New Matla Mine 1 powers SA’s energy future

Exxaro officially opened the new Mine 1 operation, securing long-term supply to the Matla Power Station, as part of its R5.2 billion Matla Life-of-Mine project.

It was with great pride that we officially opened the new Mine 1 operation at Matla Mine in Mpumalanga, a strategic milestone that will support both the long-term future of the operation and South Africa’s energy supply.

The new Mine 1 forms part of Exxaro’s broader Matla life-of-mine project – a R5.2-billion long-term megaproject designed to provide safe and continued access to the remaining coal reserves, while improving efficiency and ensuring consistent delivery in line with Exxaro’s new long-term CSA with Eskom, which runs until November 2043.

The programme for the day took place in two parts, beginning with an underground site visit where guests had the opportunity to experience the operation firsthand. This was followed by a broader employee engagement session and formal programme proceedings.

The event was attended by approximately 1 200 employees from Mine 1, alongside leadership from Exxaro and Eskom, Minister of Mineral and Petroleum Resources (DMPR), Gwede Mantashe, the Premier of Mpumalanga, the MEC for Economic Development and Tourism, the Local Mayor, representatives from the District Municipality, traditional authorities, as well as various government representatives, partners and stakeholders.

.

Key developments include:

• 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
• Implementation of a shortwall replacement project, including the introduction of new mining equipment.

Unpacking Exxaro’s partnership with Eskom

On 1 April 2026 Exxaro and Eskom signed a long-term CSA for the supply of coal from Exxaro’s Matla mine to Eskom’s Matla power station until November 2043.

As a cost-plus operation, Eskom is contractually responsible for funding the mine’s costs to ensure the lowest possible overall fuel cost.

Eskom also signed a memorandum of understanding with Exxaro in 2025 to collaborate on emissions reduction, carbon capture and other initiatives to drive a responsible just energy transition.