South Africa is a significant participant in the global coal markets. However, it is not the biggest. China, the USA and India are much larger producers and consumers of coal. Australia, Indonesia, Russia and Colombia are larger exporters.  Yet, South Africa’s coal industry is noteworthy in a number of respects;  it is a relatively low cost producer (along with Indonesia and Colombia), has the world’s largest coal export terminal, and is positioned conveniently between Atlantic and Pacific coal markets. It is a potential swing producer, able to export competitively to either Europe or the East.

With substantial coal reserves there is scope for expanding its coal exports, thereby generating much needed export earnings and reducing the country’s negative trade balance and current account deficit.

South Africa is also a major consumer of coal, mainly for electricity production and also operates the world’s only commercial coal synfuel plants (Sasol).