ENERGY MIX
NEVA MAKGETLA: Cutting coal use needs smart thinking
The coal economy has been in the news recently due to the corruption scandals that have rocked SA. But the industry is set to cause a lot more trouble in the next few years. Coal has long been the bedrock of the economy, underpinning the production of electricity and chemicals. Now its high contribution to greenhouse gas emissions makes that role increasingly untenable. But moving away from coal will require far-reaching structural changes in the economy. In 2016, SA’s coal production was worth more than R100bn – around a quarter of all mining output. About R50bn worth of coal was exported, making it SA’s third-largest export in 2015 after platinum and autos but ahead of iron ore and gold. Coal accounted for about 5% of all exports. In contrast to other mining products, most coal is consumed locally. In volume terms, exports took just a quarter of SA’s coal, although at a higher quality and price than domestic sales. Some 80% of SA’s other mining production was sold abroad. SA stand...
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