South Africa is facing a significant challenge as the country grapples with the impending closure of coal mines, a move that could result in the loss of 2.5 million jobs, predominantly in Mpumalanga. This revelation comes from data published in the Journal of the Southern African Institute of Mining and Metallurgy, forecasting the closure of five coal-powered plants and 15 coal mines by 2030, with more closures expected by 2040.
The closure of these facilities would not only affect the nation’s energy landscape but also have a profound impact on the communities that rely on these industries for employment and economic stability. The authors of the study emphasize the importance of considering local realities in crafting a just transition strategy, highlighting the need for effective support measures.
Currently, South Africa boasts 66 operational coal mines, with the bulk owned by private companies. The top five companies, namely Seriti, Sasol, Exxaro, Thungela, and Glencore, play a significant role in the country’s coal production, contributing 77% of the total output. However, challenges such as Transnet’s difficulties have resulted in substantial losses in export revenues, exacerbating the economic strain.
The regions most affected by coal mining closures, namely Mpumalanga and KwaZulu-Natal, already grapple with high levels of poverty and unemployment. In these areas, the closure of mines could deepen existing social and economic challenges, affecting not only individual households but also the municipalities reliant on income from mining activities.
As South Africa moves towards a renewable energy future, the transition away from coal-fired power is seen as inevitable. The reliance on coal has not only led to economic strain but also contributed to environmental degradation. Moreover, investments in renewable energy have shown promising job creation potential, highlighting the need for a strategic shift in the nation’s energy landscape.
Addressing the challenges posed by coal mine closures requires a multi-faceted approach. Improved governance in affected municipalities, alongside a commitment to a dual energy generation strategy encompassing both coal and renewables, is essential. Collaboration with neighboring countries and the international community can also leverage comparative advantages and facilitate a smoother transition.
