Exxaro Resources and Eskom Holdings SOC Ltd yesterday signed a new long-term Coal Supply Agreement between Exxaro’s Matla Mine and Eskom
Image: Eskom
Exxaro Resources and Eskom Holdings SOC Ltd have announced the signing of a new long-term Coal Supply Agreement (CSA). This agreement secures ongoing coal supply from Exxaro’s Matla Mine to the Matla Power Station, solidifying a partnership that has bolstered the nation’s electricity generation for over 40 years.
The Matla Mine first entered into a CSA with Eskom on July 1, 1983, originally set for 40 years. The new agreement, which came into effect on April 1, 2026, is set to last until November 30, 2043, with options for extension or reduction through mutual consent of both parties.
Ben Magara, CEO of Exxaro, emphasised the significance of this milestone during the signing ceremony.
"The signing of this new Coal Supply Agreement marks an important milestone in our longstanding partnership with Eskom. It reinforces our shared commitment to supporting South Africa’s energy security needs in line with national demands and fluctuating geopolitical influences,” he stated.
Magara highlighted the agreement's timing, coinciding with Eskom’s recent investment in the Matla Life of Mine (MLOM) expansion project. He reiterated Exxaro’s confidence in the mine’s future and its strategic importance within the company's coal portfolio. “This reflects our commitment to responsible resource development and our continued focus on delivering reliable energy solutions,” he added.
Eskom's Group Chief Executive, Dan Marokane, echoed these sentiments, stating that the agreement represents a significant advancement in strengthening the nation’s energy security.
“This agreement ensures predictability and stability in the supply of coal to the Matla Power Station, helping sustain an essential component of our generation fleet,” he said.
IOL