Key Points
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Exxaro coal and renewable energy projects total R9.9 billion.
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Coal expansion secures Grootegeluk mine output for domestic and export demand.
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Wind farm investment underscores Exxaro’s gradual shift toward clean energy.
With almost R10 billion in planned projects, Exxaro Resources Ltd. is stepping up its investment strategy in an effort to balance its legacy coal business with a stronger push toward renewable energy.
The South African miner announced plans to invest R5.2 billion in the expansion of its Grootegeluk coal mine and R4.7 billion in a massive wind farm project.
The company’s dual commitment demonstrates its efforts to stay up with South Africa’s complex energy environment, where coal is still a major source of electricity but decarbonization pressure is growing.
The twin investments represent a strategic wager on Exxaro’s ability to maintain its conventional revenue stream while progressively transitioning to more environmentally friendly assets.
Expansion of coal mines ensures a steady supply
Grootegeluk, one of the nation’s most significant coal mines and a vital supplier to Eskom, the faltering state power company, will receive the majority of the coal allocation.
The R5.2 billion expansion, according to company executives, will prolong the mine’s life and increase output to satisfy both domestic and export demand.
About 80% of South Africa’s electricity is still generated using coal, so Grootegeluk is a vital resource. Even though international investors are leery of coal projects, Exxaro decided to double down on the mine, a sign that the company sees continued demand both domestically and in markets like Asia.
The Exxaro renewable energy project is gaining momentum
According to a report by Mining weekly, Exxaro announced that it will invest R4.7 billion in a new wind farm in addition to the coal expansion, which is anticipated to significantly increase the amount of clean power available to the national grid.
The project is a component of the company’s larger goal to establish itself as a diversified energy producer, reducing its susceptibility to changes in the price of coal and environmental scrutiny.
Management described the renewable investment as a natural complement to its existing portfolio, stressing that long-term value creation will depend on balancing fossil fuel returns with sustainable energy growth. Even though the company still makes the majority of its profits from coal, analysts say the project is a positive step.
Profits from coal and the green transition are balanced
The tightrope that South African miners must walk is reflected in Exxaro’s R9.9 billion push.
On one side is the country’s ongoing power crisis, which makes coal indispensable. On the other is mounting pressure to curb emissions, attract sustainable financing, and prepare for a carbon-constrained future.
The company said its dual strategy will secure thousands of jobs, extend local supplier networks, and contribute to stabilizing South Africa’s fragile power supply. Still, environmental groups have warned that new coal projects risk locking the country into high-emission infrastructure even as global climate targets tighten.
For Exxaro, the immediate challenge is execution—ensuring that its wind farm is built on time and its coal mine expansion delivers returns. Longer term, the strategy will test whether South Africa’s largest coal producer can transition into an energy group resilient enough to thrive beyond coal.
