Ben Magara, CEO of Exxaro, and Dan Marokane, Eskom Group chief executive, sign a new long-term CSA. (Photo: Exxaro Resources)
Exxaro Resources and Eskom Holdings SOC Ltd signed a new long-term Coal Supply Agreement (CSA) between Exxaro’s Matla mine and Eskom, securing the continued supply of coal from the Matla mine to the Matla Power Station. The long-term agreement provides the stability required to sustain ongoing investment in operational efficiency, safety standards and environmental stewardship, ensuring that the mine continues to operate in a manner aligned with responsible mining practices.
Beyond electricity generation, Matla mine serves as a vital economic anchor in Mpumalanga, supporting employment, education initiatives, enterprise and supplier development, land‑use management, and infrastructure projects in surrounding host communities. Furthermore, the agreement includes stringent coal quality specifications that ensure higher combustion efficiency at Matla Power Station.
“This agreement comes on the back of Eskom’s recent investment in the Matla Life of Mine (MLoM) expansion project, which strengthens the mine’s ability to sustainably supply coal to the Matla Power Station for the remainder of its life. Exxaro is confident in the future of the operation and confirms the strategic importance of Matla as a key operation within our coal portfolio,” said Ben Magara, CEO of Exxaro.
“Crucially, this new contract structure is a key deliverable of Eskom’s Cost Optimization and Revenue Enhancement (CORE) program, which aims to drive efficiencies in primary energy procurement. Through improved operational performance and streamlined supply‑chain logistics, Eskom expects to realize meaningful long‑term cost savings that directly support its financial recovery and operational sustainability,” said Dan Marokane, Eskom Group chief executive.
Matla mine first entered a CSA with Eskom in July 1983, with the agreement originally set for a period of 40 years. This new agreement between the two entities ensures continued coal supply for Eskom’s Matla Power Station, supporting the stability of South Africa’s energy system while maintaining operational continuity at the mine. The newly concluded agreement commenced on April 1, 2026, and is valid until November 30, 2043, with the term subject to extension or reduction by mutual agreement between the parties.
Source: www.coalage.com
