Exxaro Resources has officially opened its New Mine 1 operation at Matla Colliery in Mpumalanga, extending coal supply to Eskom’s Matla Power Station under a long-term coal supply agreement running to 2043.
The new operation is part of the broader Matla Life of Mine Project – a R5,23 billion investment aimed at maintaining access to remaining coal reserves and supporting continued supply to the power station.
Exxaro originally halted production at the old Mine 1 in 2016 due to deteriorating safety pillars near the shaft infrastructure. The New Mine 1 project was subsequently developed to safely access the remaining reserves and extend the operational life of the mine.
According to Exxaro, the new operation is expected to contribute approximately 4,2 million tonnes of coal annually.
“Our Matla mine continues to play a vital role in supporting the country’s energy needs,” says Exxaro CEO Ben Magara.
Eskom Group Chief Executive Dan Marokane says the project will support supply stability as the country expands renewable energy integration and transmission infrastructure.
“The supply from Matla is reliable and ensures, as the grid is decongested to enable rapid renewables penetration, Eskom maintains operational consistency and security of the energy supply needed to support South Africa’s developmental and industrial needs,” says Marokane.
Eskom and Exxaro also reaffirmed their existing collaboration in emissions reduction initiatives, including carbon capture and broader just energy transition-related projects.
