We demonise coal at our very real socio-economic peril
It’s not only the mines and jobs that are at risk; coal is the largest foreign currency earner for SA and contributes immensely to the country’s trade balance
SA’s coal mining sector is suffocating under the weight of two developments, one global and the other domestic. At the global level, the trade spat, or war, as is often described in the media, between the US and China has tempered coal markets causing prices to decline sharply. We are a real-life depiction of the adage about the fate of grass when two bulls fight. Here is how. SA is among the top producers of thermal coal. In some markets, we compete with, among others, Australia and Indonesia. Australia is the world leader and they are bullish about promoting the coal industry which makes a massive contribution to their economy. (The recent election victory of pro-coal coalition parties attests to this). The biggest market of SA coal in recent times has been India, which is building new coal-fired power stations for its fast-industrialising economy. China has recently blocked coal imports from Australia through the port of Dalian. Although Chinese authorities have been cagey about ...
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