s recommendations. In addition, executive, senior and middle management have undergone disability sensitisation and awareness training, which reached junior management in 2024. This training will be rolled out to the rest of the workforce in 2025 and aims to build a culture where every employee has an understanding of disability, the barriers that exist and how to identify and address these. Women in management (%) 2024 2023 2022 2021 2020 Top management 25 25 25 25 22 Senior management 36 34 30 26 22 Middle management 39 36 32 32 29 Junior management 32 30 27 25 23 Overall women as % workforce 31 29 28 27 25 Proportion of women in our workforce 31 % Women in core and critical roles 25% Women in senior management 36% WOMEN IN MINING Women occupy key roles across every facet of the organisation, from the coalface to the boardroom and everywhere in between. This success is the result of more than two decades of sustained investment in the attraction, retention and development of women at all levels, with particular emphasis on leadership and technical roles. We not only have women on our teams, but women leading them. Notably, our eMalahleni Water Reclamation Plant – the largest water treatment unit of its kind worldwide – is managed by a team made up exclusively of women, three of whom are under the age of 35. Moreover, 48% of the plant’s contractor workforce comprises women in maintenance, operations, laboratory and support service roles. Goedehoop’s Prime 2 section – the first bord-and-pillar section in South Africa to reach a million tonnes for three years running, is led by a woman mine overseer and has operated without a single injury for four consecutive years. We strive to exceed targets set by the DOEL and by the end of 2024, women made up 31% (2023: 29%) of our South African workforce. The number of women in senior management positions rose to 36% (2023: 34%). Women also account for 25% (2023: 24%) of all core and critical roles. In South Africa, pregnant women are not legally permitted to work in operational areas and are accommodated in office-based roles. They receive paid maternity leave well in excess of the basic conditions of employment. Women in the bargaining unit are entitled to a childcare allowance. ![]() 116 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT LABOUR RELATIONS At our wholly owned operations in South Africa, 77% of employees have the right to collective bargaining. Of these, 87% are unionised, with 72% of the total workforce being members of the National Union of Mineworkers (NUM), with whom we maintain a collaborative relationship. A key topic of discussion in 2024 was the introduction of additional medical aid options for employees in the bargaining unit. At Mafube, 78% of employees belong to NUM. Some 67% of employees at Ensham are entitled to collective bargaining, with 45% belonging to labour unions. Two sets of wage negotiations are in progress. No work stoppages or cases of labour unrest took place in 2024. There were no operational changes with the potential to alter employees’ standing in our business. Should such an action be required, we commit to prompt and honest engagement and compliance with the relevant labour laws. We would also place a moratorium on external recruitment for positions that may be affected. SISONKE EMPLOYEE EMPOWERMENT SCHEME The Sisonke Employee Empowerment Scheme was introduced in 2021 to provide bargaining unit employees with additional value while fostering a culture of shared success. The scheme is administered by a board of trustees made up of an equal split of employee and employer representatives and currently comprises 3,400 members. The trust owns 5% equity in South Africa Coal Operations Proprietary Limited and received R102 million related to our 2024 performance. Sisonke hosted its second annual general meeting at Greenside on 26 September. The gathering, which ensures transparency and accountability from the board and gives beneficiaries an update of the trust’s activities, attracted more than 100 people, including beneficiaries, the board of trustees and union representatives. HOUSING AND LIVING CONDITIONS Historically, the South African mining industry was deeply entrenched in a migrant labour system, which contributed to substandard living conditions and social fragmentation. The legacy of apartheid further exacerbated housing inequalities, which left many employees without stable and dignified residential accommodation. Addressing these historical injustices has been the central focus of our employee housing strategy. Today, 99% of our South African employees provide for their own accommodation. This is the result of an industry-leading housing allowance and our commitment to making home ownership accessible. In an initiative which began in 2015, we have sold company- owned houses to employees at preferential rates. Some 354 houses have been successfully sold to employees under this scheme and an additional 92 are currently being transitioned through an innovative rent-to-buy arrangement. ![]() 117 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES #### OUR APPROACH The Thungela Social Policy guides our approach to managing social risks, impacts and benefits, and is rooted in international best practice standards and local legislation. Among these standards are those set by the International Finance Corporation (IFC), the International Council on Mining and Metals’ Good Practice Guide on Indigenous Peoples and Mining, the United Nations Guiding Principles on Business and Human Rights, the Voluntary Principles on Security and Human Rights and Australia’s Native Title Act. Key elements of the policy include social governance, risk and impact management, stakeholder engagement, socio-economic development, social incidents and grievance mechanisms, social and human rights impacts, emergency preparedness and response, cultural heritage, and land acquisition and involuntary resettlement. Effective implementation of the policy is a cornerstone of our approach. In early 2024, our sites each underwent a baseline assessment to evaluate their initial performance against the policy. This was followed by an independent social assurance process at the end of the year to track progress. Key improvement areas include clearer definitions of social risks and more effective evaluation of controls. Greater emphasis will also need to be placed on needs analysis and baseline assessments so that we can better measure programme impacts. Their support underpins our social licence to operate and is earned through our commitment to being a trusted social partner, by building positive relationships, and upholding our responsibility to leave a legacy that lasts beyond the life of our mines. We endeavour to ensure that our actions do not negatively impact local communities, today and post-closure. ### COMMUNITIES #### Host communities are critical stakeholders as they experience both the positive and negative impacts #### associated with every stage of the mining lifecycle. GOVERNANCE The governance of social policy implementation at board level has been entrusted to the social, ethics, and transformation committee, which convenes quarterly to oversee social performance. This responsibility also extends to the chief executive officer, executive committee, site general managers, and their respective leadership teams. Each site has a social performance specialist operating under the guidance of a regional social performance manager. Sites establish social performance management committees (SPMC), led by general managers and attended by the mine’s head of departments and the functional heads of multiple disciplines, such as social performance, environment, safety, human resources and protection services. These committees convene monthly to monitor the progress of implementation, covering areas such as inclusive procurement, risk management, grievance resolution, Social and Labour Plan (SLP) execution, and enterprise and supplier development. On average, these meetings have an attendance rate of 67%. SOCIAL PERFORMANCE MANAGEMENT COMMITTEE ATTENDANCE IN 2024 The percentage attendance is based on the full complement of the multi-disciplinary team. 90 80 70 60 50 40 30 20 10 0 72% Goedehoop 79% Isibonelo 57% Mafube 73% Khwezela 66% Greenside 56% Zibulo ![]() 118 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT #### GRIEVANCE REPORTING PROCESS GRIEVANCE MECHANISM AND SOCIAL INCIDENTS We acknowledge that mining can have negative impacts on host communities and make every effort to minimise these by ensuring that our sites work to the highest operational standards. A formal grievance mechanism is in place to ensure that community grievances and concerns are addressed in a timely manner. This mechanism – and the procedure for reporting, investigation, feedback and appeals, is communicated via various engagement channels, including community engagement forums, our community newsletter and through the employee induction process. In 2024, 75 grievances were logged on our incident management system (2023: 94). Of these, 18 related to dust and blasting and 23 to demands for employment and supplier opportunities. These resulted in 21 incidents of protest action compared to 29 in 2023. A total of 16 LA level 3 to 5 incidents with social consequences occurred in 2024. Fourteen of those were classified as level 3 and two as level 4 compared to 16 level 3s in 2023. Two of the five level 3 to 5 incidents were community protests that escalated to violence — one outside our Zibulo North Shaft, where injuries were sustained by two community members, and another close to our Centralised Services precinct. Tragically, a motorist attempting to pass through the latter demonstration discharged a firearm, which resulted in the death of a protester. In both incidents, the protests were related to subcontracting and employment opportunities. Investigations into both incidents were carried out by the South African Police Service and our internal security team. We adhere to established standards for managing protest action. Learnings gained from these incidents have been incorporated into existing management controls. Grievance is made telephonically, via letter, email or by filling in the complaints register at the entrance to each site. Grievance is captured in our electronic incident management system. This records the receipt, analysis and response to each report made. Grievant receives an acknowledgement of receipt within 24 hours. The complaint is sent to the relevant department for investigation. Findings and proposed resolutions are discussed with the grievant, who either accepts that the matter is resolved or lodges an appeal. Where an appeal is lodged, an independent mediation process is initiated. ![]() 119 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES Our stakeholder engagement strategy acknowledges the critical role of stakeholders in our business, and our work is underpinned by maintaining and strengthening stakeholder relationships based on respect, trust and transparency. The long-term sustainability and success of our business hinges on stakeholder buy-in and support. Stakeholder engagement is crucial to fostering environmental care, driving economic benefits, ensuring regulatory compliance and identifying and managing current and potential risks, impacts and opportunities. Through collaboration we are also able to enhance operational processes and performance, drive innovation, influence policy, share and learn from best practice, ensure investment security and drive improved socio-economic outcomes in communities. We conduct annual stakeholder mapping, where we evaluate stakeholders and categorise them based on their interest or influence on the business. This activity feeds into our materiality assessment, which is based on the issues that are most material to our stakeholders, as well as our ability to create value. Interaction with community stakeholders is guided by our social policy, specific stakeholder engagement plans for each operation and a stakeholder engagement protocol. Each operation engages directly with surrounding communities through a range of platforms: ### STAKEHOLDER ENGAGEMENT #### Our stakeholders are at the core of our purpose – to responsibly create value together for a shared future. Platforms for discussing a range of matters, including local employment and procurement opportunities, community skills development, corporate social investment (CSI), the implementation of SLP commitments, closure planning and grievances relating to activities at our operations. COMMUNITY FORUMS We participate in host municipalities’ development planning forums to better understand local government priorities, identify community development projects and collaborate with like-minded organisations. We also use this platform to report on progress against the community projects and skills development targets we commit to in our SLPs. MUNICIPAL INTEGRATED AND LOCAL ECONOMIC DEVELOPMENT PLANNING FORUMS Organised by several mines and attended by social performance teams, supply chain and enterprise and supplier development representatives, local businesses and business associations, these forums address local business concerns, explore opportunities and strengthen supplier communication. BUSINESS FORUMS Quarterly meetings held with traditional leaders from host communities to influence community project development and foster partnerships. These discussions strengthen our role as a respectful and responsible partner. Traditional authorities play a key role in assisting our operations to manage social risks in their role as mediators between ourselves and communities. TRADITIONAL AUTHORITY FORUMS Depending on the mine’s lifespan, these forums are held quarterly or annually. They are attended by stakeholders representing mine management, labour, local government, and regulatory bodies to address life-of-mine challenges, productivity, employment and community development while monitoring progress against SLP goals. FUTURE FORUMS These platforms are utilised to engage with resettled communities on the design, implementation and ongoing monitoring of livelihood restoration programmes after resettlement. POSTRESETTLEMENT WORKING GROUPS ![]() 12 0 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT OUR STAKEHOLDERS AND THEIR INTERESTS Interests Engagement methods Our response INDIGENOUS PEOPLES AND TRADITIONAL AUTHORITIES • Formal recognition of traditional authorities as key stakeholders • Access to land for cultural practices • Protection or preservation of culturally significant items and areas • Collaboration on issues such as youth empowerment, education, local employment, procurement and CSI • A quarterly forum for traditional authorities • Ad hoc meetings • Site visits and meetings with representatives of First Nations Peoples as per cultural heritage management plans • Cultural heritage management plans in place at all sites • Effective and collaborative working relationships with First Nations Peoples and traditional authorities COMMUNITIES • Socio-economic development • Skills development • SLP project implementation • Nkulo Community Partnership Trust • Employment and procurement opportunities • Enterprise and supplier development (ESD) opportunities • Management of grievances • Mine closure • Land and labour tenant claims • Livelihood restoration related to resettlement • Cultural rights related to grave relocation • Land use and access • Access to graves • Community engagement forums • Online platforms • Post-resettlement working groups and engagements with next of kin • Mine business forums • Public participation forums • Farm dweller engagement platforms • Community newsletter • Traditional authorities forum • Collaborating with local municipalities and provincial government to understand and address challenges • SLP consultations with stakeholders including local municipalities and communities • Generating jobs and business opportunities by prioritising host community employment and procurement • Investing in long-term programmes that contribute towards the achievement of our four impact goals, including the Thungela Education Initiative and Thuthukani ESD programme • Strengthening the capacity of host community organisations to drive local progress • Building relationships through agreements with host communities, traditional authorities and First Nations peoples • Implementing post-resettlement livelihood restoration programmes • Implementing our grave relocation framework ![]() 121 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES OUR STAKEHOLDERS AND THEIR INTERESTS Interests Engagement methods Our response GOVERNMENTS AND REGULATORS • Legal compliance with all relevant legislation and regulations • Permitting and licensing • Payment of taxes, royalties and other levies • Health and safety • New mining projects • Employment and procurement opportunities • Socio-economic development projects, particularly infrastructure-related investments, public-private development partnerships, SLP projects and municipal capacity building • Impact of operations on host communities and municipalities • Nkulo Community Partnership Trust • Land access • Spatial planning • Collaboration, joint monitoring and technical support on the implementation of local economic development (LED) projects • Collaboration on emergency preparedness and response plans • Impacts of mine closure and alignment with the provincial just energy transition plans • Engagement forums • Business forums • Site inspections and visits • Ad hoc meetings • Public participation forums • Future forums • Integrated development planning forums • LED forums • One-on-one engagement on specific projects • Annual reports • Presidential Climate Commission stakeholder consultations and workshops • Maintaining an effective governance and compliance framework • Paying royalties and taxes to host governments and transparent engagement with tax authorities when necessary • Elevation of safety to a standalone strategic business pillar and implementation of our safety strategy • Ongoing consultation and engagement with relevant authorities at various levels on projects, concerns and policy development • Generating jobs and business opportunities by prioritising host community employment and procurement • Inclusion of green economy skills development opportunities for employees and Thuthukani participants SUPPLIERS • Procurement and payment processes • Responsible sourcing and supply chain stewardship • Inclusive procurement opportunities • Creating sustainable host community businesses through ESD and job creation targets • Collaboration on development projects and stakeholder engagements • Market and industry development opportunities • Supplier relationship management • Supplier development training opportunities • Supplier roadshows • Individual supplier engagements • Digital platforms for supplier engagements • Advertising through existing market channels • ESD programme • Collaboration with original equipment manufacturers on their provision of technical support for small, medium and micro-sized enterprises (SMMEs) • Community and business engagement forums • Building an agile, lean and effective supply chain function through optimisation, automation and digitalisation • Publication of our responsible sourcing policy • Achieved ambitious inclusive procurement targets • Ongoing implementation of our Thuthukani ESD programme • Significant supplier contracts include contributions to local expenditure, employment and investment in communities • Communicating our approach to inclusive procurement, initiatives, progress and successes to host communities ![]() 122 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT OUR STAKEHOLDERS AND THEIR INTERESTS Interests Engagement methods Our response CIVIL SOCIETY • Environmental rights, protection and disclosures • Climate change and the responsible energy transition • Community impacts and benefits • Partnerships in development projects • Adequacy of closure provisions • Meetings • Subject-specific forums • Requests for