Exxaro Resources reported a 20% decline in half-year earnings through June 30, citing higher production costs and a stronger rand that reduced revenue from dollar-priced commodities. Headline earnings per share fell to 13.77 rand ($0.855), down from 17.24 rand a year earlier.

The South African miner said input costs rose partly due to the Middle East conflict, which disrupted global supply chains and hurt income from its iron ore joint venture. Exxaro holds a 21% stake in Sishen Iron Ore Company, a Kumba Iron Ore subsidiary.

Coal output increased 11% to 21.5 million tonnes in the first half, while coal exports rose 15% to 3.9 million tonnes, helped by improved logistics. Production from newly acquired manganese assets grew 11% to 1.8 million tonnes.

Renewable generation from Exxaro's Cennergi unit rose 12% to 378 gigawatt hours (GWh), with the Lephalale solar plant offsetting lower wind power.

The 68 MW solar facility has cut Grootegeluk coal mine's reliance on the national grid by 30%, the company said. Exxaro is targeting 1.6 GW of renewable capacity by 2030 as part of its decarbonisation strategy.

Higher output helped mitigate cost pressures. Although diesel prices jumped 21% during the half, pushing logistics costs higher, Exxaro's unit cost increase of 4.6% remained in line with broader inflation.

The company declared an interim dividend of 7 rand per share, down 17% from last year's interim payout.