Coal being ‘strategic’ mineral will not discourage export-price-reliant miners
The declaration of coal as a strategic resource will not halt private participation and exports, says Mineral Resources Minister Susan Shabangu.
Coal’s strategic role will be formulated within the Mineral and Petroleum Resources Development Act (MPRDA) and its implementation will also be defined legislatively.
The proposed amendments to the MPRDA have been presented to Parliament.
“As government, we have agreed but it is going through a public process to ensure that it becomes part of our legisla-tive framework,” the Minister says.
“What is key is to make sure there is a balance to satisfy security of local supply,” she says.
Government does not want to deny the coal sector, which was mining’s highest revenue earner in 2011, generating more than R87.8-billion, from continuing to deliver valuable export earnings.
At the same time, securing energy domestically is essential and government wants to avoid having to face the sort of sup-ply challenges that it has had to face in the past as a result of lower-grade Eskom-type coal finding higher-price export outlets, particularly to Asia.
“We are going to engage the coal industry and will not be taking any unilateral decisions,” she promises.
Regulatory ResponsibilityWorking with the Depart-ment of Public Enterprises, the Department of Mineral Resources sees itself as having a regulatory responsibility to manage the competition between exports and domestic coal markets “healthily” by seeking to ensure sufficient supply to both local and export markets.
The Ministry has noted that accelerated demand for coal, accompanied by an increase in international coal prices, has changed the buying patterns and structure of the local coal export industry.
The emergence of the export market for lower-grade coal has lessened the availability of coal historically sold to Eskom.
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