Mining in focus
The future of coal
mining in South Africa
looks bright, despite
fervent opposition by
environmental groups,
writes Leon Louw.
T
he recent announcement by
several South African banks that
they will no longer fund new
coal mining projects in the country, has
once again opened a can of worms. The
action prompted Minister of Mineral
Resources Gwede Mantashe to call on coal
mining companies to invest in “clean” coal
technologies, and impelled environmental
groups to intensify their anti-coal
campaigns. But are they flogging a dead
horse?
The green movement’s efforts of punting
renewables are commendable, and one
has to admit that generating green energy
sounds enticing. Coal mining is a dirty
business, but weaning the world, and South
Africa, from its coal addiction in the next
20 years, might be just a tad idealistic.
Besides the fact that coal generation
provides the most constant and reliable
base supply for the national grid, there are
a deluge of reasons why coal will remain
a mainstay in the South African energy
mix in the foreseeable future – which is
not to say that renewable energy shouldn’t
be a part of the mix, or why it wouldn’t,
someday, become the biggest contributor in
terms of generation.
South Africa has some of the largest coal
deposits on earth (and two of the largest
coal fired power stations, if they function
properly). In the dismal quagmire the
country finds itself in, coal mining might
just be a means of resuscitating what seems
like a flagging economy. No matter how
small a project, a coal mine is a job creator
par excellence. And in an unequal society,
where unemployment and poverty are at
the heart of the ailment, that should count
for a lot. Especially considering the knock-
on effect and that up to nine people benefit
financially from one job created in the
mining industry.
Multiple benefits
According to the Minerals Council of
South Africa, coal generated about R129-
billion in sales in 2017 — about 28% of
South Africa’s total mineral sales — and
directly employed more than
82 000 people, whose earnings amounted
to almost R22-billion. Apart from being
the third-largest employer in the mining
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JULY 2019 MINING MIRROR [19]