Exxaro Resources has officially opened its New Mine 1 operation at the Matla Coal Mine in Mpumalanga, marking a key milestone in the company’s strategy to sustain production, improve operational efficiency and support South Africa’s energy security.
The new operation forms part of the Matla Life of Mine Project (MLOMP), a R5.236 billion investment designed to provide continued access to remaining coal reserves, extend the life of the mine and support coal supply under the recently extended Coal Supply Agreement (CSA) with Eskom.
Exxaro developed New Mine 1 after production at the original Mine 1 ceased in 2016 because of deteriorating safety pillars near the shaft infrastructure.
The new operation has been established to safely access the remaining reserves while providing a long-term pathway for extending the mine’s operational life.
As a cost-plus operation, Eskom is contractually responsible for funding the mine’s costs to achieve the lowest possible overall fuel cost.
According to Exxaro, New Mine 1 is expected to produce approximately 4.2 million tonnes of coal annually and will play a critical role in supporting the reliable operation of Matla Power Station.
The Matla Coal Mine employs 6,174 people, including contractors.
The project has delivered several major infrastructure and operational improvements, including:
Ben Magara, Chief Executive Officer of Exxaro Resources, said the project represents more than a new mining operation.
“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.”
South Africa’s Minister of Minerals and Petroleum Resources, Gwede Mantashe, attended the opening ceremony and visited workers underground.
“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.”
Dan Marokane, Group Chief Executive of Eskom, said the project demonstrated the value of collaboration between the two organisations.
“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”.
Exxaro said the Matla Life of Mine Project has also delivered socioeconomic benefits in Mpumalanga.
Since the project began, it has:
The company said these initiatives form part of its strategy to promote inclusive growth and strengthen host communities while reinforcing Matla Mine’s role in South Africa’s energy sector.
