Exxaro Matla Mine 1 Relocation Project Underway

Established in 1978, the mine consists of three underground operations. One of these operations has been under care and maintenance since 2016, leading the company’s executive to decide to relocate Mine 1 to further its continual investment towards growing and empowering the community.

To reclaim underground equipment and essential services, Exxaro identified two possible solutions. First, to relocate the mine, and second, to develop a new mining shaft with an average capacity of 4m tonnes per annum, including a box cut with bulk materials handling facility.

The Matla Mine 1 Relocation Project involves the construction of a new decline shaft to gain access to the remaining economical 2-seam reserves. The relocation project also includes plans to supply Mine 1 with five complete suites of underground continuous miner equipment and equipment used to construct supporting infrastructure, interseams between Mine 2 and Mine 3, and a ventilation shaft to supply fresh air to Mine 3’s future production areas.

Exxaro’s Strategic Outlook

In response to the critical need to mitigate climate change and ensure resilience in the face of the real impacts on our business, we have developed climate scenarios to assess the potential implications for our coal operations. These climate scenarios will also inform the required response by each operation, considering domestic and global energy and climate response policies, global sentiment towards coal and the potential impact on our coal markets.

A critical starting point was an assessment of coal quality and yield to determine sustainable production volumes and life of mine (LoM) under different climate scenarios. This was the basis of the early value strategy we shared with our stakeholders in 2019, which aims to maximise the value of our coal business by reducing the potential for stranded high-quality coal reserves.

“Our purpose remains to power better lives in Africa and beyond,” remarked Exxaro CEO, Mxolisi Mgojo. “This starts by staying alert to opportunities in our host communities that will strengthen our existing resources, resulting in job creation, skills development and growing the economy.”

Mgojo continues, “As Exxaro, we remain committed to promoting local participation and developing SMMEs and black-owned suppliers by creating business growth and empowerment opportunities that allow for the creation of more jobs and the establishment of sustainable businesses. By continuing on this path, we have the means to drive economic transformation in our host communities.”

Exxaro recently revealed that at this early stage, direct and indirect local procurement opportunities valued at R300m are being identified.  Local black-owned suppliers and entrepreneurs are expected to participate in tender or quotation processes. As the project progresses, opportunities will continuously be investigated on how to maximise local procurement, skills development and economic development.

During 2020, global economic growth is anticipated to take significant strain. Yet, with companies like Exxaro validating the importance of sustainable growth, this enables value-added conversations and purposeful change that not only empowers themselves but the community. The result? A prosperous socio-economic future for the next generation.

In the face of uncertainty, we continue to respond adaptively, optimising our robust assets and moving lower in the cost curve such that we land coal competitively across all markets.