The concurrent use of coal and renewable energy has been identified as a tenable strategy for the development of emerging players in South Africa’s mining sector, says midtier coal miner Ndalamo Resources CEO Shammy Luvhengo.

Despite the mining sector, and especially coal miners, prioritising climate change mitigation, he says many developing economies still need to grow using the most affordable and accessible source of energy, which for some African nations is coal.

“Your developed economies have already benefited . . . [from] fossil fuels. They have already prepared themselves to move to nuclear and other greener sources of energy.”

Luvhengo says there is a need to adopt a balanced approach when mining coal that enables developing economies to benefit from lower-cost sources of energy so that they can use those funds to better prepare for the future.

He cites China as an example that balances its coal consumption while expanding as a leading manufacturer of solar panels and other renewable-energy products.

Long-Term Strategy, Challenges

Luvhengo says Ndalamo will continue to build its business around the “greening of energy”, highlighting that the company is establishing a green energy department within its operations, and has recently completed a feasibility study for its first solar-powered energy plant, to be situated in Mpumalanga.

Ndalamo assesses its energy use and intensity in a manner that aims to reduce as much fossil fuel gases as it produces.

Luvhengo also highlights the importance of ensuring greater consolidation among midtier companies within South Africa’s mining sector as an effective way of becoming globally competitive.

“South Africa needs mining companies that are global. There are Australia-based mining companies, such as BHP and Rio Tinto, that occupy a global presence, [but] we don’t have one. This will be important, especially if South Africa wants to remain globally relevant.”

He also emphasises the importance of ensuring that South African mining-related infrastructure is improved and refurbished, and that there should be a move away from road transport to rail.

In this regard, Luvhengo says a sustained recovery of State-owned rail and ports authority Transnet is crucial, as this could unlock significant value for mining investors and increase the productivity of mining companies.

The economic impact thereof will enable government to grow the economy in terms of taxes, in addition to reinvestment in mining.

Luvhengo encourages more dialogue among midtier mining companies to find ways of growing their presence and capabilities.