Name of the Project
Matla life-of-mine project.

Location
The project is located in Mpumalanga, South Africa.

Project Owner/s
Exxaro Resources (project management and mining) and Eskom (funding).

Project Description
The Matla mine has been on care and maintenance since 2016.

The 42-year-old operation comprises three underground mines.

The project involves the construction of a new decline shaft, including a boxcut with bulk materials handling facility, to gain access to the remaining economical two-seam reserves.

The project also includes plans to supply Mine 1 with five complete suites of underground continuous mining equipment, interseams between Mine 2 and Mine 3, and a ventilation shaft to supply fresh air to Mine 3’s future production areas.

The project will have a capacity of four-million tonnes of coal a year, bringing the total production from the Matla operation to ten-million tonnes a year for the remainder of its mine life to 2042.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Eskom is funding the R3.3-billion cost of the relocation project, while Exxaro remains responsible for the project management and mining.

Planned Start/End Date
Construction is expected to start in the second half of 2020, with first production from Mine 1 expected to start in the second half of 2023.

Latest Developments
Exxaro is identifying direct and indirect local procurement opportunities valued at R300-million. Local black-owned suppliers and entrepreneurs are expected to participate in tender and quotation processes.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Exxaro Resources investor relations executive head of stakeholder affairs Mzila Mthenjane, tel +27 12 307 7393 or email investorrelations@exxaro.com.