Matla Power Station has secured coal supply under a new long-term agreement between Eskom and Exxaro Resources.
The contract is from April 1, 2026, to November 30, 2043.
Eskom said the renewed coal supply agreement builds on a relationship dating back to July 1983 when the first 40-year agreement was signed.
The agreement supports continued baseload generation at Matla Power Station as renewable energy capacity expands on the grid, the utility stated.
“This new contract structure is a key deliverable of Eskom’s cost optimisation and revenue enhancement programme, which aims to drive efficiencies in primary energy procurement,” said Eskom’s Group Chief Executive Dan Marokane.
“This agreement ensures stability in the supply of coal to the Matla Power Station, which is an essential component of our generation fleet,” he added.
Exxaro’s CEO Ben Magara said: “The agreement follows Eskom’s recent investment in the Matla life of mine expansion project, which is expected to enhance the mine’s ability to sustainably supply coal over the remainder of its lifespan.”
The renewed supply agreement introduces stricter coal quality specifications, which Eskom said aim to support gradual emissions reductions at the power station.
