SOUTH AFRICA — In a landmark move to accelerate South Africa’s climate action goals, mining giant Exxaro Resources and state-owned power utility Eskom signed a Memorandum of Understanding (MoU) on Monday, 14 April 2025, to collaborate on reducing carbon emissions, improving air quality, and ensuring a just transition to a low-carbon economy. The agreement emphasises both entities’ alignment with South Africa’s commitments under the Paris Agreement and national climate policies.
The partnership will focus on jointly measuring and managing Scope 1, 2, and 3 emissions—direct, indirect, and value chain-related greenhouse gases—while exploring investments in innovative decarbonisation technologies. Key initiatives include skills development, green job creation, and community engagement to foster climate resilience. Transparent data sharing and progress reporting are embedded to ensure accountability.
“This collaboration marks a significant step in building a climate-resilient future,” said Exxaro CEO Ben Magara, noting the alignment with the company’s “impactful transition” framework. “By combining our expertise in mining and energy, we aim to deliver scalable solutions that address energy security, reduce emissions, and uplift communities.”
sign the Memorandum of Understanding (MoU)
Eskom Group CEO Dan Marokane highlighted the urgency of balancing sustainability with energy reliability.
“Our decades of experience in the coal value chain position us to explore practical pathways toward a sustainable energy mix,” he said.
The partnership will leverage Eskom’s Research, Testing & Development (RT&D) unit, which focuses on emissions management, greenhouse gas reduction, and transitioning to low-carbon energy sources.
Exxaro’s Sustainable Growth and Impact strategy prioritises decarbonisation, biodiversity protection, and circular economy practices, with a decarbonisation roadmap targeting carbon neutrality by 2050.
Eskom, meanwhile, remains committed to a diversified energy portfolio. While maintaining existing coal and nuclear infrastructure, the utility plans to expand renewables, battery storage, and pumped hydro systems. Gas is expected to provide transitional baseload power, ensuring grid stability amid rising electricity demand.
The collaboration aligns with South Africa’s Integrated Resource Plan (IRP), which outlines the nation’s energy mix trajectory. Initial efforts will prioritise technology-driven solutions to transition challenges, ensuring economic competitiveness and community inclusivity.
Central to the MoU is a commitment to equitable socio-economic outcomes. Exxaro and Eskom aim to mitigate job displacement risks through reskilling programmes and green sector opportunities, particularly in regions reliant on coal. Stakeholder engagement will be critical to addressing local concerns and fostering shared ownership of transition strategies.
The Exxaro-Eskom partnership provides a model for balancing industrial needs with environmental responsibility, potentially setting a precedent for public-private climate action in Africa.
Exxaro and Eskom’s partnership aims to leverage international climate finance, such as the JETP, to support South Africa’s decarbonisation goals and drive sustainable futures in the mining and energy sectors.
