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OVERVIEW OF THE SOUTH AFRICAN COAL MINING INDUSTRY AND ITS

ROLE IN THE SOUTH AFRICAN ENERGY SECTOR

DICK KRUGER

DEPUTY HEAD

TECHNO ECONOMICS

INTRODUCTION

• COAL DISCOVERED 1699 AT FRANSCHHOEK• MOLTENO IN EASTERN CAPE• NORTHERN KZN• OLD TRANSVAAL (GAUTENG, MPUMALANGA

& LIMPOPO)• FREE STATE• DEVELOPMENT DRIVEN BY GOLD,

DIAMONDS, STEAM SHIPS & RAILWAYS

COAL OCCURRENCES IN SOUTH AFRICA

• KZN COAL FIELDS

• MPUMALANGA HIGHVELD

• FREE STATE

• WATERBERG

• LIMPOPO

• SPRINGBOK FLATS

• MOLTENO-INDWE

MINING METHODS

• UNDERGROUNDBORD & PILLAR

LONGWALL

STOOPING

• OPENCASTSTRIP MINING (DRAG LINE)

TRUCK & SHOVEL

BORD & PILLAR

CONTINUOUS MINER

LONGWALL MINING

LONGWALL SHEARER

STRIP MINING

LOADING COAL

COAL PRODUCTION AND SALES - 2012

• PRODUCTION: 258 575 793 TON•

• TOTAL SALES: 261 677 312 TON • (R96 148 181 309)•

• LOCAL SALES: 185 668 665 TON • (R43 921 276 970)•

• EXPORT SALES: 76 008 647 TON • (R52 226 904 339)

•

EMPLOYMENT & EARNINGS

0

20 000

40 000

60 000

80 000

100 000

0

5 000 000

10 000 000

15 000 000

20 000 000

25 000 000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

tota

l ear

nin

gs

(R'1

000)

avg

# o

f em

plo

yees

in s

ervi

ce

Average no. of employees in service (#) Total Earnings (R 1000)

DOMESTIC COAL USAGE

• ESKOM 125 MT

• SASOL 45 MT

• COKING COAL 2.2 MT

• OTHERS 13 MT

EXPORT DESTINATIONS

Eastern Africa(2.5%)

Eastern Asia (28%)

South-Eastern Asia (3%)

Southern Asia (33%)

Western Asia (11%)

Eastern Europe (0.5%)

Southern Europe (6%)

Northern Europe(1.3%)

Western Europe(13%)

South America(0.7%)

Northern Africa(0.5%)

Southern Africa(0.04%)

Western Africa (0.5%)

ECONOMIC CONTRIBUTION

• 19% OF MINERAL EXPORTS BY VALUE

• 7% OF TOTAL MERCHANDISE EXPORTS

• 21 % OF LIQUID FUEL PRODUCTION

• 91% OF ELECTRICITY GENERATION CAPACITY

RICHARDS BAY COAL TERMINAL

COAL MINING INDUSTRY STRUCTURE

• CHAMBER OF MINES COLLIERIES COMMITTEE

• INDUSTRY ASSOCIATIONS

COLLIERY MANAGERS

COLLIERY ENGINEERS

ENVIRONMENTAL PROFESSIONALS

INDUSTRY INSTITUTIONS

• COLLIERIES TRAINING COLLEGE

• COLLIERIES ENVIRONMENTAL CONTROL SERVICES

• COALTECH RESEARCH ASSOCIATION

• RICHARDS BAY COAL TERMINAL (91 MT/Y)

• COAL EXPORT LINE

• RESCUE DRILLING UNIT

• COLLIERY INERTISATION SYSTEM

OUTLOOK

• AMPLE RESOURCE

• INCREASE IN DOMESTIC DEMAND – ADDITIONAL 30 MT/Y BY 2018

• EXPORT DEMAND INCREASING

• AMPLE EXPORT CAPACITY

USEFUL LINKS

• www.chamberofmines.org.za• www.rbct.co.za• www.ctctraining.co.za• www.coaltech.co.za• www.sacollierymanagers.org.za• www.sacea.org.za• www.sdacepa.co.za• www.dmr.gov.za• www.eskom.co.za• www.sapia.co.za

THANK YOU