South African coal company Exxaro Resources will not invest in new thermal coal assets, Chief Executive Mxolisi Mgojo said on Tuesday.
Exxaro, which exports coal as well as supplying it for domestic power generation, said the company would continue to supply thermal coal to state-owned power utility Eskom’s Medupi and Matimba power stations through its coal contracts.
“As we come to the end of life of our other coal reserves, we will not be building any new ones,” Mgojo said during a virtual panel at the Investing in African Mining Indaba conference.
Exxaro, which also has interests in mineral sands, iron ore and energy, has sought opportunities in greener energy and acquired full ownership of two wind farms in the Eastern Cape province in 2019. It began seeking investment opportunities in water, food security and cleaner energy in 2017 and has already put up some of its coal assets for sale as part of a strategic review of its portfolio.
South Africa, the continent’s biggest greenhouse gas emitter, gets most of its power from coal-fired power stations run by Eskom, but plans to move towards a more diversified mix of generation sources.