Who Owns Whom

The Mining of Coal and Lignite and Coal Testing Laboratories in South Africa 2020

Alex Conradie | South Africa | 29 October 2020

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Report Coverage

This report focuses on the South African coal mining sector and coal testing laboratories, and includes comprehensive information on the state and size of the sector, production and trade statistics and notable developments. There are profiles of 47 companies including the six major local coal producers, Anglo, Exxaro Resources, Glencore, Sasol, Seriti Resources and South32. Other profiles include Wescoal and Kuyasa Mining and companies involved in testing such as Noko Analytical Services and Intertek.

The Coal Mining Sector and Coal Testing Laboratories in South Africa

The South African coal mining sector, which employs more than 92,000 people, produced 254.3 million tons of coal, in 2019 and exported 78.6 million tons, with the combined value of local sales and exports totalling R139.3bn. The impact of the coronavirus pandemic on coal supply and demand, low economic growth in export markets, and growing international opposition to coal mining and coal-fired power generation because of environmental concerns, are some of the challenges faced by the coal mining sector.

Lockdown Challenges

The lockdown caused local demand to decrease, with some coal producers also selling exportable coal domestically because of low export prices. This caused an oversupply of coal in the local market which pushed prices down. Under lockdown regulations, mines supplying coal to Eskom were allowed to operate normally, while other coal producers had to place their operations on care and maintenance in the first phase of lockdown, and then resume operations incrementally.

Coal for Energy

More than 70% of South Africa’s primary energy needs, from electricity generation to steel production and brickmaking, were provided by coal in 2019. Thermal coal, or steam coal, is mainly used in electricity generation, while metallurgical coal is mostly used in steel production. In the latest Integrated Resource Plan, coal will be used to provide 59% of South Africa’s electricity generating capacity by 2030.

Table of Contents

PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 7
4.1. Local 7
4.1.1. Trade 9
4.1.2. Corporate Actions 10
4.1.3. Regulations 12
4.1.4. Enterprise Development and Social Economic Development 15
4.2. Continental 16
4.3. International 16
5. INFLUENCING FACTORS 20
5.1. Coronavirus 20
5.2. Economic Environment 22
5.3. Environmental Concerns 22
5.4. Rising Input Costs 24
5.5. Technology, Research and Development (R&D) and Innovation 24
5.6. Inadequate Rail Infrastructure 25
5.7. Mine Safety 26
5.8. Labour 26
6. COMPETITION 29
6.1. Barriers to Entry 30
7. SWOT ANALYSIS 30
8. OUTLOOK 31
9. INDUSTRY ASSOCIATIONS 32
10. REFERENCES 32
10.1. Publications 32
10.2. Websites 33
APPENDIX 1 - SUMMARY OF NOTABLE PLAYERS 34
Mining of Coal and Lignite 34
Coal Testing Laboratories 43
COMPANY PROFILES - MINING OF COAL AND LIGNITE 46
AFRICAN EXPLORATION MINING AND FINANCE CORPORATION SOC LTD 46
ANGLO OPERATIONS (PTY) LTD 49
ANKER COAL AND MINERAL HOLDINGS SOUTH AFRICA (PTY) LTD 52
ARM COAL (PTY) LTD 54
ARNOT OPCO (PTY) LTD 57
BLACK ROYALTY MINERALS (PTY) LTD 58
BLACK WATTLE COLLIERY (PTY) LTD 59
BUFFALO COAL CORPORATION 61
CANYON COAL (PTY) LTD 63
EXXARO RESOURCES LTD 65
GLENCORE PLC 71
IZIMBIWA COAL (PTY) LTD 79
KANGRA COAL (PTY) LTD 81
KUYASA MINING (PTY) LTD 83
LONDANI COAL (PTY) LTD 85
LURCO GROUP SOUTH AFRICA (PTY) LTD 86
MBUYELO COAL (PTY) LTD 88
MC MINING LTD 90
MMAKAU MINING (PTY) LTD 94
PETMIN (PTY) LTD 96
RESOURCE GENERATION LTD 98
SASOL LTD 101
SERITI RESOURCES HOLDINGS (PTY) LTD 107
SHIVA URANIUM (PTY) LTD 110
SOUTH32 LTD 113
UMCEBO MINING (PTY) LTD 117
UNICORN CAPITAL PARTNERS LTD 119
UNIVERSAL COAL AND ENERGY HOLDINGS SOUTH AFRICA (PTY) LTD 123
WESCOAL HOLDINGS LTD 125
ZARBON COAL (PTY) LTD 129
COMPANY PROFILES - COAL TESTING LABORATORIES 131
ALS CHEMEX SOUTH AFRICA (PTY) LTD 131
BUREAU VERITAS TESTING AND INSPECTIONS SOUTH AFRICA (PTY) LTD 133
CHEM-SCIENCE LABORATORIES (PTY) LTD 135
COTECNA SOUTH AFRICA (PTY) LTD 137
COUNCIL FOR MINERAL TECHNOLOGY 139
ESKOM HOLDINGS SOC LTD 143
GLENCORE OPERATIONS SOUTH AFRICA (PTY) LTD 147
INTERTEK TESTING SERVICES (SOUTH AFRICA) (PTY) LTD 151
MBE MINERALS (S A) (PTY) LTD 153
MITRA S K SOUTH AFRICA (PTY) LTD 155
NOKO ANALYTICAL SERVICES CC 157
SASOL LTD 159
SGS SOUTH AFRICA (PTY) LTD 165
SIBONISIWE COAL LABORATORY SERVICES CC 168
SIZA COAL SERVICES (PTY) LTD 169
SOUTH AFRICAN BUREAU OF STANDARDS 172
UIS ANALYTICAL SERVICES (PTY) LTD 176
UMZAMOWONKE TRADING AND PROJECTS 25 CC 178