LAST gasp for coal mining industry: it’s the type of news headline we’ve become accustomed to in recent months. Coal analysts say the sector faces a bleak future. Are they correct? Coal prices have declined by about 65% between August 2011 and March 2016.This has had a huge impact on producers and exporters, particularly in Indonesia, but also Australia, the US, SA and Colombia. Large companies, especially in the US, face bankruptcy.But how have SA companies performed? In 2016, many small mines have ceased production. Some are waiting for better times, while others are under administration, near final closure. Most big mines held by the major companies still produce coal, some at a slower tempo.SA coal exporters have to deal with the same price slumps as other exporters. What is different is that SA has a strong local market which during 2015 made R56.6bn, while exports generated R46.9bn, 17% less.SA’s export revenue was 36% more in 2008, when prices were much higher, than its inlan...
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