Name of the Project
Matla Life-of-Mine Project (MLOMP) – New Mine 1 project.

Location
The Matla mining complex is situated about 20 km west of Kriel, in Mpumalanga, South Africa. 

Project Owner/s
Exxaro Resources owns and operates Matla mine, which supplies thermal coal to Eskom’s Matla power station. The mine operates under a cost-plus arrangement with Eskom, which is contractually responsible for funding the mine’s costs to ensure the lowest possible overall fuel cost. 

Project Description
The fully mechanised underground coal mining complex comprises three mines, with coal crushed, screened and transported to the power station by conveyor. The complex produces about 14-million tonnes a year of power station coal. 

The New Mine 1 development forms part of the broader MLOMP, a R5.236-billion investment aimed at providing safe and continued access for the mine’s remaining coal reserves, improving efficiency and supporting consistent coal supply to Eskom. Production at the old Mine 1 was stopped in 2016, owing to deteriorating safety pillars near the shaft infrastructure, prompting the development of New Mine 1 to access remaining reserves safely. 

The operation is expected to contribute about 4.2-million tonnes of coal a year and is considered critical to the reliable operation of the Matla power station. 

The project has included the construction of a boxcut to access the Mine 1 working area; the installation of a tunnel development silo feed conveyor system; the development of an overland conveyor linked to a new crushing and handling plant and Eskom’s conveyor network; the construction of a new support complex, including change house facilities, workshops, warehouses and administration blocks; and the implementation of a shortwall replacement project using new-generation mining equipment. 

Potential Job Creation
The project has created about 1 132 local employment opportunities. Exxaro reported in May 2026 that Matla colliery employed 6 174 people, including contractors. 

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
R5.236-billion. 

Planned Start/End Date
New Mine 1 was officially opened on May 15, 2026. 

Latest Developments
Exxaro officially opened the New Mine 1 operation at Matla colliery on May 15, 2026. 

The opening followed the signing of a new long-term coal supply agreement between Exxaro and Eskom in April 2026. The agreement is valid until November 30, 2043, subject to the extension or reduction by mutual agreement. 

Key Contracts, Suppliers and Consultants
None disclosed. 

Contact Details for Project Information
Exxaro Resources, tel +27 12 307 5000. 
Exxaro Resources media relations manager: corporate affairs Nomonde Ndwalaza, tel +27 12 307 5000 or email Nomonde.Ndwalaza@exxaro.com. 
Exxaro Resources investor relations manager Anda Mwanda, tel +27 12 307 5000 or email InvestorRelations@exxaro.com.