Coal Mining Projects in South Africa
South Africa remains one of the world’s leading coal producers and exporters, with coal accounting for over 70% of the country’s primary energy supply and approximately 80% of electricity generation, primarily through Eskom’s coal-fired power stations. The coal mining sector plays a critical role in the national economy, contributing around 2% to GDP and providing employment to over 80,000 people directly, according to Statistics South Africa and the Minerals Council South Africa..jpg)
Major coal mining projects in South Africa are concentrated in the provinces of Mpumalanga, Limpopo, and KwaZulu-Natal, with the Witbank (eMalahleni) region in Mpumalanga being the historical heart of the industry. The majority of coal extracted is bituminous thermal coal, used for power generation, while a smaller proportion consists of higher-grade metallurgical coal for steel production.
One of the significant ongoing projects is Exxaro Resources’ Grootegeluk Coal Mine, located in Lephalale, Limpopo. Grootegeluk is one of the largest open-cast coal mines in South Africa and supplies coal to Eskom’s Matimba and Medupi power stations under long-term agreements. The mine has an annual production capacity exceeding 15 million tonnes and is supported by rail infrastructure linked to the national Transnet Freight Rail network.
Another key project is the Thabametsi Power Station and associated coal supply, developed by a consortium including PBMR (Pty) Ltd and Exxaro. Though the Thabametsi project faced delays due to environmental concerns and funding challenges, it illustrates ongoing interest in coal-based power generation, particularly through more efficient technologies. The proposed plant aimed to utilize supercritical technology to reduce emissions per megawatt-hour, aligning with South Africa’s Integrated Resource Plan (IRP 2019), which allows for limited new coal capacity under specific efficiency and environmental conditions..jpg)
Anglo American’s Kolomela Mine, although primarily an iron ore operation, has historically engaged in coal exploration in the Northern Cape, but its main coal assets have been scaled back. However, Anglo American continues to manage coal operations through its interest in the Moranbah and Aquila coal mines in Australia, while divesting non-core South African coal assets in recent years due to strategic shifts toward greener energy.
In Mpumalanga, Seriti Resources owns and operates several major coal mines, including the Shishong, Leeuwpan, and New Largo collieries. The company acquired these assets from Anglo American in 2019, forming part of a broader trend of black-owned companies taking over coal operations under South Africa’s mining charter aimed at increasing local ownership and transformation. Seriti supplies coal to Eskom and export markets via Richards Bay Coal Terminal (RBCT).
Export-oriented coal projects remain vital. South Africa exported approximately 64 million tonnes of coal in 2022, primarily through the Richards Bay Coal Terminal—the largest coal export facility in the Southern Hemisphere. Major clients include India, Europe, and Brazil. However, global pressure to reduce carbon emissions has led to declining international demand and financing challenges. For instance, in 2021, Standard Bank, Absa, and Nedbank announced restrictions on new coal project financing, in line with South Africa’s Just Energy Transition Partnership (JETP) signed at COP26 with France, Germany, the UK, the US, and the EU.
Environmental and regulatory challenges increasingly shape the future of coal mining in South Africa. The Department of Mineral Resources and Energy (DMRE) has tightened licensing requirements, particularly regarding water use and rehabilitation. The closure of older mines, such as Optimum Colliery, highlights financial and operational difficulties faced by some operators. Optimum, previously operated by Glencore, was placed under business rescue in 2018 and later acquired by Tegeta Exploration and Resources, though operational challenges have persisted.
Looking ahead, South Africa's coal sector faces structural decline due to energy transition policies. The IRP 2019 outlines a gradual phase-down of coal, with new renewable energy projects taking precedence. Eskom plans to decommission approximately 12 GW of coal capacity by 2030. Nevertheless, coal will remain part of the energy mix during the transition period, particularly in providing baseload power and supporting regions economically dependent on mining.
In conclusion, while new large-scale coal mining projects are rare due to financial, environmental, and policy constraints, existing operations continue to support energy security and employment. The focus is shifting toward mine-life extensions, efficiency improvements, and responsible closure planning. The evolution of South Africa’s coal sector will be closely tied to its broader energy transition, socioeconomic development goals, and international climate commitments.
Sources:
- Statistics South Africa (2023)
- Department of Mineral Resources and Energy (DMRE), South Africa
- Minerals Council South Africa – Annual Reports (2022, 2023)
- Eskom Integrated Reports
- Exxaro Resources Ltd – Sustainability and Operational Reports
- International Energy Agency (IEA) – South Africa Energy Profile
- Just Energy Transition Partnership (JETP) – COP26 Statement, 2021
- Transnet National Ports Authority – Richards Bay Coal Terminal Data