Exxaro opens new Mine 1 at Matla coal mine, strengthening South Africa’s energy security
The R5.2 billion Matla Life of Mine Project is expected to sustain coal production, create over 1,100 local jobs and support Eskom’s long-term energy supply
South Africa’s refinery sector may be under pressure, but investment in the country’s mining industry continues to signal confidence in the future of energy production.
On Friday, May 15, Exxaro Resources officially launched its new Mine 1 operation at the Matla Coal Mine in Mpumalanga.
The mine, which was previously closed in 2016 due to deteriorating safety pillars near critical shaft infrastructure, has now been redeveloped as part of the company’s long-term strategy to sustain production, improve operational efficiency and contribute to South Africa’s energy security.
New Mine 1 forms part of the broader Matla Life of Mine Project (MLOMP), a major R5.236 billion investment aimed at ensuring safe and continued access to remaining coal reserves. The project is also designed to improve productivity and maintain a reliable coal supply under the recently extended Coal Supply Agreement (CSA) with Eskom.
“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,” said Ben Magara, CEO of Exxaro Resources.
“Most importantly, this milestone reflects the commitment and resilience of our employees, whose dedication continues to enable us to deliver complex projects on time, within scope and on budget, while making a meaningful contribution to the country and its communities,” he added.
Minister of Mineral and Petroleum Resources Gwede Mantashe also reflected on his personal history with the mine during the launch.
“This is a journey back home for me. I spent six years at this mine, working and organising here, and during that period, we achieved production records. I was here as a worker, and today I return as a Minister,” Mantashe said.
Addressing ongoing debates around the future of coal, Mantashe noted that while the industry has faced criticism over environmental concerns, it continues to evolve through improved mining safety standards and ongoing investment in innovation and research.
“Coal miners should never be ashamed of the work they do,” he said.
Since the redevelopment project began, approximately 1,132 local employment opportunities have been created, further highlighting the project’s economic impact on surrounding communities in Mpumalanga.
