Modern Mining September 2020

COAL

The future of coal mining in SA South Africa remains highly coal dependent for its energy needs. In the long run, sustainable growth and development in the country will depend crucially on the transition away from a coal-intensive energy system and economy. Managing the long-term changeover from coal is imperative, says Tycho Möncks, MD and Partner at Boston Consulting Group, Johannesburg, who proposes three phases of change for the coal mining industry in South Africa, writes Munesu Shoko .

D ecarbonisation is a broader global trend, and recognising these realities, many coun- tries have begun to make strides toward it. Driven by pressure from stakeholders and the strengthening business case for decarbonisa- tion, many mining companies are also taking steps to reduce their greenhouse gas emissions. While the path won’t be easy, the commitment is neces- sary if they are to contribute to the mitigation of risks associated with climate change and at the same time create value for their communities. For a country like South Africa, the road to decarbonisation means a clear plan to transition from coal. The coal mining industry however remains cru- cial to the country’s economy. According to Tycho Möncks, MD and Partner at Boston Consulting Group, the significant relevance of South Africa’s coal mining has two elements. Firstly, it has a huge

Tycho Möncks, MD and Partner at Boston Consulting Group, Johannesburg.

Below: The coal mining industry directly employs approximately 80 000 to 90 000 people in South Africa. Right: Major mining companies are divesting from coal assets for various reasons – investor pressure being one of them.

direct contribution to the GDP and employment, and secondly, it remains a major source of electricity generation. “Coal mining directly employs approximately 80 000 to 90 000 people, and for each direct employee, there are about three indirect jobs cre- ated (across the supply chain and adjacent sectors).

16  MODERN MINING  September 2020