As the world’s fifth largest producer of coal and its fourth largest exporter, South Africa will continue to play a pivotal role in the global coal market. In a nutshell, the outlook for coal is bright, which reinforces our positive view of the future of our industry.
Can the conflicting demands of increasing demand for energy and the effect on the environment of burning fossil fuels be settled? Yes, is the answer. And part of that answer lies with coal.
Most of the country’s coal is currently mined in the Highveld, Witbank and Ermelo coalfields located in Mpumalanga province. Geology has determined that the Witbank coalfield is by far the most important source of South Africa’s mined coal at present. However, the Waterberg deposits, extending into Botswana, are expected to become the country’s principal future coal resource.
Coal’s role as a fossil fuel is likely to become increasingly important in a world in which concerns over energy security are rising and demand for energy is growing strongly. According to the World Coal Institute, proven coal reserves are sufficient to sustain production at current levels for 147 years.