KRIEL, Mpumalanga (miningweekly.com) – Diversified natural resources company Exxaro Resources has officially opened the new Mine 1 operation at its Matla coal mine, in Mpumalanga, following a strategic expansion to support continuous mining operations and meet the requirements of its coal supply agreement (CSA) with State-owned Eskom.

As part of the expansion, the new Mine 1 operation has been successfully extended to ensure sustained operational efficiency.

Mine 1 forms part of the broader Matla life-of-mine project, a long-term, R5.2-billion megaproject designed to provide safe and continued access to the remaining coal reserves, improve efficiency and ensure consistent delivery in line with the recently extended CSA with Eskom.

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

The new Mine 1, which is critical to the reliable operation of Matla power station, will produce about 4.2-million tonnes a year of coal.

As previously reported by Mining Weekly, Exxaro and Eskom, on April 1 signed a long-term CSA for the supply of coal from Exxaro’s Matla mine to Eskom’s Matla power station until November 2043.

“The new Mine 1 is far more than an operational milestone – for us it reflects Exxaro’s disciplined execution, long-term vision and commitment to South Africa’s future. Our Matla mine continues to play a vital role in supporting the country’s energy needs while creating meaningful impact through local investment, job creation, and the development of entrepreneurship.

“Most importantly, this milestone reflects the commitment and resilience of our employees, whose dedication to the company continues to enable us to deliver complex projects on time, to scope and on budget while making a meaningful contribution to the country and its communities,” Exxaro CEO Ben Magara said on May 15.

Key developments of the expansion project include the construction of a boxcut to access the old Mine 1 working area; installation of a tunnel development silo feed conveyor system; the 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 the implementation of a shortwall replacement project, including the introduction of new mining equipment.

Minerals and Petroleum Resources Minister Gwede Mantashe was in attendance at the mine opening, on May 15, and visited workers underground.

Eskom group CE Dan Marokane said the reliable supply from Matla ensured that, as the grid was decongested slowing rapid renewables penetration, Eskom maintained operational consistency and security of energy supply needed to support South Africa’s developmental and industrial needs.

He explained that Eskom also negotiated the new contract structure as part of Eskom’s Cost Optimisation and Revenue Enhancement programme, which was aimed at driving efficiencies in primary energy procurement.

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.

“This milestone comes as Eskom marks 365 consecutive days without loadshedding – a testament to the impact of sustained investment, operational discipline, and partnership with Exxaro,” said Marokane.