Coal a ‘critical’ mineral for SA, contributing to economy – Mantashe

Minister of Minerals Resources and Energy Gwede Mantashe says coal is a “critical” mineral for South Africa because of its contribution to the economy.

Mantashe delivered the keynote address at the 21st Annual Southern African Coal Conference at the Westin Hotel, Cape Town, on Thursday.

Coal dependency

South Africa is heavily dependent on coal for energy, with Eskom’s coal-fired power stations generating more than 80% of the country’s electricity.

This deep-seated reliance, largely driving Eskom’s generation and the economy, causes significant environmental damage and health problems.

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Energy poverty

Mantashe said coal is fundamental to address energy poverty across the African continent and remains indispensable in securing reliable baseload energy for the world.

“In South Africa, coal contributes approximately eighty percent (80%) of electricity generation, underpins extensive industrial activity, and sustains around 90 000 mineworkers and their families.

“At the same time, the sector faces growing pressure from environmental groupings and global decarbonisation trends, with some predicting the imminent demise of coal,” Mantashe said.

Global energy

The minister said reality, however, tells a different story.

“The International Energy Agency’s 2025 Global Energy Review indicates that ‘global coal demand grew by 1.2% in 2024’ – demonstrating, quite clearly, that ‘King Coal is back.”

Coal remains amongst the largest sources of installed generation capacity globally and continues to dominate baseload power generation in countries such as China, India, Japan, and South Africa.

Power stations

Mantashe said the construction of new coal-fired power plants in these countries, together with sustained investment in Carbon Capture, Utilisation, Storage and Use (CCUS), will extend the role of coal well beyond what many anticipate.

“It is within this context that South Africa continues to invest in CCUS initiatives, including the project in Leandra, Mpumalanga – ensuring that we responsibly extend the life of our coal industry while utilising the resources with which we are endowed.”

Mantashe said South African studies confirm that coal will remain integral to the country’s economy as the “primary source of our energy generation for many years to come.”

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