R5.2 Billion Mega Project Delivers 4.2 Mtpa Coal Supply to Eskom
Exxaro Resources has officially opened its New Mine 1 operation at the Matla Coal Mine in Mpumalanga, South Africa. The R5.236 billion mega investment project provides safe and continued access to remaining coal reserves, supporting coal supply to Eskom's Matla power station until November 2043.
Project Scope and Investment
- Total investment: R5.236 billion across the broader Matla Life of Mine Project (MLOMP)
- Annual production: Approximately 4.2 million tonnes of coal per year from New Mine 1
- Employment: 6,174 employees including contractors at the Matla mining complex, with 1,132 local jobs created by the expansion project
- Contract type: Cost-plus operation with Eskom contractually responsible for funding mine costs
- Coal Supply Agreement: Long-term CSA signed April 2026, valid until November 2043
Infrastructure Deliverables
The New Mine 1 development included construction of a boxcut to access the old Mine 1 working area, installation of a tunnel development silo feed conveyor system, development of an overland conveyor feeding into the new crushing and handling plant linked to Eskom's conveyor system, construction of a new support complex, and implementation of a shortwall replacement project with new mining equipment.
Energy Security Context
The opening comes as Eskom marks 365 consecutive days without load shedding. Eskom Group Chief Executive Dan Markreśl highlighted that reliable coal supply from Matla ensures operational consistency and energy security while the grid is decongested to enable rapid renewables penetration. Exxaro CEO Ben Magara described the project as a reflection of disciplined execution, long-term vision, and commitment to South Africa's future. Eskom and Exxaro also signed an MOU in 2025 to collaborate on emissions reduction and carbon capture initiatives.
