creamer media

Coal is of critical importance to the South African energy economy. It is the source of 93% of the country’s electricity, 70% of its primary energy and 30% of its petroleum liquid fuels. Local demand for coal is growing, particularly from electricity utility Eskom, which is pursuing a massive capacity expansion programme that includes significant new coal-fired facilities.

At the same time, demand for South African coal on the export market is rising, particularly from countries such as India and China, and South African coal-mining companies are benefiting from increased prices for their export coal. This report details activities in South Africa's coal-mining industry and includes production and consumption statistics, as well as an overview of the major participants and selected smaller participants in the industry.

Published: 31 August 2011.

TABLE OF CONTENTS

Key developments 1

Overview of South Africa’s coal market 2–12

• Demand
  • Local demand: Eskom
  • Local demand: Other
  • Export sales

• Operational challenges
  • Export logistics
  • Cost containment
  • Safety Labour issues
  • Skills shortages
  • Environmental issues
  • General corporate activity

Major companies 13–20

• Anglo American Thermal Coal
• BHP Billiton Energy Coal South Africa
• Exxaro Resources
• Optimum Coal Holdings
• Sasol Mining
• Xstrata Coal South Africa
• Company profiles

Smaller companies 21–29

• Bisichi Mining
• Coal of Africa Limited
• Continental Coal
• Forbes & Manhattan Coal Corporation
• Keaton Energy
• Miranda Minerals
• Resource Generation
• Sentula Mining South African Coal Mining Holdings
• Total Coal South Africa
• Universal Coal
• Wescoal
• Company profiles

Selected Coal Projects in South Africa 30–35

• AATC: Zibulo, New Largo
• Becsa: Douglas/Middelburg optimisaiton, Klipspruit Exxaro Resources: Grootegeluk Medupi expansion, Thabametsi
• Optimum Coal: Boschmanspoort, Kwagga North, Schoonoord
• Sasol Mining: Thubelisha, Impumulelo, Shondoni, Mafutha
• Xstrata Coal South Africa: Atcom East, Tweefontein, Zonnebloem

Projects under development by smaller companies

Prospects 36

Main sources 37–38