The Mining of Coal and Lignite and Coal Testing Laboratories in South Africa 2015
Price
R 1 900.00(ZAR) estimated $ 119.89 (USD)*
Report Coverage
The South African Coal Mining sector report describes the current market, outlines M&A developments and corporate activity within the sector and focuses on factors influencing its success. The report profiles 25 companies, including the five major producers, Anglo American, Glencore, Exxaro Resources, Sasol and BHP Billiton Coal South Africa, now South32. Also profiled are junior miners including Sumo Coal (Pty) Ltd, which employs 55 people at its Kopermyne Colliery and is involved in three exploration projects, and Continental Coal Ltd, which is currently undergoing business rescue proceedings.
The South African Coal Mining Sector
This report focuses on the mining of coal in South Africa as well as the activities of coal testing laboratories. South Africa depends heavily on coal as a source of economic value, employment and energy. According to StatsSA’s latest available figures, coal mining contributed R64bn, or 1.8%, to the country’s economy in 2013. The sector employs approximately 90,000 people and during 2014 the country’s coal exports amounted to 77.9Mt valued at US$5.1bn, while 183.0Mt of coal were sold locally.
Eskom’s Need for Coal
State-owned Enterprise, Eskom is dependent on coal for 90% of its power generation. Although the government’s revised Integrated Resource Plan 2010 - 2030 has targeted a reduction in South Africa’s coal-fired energy to 65% of the current value by 2030, replacing it with renewable energy (9%), nuclear power (20%), hydropower (5%), and closed cycle gas turbines (1%), industry commentators believe that these targets are unlikely to be achieved.
Challenging Conditions
Junior coal mining companies created by broad-based black economic empowerment initiatives are responsible for an estimated 30% of total South African coal production. However, many of these miners are struggling to survive because of high production costs, the low margins obtained on domestic sales and inadequate rail infrastructure for the transport of coal for export. Other challenges faced by all role players relate mainly to regulatory changes that have brought uncertainty, insufficient investment into establishing new mines, unreliable and reduced electricity supply, falling coal prices, and rapidly escalating production costs.
Table of Contents
| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Industry Value Chain | 2 |
| 2.2. | Geographic Position | 5 |
| 3. | SIZE OF THE INDUSTRY | 6 |
| 4. | STATE OF THE INDUSTRY | 19 |
| 4.1. | Local | 19 |
| 4.1.1. | Corporate Actions | 23 |
| 4.1.2. | Regulations and Government Programmes | 24 |
| 4.1.3. | Enterprise Development and Social Economic Development | 28 |
| 4.2. | Continental | 28 |
| 4.3. | International | 31 |
| 5. | INFLUENCING FACTORS | 34 |
| 5.1. | Government Support and Intervention | 34 |
| 5.2. | Labour | 35 |
| 5.3. | Economic Environment | 37 |
| 5.4. | Information Technology | 39 |
| 5.5. | Environmental Concerns | 40 |
| 5.6. | Mine Safety | 41 |
| 5.7. | Power Supply | 41 |
| 5.8. | Inadequate Rail Infrastructure | 42 |
| 6. | COMPETITION | 42 |
| 6.1. | Barriers to Entry | 43 |
| 6.2. | Technology, Research and Development (R&D) and Innovation | 44 |
| 7. | SWOT ANALYSIS | 45 |
| 8. | OUTLOOK | 46 |
| 9. | INDUSTRY ASSOCIATIONS | 46 |
| 10. | REFERENCES | 47 |
| 10.1. | Publications | 47 |
| 10.2. | Websites | 48 |
| COMPANY PROFILES – COAL MINING | 49 | |
| Anglo Operations (Pty) Ltd | 49 | |
| Anker Coal and Mineral Holdings South Africa (Pty) Ltd | 52 | |
| ARM Coal (Pty) Ltd | 54 | |
| Black Wattle Colliery (Pty) Ltd | 57 | |
| Buffalo Coal Corporation | 59 | |
| Coal of Africa Ltd | 62 | |
| Continental Coal Ltd | 66 | |
| Exxaro Resources Ltd | 68 | |
| Firestone Energy Ltd | 72 | |
| Glencore Operations South Africa (Pty) Ltd | 74 | |
| Kangra Coal (Pty) Ltd | 78 | |
| Keaton Energy Holdings Ltd | 80 | |
| Kuyasa Mining (Pty) Ltd | 83 | |
| Mmakau Mining (Pty) Ltd | 85 | |
| Petmin Ltd | 87 | |
| Resource Generation Ltd | 90 | |
| Sasol Mynbou (Pty) Ltd | 93 | |
| Sentula Mining Ltd | 96 | |
| Shanduka Coal (Pty) Ltd | 100 | |
| South African Coal Mining Holdings Ltd | 102 | |
| South32 Ltd | 105 | |
| Sumo Coal (Pty) Ltd | 109 | |
| Umcebo Mining (Pty) Ltd | 111 | |
| Universal Coal and Energy Holdings South Africa (Pty) Ltd | 113 | |
| Wescoal Holdings Ltd | 115 | |
| COMPANY PROFILES – COAL TESTING LABORATORIES | 119 | |
| Bureau Veritas Testing and Inspections South Africa (Pty) Ltd | 119 | |
| Chem-Science Laboratories (Pty) Ltd | 121 | |
| CoalLab (Pty) Ltd | 123 | |
| Council for Mineral Technology | 125 | |
| Eskom Enterprises SOC Ltd | 129 | |
| Glencore Operations South Africa (Pty) Ltd | 132 | |
| Intertek Testing Services (SA) (Pty) Ltd | 136 | |
| MBE Minerals (SA) (Pty) Ltd | 138 | |
| Midlab CC | 140 | |
| Mitra SK South Africa (Pty) Ltd | 142 | |
| Noko Analytical Services CC | 144 | |
| Sasol Ltd | 146 | |
| SGS South Africa (Pty) Ltd | 156 | |
| Siza Coal Services CC | 160 | |
| South African Bureau of Standards | 163 | |
| UIS Analytical Services (Pty) Ltd | 166 | |
| Witlab (Pty) Ltd | 168 | |
| Yanka Laboratories (Pty) Ltd | 170 |