information through the Promotion of Access to Information Act • Rigorous management of environmental risk and regular and transparent disclosure. • Climate change targets and implementation of our pathway to net zero by 2050 • Resolving grievances related to mining impacts and positive social investment. • Engage with and respond to various stakeholder groups as appropriate • Implementation of our socio-economic strategy and social impact goal OUR PEOPLE AND TRADE UNIONS • Employee safety, health and wellbeing • Conditions of employment • Labour relations • Life of mine • Skills development • Career progression • Inclusion and diversity • Transformation deliverables • Sisonke Employee Empowerment Scheme • Wage negotiations • Site toolbox talks, mine information meetings and town hall sessions • Union and management forums • Various site forum meetings (for example: employment equity, skills development, and women in mining forums) • Employee engagement briefs • Employee newsletter • One-on-one meetings • Performance reviews • Sisonke Employee Empowerment Scheme annual general meeting • Cultivating a robust safety and health culture and ongoing wellness support • An attractive employee value proposition • Regular, transparent engagement • Ongoing investment in training, career growth and tailored development plans • Meeting and exceeding internal and legislated targets for employment equity SHAREHOLDERS AND INVESTMENT COMMUNITY • Capital allocation framework and shareholder returns • Transnet Freight Rail (TFR) performance • Thermal coal market dynamics • Ensham opportunities • Progress on Elders and Zibulo North Shaft projects • Climate change and related disclosures, including pathway to net zero • Thungela Marketing International • Stock Exchange News Service announcements on the Johannesburg Stock Exchange • Regulatory News Service announcements on the London Stock Exchange • Interim and annual results announcements, presentations and financial statements • Chief financial officer’s pre-close call • Annual reporting suite • Meetings, roadshows, conferences • Investor relations page on our website • Annual general meeting • Through our disciplined capital allocation framework, we are committed to shareholder returns through dividends and share buybacks • Transparent disclosure and consistent reporting on financial and business performance • A dedicated management team with a strong track record of executing strategic priorities and achieving operational excellence by controlling the controllables • Timely communication on corporate actions • Effective engagement with the investment community and management as well as investor relations ![]() 12 3 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES OUR STAKEHOLDERS AND THEIR INTERESTS Interests Engagement methods Our response MEDIA • Company performance • TFR performance • Growing geographic footprint • Markets and industry trends • Significant social and environmental projects and community involvement • Decarbonisation and the future of coal • Job creation • Public-private partnerships • Thought and industry leadership • Results presentations • Press releases • Media statements • Interviews • Website • Annual reports • Social media • Media engagements on the back of annual and interim financial results • Proactive interviews on achievements • Regular media engagement • Media events and site visits • Media responses INDUSTRY BODIES • Safety, health and environmental compliance, improvement and innovation • Policy and regulation • Community development • Meetings • Seminars • Workshops • We play an active role in industry bodies and in many instances take on leadership positions BUSINESS PARTNERS AND CUSTOMERS • Market development and Thungela response • Security of supply • Business continuity • Supplier relationship management • Logistics • Various engagements • Board meetings • Operational committee meetings • Technical forums • Coal conferences • We launched Thungela Marketing International in 2024 • Industry engagement and support to TFR – for example, procurement of batteries and locomotives, signalling and security interventions etc. • Creation of additional stockpile capacity and utilisation of physical infrastructure advantages – for example, rapid load- out terminals • Free-on-truck sales to manage stockpile capacity ![]() 12 4 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT Through our human rights policy, we commit to upholding and respecting national legislation and internationally proclaimed human rights principles. To honour this commitment, we have embedded these principles into our business practices. This includes creating a safe and healthy working environment for our people, respecting diversity, respecting the rights of local communities, managing our environmental risks and impacts and addressing human rights risks in our supply chain. ### FOCUS AREAS #### HUMAN RIGHTS OUR COMMITMENT 12 4 ![]() 12 5 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES Our mining activities, including corporate transactions, exploration, construction, operations and closure, have the potential to adversely impact our people and members of host communities. For example, substandard working conditions can jeopardise employees’ right to health and a safe working environment, while failure to effectively manage environmental risks threatens host communities’ right to clean air and water. Furthermore, operations conducted without due consideration can disrupt local communities, affecting livelihoods, cultural heritage and quality of life. Human rights are the fundamental building blocks on which our values and code of conduct are built. Human rights principles are also embedded in the policies and procedures that govern virtually every aspect of our business – extending from SHE and labour rights to our relationships with host communities and business partners. Our human rights policy is informed by and supports our commitment to compliance with various international standards and laws. These include: • The International Bill of Human Rights, including the Universal Declaration of Human Rights • The UN Guiding Principles on Business and Human Rights • The International Covenant on Civil and Political Rights • The International Covenant on Economic, Social and Cultural Rights • The International Labour Organization’s Declaration on Fundamental Principles and Rights at Work • The Voluntary Principles on Security and Human Rights (VPSHR) The policy guides the way in which we assess human rights risks, undertake due diligence assessments, train our employees and protection services on human rights, create awareness of human rights issues with suppliers and contractors, provide on-site grievance mechanisms for employees and communities, and how we monitor, report and provide assurance on human rights matters. The policy applies to all individuals at all levels of the organisation, and must be adopted by key contractors, service providers and supplier partners. Permanent and contracted security personnel are trained on the VPSHR during onboarding, and refresher training is provided every year thereafter. Our security strategy aligns with the VPSHR. Annual risk assessments are conducted and the baseline risk register, preventative and mitigation measures updated. In instances where protest activities impact our operations, we adhere to the Regulation of Gatherings Act, 1993, and our human rights policy. Human rights concerns at our South African sites can be reported using our grievance mechanism and incident management procedure or via our independently managed whistleblowing service, HAIBO!. Ensham has an existing grievance mechanism that we are integrating, together with Thungela Marketing International’s office in Dubai, into our system. OUR APPROACH GOVERNANCE Compliance with our human rights policy is overseen by the social, ethics and transformation committee as endorsed by the Thungela Board. The executive committee and senior management are responsible for its implementation across all aspects of the business, while site general managers and their leadership teams support its implementation at their operations. It is the responsibility of every employee to know and understand the human rights obligations and requirements the policy sets out and to remain vigilant to ensure compliance from business partners and other third parties. PERFORMANCE Given the nature of our industry, it is essential that all employees and anyone who acts on our behalf knows what constitutes human rights and how these may be infringed upon. In September, we introduced new human rights training on our digital learning platform to give employees in middle management and above a better understanding of our policy, their own rights and their responsibility to respect the rights of those around them. This training is mandatory and was completed by 37% of colleagues in this segment. It will be rolled out to all other employees in 2025 as an important component of the return-from-leave induction process. Additionally, information on the human rights policy will be included in contractors’ packs. In 2024, 99.7% LA of our security and all social performance personnel underwent training on the Voluntary Principles. During the year, we conducted risk assessments on the VPSHR at all sites to identify potential human rights violations. Management plans and mitigation measures were developed for implementation. We further assessed our readiness to become a signatory to these principles and will address the gaps identified during 2025. ![]() 12 6 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT PRIORITY HUMAN RIGHTS AREAS: Mine closure risks include environmental impacts and violations of the right to work and economic security. Given the diversity of these risks, they require attention from various disciplines, along with adequate financial provisioning for closure. Closure now involves a comprehensive approach, encompassing technical, financial and social aspects. We are in the process of developing high-impact, sustainable programmes focused on repurposing infrastructure and alternative land use to ensure that communities reap benefits in the long term. During the year, we met with local ward councillors and traditional authorities to discuss closure-related issues. Read more about mine closure on page 55 of this report. #### CLOSURE Every employee has a fundamental right to safe work. Our focus is on eliminating fatalities and life-altering injuries, while upholding the right to life and a healthy work environment. In early 2024, safety was elevated to a standalone pillar of our strategy, reinforcing its significance to our business. We also introduced safety-related key results areas into leaders‘ performance contracts and increased our focus on critical control compliance. Read more about our safety management on page 65 of this report. #### CREATING A SAFE WORKPLACE Access to clean, safe water is a human right. All our operations are situated in water-scarce areas and may not compromise water quality or access for other users. Significant emphasis is placed on reducing consumption, treatment and increasing reuse and recycling rates. Our eMalahleni Water Reclamation Plant continues to treat mine-impacted water to potable quality for use by water-stressed communities in eMalahleni. During the year, we continued our focus on nature-based solutions to address our post-closure water liabilities. Read more about our management of water on page 49 of this report. #### WATER ![]() 12 7 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES South African mines face significant pressure to provide jobs and procurement opportunities. Unmet expectations often result in protest action, a right that is protected under the Bill of Rights, where everyone has the right, peacefully and unarmed, to assemble, to demonstrate, to picket and to present petition. However, protests occasionally become violent or disrupt public order, which then infringes on the rights of others to safety. This means that the response must be lawful, necessary and proportionate. Security personnel receive specialised training and are guided by the VPSHR. During the year, we developed a procedure to further guide both security and social performance teams on how to manage incidents of this nature. We also created awareness on how employees should conduct themselves should they encounter protest action while travelling to their sites. #### PROTEST ACTION Resettlement is a complex process which, if not carefully managed, involves significant human rights risks. These risks include cultural and social disruption and loss of access to land, water and other essential resources, which can severely impact livelihoods. During the period under review, social performance teams received specialised training to enhance their understanding of resettlement processes and the associated human rights risks. All resettlements are conducted with free, prior and informed consent and in alignment with DMPR’s standard on resettlement and the IFC’s Performance Standard 5 on resettlement. Read more on page 103. #### RESETTLEMENT The South African mining sector faces significant challenges with the emergence of illegal mining orchestrated by organised syndicates. These groups, as well as those involved in the theft of mine infrastructure, are frequently heavily armed. This not only heightens the risk to our employees and contractors, but also poses a serious threat to surrounding communities. Our business forms part of various industry initiatives to crack down on these elements. The Minerals Council South Africa, alongside several members, has met with the DMPR to discuss critical security challenges facing the industry. The Minister has called on the industry to develop a targeted strategy that not only outlines key concerns but also defines how we can collaborate with the National Operational and Intelligence Structure to resource efforts against illegal mining and other security threats. In response, we are working on a comprehensive strategy that takes a holistic approach to these challenges while ensuring clear roles and responsibilities for all stakeholders involved. #### SECURITY By engaging with companies that do not uphold strong human rights practices, we risk indirectly contributing to human rights violations. These may include violations of labour rights, environmental harm and other unethical practices. Our responsible sourcing policy, which addresses various human rights risks, was approved by the board in 2024 and will be implemented in 2025. High- risk suppliers have been identified and will undergo an ESG self-assessment process in the coming year. More information is provided on page 109 of this report. #### SUPPLY CHAIN ![]() 12 8 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT ### CULTURE, HERITAGE AND ### INDIGENOUS PEOPLES We recognise the value of culture and tradition in the long-term wellbeing of host communities and uphold a zero-tolerance stance on any violations of cultural heritage. We also respect the interests and aspirations of indigenous peoples and acknowledge their inherent right to preserve their culture, identity, traditions and customs. We acknowledge the value and benefit of open and respectful relationships with indigenous communities and are committed to continuing these relationships. Our approach to cultural heritage is guided by our social policy, which is aligned both with the IFC’s Performance Standard 8 and local legislation. In Australia, this legislation is reflected in the Native Title Act, and in South Africa, the National Heritage Resources Act. These rights are particularly relevant when activities may affect the lands, territories and resources of indigenous peoples. Appropriate processes, including human rights due diligence, engagement and agreement-making, apply throughout the mining lifecycle. We commit to obtaining free, prior and informed consent for all relevant projects, while stakeholder engagement processes are designed to enable the identification, avoidance, mitigation and management of risks in this area. ![]() 12 9 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES In South Africa, traditional leadership plays a significant role in rural and peri-urban areas, where traditional governance structures are deeply connected to cultural identity and local administration. Over recent years, our operations have built strong relationships with several traditional authorities, having engaged with them on matters such as youth development, local employment and CSI. Some of these authorities have strengthened our ability to be a responsible and respectful partner by fostering dialogue, while bringing stability to previously volatile and fragmented communities. During the year, we partnered with the SoGutjhe Royal House in the staging of its annual Women’s Day and Heritage Month events. We also supported the authority’s We Love Boys initiative which hosted a ‘Man-to-Man Talk’ during the 16 Days of Activism Against Gender-Based Violence and Femicide. We facilitate safe and secure access to designated areas of mine land for cultural practices such as the initiation rites young boys undergo as they make their transition into manhood. Leaders from nine separate traditional authorities were interviewed in our most recent stakeholder perception survey. This has resulted in a more structured engagement process with traditional authorities in host municipalities. Set engagements are conducted at a regional level every quarter. SOUTH AFRICA ![]() 130 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT We marked Heritage Month in September with the official opening of an art studio for the world-renowned Ndebele artist, Dr Esther Mahlangu. Dr Mahlangu is a global ambassador of the Ndebele culture and, despite her international acclaim, did not previously have a dedicated space in which to showcase her work. Our business was approached by the Mpumalanga government to build a studio at Dr Mahlangu’s home in KwaNdebele. This region is known for its distinctive Ndebele art, including vibrant murals and beadwork. It is expected that the space will attract tourists to the area and support the efforts of the Esther Mahlangu Art School. The school is dedicated to passing on traditional painting techniques to new generations of artists. #### ESTHER MAHLANGU ART STUDIO ![]() 131 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES ![]() 132 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT Thungela acknowledges the unique connection that Aboriginal Peoples have to the land, waters and the environment. We are committed to working with First Nations Peoples to identify, protect and manage both tangible and intangible cultural heritage that may be affected by our industrial assets. Ensham has cultural heritage management plans in place with the Western Kangoulu People and the Garingabal and Kara Kara People for the areas north and south of the Nogoa River respectively. The mine has an established and long-standing track record of positive, effective and collaborative working relationships with First Nations Peoples. The cultural heritage management plans guide the day-to-day interactions of operations and issues of cultural heritage to manage potential impacts and risks. These have been prepared in consultation with Indigenous stakeholders and include agreed measures on how to manage this interaction. Under the plans, Ensham personnel are required to undertake training as part of their induction on the various types of cultural heritage that might be found in the mining area and outline how these findings should be dealt with. The management plans identify areas, items and sites of confirmed or potential cultural significance that must be preserved and protected from disturbance, either directly or indirectly. Cultural heritage areas that have been approved for disturbance are managed through mutually agreed actions, including scar tree preservation, relocation or the permanent curation or storage of artefacts, under the guidance of indigenous stakeholders. AUSTRALIA 