South Africa’s Coal Production

Did you know that about 21 percent of the run-of-mine coal produced in South Africa 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.

The key role played by South Africa’s coal reserves in the economy is illustrated by the fact that Eskom ranks first in the world as a steam coal user and seventh as an electricity generator. Sasol is the largest coal-to-chemicals producer.

By international standards, South Africa’s coal deposits are relatively shallow with thick seams, which make them easier and, usually, cheaper to mine. At the present production rate, there should be more than 50 years of coal supply left.

[Source:  http://bit.ly/N26MDm]

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