Production is concentrated in large mines, with 11 mines accounting for 70 percent of the output. South African coal for local electricity production is among the cheapest in the world. The beneficiation of coal, particularly for export, results in more than 65Mt of coal discards being produced every year.

About 21 percent of the run-of-mine coal produced is exported, and 21 percent is used locally (excluding power-station coal). The rest is not saleable and is discarded.

The remainder of South Africa’s coal production feeds the various local industries:
. 62 percent is used for electricity generation;
. 23 percent for petrochemical industries (Sasol);
. 8 percent for general industry;
. 4 percent for the metallurgical industry (Mittal); and
. 4 percent is purchased by merchants and sold locally or exported.

[source:  http://www.energy.gov.za/]

South Africa’s indigenous energy resource base is dominated by coal. Internationally, coal is the most widely used primary fuel, accounting for about 36 percent of the total fuel consumption of the world’s electricity production. About 77 percent of South Africa’s primary energy needs are provided by coal. This is unlikely to change significantly in the next two decades owing to the relative lack of suitable alternatives to coal as an energy source. Many of the deposits can be exploited at extremely favourable costs and, as a result, a large coal-mining industry has developed.

In addition to the extensive use of coal in the domestic economy, about 28 percent of South Africa’s production is exported, mainly through the Richards Bay Coal Terminal, making South Africa the fourth-largest coal exporting country in the world.

[source:  http://www.energy.gov.za/]

Richards Bay Coal Terminal (RBCT) is the single largest export coal terminal in the world. Opened in 1976 with an original capacity of 12 million tons per annum, it has grown into an advanced 24-hour operation with a design capacity of 91 million tons per annum.

Positioned at one of the world’s deep sea ports, RBCT is able to handle large ships and subsequent large volumes. As such, it has gained a reputation for operating efficiently and reliably. The 276 hectare site currently boasts a quay 2, 2 kilometres long with six berths and four ship loaders, with stockyard capacity of 8,2 million tons. RBCT shares a strong co-operative relationship with South Africa’s national utility, Transnet, which provides the railway services linking the coal mines to the port, and the shipping coordination of more than 700 ships per annum.

[source:  http://www.rbct.co.za/]

Fun animated video on the formation of coal.