If South Africa is to make the best use of its valuable carbon-based fuel resources, the coal sector faces a number of challenges.  Globally, the demand for coal remains strong – even more so in the developing world.  Africa needs another 7,000MW more electricity annually to keep up with its growth rate.

To serve this need, coal exploration in African countries has been ongoing.  However, turning SA’s coal to account is become increasingly difficult.  Much of the country’s easily accessible deposits are depleting.  Resources are now often more geologically complex and expensive to mine.

Adding to this, SA’s water resources are also under strain.  If new are brought on stream, it will be vital that they find innovative ways to meet their water needs.  It is said that the price of water could double in the next five years, as a reflection of its real cost to society.