132 ![]() 133 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES OUR APPROACH We make every effort to avoid or minimise the displacement of people. However, when resettlement due to our activities is unavoidable, we ensure that it is conducted in line with international best practice and the principle of free, prior and informed consent. Our practices align with the DMPR’s standard on resettlement under national legislation and the IFC’s Performance Standard 5 on resettlement. Importantly, affected households should be left in a similar or better position than they were prior to resettlement. We take measures to restrict resettlement activities to households situated on land specifically designated for mining, where critical operational structures are to be built and where households are situated within the legal blasting exclusion zone. The process begins with the development of a displacement framework and detailed resettlement action plan. This incorporates a census and socio-economic survey, compensation framework and robust stakeholder engagement, planning and implementation. The compensation framework incorporates both tangible and intangible cultural elements, such as ceremonies associated with house relocations and the replacement of prayer and initiation huts at new residences. #### RESETTLEMENT Mafube completed the resettlement of 88 households from its Nooitgedacht resource in 2022. This move will sustain employment for more than 1,600 employees and contractors until 2042. Six households have chosen not to participate in the resettlement process but engagement is ongoing. Mafube has been fulfilling the commitments made to households, focusing on cultural heritage, training and transitional support. Livelihood restoration activities will commence in 2025, bringing diverse opportunities for community advancement. A total of 41 household members will participate in skills programmes for the operation of machinery, welding and the installation of solar panels, while 35 will take part in business training to build entrepreneurial skills. Eleven individuals will receive driver education and five will join an agriculture programme. Furthermore, approximately four young people will be awarded scholarships to pursue a tertiary education. These initiatives are based on socio-economic and household surveys so that they align with the needs and requests of the families involved. Mafube is in the final stages of completing the corrective action plans of an earlier resettlement undertaken between 2007 and 2009. As part of this effort, several participants have completed an enterprise development programme that has empowered them to establish their own businesses in beadwork, gardening and landscaping, catering and transportation. Through these ventures, they are not only earning an income for themselves but also creating employment opportunities for others. Monitoring of their progress will continue throughout the next three years. In 2019, seven households were relocated by Khwezela and a two-phase livelihood restoration programme was implemented. The first phase involved financial support for the payment of municipal services, while households were engaged to assess their livelihood needs and desires post-resettlement. The process is currently in its second phase, which involves providing the training and skills development programmes identified to increase household members’ access to formal employment opportunities. LIVELIHOOD RESTORATION Grave relocations are conducted with the utmost respect for the culture and traditions of affected families, and in full compliance with national legislation and IFC guidelines. The transfer of graves requires permission from the South African Heritage Resources Agency (SAHRA), the Department of Health, the local municipality and the South African Police Service. Graves may only be relocated once a permit from SAHRA has been acquired, and all stakeholders are satisfied that reasonable efforts have been made to contact and engage families with a vested interest in a burial site. Mafube completed the relocation of 206 graves in 2024 as part of its process to relocate a total of 382 graves. A further relocation process involving 49 graves situated on three separate burial sites will commence at Isibonelo in 2025. Best practice standards will once again be adhered to. GRAVE RELOCATIONS ![]() 134 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT Each of our sites has an emergency preparedness and response plan. Last year, we identified gaps in procedures related to the external mitigation measures needed in the event of an emergency. Work continued on the development of an externally focused emergency preparedness and response plan that addresses the measures required to assist communities that would potentially be affected by an incident. Emergencies included in the procedure relate to water, fire and gas, civil disturbance, and crime. In the coming year, we will focus on solidifying plans with municipal emergency services and create collaborative relationships with industry peers that could provide support in the event of an incident. Additional considerations include financial provisioning and the formulation of a mass care plan for significant incidents. #### EMERGENCY PREPAREDNESS AND RESPONSE ![]() 135 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES Our social contributions are guided by our socio-economic development approach, which informs our SLP, strategic and CSI spend. Additionally, South African mines are required by the Mineral and Petroleum Resources Development Act to have an SLP, which outlines their commitments to employees and impacted communities, and how these will be achieved. They are legally binding once a mining right is granted. SLPs are valid for a five-year period, after which a new SLP must be submitted to the DMPR for approval. SLPs outline targets for employment equity, the human resource development of historically disadvantaged South Africans, and the delivery of impactful LED projects in host communities. As we develop new SLPs, it is essential that our projects consider both the impacts of climate change and closure as operations approach the end of their lives. CSI is guided by inputs and requests from a variety of local stakeholders. #### OUR APPROACH ### MAKING A POSITIVE ### CONTRIBUTION We make a positive contribution to host communities through employment, by sourcing goods and services from local businesses and investing in initiatives that drive socio-economic development. We also contribute through the payment of taxes and royalties, further fulfilling our commitment to the regions in which we operate. Value distributed (Rand million) 2024 2023 Sisonke Employee Empowerment Scheme 102 15 6 Nkulo Community Partnership Trust 102 156 Host community procurement 2,300 2,000 Total procurement 9,700 9,600 Contribution to local communities 61 126 Royalties and mining taxes 4,518 4,766 Wages and related payments 6,660 5,383 Capital investment 3,396 2,988 In 2024, three operations submitted updated SLPs to the DMPR for approval as part of the five-year cycle. Recognising the potential risks during the 2024 election year, a proactive decision was made to temporarily suspend the execution of some projects for the safety of our employees and contractors. Consequently, a restricted number of CSI and SLP projects were executed. These include: the renovation and expansion of the Zamelani Abadala Old Age Group Centre in the Govan Mbeki Local Municipality by Zibulo, the official opening and handover of an art studio for the world-renowned Ndebele artist, DrEsther Mahlangu, and several infrastructure improvement projects at schools by Goedehoop and Mafube. In January 2024, we launched a new education initiative. This initiative will see us invest a planned R160 million in 45 primary schools over five years. Expenditure in 2024 was expectedly low as preliminary work was undertaken to establish baselines against which to measure the programme’s impact and to identify priority activities. A five-year work plan was developed. More details about the programme and activities in 2024 can be found on page 138. Total social spend was also lower in 2024 because a once-off water supply arrangement of R40 million with the eMalahleni Local Municipality was made in 2023. Expenditure on ESD through Thuthukani rose from R28.1 million to R33.2 million. #### OUR PERFORMANCE Socio-economic development expenditure (Rand million) 2024 2023 SLP 6.9 LA 19.6 CSI 16.2 LA 58.2 South Africa 15.4 LA 15.1 Australia 0.8 LA Strategic projects 38.5 91.2 Education 5.1 LA 20 Enterprise and Supplier Development 33.2 LA 28.1 Total 61.3 LA 125 .9 ![]() 136 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT Ensham is a dedicated supporter of community groups and prioritises sourcing goods and services from businesses in the Queensland region. The mine provides sponsorships to organisations, including the Emerald Amateur Swimming Club, Comet Benefit Rodeo and the Emerald Rodeo Association to encourage the youth to participate in sporting activities. It supported the Emerald State High School with a donation of gazebos and prizes for the annual awards ceremony, and the Rotary Club of Emerald’s community carols by candlelight event. It also provides support to the Central Highlands Health Suicide Prevention Programme towards its implementation of the nine Life Span Strategies which include: Improving emergency and follow-up care for suicidal crisis 1 Using evidence-based treatment for suicidality 2 Equipping primary care to identify and support people in distress 3 Engaging the community and providing opportunities to be part of the change 7 Encouraging safe and purposeful media reporting 8 Improving safety and reducing access to means of suicide 9 Improving the competency and confidence of frontline workers to deal with suicidal crisis 4 Promoting help-seeking, mental health and resilience in schools 5 Training the community to recognise and respond to suicidality 6 ![]() 137 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES Investments, in all their forms, are closely aligned with our socio-economic development approach which identifies four key impact goals as shown below. We use a theory of change-based approach in the selection, planning, implementation and measurement of major social projects. The theory of change is an outcomes-based approach to programme scoping and design that is participatory in nature. This process outlines the inputs, activities, outputs and outcomes of projects as well as indicators that allow performance tracking against an established baseline. #### Aligning the company purpose, ESG and socio-economic development ambition SED IMPACT GOALS PURPOSE To responsibly create value together for a shared future. ESG AMBITION To uphold ESG standards while striving to outperform on the social aspect. AMBITION FOR THE ESG PRIORITY AREA 'COMMUNITY VALUE' To create shared community value from our operations and activities. SOCIOECONOMIC DEVELOPMENT AMBITION Enhancing the social wellbeing and economic growth of host communities through skills development, infrastructure development and support for local small businesses. Improving access to quality education and skills development. 1 2 3 4 Improving the quality of community services. Improving access to income generation opportunities. Reducing reliance on mines by strengthening the local SMME sector. SPEND PER IMPACT GOAL (%) Impact goal 1 Impact goal 2 Impact goal 3 and 4 57% 20% 23% ![]() 138 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT #### ACCESS TO QUALITY EDUCATION AND SKILLS DEVELOPMENT Education is a key driver of economic growth. It empowers individuals with knowledge and skills, leading to better job opportunities, improved innovation and productivity and therefore enhance economic outcomes. It also leads to strengthened personal and societal development, ultimately contributing to more prosperous communities. We focus on every stage of the education spectrum – from early childhood, primary and high school development, to tertiary and university learning. ### IMPACT GOAL 1 Early in 2024, we launched the Thungela Education Initiative, a five-year partnership with the Mpumalanga Department of Basic Education. The initiative aims to improve educational outcomes for learners in 45 quintile 1–3 primary schools across eMalahleni, Steve Tshwete and Govan Mbeki. These schools serve children from severely disadvantaged financial backgrounds, which makes their parents exempt from paying school fees. The R160 million initiative will focus on the foundation to intermediate phase, a critical period in a child’s cognitive, emotional and physical development. It begins in Grade R – the year before formal schooling starts – and extends to Grade 4. Watch a video about our education initiative here. Grade R and Grade 4 represent significant transitional periods in a child’s educational journey. In Grade R, some children move from preschool to a more structured learning environment, while others begin formal schooling for the first time. Grade 4 marks the shift from the foundation phase to a more advanced stage, where the curriculum becomes increasingly challenging with additional subjects. This transition coincides with early adolescence, a period of significant physical and emotional development that can influence learning and increase the risk of challenges such as bullying. These changes may either set children up for success or compromise their development. Additionally, positive impacts during this period are long-lasting and can be observed throughout their primary and secondary school careers. The initiative has been tailored to address concerns identified during an assessment carried out with support from the Department of Basic Education. This determined that, despite progressing to higher grades, many children demonstrate inadequate literacy and numeracy skills. Without this foundation, they struggle to meet the demands of later education and face ongoing challenges in their academic and personal development. Some of the barriers identified include a lack of indoor and outdoor learning equipment, inadequate classroom space, an imbalanced teacher/learner ratio and a shortage of resources such as textbooks and educational aids. Broadly, the project will enhance: • leadership development;, • educator support; • psycho-social support; • learner support; and • equipment and infrastructure. #### THUNGELA EDUCATION INITIATIVE ![]() 139 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES #### THUNGELA EDUCATION INITIATIVE THEORY OF CHANGE Problem statement: Poor access to quality education in host communities SED impact goal: To improve access to quality education and skills development GRADE R GRADE 1 to 4 IMPACTOUTCOMESACTIVITIES Improved school readiness Improved access to infrastructure that supports teaching and learning Improved health and safety, focusing on fire hazards and first aid Increased access to higher levels of education for teachers Improved literacy levels in primary school Improved access to learning materials Increased parental involvement in learners’ development Improved numeracy levels in primary school Improved access to psychosocial support for teachers and learners Improved learner performance Improved access to infrastructure that supports teaching and learning Increased support for learners with different needs GRADE R Infrastructure refurbishment: For conducive learning and teaching, including age-appropriate toilets and ventilation in classrooms Water and sanitation: Needs-based Upskilling of teachers: Basic and advanced early childhood development training (NQF Level 1-6) Learning equipment and materials: Indoor and outdoor Health and safety: Purchase or service fire extinguishers and first aid training for educators Parental involvement: Develop and implement a parental involvement programme GRADE 1 to 4 Infrastructure refurbishment: For conducive learning and teaching Learning equipment and materials: Provision of textbooks and stationery and promote reuse School management teams: Develop and implement a programme to capacitate and strengthen school management teams Psychosocial support: Provide a psychosocial support programme for learners and teachers. Further explore partnering with a university to second psychologists to targeted schools Learner assessments: Partner with the department to provide holistic and standardised learner assessments Teacher development: Training and coaching Additional learner support: Remedial support within schools such as learner camps and fun and interactive after-school English and science programmes Parental involvement: develop and implement a parental involvement programme ![]() 140 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT ### IMPACT GOAL 1 Since the launch, a situational analysis has been conducted and a five-year implementation plan developed. We conducted an infrastructure assessment to identify priority activities, carried out fire compliance evaluations and completed a baseline assessment on leadership development as well as management and governance maturity. Non-functional sanitation facilities at Ipani Primary School were identified through the assessment and prioritised for urgent intervention. The ablution block was repaired and new septic tanks installed to ensure functional facilities for staff and learners. Goedehoop also made significant improvements at Impilo Primary School, which has been expanded to accommodate learners from the old Springbok Primary School that was previously located in one of its old residential villages. The R5.7 million upgrade involved the construction of four new classrooms, the renovation of three existing ones and the furnishing of five more, along with the addition of a staffroom, boardroom, library and kitchen. Isibonelo, Greenside and Khwezela offer supplementary school programmes for high school learners with potential. Starting in Grade 10, these programmes focus on English, mathematics, science and life sciences, and help scholars achieve results that will give them access to a tertiary institution. Classes are held on Saturdays and during school holidays and are given by highly experienced educators. Learners also receive top- quality academic resources not available to them at their schools. Isibonelo’s supplementary school programme is now in its 11th year and has significantly improved matric pass rates in the Govan Mbeki Municipality. This initiative has enabled numerous learners to secure scholarships and bursaries, both from our own business and other major companies in the region. Every member of the matric class of 2024 achieved a bachelor’s pass, the highest level of achievement in the National Senior Certificate exams. This qualifies them to continue their education at university. Every learner on the programme also passed the initiative’s four core subjects: English, mathematics, physical science and life sciences. A record 95 distinctions were achieved in these. Information on our vocational training programmes and community scholarship scheme can be found on page 110. HIGH SCHOOL EDUCATION Before After ![]() 141 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES #### SCHOOLS 45 #### LEARNERS 22,900 #### INITIATIVE ### 5YEAR #### MILLION R16 0 ![]() 142 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT #### IMPROVING THE QUALITY OF COMMUNITY SERVICES 2 ### IMPACT GOAL Our impact in this area is primarily through large-scale SLP projects, approved by the #### DMPR and delivered in five-year cycles, as well as through CSI. Three operations submitted updated SLPs to the DMPR in early 2024, and approval on these is pending. Other operations are mid-way through the project construction phase. The next phase of delivery will commence in 2025 and will include an industrial park, a multi- purpose centre, solar lighting projects in two communities, a health post and a canteen at the industrial park in Mhluzi, Middelburg. The development of a new SLP centres on an intense stakeholder consultation process that enables a