The Goedgevonden Colliery in Africa, a joint venture between Xstrata and ARM Coal, has signed a 17-year coal supply agreement with the power utility Eskom.

Goedgevonden will supply about 60 million tonnes of thermal coal with 3.5 million tonnes annually to Eskom’s Majuba coal-fired power station between December 2009 and 2026.

The 6.7 million tonne-per annum Goedgevonden mine located in the Witbank coalfield in the Mpumalanga province will commence coal supplies to Eskom immediately.