https://www.miningweekly.com

Coal remains a main source of energy in Africa

ENERGY SOLUTION Exxaro has projects in the pipeline over the next five years

ENERGY SOLUTION Exxaro has projects in the pipeline over the next five years

Photo by Creamer Media

16th March 2018

By: Donald Makhafola

Creamer Media Reporter

     

Font size: - +

Coal will maintain its status as a robust, baseload energy source for the foreseeable future in Africa, says South Africa-based diversified resources company Exxaro coal operations executive head Dr Nombasa Tsengwa, who tells Mining Weekly that coal is cheap and that more than 1 600 coal-fired power plants are being built worldwide.

“Coal remains a key commodity for the Exxaro group. We have assessed the resource from every angle and considered all its possibilities. We believe it is the fuel that the organisation will continue to use to power itself, and the country, for the foreseeable future – in a consciously sustainable manner,” she stresses.

Exxaro currently has R18-billion worth of expansion projects, including sustaining capital in the pipeline, over the next five years, with seven coal projects under way – four in Limpopo and three in Mpumalanga.

The company’s greenfield project, the Belfast coal mine, in Mpumalanga, has broken ground, while the 2.7-million-tonne-a-year life extension project at Leeuwpan, also in Mpumalanga, is in progress. The Grootegeluk 6 expansion project and load-out station construction activities are well under way at the Grootegeluk complex, in the Limpopo Waterberg district municipality.

Tsengwa points out that South Africa is currently a coal-driven economy and, consequently, government’s proposed transition to a low-carbon economy should take into account socioeconomic factors, poverty and sustainable development.

“Government’s Integrated Resource Plan for Electricity 2010-2030 forecasts that coal will continue to be a significant part of South Africa’s energy mix, with renewable energy contributing up to 42% of new electricity generation capacities in South Africa over the next 20 years.”

Investment Imperatives
While Exxaro is a significant investor in the coal sector, Tsengwa believes that strict environmental regulation in South Africa impacts negatively on investor appetite to fund coal projects. However, the biggest policy framework that has had a negative impact on mining is the uncertainty regarding the controversial Mining Charter III and its implementation, she says.

“The mining rights application process is long and clarity is needed on the new Mining Charter on black economic- empowerment requirements, as well as other nonfriendly regulatory issues,” she says, noting that the Chamber of Mines and the new government administration are “tackling the issue”.

Tsengwa further maintains that rail infrastructure and capacity are important factors in getting the coal to export markets. “We have a good partnership with the State- owned rail company Transnet and, last year, we concluded a long-term rail agreement with the company to expand rail capacity in Lephalale, Limpopo, to accommodate the Grootegeluk 6 expansion.

With parts of South Africa facing water shortages, water remains a critical input in mining, she adds. Consequently, Exxaro is assessing various ways of using its water more effectively and reducing portable water use at its operations.

Clean Energy
The National Development Plan outlines the necessity to accelerate the formation of independent power producers (IPPs) to alleviate South Africa’s baseload power generation challenges, and Exxaro is open to these opportunities, as well as to increasing its supply of coal to State-owned power utility Eskom. However, Exxaro remains focused on assisting in developing alternative sources of energy, says Tsengwa.

She highlights that the development of such sources is in line with government’s Renewable Energy Independent Power Producer Procurement Programme.

“The 50:50 joint venture with Indian power utility company Tata Power is one such example of clean energy, which resulted in Cennergi being created as an IPP to motivate the generation of clean, zero-emission wind energy farms.”

Tsengwa says, although coal remains Exxaro’s primary business commodity, as a purpose-driven business, it “is exploring other opportunities to develop, prioritise, fund and commercialise new business in a rapid stage-gate governed process that will impact positively on people’s lives”.

“In anticipation of potential threats to coal mining, we are looking at renewable energy solutions, in addition to our Cennergi investment, to find new ways of generating and supplying energy, and managing energy consumption,” she adds.

Meanwhile, Tsengwa indicates that a key objective of Exxaro’s wind energy farm projects has been the employment of local labour and skills transfer.

Exxaro is constantly reviewing its policies to attract and retain the best talent and embrace new technologies that will help employees contribute and add value to the company, she concludes.

Edited by Mia Breytenbach
Creamer Media Deputy Editor: Features

Comments

Showroom

John Deere (Pty) Ltd
John Deere (Pty) Ltd

In 1958 John Deere Construction made its first introduction to the industry with their model 64 bulldozer.

VISIT SHOWROOM 
Alco-Safe
Alco-Safe

An unmanned breathalyser that is made to be tough and simple to use. Can be used in any environment for operator-free breathalyser testing.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.066 0.1s - 93pq - 2rq
Subscribe Now