Ntshovelo Mining Resources operates the Vlakvarkfontein Coal Mine located in South Africa.
The agreement is for the supply of 720,000 tonnes per annum of thermal coal over an initial three year period.
Deliveries under from the Vlakvarkfontein Coal Mine to Eskom commenced on 1 March 2012.
Eskom generating around 95% of the electricity used in South Africa and about 45% of the electricity used in Africa.
The company said that the coal supply agreement with Eskom was a major step for the Vlakvarkfontein coal mine, which has become one of only 25 direct coal suppliers to Eskom.