Australian energy company Resource Generation will start coal mining at its Boikarabelo project in South Africa’s Waterberg region by 2013.

The company will start open pit coal mining in the area, one of South Africa’s largest remaining coal deposits, with an initial investment of R4.5bn ($600m), according to Reuters.

Resource Generation expects an average annual output of three million tons each for export and domestic quality coal for the first five years, rising to 40 million tons from 2018.

The company said the total life of the mine could be up to 100 years.