Climate change considerations are not something that coal mining companies can take lightly. Climate change mitigation simply has to be taken seriously and coal mining companies need to be strategic in their approach to future energy supply.

Emphasis on extracting early value from coal is the correct route to take, as is turning to clean energy provided by the sun and the wind.

Simply fighting for the survival of coal is the wrong approach.

Nobody knows the exact length of runway still open to coal mining, but what is clear is that fossil fuels in general are being progressively cold-shouldered.

Some very well established coal mining companies tell you they are already feeling the pressure, with spokes being put in the wheel of new coal projects that a few years ago looked inevitable.

Already, South African banks have publicly stated that they are pulling back from funding coal mining expansion, and insurance premiums are being elevated, with demands made for the self- insurance of major portions before any residual cover is granted.

Moreover, young people are taking to the streets demanding that climate change be tackled far more sternly and that they are not left with a worsening problem in the future.

Environmental, social and governance (ESG) demands on mining companies are becoming far more audible and coal producers need to take ESG issues to heart by guaranteeing an upper limit on their coal production.

Sure, thermal coal is going to be needed for many decades to come. South Africa is more dependent on it than most countries.

At the same time, energy generation and energy storage alternatives can become the new pursuit of coal companies wanting to continue in the energy space. Building new coal projects and acquiring new assets without proper due diligence should not be backed by long-term pension and provident funds.

Assets need to be sweated rather than betted. Even companies with decades-long contracts to supply coal to State electricity utility Eskom are effectively capping their output to existing levels to make their contribution to climate change mitigation and in acknowledgement of renewables presenting an excellent business case that financial institutions are very keen to fund.

From a national point of view, coal mining companies have no choice but to supply Eskom when the utility needs more coal. Failing to do so puts South Africa at risk of going into darkness, and Eskom remains the number one customer for very many coal mining companies, purely from a commercial exposure point of view. Coal suitable for Eskom must continue to go Eskom’s way.

But top of mind must be to cap coal and look to alternatives that will help the world stave off the devastating global warming trend.

Every effort should be made to ensure that the country does not end up with a multitude of stranded, unrehabilitated coal mines that end up being the burden of the taxpayer.