Exxaro Resources Limited and Transnet SOC Ltd, through its Operating Division Transnet Freight Rail (TFR), have entered into a formal service agreement to enhance performance under their existing Long-Term Agreement.

This collaboration aims to improve logistics efficiency, supporting Exxaro’s Leeuwpan mine turnaround plan and strengthening South Africa’s trade and transport sectors.

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The agreement benefits Transnet, Exxaro, and the South African economy. It establishes clear performance expectations and joint planning initiatives designed to boost rail capacity and optimise long-term logistics.

This partnership aligns with Exxaro’s focus on operational efficiency and sustainability, as well as Transnet’s mandate to secure logistics supply, reinforcing national efforts to strengthen trade and logistics infrastructure.

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Exxaro CEO Ben Magara expressed optimism about the agreement, stating, “Exxaro is pleased to have reached this agreement with Transnet. We believe this service arrangement strategically unlocks value for Exxaro and capacitates sufficient strategic levers for the Group.

“The agreement is good for the national economy and, specifically, Transnet’s commitment to assist Exxaro in minimising job losses and sustaining mine viability. We thank Transnet for the constructive manner in which this agreement has been reached,” said Magara.

Transnet Group CEO Adv Michelle Phillips added, “We are confident that this agreement will unlock significant value not only for Transnet and Exxaro but also for the broader industry and economy. It reflects a shared commitment to rebuilding trust and delivering on our respective mandates for the benefit of all stakeholders.”

This partnership underlines both organisations’ dedication to restoring and enhancing rail performance, promoting economic growth, and advancing competitiveness and sustainability within the mining and transport sectors.