NKANGALA — Exxaro Resources and Eskom have signed a new long-term coal supply agreement aimed at securing

stable electricity generation at the Matla Power Station while supporting jobs and economic activity in Mpumalanga.

The agreement, which came into effect on 01 April 2026, will run until 30 November 2043 and ensures the continued supply

of coal from Exxaro’s Matla Mine to Eskom. The partnership between the two entities dates back to 1983 and remains a key

component of South Africa’s energy system.

The deal is expected to provide long-term stability for both the power utility and the mine, reinforcing coal’s role in

maintaining baseload electricity supply while the country transitions to renewable energy. Exxaro CEO Ben Magara

described the agreement as a significant milestone for the company and its relationship with Eskom.

“The signing of this new Coal Supply Agreement marks an important milestone in our long-standing partnership with Eskom

and reinforces our shared commitment to supporting South Africa’s energy security needs in line with national demands and

fluctuating geopolitical influencers. 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,” said Magara. Magara added that Exxaro remains confident in the future of the operation,

reaffirming the strategic importance of Matla as a key asset in its coal portfolio and its commitment to responsible resource

development, reliable energy supply and long-term value for employees, host communities and the broader economy.

Eskom Group CEO Dan Marokane said the agreement strengthens reliability in coal supply and supports operational

performance at one of the country’s key power stations. “This agreement ensures predictability and stability in the supply of

coal to the Matla Power Station, an essential component of our generation fleet, and reinforces a partnership that has

supported the nation’s power system for more than four decades,” said Marokane.

The agreement also forms part of Eskom’s broader strategy to improve efficiency and reduce costs through its Cost

Optimisation and Revenue Enhancement (CORE) programme.

Exxaro remains one of South Africa’s largest coal producers, with coal production increasing to 39.9 million tonnes and

sales reaching 39.6 million tonnes in the 2025 financial year. Export volumes also rose by 2% to 7.1 million tonnes.

The company reported a 3% increase in revenue to R41.8 billion, while total dividends for the year amounted to R6.3 billion,

marking its 46th consecutive dividend since listing on the Johannesburg Stock Exchange in 2006.

Beyond coal, Exxaro is expanding its operations into other commodities and energy sources as part of its long-term growth

strategy.

In February 2026, the company completed the acquisition of manganese assets linked to the Tshipi Borwa mine in the

Kalahari Manganese Field. The mine is one of the world’s largest manganese producers, with an annual output of

approximately 3.5 million tonnes.

The acquisition positions Exxaro as a globally significant manganese producer and strengthens its diversification strategy

while maintaining a strong coal base.

At the same time, the company is increasing its investment in renewable energy. Exxaro has more than doubled its

renewable energy capacity and continues to expand its project pipeline.

One of the key developments is the 140MW Karreebosch wind farm project, which is currently under construction and

expected to start generating power in the first half of 2027.

The company has also commissioned the 68MW Lephalale Solar Plant, which will generate approximately 176GWh of

electricity annually. The project is expected to reduce electricity costs at the Grootegeluk mine by about R100 million per

year and lower emissions.

Additional investments include the acquisition of majority stakes in operational wind energy assets, further strengthening

Exxaro’s position in the renewable energy space.

Despite the shift towards cleaner energy, coal continues to play a critical role in South Africa’s energy mix. The Matla Mine

remains a key supplier to Eskom and an important economic driver in Mpumalanga.

The long-term agreement is expected to sustain jobs, support local businesses and contribute to economic stability in

communities surrounding the mine.

As the country works to balance energy security with sustainability, the Exxaro-Eskom agreement highlights the importance

of maintaining reliable coal supply while gradually transitioning to a diversified and lower-carbon energy future. The group

also reported zero fatalities in 2025, marking 40 consecutive months without a fatality. It said this milestone demonstrates

that its goal of zero harm is achievable, while emphasising the need to remain vigilant. Exxaro further confirmed that it met

its market guidance across all performance metrics.