en.Wedoany.com Reported - Exxaro Resources has officially commissioned the new Mine 1 at its Matla coal mine in Mpumalanga province. The mine is part of the company's strategic expansion project, aimed at ensuring continuous mining operations and meeting the requirements of the coal supply agreement with South Africa's state-owned power utility, Eskom. As a component of the Matla Mine Life Project (with a total investment of R5.2 billion), the expansion of the new Mine 1 enables the safe and sustained extraction of remaining coal reserves and guarantees stable supply under the recently renewed long-term agreement with Eskom. Under the cost-plus operating model, the Eskom contract is responsible for covering the mine's costs to control overall fuel expenses.
The new Mine 1 is critical for the reliable operation of Matla Power Station, with an annual production capacity of approximately 4.2 million tonnes. Exxaro and Eskom signed a long-term coal supply agreement on April 1 this year, stipulating that coal from Matla mine will be supplied to Matla Power Station until November 2043. Key works in the expansion project include: constructing an opencast pit to access the old Mine 1 working area, installing a tunnel feeder bunker conveyor system, laying an overland conveyor connecting to Eskom's conveying system along with a new crushing and beneficiation plant, building supporting infrastructure, and implementing a shortwall replacement project with the introduction of new mining equipment.
At the commissioning ceremony on May 15, Exxaro CEO Ben Magara stated that the new Mine 1 reflects the company's rigorous execution and long-term planning. He noted that while supporting South Africa's energy needs, Matla mine creates social value through local investment, employment, and entrepreneurial development, and that the dedication of employees ensured the project was completed on time, within budget, and to specification. South Africa's Minister of Mineral and Petroleum Resources, Gwede Mantashe, attended the ceremony that day and inspected underground operations. Eskom Group Chief Executive Dan Marokane said that Matla's stable supply allows Eskom to maintain operational consistency and the energy supply security needed to underpin South Africa's industry and development, even as grid congestion is alleviated to accelerate renewable energy penetration. He also revealed that Eskom negotiated a new contract structure through cost optimization and revenue enhancement initiatives, aimed at improving primary energy procurement efficiency. In 2025, Eskom and Exxaro signed a Memorandum of Understanding to collaborate on projects including emission reduction and carbon capture, to advance a responsible Just Energy Transition. Marokane pointed out that this milestone coincides with Eskom achieving 365 consecutive days without unplanned load-shedding, validating the results of sustained investment, operational discipline, and the partnership with Exxaro.
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