The firm’s Elandspruit operations include Elandspruit colliery and Wescoal processing plant.

Wescoal acting CEO Waheed Sulaiman said: "Getting to this point is a major milestone and has been achieved through hard work and perseverance.

"Longer than expected delays earlier this year, resulted in us having to enter into sub-optimal coal sale arrangements with other customers while we engaged with Eskom."

The current deal follows previous contract signed in May this year for the supply of 190,000 tons of coal from Wescoal’s Khanyisa and Intibane mine.

In July, Wescoal had delivered first coal from Elandspruit mine and processed at its Muhanga plant, which was commissioned for the coal mining and distribution company.

The Elandspruit mine is claimed to include reserves of over 34 million tonnes and amine life of around 12 to 15 years.