Matla Coal Mine Reopens in South Africa

Why this is here: Eskom is contractually obligated to fund Matla mine’s costs to ensure the lowest possible fuel costs, demonstrating a financial commitment to coal power.

South Africa’s Minister of Mining, Gwede Mantashe, attended the relaunch of Exxaro’s Matla coal mine in Mpumalanga province. The mine resumed operations after a ten-year pause for infrastructure upgrades. It will supply roughly 9.3 million tonnes of coal annually to Eskom for the next 17 years.

Mantashe frames coal as a critical mineral, aligning with the department’s strategy to support both the economy and employment—particularly for Black South Africans. Mintek is working to recover critical minerals from coal waste and convert coal ash into building materials. Sasol recently opened a destoning plant to purify coal before export, further increasing beneficiation efforts.

The country estimates it has enough coal reserves to last at least 150 years at current rates. Exxaro invested R5.24 billion to extend access to Matla’s coal reserves, and Eskom will fund the mine’s operating costs as part of their long-term supply agreement. The viability of scaling alternative energy sources remains a concern for the government.