This morning Exxaro Resources officially opened its New Mine 1 operation at its Matla Coal Mine in Mpumalanga, marking another milestone in the organisation’s growth strategy to sustain production, enhance operational efficiency, and support South Africa’s energy security pipeline. In 2016, the decision was taken to stop production at the old Mine 1 due to deteriorating safety pillars near the shaft infrastructure. This led to the development of the New Mine 1 project to safely access the remaining reserves and develop a life expansion pathway for Mine 1.

The New Mine 1 forms part of the broader Matla Life of Mine Project (MLOMP), a long-term, R5.236 billion mega investment project designed to provide safe and continued access to the remaining coal reserves, improve efficiency and ensure consistent delivery in line with the recently extended Coal Supply Agreement (CSA) with Eskom. As a cost-plus operation, 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 contribute approximately 4.2 million tonnes of coal annually, further underscoring Exxaro’s commitment to sustainable resource development and operational resilience in a challenging operating environment. Matla Coalmine employs 6174 employees, including contractors.

Exxaro CEO, Ben Magara, said: “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.”

This project has successfully delivered key infrastructure and operational enhancements, including:

• The construction of a box cut to access the Mine 1 working area
• The installation of a tunnel development silo feed conveyor system
• The development of an overland conveyor integrated into a new crushing and handling plant linked to Eskom’s conveyor network
• The construction of a new support complex including employee change house facilities, engineering workshops and material warehouses and administration blocks.
• The implementation of a shortwall replacement project, including new-generation mining equipment

The Minister of Minerals and Petroleum Resources Gwede Mantashe was in attendance at the mine opening and visited workers underground, said “this is a journey back home for me. I spent six years at this mine, working here and organising here, and during that same period we achieved production records. I was here as a worker, and today I return as a Minister. 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. Coal miners should never be ashamed of the work they do.”

Eskom’s Group Chief Executive, Dan Marokane said “the expansion of Matla New Mine 1 demonstrates how strategic collaboration secures South Africa’s energy future. The reliable supply from Matla ensures that, as the grid is decongested to enable rapid renewables penetration, Eskom maintains operational consistency and security of energy supply needed to support South Africa’s developmental and industrial needs. We also negotiated the new contract structure as part of Eskom’s Cost Optimisation and Revenue Enhancement (CORE) programme, which aims to drive efficiencies in primary energy procurement. This milestone comes as Eskom marks 365 consecutive days without load shedding — a testament to the impact of sustained investment, operational discipline, and partnership with Exxaro”.

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

Beyond operational performance, the MLOMP has delivered significant socio-economic value in Mpumalanga. Since its inception, the programme has:

• Created approximately 1132 local employment opportunities
• Invested R532 million in black-owned businesses, advancing economic transformation
• Supported local Small Medium Micro Enterprises and prioritised skills development initiatives

These outcomes reflect Exxaro’s deliberate strategy to drive inclusive growth and strengthen our host communities. The opening of the relocated Mine 1 operations signals a new chapter for Matla Mine, reinforcing its role as a key contributor to South Africa’s energy landscape, highlighting the success of Exxaro’s long-term growth strategy and showcasing the organisation’s broader impact on communities and the national economy.