Mining giant Claymore Mining plans to mine a coal mine near the remote Klasburg coalfield, which stretches along the northern edge of the country.
The company says it will extract about 20 million tonnes of coal a year from the area.
Claymore, based in Victoria, Australia, said in a statement it had begun planning the Klasurgia mine in February.
“The Klasergia mine will provide us with a wealth of opportunities to extract and export Australian coal and iron ore to our global markets,” Claymore said.
The mine will also employ about 1,500 workers.
The Klassberg coal field, which lies about 120 kilometres (75 miles) south of Pretoria, is a vast, low-lying coal deposit that has been lying undisturbed since the 1960s.
In 2015, Claymore and South African miner AngloGold Ashanti agreed to jointly mine the Klassergia coal field for about $3.5 billion.