Exxaro Resources expects its first-half earnings to decline by as much as 23% as the stronger rand and lower income from its equity-accounted investments at Sishen Iron Ore Company and Black Mountain Mining.The group said in a trading update on Friday that headline earnings per share for the six months ended June is expected to decrease between 18% and 23% to a range of 1,414 to 1,327c from a year ago.Attributable earnings per share is expected to decline by the same amount.The group said results were negatively impacted by the strengthening of the rand against the US dollar and above inflationary increases in key mining input costs compared with a year ago, largely reflecting the effects of the conflict in the Middle East. Exxaro said the decrease in the equity-accounted income from Black Mountain Mining was mainly driven by higher production costs and a delayed ramp-up of the Gamsberg project.Earnings before interest, tax, depreciation and amortisation for the period is expected to be broadly in line with a year ago.The stronger pricing environment came amid tighter global energy markets, driven by geopolitical tensions and supply disruptionsExxaro will release its interim results on August 20.In June the group reported stronger coal prices and higher volumes in the first half of 2026, despite ongoing rail constraints, elevated diesel costs and geopolitical uncertainty in the Middle East.Exxaro said in a pre-close statement on June 22 that for its first half, average export coal prices rose to about $105/tonne, from $92/tonne a year earlier, while production increased 10% and sales volumes rose 6%.The stronger pricing environment came amid tighter global energy markets, driven by geopolitical tensions and supply disruptions.Exxaro said uncertainty around Indonesia’s production quotas and the conflict in the Middle East reshaped global energy flows, tightening gas markets and prompting some buyers in Asia to switch from liquefied natural gas (LNG) to coal.Export coal prices strengthened further, reaching about $124/tonne at their peak before easing on expectations of a potential diplomatic breakthrough involving the US and Iran.Export coal sales are expected to increase by 15% to 3.94-million tonnes, “supported by stronger demand conditions”, the company said.On the operational front, production growth was led by the Grootegeluk mine, supported by improved weather conditions and stronger demand from power stations. Metallurgical coal production is expected to rise 41%, supported by improved export demand.With Lindiwe TsoboBusiness Day