better understanding of the needs and priorities of the communities that host our operations so that we can to determine sustainable community projects that will deliver maximum impact. Stakeholder groups engaged include the local municipality, sector departments, general community representatives, traditional authorities, farmers and farm dwellers and vulnerable groups. Zibulo’s renovation and expansion of the Zamelani Abadala Old Age Group Centre has provided an enhanced environment for senior citizens in the Govan Mbeki Local Municipality. The centre prepares daily meals, arranges physical activities, arts and crafts and skills training for 120 elderly people. It also provides vital home-based care for 70 community members who, due to their advanced age and health, are unable to visit the facility. Zibulo’s R3.2 million investment paid for the construction and refurbishment of a dining hall and recreation room, an administration block, consulting and examination rooms, bathing facilities and a fully equipped kitchen. Isibonelo upgraded the Thandanani Service Centre in Bethal, Govan Mbeki. A registered non-profit organisation, the centre houses several community-focused organisations that provide essential services, including support for the elderly, healthcare, basic skills programmes for youth, and after-school support for children from underprivileged backgrounds. The renovation of facilities and installation of palisade fencing represented an investment of R500,000. As part of its commitment to employee and community safety and infrastructure sustainability, Goedehoop has been actively maintaining the R1697 public road, with total project costs to date amounting to R6 million. While road maintenance has been an ongoing activity, the frequency of repairs has increased since 2022 due to deterioration caused by trucking activities. CARE FOR THE AGED THANDANANI SERVICE CENTRE ROAD MAINTENANCE ![]() 14 3 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES 14 3 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 ![]() 14 4 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT 2 ### IMPACT GOAL We aim to cultivate a strong and enduring SMME sector that creates employment during our mines’ operational lives and, particularly, beyond closure. “With Thuthukani’s guiding hand, borrowers have a significant chance of success.” Our ESD programme, Thuthukani, is aimed at both current suppliers and businesses that have the potential to be suppliers in the future as well as entrepreneurs who offer a broad range of goods and services outside the mining sector. The initiative equips new and growing businesses with the following: • Tailored business skills training; • One-on-one mentorship and support; • Technical enablement; and • Loan funding at preferential interest rates. During the year, we spent R32 million on ESD. This benefited 11 current suppliers, 22 enterprise development beneficiaries who are not registered suppliers and 35 businesses that were aided through the programme’s technical enablement initiative . This provides support to suppliers who have the potential to grow, but lack the necessary certifications, memberships and licences required to meet the procurement standards of large organisations. One of the primary ways we provide this support is by helping businesses obtain their ISO 9001, ISO 14001 and ISO 45001 certifications. Additional certifications and qualifications awarded involve essential assembly, specialised geological modelling, deep cleaning and hygiene, while other businesses became members of the Federated Hospitality Association of Southern Africa and The Institute of Waste Management South Africa. During the year, 61 entrepreneurs graduated from various business skills development programmes that have given them the knowledge and skills to take their businesses to the next level. Course material covers entrepreneurship, financial analysis, sales, marketing, project management and strategy development. We also support local SMMEs by providing loan funding at preferential rates to suppliers awarded purchase orders and/ or contracts by our operations. In 2024, we disbursed funding of R7.9 million in loans and co-funded a total of R7.1 million with Absa. Approximately 114 jobs were created as a result of our support. 3 4 #### IMPROVING ACCESS TO INCOME GENERATION OPPORTUNITIES AND REDUCING #### RELIANCE ON MINES BY STRENGTHENING THE LOCAL SMME SECTOR A significant milestone in 2024 was the signing of a R200 million co-funding agreement with Absa to support entrepreneurial development and economic growth in host communities. While Thuthukani has been instrumental in building business acumen and providing technical support, its capacity to offer loan funding and financial assistance has been limited. Access to finance is essential for SMMEs to secure start-up capital, cover initial operating costs and capitalise on growth opportunities. Emerging enterprises often face significant challenges in securing funding as they are perceived as high-risk investments with little or no collateral. Absa, one of Africa’s largest diversified financial services providers, reserved an initial R200 million – subject to annual review – to provide loan financing, specifically for SMMEs that have secured significant contracts from our sites. This initiative bridges a critical gap, ensuring that capable businesses can deliver on their contracts and realise their growth potential. Speaking at the signing, Absa’s head of ESD, Kgalaletso Tlhoaela, said that the bank was attracted to the programme due to the level of support Thuthukani provides. #### COFUNDING #### AGREEMENT TO SUPPORT #### ENTREPRENEURIAL #### DEVELOPMENT ![]() 145 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES #### FOSTERING CONNECTIONS Thuthukani hosted a supplier end-user day to provide 29 graduates with the opportunity to present their goods and services to end-users representing our sites Graduates were able to engage directly with potential buyers, showcase their offerings and receive valuable feedback to refine their approach. The event fostered meaningful connections and reinforced the programme’s role in equipping suppliers for sustainable business growth. Well-known entrepreneur and founder of the Township Entrepreneurs Alliance Bulelani Balabala spoke at the event. He emphasised the importance of resilience, a competitive mindset and delivering consistent value. More than a hundred local SMMEs attended workshops on costing, pricing and tendering so that they can confidently compete for opportunities inside and outside of our supply chain. The owner of Namsezana Trading and Projects, Lungile Mtsweni, applied what she had learned at the two-day workshop and was awarded an industrial cleaning contract at Isibonelo. She employs 17 people. Ingy Industrial and Tech Solutions is a logistics and plant hire company established in 2013 by Frans Motau and Nkosimphile Mahlangu, two driven entrepreneurs with a clear vision for growth. One of their primary challenges was limited access to funding for essential equipment. Their breakthrough came when they secured their first major logistics contract with our business, which referred them to Thuthukani to address their funding needs. The entrepreneurs became the first beneficiaries of our agreement with Absa and received R9.5 million to acquire three trucks and trailers. ![]() 146 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT The Nkulo Community Partnership Trust handed over its first two projects in 2024. The trust is an additional vehicle through which we create value for host communities. Registered as a public benefit organisation, Nkulo was created to support welfare and humanitarian initiatives; healthcare; education and development; social mobilisation; conservation, the environment and animal welfare; and sports and culture. Its maiden donations in 2024 contributed to local health in the form of medical resources and sanitation. The first, approximately R6 million in essential medical supplies and equipment, was made to the Witbank Tertiary Hospital and will be used for the care of critically ill patients. The hospital admits up to 20 high-care patients every day. The donation included hospital linen, blankets, pillows, patient wear and endoscopic clips, The second is a 16,000-litre honeysucker for the Steve Tshwete Local Municipality. These vacuum trucks are used to drain septic tanks, unblock sewerage pipes and empty pit latrine systems in rural areas. Among the current projects are: • Nineteen new classrooms and ablution facilities for Mphephethe Primary School in Hendrina, where learners are still exposed to the harmful effects of outdated asbestos building materials. • The construction of a much larger and more suitable facility for the expanding Bonginhlanhla Stimulation Centre for the Disabled in Middelburg in collaboration with Mafube. This organisation provides day-time care, therapeutic support and various types of education for children and young adults living with physical and intellectual disabilities. • The KwaGuqa water pipeline rehabilitation project entails the replacement of sections of the pipeline to reduce losses and improve access to safe, clean water in the area. ### NKULO COMMUNITY ### PARTNERSHIP TRUST ![]() 147 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES ![]() 148 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT ### CREATING AN INCLUSIVE AND ### SUSTAINABLE SUPPLY CHAIN Our sites rely on large volumes of goods and services to support the efficient running of their operations. We are committed to using this as an opportunity to drive positive change through our supply chain. By focusing on responsible sourcing and local procurement, we are able to stimulate regional economies, create jobs and promote ethical labour practices and other sustainability priorities among the broad network of business partners we work with. INCLUSIVE PROCUREMENT Sourcing goods and services from black-owned and local businesses is one of the key ways we foster change and share value. This is aligned with our socio-economic development goal 3, ‘Improving access to income generation opportunities’. In South Africa, this imperative is driven by broad-based black economic empowerment (B-BBEE), a government policy that promotes economic participation and ownership among historically disadvantaged individuals. We strive to exceed compliance with the procurement targets set by the Mineral and Petroleum Resources Development Act. These targets are included in each mine’s SLP and relate to the purchasing of goods and services from historically disadvantaged South Africans, black women- and youth-owned entities, and businesses that are B-BBEE-compliant. Considerable emphasis is placed on directing opportunities to businesses that operate in the communities that host our mine sites as a way of promoting sustainable local economic development and employment. #### PERFORMANCE Ambitious preferential procurement targets, ring-fenced opportunities for BEE and local suppliers, and the segmentation of high-value contracts with well-established businesses are all ways we continue to reduce the barriers to entry for smaller enterprises. Total expenditure at our South African operations in 2024 was R9.7 billion. Of this, R7.2 billion was spent with transformed businesses. The proportion of discretionary expenditure allocated to businesses in host communities increased by 1% to R2.0 billion, representing 24% of our discretionary spend, up from 21% in 2023. Progress in this area is supported by Thuthukani, our ESD programme, which is expanding the pool of local suppliers capable of providing goods and services that meet our quality, delivery and safety standards. Thuthukani provides entrepreneurial skills training, technical enablement and loan funding at preferential interest rates. Read more on page 144. ![]() 149 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES MINING SERVICES PROCUREMENT PERFORMANCE (%) 2020 20 21 2022 2023 2024 Target 100 90 80 70 60 50 40 30 20 10 8 6 5 6 1 YouthWomen-controlled 11 18 16 16 21 Black-owned 38 44 43 69 62 57 64 43 B-BBEE-compliant businesses 75 80 83 89 88 PROGRESS AGAINST TARGETS MINING GOODS PROCUREMENT PERFORMANCE (%) 2020 20 21 2022 2023 2024 Target 100 90 80 70 60 50 40 30 20 10 Women-and youth-controlled 10 13 10 31 16 Black-owned 44 49 70 38 39 B-BBEE-compliant businesses 87 75 82 89 84 Commercial and operational constraints limit our capacity to employ people, procure goods and services and invest in social initiatives. However, through collaboration with large supplier partners, we can amplify our impact by co-creating shared sustainable value. These partnerships, often with original equipment manufacturers and multinational organisations, include contractual commitments that contribute to local development. These typically relate to the: • employment of a specified percentage of local people; • transfer of skills to emerging companies; • procurement from local SMMEs; and • contributions to local CSI. These commitments are fulfilled either in partnership with our mines or as independent initiatives, and further enhance socio-economic benefits in the communities where we operate. Suppliers working at our Elders project site have delivered projects to the value of more than R4.3 million alone. These include the installation of eco-latrines, boreholes and solar street lighting, enhancements to a nursery school and the complete renovation of eight classrooms at a local high school. LEVERAGING SUPPLIER PARTNERSHIPS FOR LOCAL IMPACT Local procurement 2024 2023 2022 2021 2020 Expenditure with local suppliers (rand billion) 2.3 2.0 2.3 2.3 1.5 Percentage of discretionary operational spend (%) 24 21 28 24 19 ![]() 150 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT #### DOING MORE TOGETHER During the year, we partnered with capital equipment supplier Barloworld Equipment on two education-related projects. • The first saw Goedehoop and Barloworld Equipment erect two containerised units to address space constraints at Kwazamokuhle Secondary School in Hendrina. These units include a fully furnished boardroom, a staffroom with workstations and a kitchenette, offering educators a functional space to plan lessons, mark papers and hold meetings. • In the second project, Barloworld Equipment partnered with Mafube to build a science laboratory at Bankfontein Combined School and a library at Beestepan Secondary School. Mafube’s partnership with explosives provider Enaex resulted in the donation of five interactive white boards, six laptops, projectors and the construction of a fence at Ipani Primary School. Strata Mining Services, a supplier of proximity detection systems to our underground mines, invested in 25 young people who completed a basic electrical training programme. Finally, security provider Fidelity will subcontract a large portion of its contract value to a host community supplier which will be responsible for providing personnel and managing 30% of the scope of work. 150 ![]() 151 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES #### EMBEDDING SUSTAINABILITY IN OUR SUPPLY CHAIN We are committed to operating responsibly and with integrity, and expect all our business partners to do the same. During the year, the board approved our responsible sourcing policy, which sets the foundation for relationships with suppliers, vendors, agents, consultants and contractors. The policy ensures legal compliance and emphasises our commitment to human rights. It covers key areas such as labour standards, health and safety, environmental management and business integrity. The policy will be rolled out in 2025. Training will be provided for all suppliers, with special emphasis on businesses in host communities to better enable them to align themselves with these standards. In 2024, we undertook an internal process to identify high-risk suppliers within our procurement network. Building on this in 2025, we will engage an external party to conduct comprehensive audits on high-risk suppliers, focusing on risks related to human rights, sustainability and legal compliance. As part of our effort to enhance sustainability in our supply chain, we mapped the top 60% of our supplier base by spend in 2024, and initiated a review of their reporting on Scope 1, 2 and 3 greenhouse gas emissions and emission reduction targets. The mapping covered purchased goods and services, capital goods and upstream transportation. Approximately half of the suppliers mapped currently track their emissions and have targets in place. Most suppliers who do not report on emissions are SMMEs. The next step will involve engaging these companies to support and guide their emissions reduction pathways. ZERO TOLERANCE FOR UNETHICAL BEHAVIOUR Suppliers and service providers are expected to operate within the ethical and legal parameters set out in our business integrity policy, our standard terms and conditions for suppliers and our code of conduct, which are all available on our website. These policies make it clear that we are implacably opposed to corruption. We will neither give nor accept bribes nor permit others to do so in our name, either in our dealings with public officials or with suppliers and customers. Employees, contractors, suppliers, business partners and other external stakeholders are encouraged to report and raise concerns about conduct that is contrary to the values and standards described in our business integrity policy using our anonymous tip-off line, HAIBO!. For more information, refer to page 162. 