SUMMARY: The Chamber of Mines Coal Leadership Forum, consisting of coal executives, commissioned a report to determine what needs to be done to increase the profile of the coal mining industry in the face of seemingly ineluctable negative public opinion around the use of coal in industrial processes. The report draws attention to the three industries and sectors (electricity sector; liquid fuels manufacture and basic iron and steel industry) that will be adversely affected by enforcement of strict environmental laws in South Africa. The report also considers the impact on coal exports. Domestic constraints are outlined, including factors likely to result in reduced demand for, and supply of, coal.
KEY FINDING / RECOMMENDATIONS: Four scenarios (2016-2050) with associated coal demand growth rates are presented, from a 1% decline in total coal demand, with nuclear power and renewables supplanting coal as the main primary energy source and environmental and water regulations suppressing coal use, through to a 5% increase in demand growth due to a leap in clean coal technologies, and increase in export demand leading to higher investment and government policy supportive of the industry.