Modern Mining September 2020

coal miners need to drive innovation in their opera- tions (technology being one lever) to improve their productivity. “They also need to make sure to source invest- ment funds to maintain and modernise their mines – otherwise they are at risk of ending with assets that are stuck in the past, are hence expensive and unsafe to operate, which will ultimately lead to their closure,” says Möncks. The “Long Term”: While coal will be around for quite some time, coal mining companies should already start to think about a long-term strategy today. “For example, companies can evaluate how to deploy their capabilities to harvest opportuni- ties in other commodities (such as manganese) or explore opportunities in adjacent fields such as large-scale agriculture or (sustainable) energy adja- cencies,” suggests Möncks. Not about coal or renewables In conclusion, Möncks believes that it is very impor- tant to understand that the discussion should not be about coal or renewables – ultimately, it is a joint journey of coal and renewables – during this journey, coal is the energy source that will enable the long- term transition to renewables. “To successfully embark on this journey, it is

important that a broad range of stakeholders collaborate with each other to forge a unified, con- sistent and equitable plan for the coming 20+ years. Coal companies, regulators, infrastructure provid- ers, host communities and so many more have to each play their role in an orchestrated manner – which, if done correctly, will maximise value for all involved,” concludes Möncks. 

Key takeaways  While managing the long-term changeover from coal is imperative, it is important to note that the coal mining industry remains crucial to South Africa’s economy  The significant relevance of South Africa’s coal mining has two elements. Firstly, it has a huge direct contribution to the GDP and employment, and secondly, it remains a major source of electricity generation  Coal mining companies will most likely face accelerating cost pressure. This means coal miners need to drive innovation in their operations (tech- nology being one lever) to improve their productivity  While coal will be around for quite some time, coal mining companies should start today to think about a long-term strategy  It is very important to understand that the discussion should not be about coal or renewables – ultimately, it is a joint journey of coal and renewables – during this journey, coal is the energy source that will enable the long- term transition into renewables

September 2020  MODERN MINING  19