“Exxaro is proud to be developing the Waterberg area in collaboration with Transnet,” said Mxolisi Mgojo, CEO of Exxaro. “This is an exciting milestone for Exxaro and is a realization of our vision to contributing to the unlocking of the Waterberg, thus creating jobs and powering economic development in South Africa. As such, we will be investing 50% of our R20 billion ($1.5 billion) coal capex program over the next five years in coal in the Waterberg area.”

This agreement, which supersedes the old agreement, will enable Transnet to increase rail infrastructure capacity to service both domestic and export markets from the Waterberg area, Mgojo explained.

The new agreement comes at the time when the Transnet’s Waterberg Program is in full swing with plans to complete the second phase of the project in March 2019. The Waterberg upgrade Phase 2 will grow export rail capacity to 6 million mt through incremental upgrades of the existing rail networks and yards using additional loops, while maintaining the existing axle load, electrical upgrades and improved train control systems.