- Government says South Africa must set its own energy path aligned with development goals and resource base.
- Coal remains central to energy security, jobs and exports, with reserves projected to last about 200 years.
- New investments in carbon capture and coal by products aim to cut emissions and unlock critical minerals.
South Africa will continue to chart an independent energy transition pathway that balances economic growth, energy security and environmental responsibility, according to the Minister of Mineral and Petroleum Resources, Gwede Mantashe.
Speaking at the close of a series of engagements on the future of the coal sector, the minister pushed back against global pressure on developing economies to move away from coal at a pace set by developed nations. He said such approaches fail to reflect local realities and development priorities.
The minister argued that the energy debate should not be framed as a choice between coal and renewable energy, but rather as a managed shift from high carbon to lower carbon emissions while sustaining industrial competitiveness and economic growth. He added that environmental sustainability and economic development must work together, particularly in a country still facing high unemployment and energy access challenges.
He also raised concern about the role of some foreign funded NGOs in opposing coal, oil and gas projects without offering viable alternatives that can support jobs and economic expansion.
Global data continues to point to coal’s ongoing role in the energy mix. According to the International Energy Agency, global coal demand rose by 1.5% in 2024, while production increased by 1.4%. The minister said this reflects continued dependence on coal to power economies worldwide.
In South Africa, coal remains a cornerstone of the economy, supporting thousands of jobs, generating export revenue and supplying most of the country’s electricity. Government estimates suggest current coal reserves could sustain production for about 200 years. As a result, coal has been designated a critical mineral in the country’s Critical Minerals and Metals Strategy.
The minister highlighted structural changes within the sector, noting that coal mining is now largely black owned and managed. Beyond ownership, mining companies are investing in community development through schools, healthcare facilities and support for law enforcement, signalling a shift toward broader socio economic impact.
He attributed the recent improvement in electricity supply and the absence of loadshedding to targeted investment by Eskom to raise the Energy Availability Factor at coal fired power stations. This, he said, reinforces the need for a carefully managed transition anchored in energy security.
At the same time, government is investing in technologies to reduce emissions from coal. The Carbon Capture Utilisation and Storage pilot project in Leandra has reached implementation readiness, with procurement complete and funding and technical partnerships in place. The project will move into pilot scale injection to assess storage potential and support future regulation and commercial deployment.
Further innovation is underway through the Coal Reimagined Programme led by Mintek. The initiative focuses on extracting critical minerals from coal discards and fly ash, turning historical waste into economic assets. Government sees this as a pathway to strengthen resource sovereignty and position South Africa within global critical minerals value chains.
Industry participation in the programme is growing, with a consortium of partners already mobilised to support implementation and scale up.
Author: Bryan Groenendaal
