Coal is used as a fuel for manufacturing.  It is a key ingredient in manufacturing products such as tar, synthetic rubber, petroleum and
steel.  The iron industry uses coke ovens to melt iron ore.  This is an almost pure carbon residue of coal and is used as a fuel in smelting
metals.  Then these coals are transported around the world for use in coke ovens.  Other industries such as those that produce paper, brick, limestone and cement, use coal to manufacture products.  Some ingredients that are separated coal (such as methanol and ethylene)
are used to manufacture plastics, fertilizers, synthetic fibres, tar and medicines.

Clean coal technology helps in reducing air emissions and other pollutants from power plants that use coal for power generation.  Some
companies are using innovate techniques to clean coal and reduce emissions. According to John Riddle, author of “Coal Power of the
Future,” an example is the Polk Power Plant in Tampa, Florida, which uses specialized equipment to process coal before generating power
from it.  As a result, this power plant generates 85 percent less nitrogen dioxide and 32 percent less sulphur dioxide than other power plants.

If Eskom gets its way, South Africans will on average be paying just over double the current electricity price by 2018, after annual increases of 16% every year until then.  If the regulator grants the increases, power will cost around eight times more in 2018 than it did in 2008, when parts of the country last experienced blackouts as power generation failed to keep up with demand.

Eskom said that a third of the increase will be required to pay for higher coal costs, and another quarter will go to increased operating costs. The rest is made up mostly of making provision for replacing ageing infrastructure and paying current and future debt raised to do so.
But that is based on somewhat conservative assumptions. Eskom believes its payments for coal will increase by no more than 10% every year, and that its employee costs will increase by no more than 6% every year. A big spike in the cost of coal significantly higher than inflation would play havoc with the numbers.

The increase Eskom requested also did not make provision for the introduction of a carbon tax, and assumed independent power producers would start contributing significantly to power generation over the next five years. This process of allowing such outside players into the industry has seen long and consistent delays.  Should the independent producers not develop as the government plans, Eskom said, it will require 20% year-on-year increases.

Often ignored are the social and economic benefits of coal mining.  These benefits go far beyond the energy it provides and the products like steel and cement that are made from coal. Coal mining supports local communities and provides a big boost to regional and national economies.

The presence of coal mining supports economies in many ways. At the most basic level coal mining provides employment for local communities. In South Africa the coal industry totals more than 12% of the mining workforce – more than 65,000 workers – and it is estimated that more than US$1 billion in wages are paid to its workforce each year.

Even more importantly however, the impact that these jobs have is spread widely across communities at large. In South Africa it has been estimated that the impact of one employees’ salary in the mining industry on average feeds and clothes the equivalent of ten people, including children and the elderly.

Coal mining often occurs in rural and remote areas requiring significant infrastructure development, particularly the development of transportation links such as road and rail. Mining often brings increases in other infrastructure services such as electricity. Improved infrastructure due to mining activity can also support broader economic development within the region, supporting other industries and facilitating the development of social infrastructure.

Whether we realize it or not, electricity from coal powers the lives of millions of South Africans.  Domestic reserves of coal have provided the largest source of electricity that South African families and businesses have depended upon each and every day.  But many people don’t realize that.  Many of us take electricity for granted and give little thought to what is involved in providing a reliable, affordable supply of electricity to meet increasing consumer needs.  Maybe one reason we don’t give this more thought is because electricity from coal is so reliable.  Coal and other traditional energy resources provide steady power that is available on demand.  That’s a big difference between coal and renewable energy resources, particularly wind and solar.  These sources produce electricity only under certain weather conditions;
including steady, sustained wind speeds or enough direct sunlight.  If we’re going to meet our nation’s growing demand for electricity,
keep energy costs affordable and continue to make progress on reducing emissions and meeting more stringent environmental standards, we can’t afford to take things for granted.