151 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 ![]() 152 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT ### PAYMENTS TO GOVERNMENT #### During the year, we paid R4,518 billion in the form of corporate income, payroll, dividend #### withholding, carbon and royalty taxes to the South African and Australian governments. Payments to governments in 2024 Rand (million) South Africa Australia Total Corporate income tax 1,240 105 1,345 Royalty tax 181 930 1,112 Payroll tax 1,433 485 1,918 Skills development levies and unemployment insurance fund 64 – 64 Carbon tax 4  4 Dividend withholding taxes (UK shareholders) 75 – 75 Total 2,998 1, 521 4,518 #### RESPONSIBLE TAXATION Honest and transparent reporting of tax payments reinforces our commitment to ethical governance and fosters relationships that are based on accountability and trust. We commit to meeting our tax obligations accurately and on time, and to honouring both the spirit and the letter of the law. We also recognise that our tax practices must reflect genuine commercial realities. Wherever possible, we aim for certainty on tax matters and, where tax authorities have implemented cooperative compliance arrangements, favourably consider participation. By applying tax transparency principles, we: • Demonstrate our commitment to good tax governance and mitigate risk to shareholders • Develop and maintain long-term, open and constructive relationships with tax authorities • Illustrate the industry’s economic contribution to regional and national economies • Make a meaningful contribution to ongoing tax and transparency debates by proactively engaging with industry bodies, business forums and civil society. #### Tax policy and administration • Stable tax regimes with predictable rules that are introduced proactively and in consultation with stakeholders. • Tax legislation that follows internationally agreed principles and therefore fosters certainty. • Tax administration procedures that ensure reliable reimbursements and timely refunds. #### Basis of taxation • Tax is levied on a fair and equitable basis so that both investors and governments share the risks and rewards. This supports long- term investment, job creation and the creation of wealth. • Tax is levied on profits so that appropriate revenues can be raised at the appropriate time. • Detailed tax rules consider the industry’s specific characteristics, including relief for exploration, infrastructural and capital expenditure. • Taxation is based on mining royalties and is levied on profit rather than revenue, ensuring that the tax burden aligns with actual earnings. Fiscal, political and economic elements play a significant role in shaping both investment decisions and operational strategies in the mining sector over time. Jurisdictions with the following tax characteristics therefore assist in developing strong, longer-term relationships with taxpayers: TAX FACTORS THAT AFFECT THE MINING SECTOR ![]() 153 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 4 04. SOCIAL 05. GOVERNANCE 06. APPENDICES EFFICIENT TAX MANAGEMENT All tax positions must be fully compliant with legal, regulatory and professional requirements. Our dedicated Group tax function is required to plan tax matters responsibly and may not take an aggressive position on the outcome of a tax matter. Nor may it act in a manner that is clearly and explicitly contrary to legislation. The function may only pursue transactions and tax positions that it is prepared to disclose to revenue authorities and that are based on commercial relevance to the business. We are committed to complying with all applicable tax laws in the jurisdictions in which we operate. The management and tolerance of tax risks are guided by our tax policy and Group risk appetite philosophy – to achieve shareholder value without compromising our integrity, values and reputation by risking, among other things, regulatory non-compliance. Our Group tax policy establishes a coordinated approach to tax risk management and is founded on efficient tax management, management in line with the Group governance framework and commitments made to stakeholders. #### TAX GOVERNANCE MANAGING TAX IN LINE WITH OUR GOVERNANCE FRAMEWORK The Group tax function is expected to: • Act in accordance with our code of conduct and values • Establish tax policies that contain detailed guidance and procedures to ensure that our tax strategy is implemented and embedded. • Present relevant tax matters to the audit committee and board; and • Make use of an appropriate tax risk assessment framework. This ensures that a consistent approach is taken to determine whether a decision, position or transaction brings with it an unacceptable level of tax risk. We adopt the following tax practices: • Ensuring that taxation is consistent with the structure and location of our activities, human and material resources and the business and financial risks of each entity. • Aligning and/or integrating our tax policy, tax risk management and control systems with other Group policies. • Conducting transactions between related entities on the basis of the fair market value, adhering to the arm’s length principle, and complying with the transfer pricing documentation obligations set by tax legislation. • Expressly prohibiting employees from advising or providing any services to clients that may be understood as tax advice that may result in tax evasion activities by clients, providers or employees. • Identifying and controlling possible tax risks in all transactions involving the acquisition of relevant assets, entities and businesses, by conducting tax due diligence studies, structural studies and/or similar tax analyses. • Developing a specific procedure manual for tax management and control, and for the supervision of the Group’s internal information and tax control systems. • This procedure will manage and control the Group’s tax risks and be binding on all employees and, to the extent that they are affected, third parties. GOOD TAX PRACTICE SHAREHOLDERS To achieve the most beneficial post-tax position for the Group and its shareholders – transparently and within the confines of legislation. COMMUNITIES AND SOCIETY To pay taxes that contribute to economic development and support a sustainable, inclusive future for local people. GOVERNMENT To comply with the tax laws set by the South African Revenue Service and the Australian Taxation Office. We build and maintain trusted relationships with these authorities by paying the right amount of tax at the right time. #### COMMITMENTS TO OUR STAKEHOLDERS ENVIRONMENT AND FUTURE SUSTAINABILITY To comply with ‘green tax’ regulations such as the carbon tax, among others. ![]() 154 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT ## GOVERNANCE Governance 155 Risk management 162 05 154 ![]() 155 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 5 05. GOVERNANCE04. SOCIAL 06. APPENDICES ### GOVERNANCE Our purpose is to create value for all stakeholders, including shareholders, suppliers, #### employees and the communities that host our mining sites. This can only be achieved through sound corporate governance, which ensures that we act in the best interests of every stakeholder, disclose accurate and transparent details of all aspects of our performance and take accountability for our actions. emphasis on risk management and internal controls; the utilisation of best-practice standards to elevate sustainability efforts. a thorough understanding of ESG structures, processes, risks and opportunities; honest and transparent reporting of ESG performance; and setting clearly defined goals and objectives; ESG GOVERNANCE AT THUNGELA ENCOMPASSES: The Thungela Board has ultimate oversight of our approach to ESG and the delivery of our objectives in this crucial area. This incorporates all aspects of ESG, including climate change, and the progress we make against the targets we have set for ourselves. The board’s responsibility extends not just to Thungela, but also to its subsidiary companies, associates, trusts and joint ventures. It is led by independent non-executive director Sango Ntsaluba. As chairman, he is responsible for setting the tone for an ethical culture at board level, and for ensuring that the board fulfils its duties with integrity and in accordance with established corporate governance principles. The board's oversight of ESG-related matters is supported by its six committees, primarily the social, ethics and transformation committee (SETCO) and the health, safety, environment and risk (HSE and risk) committee, which are delegated specific oversight roles related to sustainability and governance performance. These committees report their findings and recommendations to the board after every scheduled meeting or should the need arise. #### OVERSIGHT Focus on environmental management and transparent reporting on issues such as responsible water use, mine closure, biodiversity, climate change and driving the pathway to net zero emissions. Emphasising the implementation of, and compliance with, governance processes and procedures with a zero tolerance for fraud and corruption. Reviewing policies and processes that underpin the integrity of risk management and internal controls. Ensuring the business operates safely. Reviewing operational performance and management. Ensuring adequate succession planning at senior levels. The board’s roles and responsibilities include: ![]() 156 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT Has expanded duties and is required to report on, and oversee, the effectiveness and integrity of the Group’s accounting and financial reporting, external audit, internal audit, integrated reporting and combined assurance. Oversees human resource development, talent management and skills retention. Reviews, for board and shareholder approval, the remuneration report and considers all remuneration-related matters, including salary increases and incentive awards. Oversees transformation and employment equity agenda. Manages broad-based black economic empowerment (B-BBEE), ethics and responsible business practices, stakeholder relations and responsible corporate citizenship. Audit committee Remuneration and human resources committee Social, ethics and transformation committee Has overall oversight of risk, information management and cybersecurity as well as sustainability with a focus on safety, health and environment. Determines risk appetite and reviews legal matters. Health, safely, environment and risk committee Nominates, elects and appoints board members. Responsible for board succession planning, performance evaluations, the review and recommendation of sound governance principles and monitoring of regulatory compliance. Nomination and governance committee Reviews and evaluates all investments and related financing, divestments, corporate restructuring and financing proposals that exceed Group executive committee authority and require board approval. Monitors execution and tracks performance post-implementation. Investment committee A more detailed account of corporate governance, including reports from the board and its various committees, can be found in the governance section of our Integrated Annual Report and on our website (https://www.thungela.com/investors/corporate-governance). #### THE BOARD ![]() 157 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 5 05. GOVERNANCE04. SOCIAL 06. APPENDICES #### ROLES AND RESPONSIBILITIES ROLE RESPONSIBILITY Board • Sets and steers strategic direction and works with the executive committee to create value for all stakeholders, ensuring that our strategy and business model are fit-for-purpose in the short, medium and long term. It also ensures we retain the flexibility to adapt to changing market conditions and secure the business’ sustainability. • Designating the board as the custodian of corporate governance gives it effective control to ensure business accountability. The Thungela approvals framework ensures that business matters are managed and approved at the right levels and that the board retains oversight of the business. The executive committee implements and executes the board-approved strategy while ensuring accountability for performance through reporting and disclosure. • The board reviews and approves business policies and processes that contribute to value creation through good governance, corporate social responsibility and an ethical culture and ensures the integrity of risk management and internal controls. • The board’s oversight and monitoring of performance contribute value to the business and its stakeholders by ensuring a fair and transparent approach. • By mandating its committees to act on its behalf, the board is able to: » ensure adequate succession planning at senior levels; » effectively review operational performance and management; » ensure the implementation of, and compliance with, governance processes; and procedures, with zero tolerance for fraud and corruption; » ensure the business operates safely; and » focus on climate change, driving the pathway to net zero. Board committees with specific ESG responsibilities • The SETCO has oversight of and ensures compliance with laws, codes and standards that apply in the running of a principled and socially responsible business, focusing on ethics, stakeholder relationships, corporate citizenship, inclusion and diversity and human rights. • The HSE and risk committee has oversight of risk, information management and sustainability, with a focus on safety, health and the environment. It determines the Group’s risk appetite and reviews legal matters. In addition, it reviews and develops framework policies and guidelines for the management of sustainability issues, commissions audits to assess legal and internal compliance and ensures that management systems such as hazard identification and risk assessment, medical surveillance and incident investigation are in place, to aid in identifying and managing risks. Executive committee • Led by the chief executive officer, the executive committee is responsible for implementing and monitoring our sustainability activities. • Formulates short-, medium- and long-term objectives linked to the creation of long-term value creation. • Continuously reviews and oversees the implementation and execution of approved ESG-related strategies, policies and programmes. • Reviews ESG performance against objectives and key performance indicators. Functional committees and senior management • A SHE steering committee comprising the executive committee, internal functional heads and general managers meets monthly to discuss specific issues, governance matters and operational feedback on ESG action items. • The general manager at each operation, together with their leadership team, is responsible for oversight of daily ESG-related activities. • Each operation has a social performance management committee to promote an integrated and cross-functional approach to managing social performance risks and impacts, and achieving alignment with new policy requirements. • A monthly learn-and-share meeting provides a platform for learning from incidents of a safety, environment and social nature. It is attended by all middle and senior managers across the business and is a critical part of our risk management process. ![]() 158 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT SETCO MEETS BIANNUALLY. ITS FOCUS AREAS FOR 2024 WERE TO: THE HSE AND RISK COMMITTEE MEETS QUARTERLY. ITS 2024 FOCUS AREAS WERE TO: • Continue to align ESG disclosures with the ISSB S1 and S2 reporting standards • Optimise our B-BBEE scorecard • Launch the Thungela Education Initiative • Promote talent retention and attraction • Become a United Nations Global Compact participant • Consider responsible mine closure and social risks and impacts • Train our workforce on human rights • Continue to drive the talent strategy through annual talent reviews and the succession planning process, including tracking and delivering on talent KPIs • Review the root causes for whistleblowing incidents • Ensure Thungela's safety and health objectives were achieved • Review the Ensham health and safety systems and controls, aligning these with the Group's standards • Guide response plans to address the risks identified • Review rehabilitation and water management plans • Review climate change risks and opportunities and the organisation's management thereof • Review the pathway to net zero emissions and decarbonisation • Successfully completing information management (IM) separation and transition services • Manage IM risks effectively • Obtain the Mafube mineral residue deposit licence • Manage the risks of community relations effectively • Manage the Transnet Freight Rail risk effectively Our policies and technical standards guide our approach to managing our environmental and social impacts, risks and opportunities. They support the realisation of our values and code of conduct which, together, detail the behaviour and performance expectations we have of directors, employees, business partners and associates. Our operations tailor policies to reflect local cultures and regional challenges. Ethical business practices are established through standards, procedures and guidelines that support our commitment to be a responsible producer of coal. The Thungela technical standards define the minimum requirements we set for our operations to manage a wide range of specific issues. These issues include, for example, the management of water, energy, mineral residue storage and water management facilities and various technical aspects of mining that relate to safety. 158 ![]() 159 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 5 05. GOVERNANCE04. SOCIAL 06. APPENDICES #### CYBERSECURITY Cybersecurity is a critical governance risk that affects business resilience, stakeholder trust and regulatory compliance. Our IM processes are aligned with the National Institute of Standards and Technology and the Centre for Internet Security’s best practices, while our managed security service provider is ISO 27001 certified. We have in-house security and phishing awareness initiatives in place to strengthen our resilience against cyber threats and employ a user awareness training and testing tool to conduct scenario testing. We also run training on South Africa’s Protection of Personal Information Act to reinforce best practices for handling sensitive data securely. Automated vulnerability scanning takes place continuously on externally exposed assets through the implementation of relevant technology. Incident response procedures and processes are in place, while a disaster response plan will be actioned and a preparedness exercise executed in 2025. These will feed into our overall business continuity plans. Incident response procedures, particularly for critical incidents, follow our established major incident management process, which is activated for every priority 1 incident logged. No data breaches have occurred over the past three years, and we have information security risk insurance in place. A responsible team evaluates changes to third-party-provided IM services and systems, and service providers who do not meet minimum qualification criteria are disqualified. There is zero tolerance for third parties who do not meet our security requirements. An artificial intelligence (AI) strategy is in the process of being developed. Certain functionality in our IM environment, such as read.ai, have been blocked due to potential data security risks. We are currently building a large language model for the use of AI, with limited access to certain users. #### DOING BUSINESS ETHICALLY Corporate governance is the cornerstone of how we run our business. We are dedicated to maintaining the highest standards of governance and aim to cultivate a culture that values and rewards ethical behaviour, integrity and respect. This encompasses comprehensive risk management, which is vital if we are to be a devoted steward of the natural environment, a responsible employer and a dependable corporate citizen. We are guided by the principles set forth in the King IV Report on Corporate Governance for South Africa 2016 (King IV), the performance standards established by the International Finance Corporation, applicable legislation and widely accepted industry practices. Strong processes, policies and principles shape the board's activities and establish a robust ethical culture. They ensure compliance with statutory and industry requirements, while providing direction and defining the limits of decision-making. Importantly, ethical principles are also woven into our values, code of conduct, strategies, policies, procedures and standards. We commit to the timely identification of business and ESG risks and opportunities, and have a zero-tolerance stance on corruption, fraud and misconduct. We also encourage the reporting of inappropriate behaviour while protecting whistleblowers. We are committed to tax transparency and to preventing anti-competitive practices and money laundering. ![]() 160 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT INCLUSION AND DIVERSITY Our inclusion and diversity policy addresses all aspects of diversity and fosters inclusivity across the organisation. This includes the board. We are dedicated to transparent and equitable executive compensation structures that are tied to various factors, including ESG. Further details on ESG-related compensation can be found in the remuneration report on page 98 of the Integrated Annual Report. The board comprises individuals whose diverse knowledge, race, cultural backgrounds, age and gender all positively impact the fulfilment of its duties. Two black women serve as independent non-executive directors alongside three black and three white males. Ranging in age from 47 to 64, their collective expertise in accounting, finance, technical fields, engineering, sustainability and management ensures that the board is well-structured, with complementary skills and a balanced distribution of authority. In 2024, we were saddened by the passing of Thero Setiloane, who served as chairman of our SETCO. Tommy McKeith, who was appointed to the board in October 2024, now serves in this role and is a member of both the board’s audit committee and HSE and risk committee. Appointments are made based on merit, considering skills, experience, independence and knowledge. Each year, the nomination and governance committee assesses the board’s effectiveness in terms of its size, diversity and demographics. LEADING ETHICALLY By conducting business responsibly, we prioritise the best interests of all our stakeholders. This involves