From Creamer Media in Johannesburg, this is the Real Economy Report.

Sashnee Moodley:

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 with State-owned Eskom. Sabrina Jardim tells us more.

Sabrina Jardim:

As part of Exxaro’s strategic 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.

Exxaro executive head of coal Caroline Shirindza…

Sabrina Jardim:

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.

Exxaro executive head of coal Caroline Shirindza…

Sabrina Jardim:

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.

Additionally, the Matla coal mine employs 6 174 employees, including contractors.

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

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.

Exxaro CEO Ben Magara…

Sashnee Moodley:

That’s Creamer Media’s Real Economy Report. Join us again next week for more news and insight into South Africa’s real economy. Don’t forget to listen to the audio version of our Engineering News daily email newsletter.