Exxaro opens new Matla coal mine in South Africa

• Exxaro has officially opened New Mine 1 at Matla Coal Mine in Mpumalanga as part of a R5.236 billion life extension project.
• The new operation will supply about 4.2 million tonnes of coal annually to Eskom’s Matla Power Station.
• The project has created more than 1,100 local jobs and invested R532 million in black owned businesses.

Exxaro Resources has officially opened its New Mine 1 operation at the Matla Coal Mine, marking a major milestone in the company’s strategy to sustain coal production, improve operational efficiency and support South Africa’s energy security.

The development forms part of the broader Matla Life of Mine Project, a long term R5.236 billion investment aimed at securing continued access to remaining coal reserves while supporting reliable supply to Eskom under the recently extended Coal Supply Agreement.

Production at the original Mine 1 was halted in 2016 because of deteriorating safety pillars near shaft infrastructure. The new project was developed to safely access the remaining reserves and extend the operational life of the mine.

As a cost plus operation, Eskom is contractually responsible for funding mine costs to ensure the lowest possible fuel cost. The new mine is expected to supply about 4.2 million tonnes of coal annually to the nearby Matla Power Station. The colliery currently employs 6,174 people, including contractors.

Ben Magara said the project reflects Exxaro’s long term commitment to South Africa’s energy sector and economic development.

“The New Mine 1 is far more than an operational milestone. It reflects Exxaro’s disciplined execution, long term vision and commitment to South Africa’s future,” said Magara.

He added that the Matla operation continues to play an important role in supporting the country’s energy needs while driving local investment, job creation and entrepreneurship development.

The project included the construction of a box cut to access the Mine 1 working area, installation of a tunnel development silo feed conveyor system, development of an overland conveyor linked to Eskom’s network and the construction of new support facilities including workshops, warehouses and administration buildings. Exxaro also implemented a shortwall replacement programme with new generation mining equipment.

South Africa’s Minister of Minerals and Petroleum Resources, Gwede Mantashe, attended the official opening and visited workers underground at the mine.

Mantashe, who previously worked at the operation, said the coal sector remains critical to the country despite growing pressure from the global energy transition.

“People have often said that coal is a dying industry because of concerns around pollution. However, the industry continues to evolve, particularly through improvements in mining safety and ongoing investment in innovation and research,” he said.

Dan Marokane said the expansion demonstrates the importance of collaboration between Eskom and Exxaro in maintaining grid stability and supporting South Africa’s industrial development.

According to Marokane, the reliable coal supply from Matla will help Eskom maintain operational consistency as the utility works to expand renewable energy integration into the national grid.

He also noted that the milestone coincides with Eskom reaching 365 consecutive days without loadshedding, which he attributed to sustained investment, operational discipline and strategic partnerships.

In 2025, Eskom and Exxaro signed a memorandum of understanding to collaborate on emissions reduction initiatives, including carbon capture projects and other measures supporting a responsible energy transition.

Beyond its operational contribution, the Matla Life of Mine Project has also delivered socio economic benefits in Mpumalanga. Since inception, the programme has created about 1,132 local employment opportunities and directed R532 million towards black owned businesses.

Exxaro said the initiative also prioritised support for small and medium enterprises as well as skills development programmes aimed at strengthening local communities and promoting inclusive economic growth.

Author: Bryan Groenendaal