South African Minister Says Coal Is Critical Mineral for the Country

South African Minister Says Coal Is Critical Mineral for the Country | OilPrice.com

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Breaking News:

ByTsvetana Paraskova– Feb 03, 2025, 7:30 AM CST
Coal

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South Africa should look at coal as a critical mineral because of its importance to the country’s economy and employment, Mineral Resources Minister Gwede Mantashe said on Monday.

South Africa, one of the world’s largest coal producers and exporters, continues to rely on coal for a large part of its energy mix. Currently, some 85% of South Africa’s electricity is generated at coal-fired power stations.

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Despite efforts to boost the share of renewables in its power mix, South Africa continues to rely on coal, also because it is seeking billions of U.S. dollars in support from international lenders and partners for its Just Transition plan.

“In our assessment, coal is one of the critical minerals,” the mineral resources minister said at a mining conference in Cape Town today, as carried by Bloomberg.

“King coal is back,” the minister added.

At the end of last year, the High Court of South Africa ruled that government plans for new coal-fired power capacity are unlawful as they violate the constitutional right to health.

South Africa’s government has planned to seek 1.5 gigawatts (GW) of new coal-fired electricity capacity. But the plans have been challenged in court by activists who argued that new coal plants could lead to damages to public health.

Upholding the challenge brought up by three environmental groups, the High Court says that the government plans and decisions to seek the procurement of new coal power are “unlawful and invalid,” Judge C.J. van der Westhuizen wrote in a ruling in December.

South Africa could see an additional up to 50,000 deaths due to air pollution and billions of U.S. dollars in health costs if a proposal to delay the decommissioning of coal-fired power plants goes through, a Finland-based Centre for Research on Energy and Clean Air (CREA) said earlier in 2024.

By Tsvetana Paraskova for Oilprice.com

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