being accountable in our operations, acknowledging our actions and providing transparent and honest information about our performance. We uphold values of honesty, fairness, respect, community and integrity, which must be demonstrated at all levels. To foster ethical leadership, we have a business-wide code of ethics and a whistleblowing policy and process, both of which are communicated throughout the organisation, including to the board. Our approach is to address unethical behaviour promptly and fairly while recognising and rewarding ethical conduct. The board's rights and responsibilities are outlined in the board charter, ensuring a clear balance of power and authority so that no single director has unchecked decision-making power. WHISTLEBLOWING Our independent whistleblowing service, HAIBO!, plays a crucial role in eliminating unethical behaviour and is accessible to internal and external stakeholders, including members of the board, employees, contractors, business partners and members of the public. This service enables anonymous reporting of illegal, inappropriate and unscrupulous behaviour, while ensuring the confidentiality and protection of whistleblowers. Our whistleblowing policy is available on our website. We actively encourage reporting through various internal and external communication channels, as well as during return-from-leave inductions and mandatory training covering topics such as human rights, our code of conduct and issues related to bullying, victimisation and harassment. Whistleblowers can report anonymously in their preferred language using a toll-free hotline and dedicated email address. In 2024, the hotline received 248 contacts, leading to 59 official reports, of which 48 were resolved by the end of the year. The SETCO regularly reviews a summary of reports to identify trends and necessary corrective actions. It also assesses feedback on incidents and the outcomes of investigations. Any incidents with significant financial implications are reported to the audit committee. CODE OF CONDUCT AND BUSINESS INTEGRITY Our code of conduct serves as an internal guideline and an external statement of our commitment to acting with accountability and care and respect. This is for the people who work for and with us, for the communities that host our mining sites, and for the natural environment. It sets out our mission, our corporate values and our culture and links these to best-practice global standards, which provide the benchmarks against which we and others will measure our performance. It brings together in one place our core values, behaviours, ethical principles, policies and standards and is a user-friendly guide to doing what is right. Our code of conduct and business integrity policy and performance standard is accessible on the company intranet and website. Regular awareness of the code, together with our whistleblowing service, is promoted through multiple internal channels, including the Thungela Weekly, which employees receive via email or SMS once a week. Board members also receive periodic reminders via email. All management levels, employees, contractor and key suppliers are required to undergo training on the code of conduct and business integrity policy. Awareness of the requirements of both policies is raised on a continuous basis via different media. Any violations of these policies are reported, investigated and resolved, with disciplinary action taken when necessary. ![]() 161 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 5 05. GOVERNANCE04. SOCIAL 06. APPENDICES CONFLICTS OF INTEREST Directors are prohibited from engaging in direct business transactions and must disclose their business interests to the remuneration and nomination committee every year. Board and committee meetings commence with declarations of personal interests, where members must formally declare any actual, potential or perceived direct or indirect conflict. New employees are required to disclose any conflict of interest, and vetting is conducted during the hiring process. We maintain an electronic register where individuals must declare both real and perceived conflicts of interest, as well as any external directorships. These declarations are approved by their managers, and the register is audited by the internal audit department once a year. RISKS RELATED TO CORRUPTION Assessments for corruption-related risks at all our operations are undertaken by our internal audit department, which monitors and reports findings to the executive committee. A quarterly report is also provided to the SETCO, which is responsible for relaying findings to the board. LEGISLATIVE COMPLIANCE We understand the significance of adhering to legislation and following non-binding codes and standards. We strive to foster a culture of compliance that assures the board and management that all legal and regulatory requirements have been fulfilled. Our legal and risk and assurance departments are responsible for the compliance function and are developing a regulatory compliance framework to help monitor and track our fulfilment of regulatory requirements. Reports to the nomination and governance committee keep board members informed of the level of regulatory compliance achieved. Members of the compliance function attend meetings at the board’s request. DELEGATION OF AUTHORITY We have updated our approvals framework to incorporate Ensham concerning delegation of authority and regulatory compliance. The framework covers execution, operational expenditure, and supply chain; communication and ESG; human resources, finance, legal, assurance; sales and marketing; and governance and strategy. It is reviewed annually to ensure its continued relevance. ![]() 162 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT ### INTEGRATED RISK MANAGEMENT We integrate ESG risk management into every aspect of our business, not only to prevent or #### mitigate harm, but to drive sustainable practices that create lasting, positive impacts. OUR APPROACH Integrated risk management (IRM) provides a strategic, organisational framework that enables us to identify, assess and address risks to our long-term objectives. In contrast, operational risk management (ORM) deals with risks at a day-to-day level to ensure that potential incidents are identified and controlled in real time. Together, these approaches create a comprehensive and proactive risk management system. Our IRM policy and framework and ORM standard are aligned with the International Standardization Organization’s 31000 principles and guidelines. In South Africa, we also comply with the Johannesburg Stock Exchange’s Listing Requirements and principle 11 of the King IV Report on Corporate Governance. These help us to systematically identify, prioritise, evaluate and manage a broad spectrum of risks and ensure that they are clearly and effectively cascaded to all levels. Each of our sites maintains a risk and control register, which forms the basis of an executive risk summary that is updated and presented to the board twice a year. This highlights key risks that are then assessed in relation to organisational risk appetite. A thorough review of these registers ensures that we consider all risks across all levels. The IRM framework defines the responsibilities for reassessments, their frequency, required documentation, and the facilitation and review of various business processes. Risk management is a critical responsibility of the board and executive committee, while the board’s audit and HSE and risk committees oversee and support the IRM process. #### OUR INTEGRATED RISK MANAGEMENT #### PROCESS The IRM process is ongoing and begins by defining risks that could hinder or delay the achievement of our business’s objectives. This is followed by an analysis of the root causes, contributing factors and consequences, with the level of detail varying depending on the assessment’s objectives and the severity of potential outcomes. Evaluations determine which risks require treatment and should be prioritised for leadership attention. We also assess current controls and their effectiveness and use a 5x5 matrix to determine risk ratings. These are based on two factors: the risk’s potential impact and the likelihood that it will materialise. We define risk appetite as the type and level of risk we are willing to accept to achieve our objectives, while ‘risk tolerance’ refers to our ability to manage or strategically absorb that risk. See page 34 of our integrated report for details. PROJECT RISK INTEGRATED EXECUTIVE RISKS OPERATIONAL AND FUNCTIONAL RISK ![]() 163 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 5 05. GOVERNANCE04. SOCIAL 06. APPENDICES MANAGING RISKS ON THE FRONTLINE #### Check that controls are working Consider the context Understand the hazards Identify unwanted events Analyse the risks Think about what controls could be implemented Treat the risks OPERATIONAL RISK MANAGEMENT Our ORM standard sets out how risks should be managed at an operational level and ensures that sites follow the requirements of our IRM policy and framework. The ORM process is divided into four layers – baseline, issue-based, task-based and continuous risk management, that help employees manage risks in their day-to-day working environments. It enables operational teams to identify, plan for and reduce unwanted events by applying the right controls and carrying out tasks to minimise negative outcomes. Critical controls are central to ORM, particularly for operational risks that could result in a workplace fatality or other catastrophic event. ORM is an evolving process and improves as we learn from incidents. Regular risk management training is provided to employees based on their responsibilities. 163 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 ![]() 164 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT #### ASSURANCE Regular internal and external audit programmes give us the assurance that priority and catastrophic risks have been identified and that we have the controls in place to prevent, mitigate and manage them. Our internal assurance department is the custodian of the IRM framework and supports the execution of risk management activities at operations. It is responsible for producing the executive risk report twice annually and for developing assurance plans based on the outputs of risk and control registers. WE HAVE THREE LEVELS OF ASSURANCE: FIRST LEVEL ASSURANCE Our operations manage risks through inspections and operational checks and by self-correcting deviations. This involves, among other things, safety and occupational health inspections, water sampling and dust monitoring that trigger the necessary actions. Sites undertake self- assessments against our technical standards. 1 2 164 ![]() 165 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 5 05. GOVERNANCE04. SOCIAL 06. APPENDICES THIRD LEVEL ASSURANCE Our in-house internal assurance service and third-party auditors undertake evaluations of standards, governance and risk management. This includes audits for ISO 14001 and 45001 compliance, legal requirements and ESG data assurance. 3 SECOND LEVEL ASSURANCE Site audits and investigations are undertaken by subject matter experts and functional experts who review and validate firstlevel assessments, monitor and analyse to support effective risk management. 165 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 ![]() 166 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT ## APPENDICES Independent assurance statement 167 Selected reporting criteria 172 Carbon accounting methodologies 175 Glossary 180 Corporate information 184 06 166 ![]() 167 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 6 06. APPENDICES04. SOCIAL 05. GOVERNANCE #### To the directors of Thungela Resources Limited #### REPORT ON SELECTED KEY PERFORMANCE INDICATORS We have undertaken an assurance engagement on selected key performance indicators (KPIs), as described below, and presented in the Environmental, Social and Governance Report 2024 of Thungela Resources Limited (“Thungela”) for the year ended 31 December 2024 (the Report). This engagement was conducted by a multidisciplinary team including environmental, health, safety and assurance specialists with relevant experience in sustainability reporting. #### Subject Matter We have been engaged to provide a reasonable assurance opinion on the KPIs listed in Table A and a limited assurance conclusion on the KPIs listed in Table B below. The selected KPIs described below have been prepared in accordance with the relevant KPI definitions as set out in the Selected Reporting Criteria for Sustainability Assurance Appendix of the Report (“reporting criteria”). Table A: Reasonable assurance on the following KPIs (marked with a ‘RA’ on the relevant pages in the Report) Table B: Limited assurance on the following KPIs (marked with a ‘LA’ on the relevant pages of the Report) ### INDEPENDENT ASSURANCE ### PRACTITIONER’S ASSURANCE ### REPORT ON SELECTED KEY ### PERFORMANCE INDICATORS KEY PERFORMANCE INDICATORS UNIT OF MEASUREMENT BOUNDARY PAGE NUMBER Total work-related fatal injuries Number Thungela Group 22; 90 Scope 1 emissions Kilo tonnes CO 2 e Thungela Group 68 Scope 2 emissions Kilo tonnes CO 2 e Thungela Group 68 Total energy used Million GJ Thungela Group 22; 72; 73 KEY PERFORMANCE INDICATORS UNIT OF MEASUREMENT BOUNDARY PAGE NUMBER Total work-related injuries Number Thungela Group 90 Total recordable case frequency rate (Including LTIs) (TRCFR) Rate Thungela Group 22; 24; 90 Lost time injury frequency rate (LTIFR) Rate Thungela Group 90 Total number of new cases of noise induced hearing loss (NIHL) Number Thungela Group 94; 97 Employees exposed to inhalable hazards over the occupational exposure limit Number Thungela Group excluding Ensham 96 Employees exposed to noise over 85 dBA Number Thungela Group excluding Ensham 96 ![]() 168 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT KEY PERFORMANCE INDICATORS UNIT OF MEASURE BOUNDARY PAGE NUMBER Scope 3 emissions Kilo tonnes CO 2 e Thungela Group 70 Total number of Level 3, 4 & 5 environmental incidents reported Number Thungela Group 22; 25; 38; 48 Freshwater abstraction ML Thungela Group 22; 49 Potable water extraction from the EWRP ML Thungela Group excluding Ensham 48 Water reused/recycled (water efficiency) Percentage Thungela Group excluding Ensham 22; 25; 48; 49 Land rehabilitation – Reshaping; topsoiling; and seeding completed Ha Thungela Group 75 Total amount spent on corporate social investment (CSI) Rand million Thungela Group 135 Total amount spent Socio-economic Development projects (SED) Rand million Thungela Group 23; 135 Total amount spent Social and Labour Plans (SLP) Rand million Thungela Group 135 Total amount spent on Strategic projects: Enterprise and supplier development (ESD) Rand million Thungela Group 135 Total amount spent on Strategic projects: Education Rand million Thungela Group 135 Total number of Level 3, 4 & 5 Social related incidents reported Number Thungela Group 22; 118 Percentage of security personnel trained on human rights Percentage Thungela Group 12 5 Hazardous waste generated Tonnes Thungela Group 41 Non-hazardous waste generated Tonnes Thungela Group 41 DIRECTORS’ RESPONSIBILITIES The directors are responsible for the selection, preparation and presentation of the selected KPIs in accordance with the reporting criteria. This responsibility includes the identification of stakeholders and stakeholder requirements, material issues, commitments with respect to sustainability performance and design, implementation and maintenance of internal control relevant to the preparation of the report that is free from material misstatement, whether due to fraud or error. The Directors are also responsible for determining the appropriateness of the measurement and reporting criteria in view of the intended users of the selected KPIs and for ensuring that those criteria are publicly available to the Report users. INHERENT LIMITATIONS The Greenhouse Gas (GHG) emission quantification is subject to inherent uncertainty because of incomplete scientific knowledge used to determine emissions factors and the values needed to combine emissions of different gases. OUR INDEPENDENCE AND QUALITY MANAGEMENT We have complied with the independence and other ethical requirements of the Code of Professional Conduct for Registered Auditors issued by the Independent Regulatory Board for Auditors (IRBA Code), which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. The IRBA Code is consistent with the corresponding sections of the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards). Deloitte applies the International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. ![]() 169 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 6 06. APPENDICES04. SOCIAL 05. GOVERNANCE ASSURANCE PRACTITIONER’S RESPONSIBILITY Our responsibility is to express either a reasonable assurance opinion or limited assurance conclusion on the selected KPIs as set out in Table A and Table B of the Subject Matter paragraph, based on the procedures we have performed and the evidence we have obtained. We conducted our assurance engagement in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements other than Audits or Reviews of Historical Financial Information issued by the International Auditing and Assurance Standards Board. This Standard requires that we plan and perform our engagement to obtain the appropriate level of assurance about whether the selected KPIs are free from material misstatement. The procedures performed in a limited assurance engagement vary in nature and timing and are less in extent than for a reasonable assurance engagement. As a result, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had we performed a reasonable assurance engagement. (A) REASONABLE ASSURANCE A reasonable assurance engagement undertaken in accordance with ISAE 3000 (Revised) involves performing procedures to obtain evidence about the measurement of the selected KPIs and related disclosures in the Report. The nature, timing and extent of procedures selected depend on the auditor’s professional judgement, including the assessment of the risks of material misstatement of the selected KPIs, whether due to fraud or error. In making those risk assessments we have considered internal control relevant to Thungela’s preparation of the selected KPIs. A reasonable assurance engagement also includes: • Evaluating the appropriateness of quantification methods, reporting policies and internal guidelines used and the reasonableness of estimates made by Thungela; • Assessing the suitability in the circumstances of Thungela’s use of the applicable reporting criteria as a basis for preparing the selected information; and • Evaluating the overall presentation of the selected sustainability performance information. