Mining Indaba: Future of coal as energy source placed under sharp focus

CAPE TOWN - The future of coal is expected to be under scrutiny on Wednesday as the Mining Indaba deliberates on global trends to ditch the controversial energy source.

This is among the tough discussions again on the agenda at the annual meeting of mining giants, policymakers and government officials in Cape Town.

Thousands of delegates are attending the four-day gathering which is expected to chart a road map for the mining industry for the year ahead.

The coal industry is the largest component of South African mining in terms of production volumes.

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Almost 80% of the coal mined in South Africa is consumed domestically – with a large portion used at power utility Eskom’s old and inefficient power plants to generate the country’s electricity.

Coal sales fell sharply by about 20% last year compared to the previous year – with the poor rail infrastructure impacting exports.

Not only have these constraints made it harder to justify high coal prices, but the Minerals Council South Africa says global sentiments against coal have also affected long-term investment into the industry.

While short-term demands for coal remain – calls for decarbonisation by climate change activists could impact demand in the long run.

Experts are again expected to weigh in on plans for a just transition away from coal.