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Mantashe tells China ‘king coal is back’
22 Oct 2024
South Africa’s coal industry is experiencing a revival, at least according to Minister of Mineral and Petroleum Resources, Gwede Mantashe, who unironically declared that "King coal is back" during his address at the China Mining Conference and Exhibition. Despite global pressure to phase out coal, locally coal mines increased production in 2023, positioning itself among the top 10 coal-producing nations and the fifth largest coal exporter globally.
Gwede Mantashe is saying that coal is making a comeback
Mantashe used the opportunity to play both sides of the energy table by outlining the country’s commitment to sustainable coal mining, highlighting the Carbon Capture, Utilisation and Storage (CCUS) project – a holy grail initiative aimed at reducing carbon emissions and prolonging the use of coal.
“We have just concluded the first phase of the CCUS project, and we invite investors to participate in the second phase,” he said, calling for continued investment in coal mining as part of South Africa’s diversified energy strategy.
The minister also highlighted the long-term potential of platinum group metals (PGMs) and other critical minerals in the shift towards a cleaner economy.
As the world’s leading producer of PGMs, which includes 73% of the globe’s platinum, 38% of palladium, and 81% of rhodium.
According to Mantashe, these resources are "poised to play a catalytic role in the South African mining industry and the economy for the foreseeable future."
Growing industry
“Contrary to sceptics, the South African mining industry is a sunrise industry,” Mantashe said, pointing to studies indicating that the country’s diverse mineral resources –ranging from PGMs to manganese, chrome, and vanadium – will drive economic growth for over 200 years.
He encouraged Chinese investors to explore opportunities in the beneficiation of these minerals, particularly in the local production of value-added products such as ferroalloys, which support the automotive and construction sectors.
Mantashe’s remarks also focused on the South African government’s efforts to promote local beneficiation and reduce the export of raw minerals, especially in the manganese and chrome sectors.
“We have started discussions with producers to create value-added products and reduce the export of raw minerals,” he said, urging investors to contribute to South Africa’s inclusive economic growth by investing in local industries.
Support for emerging miners
To further attract investment, Mantashe revealed that South Africa had established a R400m exploration fund to support junior miners, reignite mineral exploration, and accelerate new mineral discoveries.
He appealed to Chinese investors to contribute to this fund, which he described as crucial for growth in the mining sector, particularly in areas where mass employment is needed to address South Africa’s unemployment crisis.
Mantashe concluded with an invitation to the Chinese investment community to attend the upcoming Investing in African Mining Indaba in 2025, which will focus on "Future-Proofing African Mining."
He reinforced the message that South Africa remains a prime destination for mining investment, particularly as the world transitions to greener technologies.