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. (B) LIMITED ASSURANCE A limited assurance engagement undertaken in accordance with ISAE 3000 (Revised) involves assessing the suitability in the circumstances of Thungela’s use of its reporting criteria as the basis of preparation for the selected KPIs, assessing the risks of material misstatement of the selected KPIs whether due to fraud or error, responding to the assessed risks as necessary in the circumstances, and evaluating the overall presentation of the selected KPIs. A limited assurance engagement is substantially less in scope than a reasonable assurance engagement in relation to both risk assessment procedures, including an understanding of internal control, and the procedures performed in response to the assessed risks. Accordingly, for the KPIs where limited assurance was obtained, we do not express a reasonable assurance opinion about whether Thungela’s selected KPIs have been prepared, in all material respects, in accordance with the accompanying reporting criteria. The procedures we performed were based on our professional judgement and included inquiries, observation of processes followed, inspection of documents, analytical procedures, evaluating the appropriateness of quantification methods and reporting policies, and agreeing or reconciling with underlying records. Given the circumstances of the engagement, in performing the procedures listed above we: • Interviewed management and senior executives to obtain an understanding of the internal control environment, risk assessment process and information systems relevant to the sustainability reporting process; • Inspected documentation to corroborate the statements of management and senior executives in our interviews; • Performed a walkthrough of processes and systems to generate, collate, aggregate, monitor and report the selected KPIs; • Inspected supporting documentation on a sample basis and performed analytical procedures to evaluate the data generation and reporting processes against the reporting criteria; and • Evaluated whether the selected KPIs presented in the Report are consistent with our overall knowledge and experience of sustainability management and performance at Thungela. ![]() 170 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT #### REASONABLE ASSURANCE OPINION AND LIMITED ASSURANCE CONCLUSION (A) REASONABLE ASSURANCE OPINION In our opinion, and subject to the inherent limitations outlined elsewhere in this report, the selected KPIs set out in Table A of the Subject Matter paragraph above for the year ended 31 December 2024 are prepared, in all material respects, in accordance with the reporting criteria. (B) LIMITED ASSURANCE CONCLUSION Based on the procedures we have performed and the evidence we have obtained, and subject to the inherent limitations outlined elsewhere in this report, nothing has come to our attention that causes us to believe that the selected KPIs as set out in Table B of the Subject Matter paragraph above for the year ended 31 December 2024 are not prepared, in all material respects, in accordance with the reporting criteria. OTHER MATTERS Our report includes the provision of limited assurance on the following KPIs: • Total work-related injuries; and • Scope 3 emissions. These selected KPIs were previously not subject to assurance. The maintenance and integrity of Thungela‘s website is the responsibility of Thungela’s management. Our procedures did not involve consideration of these matters and, accordingly, we accept no responsibility for any changes to either the information in the Report or our independent assurance report that may have occurred since the initial date of its presentation on Thungela‘s website. RESTRICTION OF LIABILITY Our work has been undertaken to enable us to express a reasonable assurance opinion and a limited assurance conclusion on the selected KPIs to the Directors of Thungela in accordance with the terms of our engagement, and for no other purpose. We do not accept or assume liability to any party other than Thungela for our work, for this report, or for the conclusion we have reached. #### Deloitte & Touche #### Registered Auditors Per Jyoti Vallabh Chartered Accountant (SA) Registered Auditor Partner 23 April 2025 5 Magwa Crescent Waterfall City, Waterfall Private Bag x6, Gallo Manor, 2052 South Africa ![]() 171 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 6 06. APPENDICES04. SOCIAL 05. GOVERNANCE 171 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 ![]() 172 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT KPI DEFINITION Work-related fatal injury A death resulting from a work-related injury. However, while fatal injuries that result from criminal activity and public-road incidents are recorded for management purposes, these are not included in formal statistics and frequency-rate calculations. Total work-related injuries This includes fatal injuries, lost-time injuries, medical treatment cases and first aid cases. Injuries are diagnosed by medical and safety professionals according to the company criteria. These criteria are additional to local legal reporting and compensation requirements. Total recordable case frequency rate (TRCFR) Total recordable case frequency rate (calculated) is the number of recordable injuries (fatalities + lost-time injuries + medical treatment cases) per 1,000,000 hours worked (total recordable cases x 1,000,000/total hours worked). First aid cases – minor work-related injuries which, in normal circumstances, can be treated successfully in accordance with recognised first aid training – are not included in this calculation. Lost time injury frequency rate (LTIFR) The number of lost time injuries per million hours worked. Land rehabilitation – reshaping; topsoiling; and seeding completed Total hectares reshaped during the current year, total hectares where the relevant growth medium has been constructed to date in the current year and total hectares seeded and/or planted in the current year. New cases of noise induced hearing loss (NIHL) Number of employees diagnosed with NIHL during the reporting period. New cases are recorded when: • The rules for diagnostic criteria for occupational disease in Thungela have been met • There is a pattern consistent with NIHL on the audiogram; • The average hearing loss at frequencies 0.5, 1, 2, 3 and 4 kHz for both ears is greater than 25 dBA; • There has been a 10 dB change in average hearing loss since the pre-placement audiogram recorded on employment with Thungela; and • The employee has not previously been counted as a NIHL case. Total number of employees exposed to noise above 85 dBA Total number of employees and contractors assigned to Homogenous Exposure Group in “A” and “B” classification band, i.e. (without considering PPE) to noise levels >85dB(A). The number of people exposed to noise >85db(A) are quantified in accordance with the Department of Mineral and Petroleum Resource’s Guideline for Mandatory Code of Practice for an Occupational Health Programme for Noise (issued 11 February 2022) and represents the number of employees and contractors exposed as assessed at the beginning of the reporting period (and increased as a result of permanent changes to a specific operation). Employees exposed to inhalable hazards over the occupational exposure limit (Total number of employees and contractors assigned to Homogenous Exposure Groups in an “A” classification band, i.e. ≥OEL (without considering PPE) for inhalable hazards. The number of people exposed to inhalable hazards are quantified in accordance with the Department of Mineral and Petroleum Resource’s Guideline for the Compilation of a Mandatory Code of Practice for an Occupational Health Programme on Personal Exposure to Airborne Pollutants (issued 6 April 2018) and represents the number of employees and contractors exposed as assessed at the beginning of the reporting period (and increased as a result of permanent changes to a specific operation). Total energy use Total energy use is calculated from electricity purchased, energy from fossil fuels and energy from renewable fuels, and reported in million GJ. Scope 1 emissions Scope 1 emissions are direct GHG emissions from sources that Thungela owns or controls directly. Thungela’s Scope 1 emissions from all sites are as a result of the following activities:: • Stationary combustion – includes diesel and petrol used in generators; • Mobile combustion – includes diesel and petrol used in haul trucks, loaders, dozers and vehicles; • Fugitive emissions – includes emissions from the underground mines; • Industrial processes and product use – includes the use of limestone for the neutralisation of acid mine drainage; and • Wastewater treatment and discharge – includes the emissions from anaerobic treatment systems. ### SELECTED REPORTING CRITERIA #### FOR SUSTAINABILITY ASSURANCE ![]() 173 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 6 06. APPENDICES04. SOCIAL 05. GOVERNANCE KPI DEFINITION Scope 2 emissions Scope 2 emissions are defined as GHG emissions from the generation of purchased electricity, steam, heating and cooling that is consumed in a company’s owned or controlled equipment or operations. Scope 3 emissions Scope 3 emissions are the result of activities from assets not owned or controlled by the reporting organisation, but that the organisation indirectly affects in its value chain. Scope 3 emissions have been calculated in accordance with the GHG Protocol. Total greenhouse gas emissions (kt CO 2 e) Greenhouse gas calculations are based on the GHG Protocol, Intergovernmental Panel on Climate Change 2006 Guidelines and the South African Department of Forestry, Fisheries and the Environment’s Technical Guidelines for Monitoring, Reporting and Verification of Greenhouse Gas Emissions by Industry: https://www.environment.gov.za/sites/default/files/legislations/ technicalguidelinesformrvofemissionsbyindustry.pdf Freshwater abstraction Volume of water received by the site from the water environment or a third-party supplier (excludes water supply from the eMalahleni Water Reclamation Plant, and precipitation and run-off, which reasonably cannot effectively be prevented from entry into our operational processes). Potable water abstraction from the EWRP Volume of treated potable water (ML) abstracted from the eMalahleni Water Reclamation Plant. Water efficiency (reused/ recycled) A total reused/recycled efficiency metric for Thungela has been developed to increase water ‘reuse’ and ‘recycling’ behaviours such that the reliance on imported water is reduced. Water is assigned a status and either classified as raw, worked or treated, which is required to define water stores and to calculate the reuse and recycling efficiency. The Water Accounting Framework for the Minerals Industry User Guide (MCA, 2014) and Thungela’s Guideline Document and Definitions for Water Reporting define the different water statuses as follows: • Raw water is water that is received as an input and has not been used in a task. • Worked water is water that has been through a task. • Treated worked water is water that has been through a task and has subsequently been treated on site to provide water of a suitable quality for a particular purpose. It can include raw water treated once received on site or water used in a process that is then treated to allow further use or release to an output destination. The following definitions define reuse and recycle: • Reused water = worked water that is used in a task without treatment beforehand. The reuse efficiency is the sum of worked water flows to tasks as a proportion of the sum of all flows into the tasks. • Recycled water = worked water that is treated before it is used in a task. Recycling efficiency is the sum of treated worked water flows to tasks as a proportion of the sum of all flows into the tasks. Water treatment (%) The treatment target is based on reducing recharge, managing stormwater and creating sufficient storage to ensure uncontrolled discharges are mitigated by achieving a 40% treatment target. This includes desalination treatment at the EWRP and the Proxa plant at Mafube as well as lime treatment at Kromdraai and Navigation. Total number of level 3, 4 and5 environmental incidents reported Environmental incidents are unplanned or unwanted events that result in negative environmental impacts. • A level 1 incident results in minor impact • A level 2 incident results in low impact • A level 3 incident results in medium impact • A level 4 incident is considered to be a significant incident, that results in high impact • A level 5 incident is considered a significant incident that has a permanent impact on the environment We classify environmental incidents on a scale of 1 to 5 based upon increasing severity, in accordance with the Thungela 5x5 risk matrix, which plots potential incidents against their likelihood of occurring and the severity of their consequence. ![]() 174 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT KPI DEFINITION The following components are taken into consideration when rating the severity of environmental incidents: • Scale: How significant is the size/scale of the impact relative to the size/scale of the receiving environment? • Sensitivity: How sensitive is the receiving environment to the impact? How special or unique is the area that has been impacted? • Remediation and clean-up: How difficult is the impact to contain, remediate and/or clean up? How much time and/or resources are required to manage the incident? Hazardous waste generated Hazardous waste generated (tonnes) on site and transported offsite to a licensed hazardous waste facility. Non-hazardous waste generated General waste generated on site (tonnes) sent to landfill. Total number of Level 3, 4 & 5 social-related incidents reported Reportable incidents with social consequences are unplanned or unwanted events that result in negative social impacts. The consequences are rated according to the scale of the impact on the receptors, the vulnerability of the person or cultural heritage to the impact and our ability to remediate it. • A level 1 incident results in minor change to people’s lives and is temporary. Those impacted have a high ability to adapt and no mitigation or corrective action is required. • A level 2 incident creates a notable change to the way of life and in the short term. Those impacted have a high ability to adapt and it is easy to remediate. • A level 3 incident creates a significant change in the way of life and in the medium term. Those impacted are able to adapt in part to the incident and it is not easy to remediate. • A level 4 incident creates a fundamental change to the way of life and the impact is long-term. The ability of those impacted to adapt is severely restricted and it is challenging to remediate. • A level 5 incident creates a fundamental change to the way of life and the impact is permanent. Those impacted are not able to adapt to the impact and it is very difficult or impossible to remediate. Percentage of security personnel trained on human rights The number of security guards that have received training on the voluntary principles on human rights as a percentage of the total number of guards employed. Total amount spent on corporate social investment, social and labour plans, socio-economic development projects, enterprise and supplier development and the Thungela Education Initiative Categories for mine community development expenditure includes corporate social investment (CSI) (charitable donations) strategic projects and spend related to Social and Labour Plans. CSI for the Group is reporting in South African Rands Charitable donations include cash donations; contributions in kind; employees’ working hours spent on charity projects during work hours; and the cost of initiatives designed to inform communities about community-benefit initiatives (e.g. the production of reports that are issued to communities for the purpose of reporting progress). Not included is expenditure that is necessary for the development of an operation (e.g. resettlement of families) or for receiving a licence. Training expenditure for individuals who will be employed by the company or a relevant company affiliate, as the case may be, following completion of training is not included. Strategic programmes include the funding of community partnerships that address social issues; the costs of providing public facilities to community members who are not employees or dependants; the marginal value of land or other assets transferred to community ownership; and income-creation schemes or mentoring/volunteering initiatives that do not have a principally commercial justification. This category includes the Thungela Education Programme, enterprise and supplier development (Thuthukani) and other community initiatives/partnerships that also directly support the success of the company. There must, however, be a clear and primary element of public benefit. We prohibit the making of donations for political purposes to any politician, political party or related organisation, any official of a political party or candidate for political office in any circumstances, either directly or through third parties. ![]() 175 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 6 06. APPENDICES04. SOCIAL 05. GOVERNANCE KPI REGION DEFINITION METHODOLOGY Energy from fossil fuel use (million gigajoules (GJ)) South Africa Diesel and, to a lesser extent, petrol consumed by our mobile equipment, including haul trucks, loaders, dozers, light vehicles and stationary equipment such as generators. Fuel data is entered in by sites in litres or m3 onto our safety, health and environment (SHE) management system where all calculations are automatically processed using the guidelines and factors below. Methodology guidelines: GHG Protocol Corporate Accounting and Reporting Standard Calorific value source: 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 2, Energy Density value source: Diesel-2006 HESS Material Safety and Data Sheet; Petrol- 2012 ENGEN Material Safety and Data Sheet. Australia Energy consumed by our mobile equipment (i.e. haul trucks, loaders, dozers, vehicles) and stationary equipment (i.e. generators). Fuel sources that are used are diesel, LPG, petroleum based oils, petroleum-based greases. Diesel, LPG, petroleum-based oils and petroleum-based greases are captured in kilolitres at the different source points and sent to the environmental officer. All calculations are manually processed. The diesel, LPG, petroleum based oils, petroleum based greases values are converted to an energy value (GJ) by multiplying by the calorific values of the fuel sources. Methodology guidelines: National Greenhouse and Energy Reporting (Measurement) Determination 2008, Compilation No.18 Calorific value source: Australian National Greenhouse Accounts Factors, 2024 Scope 1 emissions (kt CO 2 e) South Africa Direct GHG emissions from under our management control and proportionate data where we have a significant interest but not management control (Mafube). Scope 1 emissions result from the following activities: • Stationary combustion in generators • Mobile combustion in mobile equipment and vehicles. • Fugitive emissions from the coal seams during and after the mining process that include CH 4 and CO 2 . • Industrial processes and product use – includes the use of limestone for the neutralisation of acid mine water. • Wastewater treatment and discharge – Includes the emissions from anaerobic sewage treatment systems. Scope 1 emission related data is entered onto our SHE management system by each operation. The sites enter the activity data, such as quantity of fuels consumed, run-of- mine tons, limestone consumption and number of people using the sewage treatment facilities and the emissions are automatically calculated by the system. Our CO 2 e emissions from fossil fuel combustion include CO 2 , CH 4 and N2O. Methodology guidelines: GHG Protocol Corporate Accounting and Reporting Standard; DFFE Methodological Guidelines for Quantification of Greenhouse Gas Emissions, Version No. MG-2022.1; 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 2 – Energy and Volume 5 – Wastewater Treatment and Discharge (Domestic wastewater treatment) Emission factor source: 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 2 – Energy, Volume 3 — Mineral Industry and Volume 5 –Wastewater Treatment and Discharge; DFFE Methodological Guidelines for Quantification of Greenhouse Gas Emissions, Version No. MG-2022.1 Global warming potential factor: 2001, IPCC Third Assessment Report (AR3) for 100-year time horizon. ### CARBON ACCOUNTING ### METHODOLOGIES ![]() 176 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT KPI REGION DEFINITION METHODOLOGY Scope 1 emissions (kt CO 2 e) Australia Scope 1 emissions are direct GHG emissions from sources that Ensham owns or controls directly. Ensham’s Scope 1 emissions are as a result of the following activities: • Stationary combustion – includes diesel used in generators, LPG used in the canteen oven, and petroleum based oils and greases used for lubrication in machinery • Mobile combustion – includes diesel used in haul trucks, loaders, dozers and vehicles. • Fugitive emissions – includes emissions from the underground mines (extraction of coal and pre-drainage and flaring) and open cast mines. • Industrial processes and product use – includes the use of SF6 gas for switchgears and circuit breakers • Stationary and mobile combustion emissions - Each fuel source is captured in kilolitres and converted to an energy value (GJ) using the calorific values of the fuel sources before applying the emission factors for CO 2 , CH 4 , N 2 O and GWP factors. • Fugitive emissions: Opencast: Annual seam gas sampling before coal extraction. Underground: - The mine undertakes continuous monitoring of ventilation air methane. Pre-drainage and flaring are manually monitored using bag samples and pressure differentials. Raw data is processed by specialist NATA accredited consultant Geogas to determine total ventilation emissions. • Industrial processes and product use – SF6 is captured in kg. Methodology guidelines: National Greenhouse and Energy Reporting (Measurement) Determination 2008, Compilation No.18 Emission factor source: Australian National Greenhouse Accounts Factors, 2024 GWP factor: 2001, IPCC 5th Assessment Report (AR5) for 100-year time horizon. Scope 2 emissions (kt CO 2 e) South Africa Emissions from electricity purchased from South Africa’s national power utility, Eskom. Purchased electricity vis captured in MWh on the SHE management system and emissions automatically calculated applying the GHG Protocol’s location-based approach. Methodology guidelines: GHG Protocol Corporate Accounting and Reporting Standard (Scope 2 guidance) Emission factor source: 2023 Eskom Integrated Report Australia Scope 2 emissions are defined as GHG emissions from the generation of purchased electricity, steam, heating and cooling that is consumed in a company’s owned or controlled equipment or operations. Ensham only purchases electricity from the national grid. Purchased electricity is captured in kWh. All calculations are manually processed. The electricity values are multiplied by the grid emission factor which is in total tonnes carbon dioxide equivalent emissions. Methodology guidelines: National Greenhouse and Energy Reporting (Measurement) Determination 2008, Compilation No.18 Emission factor source: Australian National Greenhouse Accounts Factors, 2024 ![]() 177 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 6 06. APPENDICES04. SOCIAL 05. GOVERNANCE KPI REGION DEFINITION METHODOLOGY Scope 3 emissions: Purchased goods and services (Category 1) Emissions from the extraction, production and transportation of goods and services acquired. This includes products purchased such as explosives, limestone and hydrated lime, contractor services (including fuel use). The spend-based method was applied for the purchased products based on financial cost of purchased products in 2024. The fuel related activity data collected from the contractors was converted to an energy value and then multiplied by the emission factors for CO 2 , CH 4 , N 2 O and GWP factors. Methodology guidelines: GHG Protocol Corporate Value Chain (Scope 3) Standard and Scope 3 Calculation Guidance and ICMM Scope 3 Emissions Accounting and Reporting Guidance Emission factor source: 2022, EPA , Supply Chain Greenhouse Gas Emission Factors v1.2 by NAICS-6; 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 2 – Energy GWP factor: 2001, IPCC Third Assessment Report (AR3) for 100-year time horizon Scope 3 emissions: Capital goods (Category 2) Emissions from the extraction, production and transportation of capital goods purchased, including haul trucks, vehicles, dozers and conveyors. The spend based method was applied for the purchased capital goods. Methodology guidelines: GHG Protocol Corporate Value Chain (Scope 3) Standard and Scope 3 Calculation Guidance and ICMM Scope 3 Emissions Accounting and Reporting Guidance Emission factor source: 2022, EPA, Supply Chain Greenhouse Gas Emission Factors v1.2 by NAICS-6 Scope 3 emissions: Fuel and energy related activities (Category 3) Emissions from the extraction, production and transportation of fuels and energy purchased. This includes diesel, petrol and transmission and distribution losses for electricity. Well-to-tank emission factors were applied to diesel and petrol and the transmission and distribution grid emission factor was applied to electricity consumption. Electricity purchased in Australis in MWh was multiplied by the Australian Grid Factor for Scope 3. Methodology guidelines: GHG Protocol Corporate Value Chain (Scope 3) Standard and Scope 3 Calculation Guidance and ICMM Scope 3 Emissions Accounting and Reporting Guidance Emission factor source: 2024, United Kingdom Department for Environment, Food and Rural Affairs (DEFRA) emission factor; 2023 Eskom Integrated Report. Australian National Greenhouse Accounts Factors, 2024 Scope 3 emissions: Upstream transportation and distribution (Category 4) Emissions from the transportation and distribution of coal between sites by truck and the railing of coal to Richards Bay Coal Terminal. Emissions from the transportation of coal from the site by train to Gladstone power station and Gladstone Port. Trip distances were determined and multiplied by load. This was then multiplied by the rail freight and road freight emission factors. Methodology guidelines: GHG Protocol Corporate Value Chain (Scope 3) Standard and Scope 3 Calculation Guidance and ICMM Scope 3 Emissions Accounting and Reporting Guidance Emission factor source: 2023, United Kingdom DEFRA emission factor. ![]() 178 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT KPI REGION DEFINITION METHODOLOGY Scope 3 emissions: Waste generated in operations (Category 5) Emissions from the disposal or treatment of non-hazardous waste sent to legal landfill. Paper, plastic, scrap metal and used oil are also sent to third parties for recycling. The emission factor for commercial and industrial waste is applied to the total non-hazardous waste (tonnes). Closed loop emission factors are used for recycled paper, used oil, plastic and scrap metal. Methodology guidelines: GHG Protocol Corporate Value Chain (Scope 3) Standard and Scope 3 Calculation Guidance and ICMM Scope 3 Emissions Accounting and Reporting Guidance Emission factor source: 2024 DEFRA emission factor. Scope 3 emissions: Business travel (Category 6) Transportation by road or air and accommodation of employees in hotels for business-related activities. The responsible service providers, in both Australia and South Africa, for arranging all business travel and accommodation related activities have developed dashboards which capture Thungela’s travel emissions using the DEFRA emission factors. Methodology guidelines: GHG Protocol Corporate Value Chain (Scope 3) Standard and Scope 3 Calculation Guidance and ICMM Scope 3 Emissions Accounting and Reporting Guidance, South Pole Flight Emissions Calculation Methodology Emission factor source: 2024 DEFRA emission factor. Scope 3 emissions: Employee commuting (Category 7) Employees commuting between their homes and place of work by minibus taxi and personal vehicles in South Africa. Employees flying between their homes and Emerald airport. Commuting from Emerald airport to Ensham via car. The total distance for the year by minibus and cars was consolidated and multiplied by the emission factor for the different modes of transport. Methodology guidelines: GHG Protocol Corporate Value Chain (Scope 3) Standard and Scope 3 Calculation Guidance, ICMM Scope 3 Emissions Accounting and Reporting Guidance and South Pole Flight Emissions Calculation Methodology Emission factor source: 2024 DEFRA emission factor. Scope 3 emissions: Upstream leased assets (Category 8) Thungela leases the Rosebank head office building and emissions are not included in Scope 1 or 2. The diesel and electricity consumption values are collected from the property manager and the emissions calculated using the guidance of the GHG Protocol. Methodology guidelines: GHG Protocol Corporate Accounting and Reporting Standard; Emission factor source: 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 2 – Energy; 2023 Eskom Integrated Report GWP factor: 2001, IPCC Third Assessment Report (AR3) for 100-year time horizon. Scope 3 emissions: Downstream transportation and distribution (Category 9) Includes transportation- and distribution- related emissions resulting from the shipping of products sold. Coal is sold free-on-board, which means that the customer pays for the shipping. Thungela exports coal from the Richards Bay Coal Terminal in South Africa and the Gladstone Port in Australia. Shipping distances from Richards Bay Coal Terminal to destination ports multiplied by load per trip (tonne.km) and then by the cargo ship emission factor. Methodology guidelines: GHG Protocol Corporate Value Chain (Scope 3) Standard and Scope 3 Calculation Guidance, ICMM Scope 3 Emissions Accounting and Reporting Guidance Emission factor source: 2024 DEFRA emission factor. ![]() 179 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 6 06. APPENDICES04. SOCIAL 05. GOVERNANCE KPI REGION DEFINITION METHODOLOGY Scope 3 emissions: Use of sold products (Category 11) Includes emissions from the use of Thungela’s product (thermal coal) by customers. The coal that is sold locally and internationally is captured in tonnes. We assume that 100% of coal sold is burned by customers. Coal volumes are converted to an energy value (GJ) using the calorific value of sub-bituminous coal which are then multiplied by the relevant emission factors and GWPs. Methodology guidelines: GHG Protocol Corporate Accounting and Reporting Standard; 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 2 – Energy Emission factor source: 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 2, Energy. Sub-bituminous Coal. GWP factor: 2001, IPCC Third Assessment Report (AR3) for 100-year time horizon Scope 3 emissions: Investments (Category 15) Thungela has accounted for Scope 1 and 2 emissions from sites where we have a shareholding but do not have operational control, including Richards Bay Coal Terminal, Phola, Nasonti and Rietvlei. Diesel, petrol and electricity activity data for each entity is used to calculate the emissions using the guidance and emission factors below. The scope 1 and 2 emissions are apportioned according to Thungela’s percentage ownership. Methodology guidelines: GHG Protocol Corporate Accounting and Reporting Standard; Calorific value source: 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 2 –Energy Emission factor source: 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 2 – Energy; 2022 Eskom Integrated Report GWP factor: 200, IPCC 3rd Assessment Report (AR3) for 100-year time horizon ![]() 180 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT AI Artificial intelligence AR Intergovernmental Panel on Climate Change’s Assessment Report ART Antiretroviral treatment B-BBEE Broad-based black economic empowerment. This is a broader version of earlier BEE (see below) policy and attempts to spread the benefits of economic empowerment to the widest possible spectrum of black South Africans. BEE Black economic empowerment, a policy of the South African government aimed at increasing the access of black South Africans to productive assets. It seeks to ‘promote new opportunities for and increase the levels of participation of black people in the ownership, management and control of economic activities. BHV Bullying, harassment and victimisation Bioremediation Treatment or waste-management technique that uses naturally occurring organisms to break down hazardous substances into less toxic or non-toxic substances. BMP Biodiversity management plan BUSA Business Unity South Africa Capex Capital expenditure CCUS Carbon capture, utilisation and storage CH4 Methane CIAB Coal Industry Advisory Board CoalSAFE CoalSAFE is an annual conference focusing on health, safety, and environmental management within the South African coal mining industry. It's organized by the South African Colliery Managers' Association and features a tripartite structure, involving industry leaders, government representatives, and organized labour. The event includes an award ceremony recognizing top performers. CO 2 Carbon dioxide CO 2 e Carbon dioxide equivalent Coaltech The Coaltech Research Association is a voluntary collaborative non-profit organisation that addresses the research needs of the South African coal industry. COAD Chronic obstructive airways disease CSI Corporate social investment dBA Decibels DESI Department of Environment, Science and Innovation DMPR Department of Mineral and Petroleum Resources DOEL Department of Employment and Labour DOH Department of Health DWS Department of Water and Sanitation Ensham Mine An unincorporated joint venture between Sungela and Bowen EOR Engineer of record EPA Environmental Protection Act 1994 (Queensland) ESD Enterprise and supplier development ### GLOSSARY ![]() 181 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 6 06. APPENDICES04. SOCIAL 05. GOVERNANCE TERM USED DEFINITION ESG Environmental, social and governance EWRP eMalahleni Water Reclamation Plant Fugitive emissions Methane (CH4) and a small proportion of CO2 released from the coal seams in underground mines as mining progresses GBVF Gender-based violence and femicide GCCSI Global Carbon Capture and Storage Institute GHG Greenhouse gas GHG Protocol Standards and guidance for corporate accounting and reporting on emissions, which help governments and business leaders to understand, quantify and manage emissions. The GHG Protocol separates emissions into different scopes, depending on source. It is available at: https://ghgprotocol.org/sites/default/files/standards/ghg-protocol-revised.pdf GJ Gigajoule GRI Global Reporting Initiative Group Thungela and its subsidiaries, joint arrangements and associates ha Hectare HCT HIV counselling and testing HDPs Historically disadvantaged persons HEG Homogonous exposure group HIV Human immunodeficiency virus HPH High-potential hazard HPI High-potential incident HSE Health, safety and environment ICMM International Council on Mining and Metals IEA International Energy Agency IFC International Finance Corporation IFRS International Financial Reporting Standards IM Information management IPCC Intergovernmental Panel on Climate Change IRM Integrated risk management ISO International Organization for Standardisation ISSB International Sustainability Standards Board ITTCC Industry Task Team on Climate Change IUCN International Union for Conservation of Nature JSE Johannesburg Stock Exchange Limited King IV King IV Report on Corporate Governance for South Africa 2016 km Kilometre KPIs Key performance indicators ![]() 182 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT TERM USED DEFINITION kt Kilotonne kt CO 2 e Kilotonne of CO 2 equivalent LA Limited assurance LED Local economic development LGBTQIA+ Lesbian, gay, bisexual, transgender, queer, intersex and asexual LOM Life of mine LTIFR Lost-time injury frequency rate LTI A lost-time injury is a work-related injury resulting in an employee/contractor being unable to attend work, or to perform the full duties of his/her regular work, on the next calendar day after the day of the injury, whether a scheduled workday or not. M&A Mergers and acquisitions m 3 Metres cubed MCSA Minerals Council South Africa Mafube Mafube Coal Mining Proprietary Limited mg Milligrams MHSC Mine Health and Safety Council Mintek Mintek is South Africa’s national mineral research organisation and is one of the world’s leading technology organisations specialising in mineral processing, extractive metallurgy and related areas. Mintek is a state-owned science council that reports to the Minister of Mineral and Petroleum Resources. ML Megalitre MPRDA South African Mineral and Petroleum Resources Development Act No. 28 of 2002 MQA Mining Qualifications Authority MRF A mineral residue facility is the term used to describe a coal discard facility in which the by-product or waste from coal processing is disposed. These structures are engineered facilities. Mt Million tonnes MTC Medical treatment case MTPA Million tonnes per annum MW Megawatt NBBN National Biodiversity and Business Network NBI National Business Initiative NEMA The South African National Environmental Management Act No. 107 of 1998 NGO Non-governmental organisation NIHL Noise-induced hearing loss NO 2 Nitrogen dioxide NQF National Qualifications Framework NUM National Union of Mineworkers NUMSA National Union of Metalworkers of South Africa NWA National Water Act No. 36 of 1998 ![]() 183 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 6 06. APPENDICES04. SOCIAL 05. GOVERNANCE TERM USED DEFINITION OEL Occupational exposure limits ORM Operational risk management PCD Pollution control dam PIT Professionals-in-training PM Particulate matter PM 10 Particles smaller than 10 µm PM 2.5 Particles smaller than 2.5 µm PPE Personal protective equipment PV Photovoltaic RA Reasonable assurance RCP Representation Concentration Pathway SAHRA South African Heritage Resources Agency SED Socio-economic development SETCO Social, ethics and transformation committee SHE Safety, health and environment SLP Social and Labour Plan SMME Small, medium and micro-sized enterprise SO 2 Sulphur dioxide SO x Sulphur oxides SSP Shared Socio-economic Pathways t Tonne TB Tuberculosis TCFD Task Force on Climate-Related Disclosures TFR Transnet Freight Rail Thungela Thungela Resources Limited TRCFR Total recordable case frequency rate, rate of recordable cases per 1,000,000 hours worked TTM Total tonnes moved TWA Time-weighted average UN United Nations UN SDG United Nations Sustainable Development Goals UNAIDS Joint United Nations Programme on HIV/AIDS USD United States dollar WRI World Resources Institute ZAR South African rand ![]() 184 01. OVERVIEW 02. ESG IN CONTEXT 03. ENVIRONMENT THUNGELA RESOURCES LIMITED 25 Bath Avenue PO Box 1521 Rosebank Saxonwold Johannesburg Johannesburg 219 6 2132 Tel +27 11 638 9300 This report is available at: www.thungela.com COMMENT OR QUERIES RELATED TO THIS REPORT Nikki Fisher Email: nikki.fisher@thungela.com INVESTOR RELATIONS Hugo Nunes Email: hugo.nunes@thungela.com Shreshini Singh Email: shreshini.singh@thungela.com MEDIA CONTACT Hulisani Rasivhaga Email: hulisani.rasivhaga@thungela.com FORWARDLOOKING STATEMENTS DISCLAIMER AND THIRDPARTY INFORMATION This document includes forward-looking statements. Allstatements included in this document (other than statements of historical facts) are, or may be deemed to be, forward-looking statements, including, without limitation, those regarding Thungela’s financial position, business, acquisition and divestment strategy, dividend policy, plans and objectives of management for future operations (including development plans and objectives relating to Thungela’s products, production forecasts and resource and reserve positions). Bytheir nature, such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Thungela, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Thungela therefore cautions that forward-looking statements are not guarantees of futureperformance. Any forward-looking statement made in this document or elsewhere is applicable only at the date on which such forward-looking statement is made. New factors that could cause Thungela’s business not to develop as expected may emerge from time to time and it is not possible to predict all of them. Further, the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statement are not known. Thungela has no duty to, and does not intend to, update or revise the forward-looking statements contained in this report after the date of this document, except as may be required by law. Any forward-looking statements included in this report have not been reviewed or reported on by the Group’s independent external auditor. The information contained within this report is deemed by the Group to constitute inside information as stipulated under the market abuse regulation (EU) No.596/2014 as amended by the market abuse (amendment) (UK MAR) regulations 2019. Upon the publication of this report, this inside information is now considered to be in the public domain. ### ADDITIONAL INFORMATION ![]() 185 THUNGELA ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2024 6 06. APPENDICES04. SOCIAL 05. GOVERNANCE