South African Business 2020 edition

portive of the need to address the issue of climate
change. In South Africa, the issue is particularly
relevant, given the country’s high proportion of
coal-fired power generation in the energy mix.
Our research indicates that that will change over
time to a cleaner, less carbon-intensive one both
naturally and as a result of targeted and deliberate
efforts. The older, less efficient power stations will
see their lives come to an end, as the newer, cleaner
Medupi and Kusile take up a greater share of the
load, as will renewable energy sources. Many of the
older deep-level gold and platinum mines, which
are more energy-intensive, are gradually reaching
the ends of their lives. As a consequence, mining’s
aggregate energy consumption and carbon emissions
are declining. We advocate a just transition to a
lower carbon energy economy. We believe that this
transition will take time.
One serious challenge are the significant hurdles
faced by mining companies that attempt to put in
place alternative power projects. There is a huge
amount of red tape in the way of bringing renewable
energy cogeneration projects online.
Is a strategy being developed for coal miners
in a post-coal future?
Coal miners are developing a variety of strategies.
However, these are largely based on a recognition
that in the transition to a lower carbon intensive
economy, we cannot destroy what we have as a
country – an established coal sector with 33-billion
tons of coal resources. In 2018 the sector employed
almost 90 000 people (representing about 19% of
total employment in the mining sector), with an
estimated 180 000 further people employed as a
result of coal mining activities. The coal sector is a
significant contributor to the South African economy.
SPECIAL INTERVIEW FEATURE
electric vehicle market share growth. The partnership
needs to develop: a platinum reserve asset strategy;
a national platinum fuel cell strategy; market
development in jewellery; and a national strategy to
drive investment demand for platinum.
What is driving the large investments in the
Northern Cape?
The Northern Cape has large economic reserves in
industrial metals, most notably zinc and copper, that
we believe can be a foundation for that underdeveloped
region’s broader economic development
What other minerals are showing promise?
Other PGMs, notably rhodium and palladium, are
performing particularly well. As stated, coal still has
potential and iron ore is performing well.
What are the priorities of Minerals Council SA?
Our main broad strategic goals are to:
• Create an enabling policy, legislative, regulatory
and operating environment for a successful
mining industry
• Support members in implementing a positive
contribution model for South Africa and its
people
• Demonstrate progress by the industry on transformation,
social and environmental imperatives.
Website: www.mineralscouncilsa.org.za
Please outline your strategy with regard
to platinum’s future.
Develop strong and focused partnerships between
key stakeholders and role-players, including all relevant
government departments. There is a need to
identify the opportunities for short-term interventions
aligned with long-term strategic goals, including
market development in all platinum and PGM
demand segments and a specific focus on fuel cell
Minerals Council SA is putting its money where its
mouth is with regard to alternative energy sources.
The 100kW natural gas baseload fuel cell that powers
the council’s offices in downtown Johannesburg is the
only fuel cell of its kind in Africa. The fuel cell was made
by Fuji Electric.
45 SOUTH AFRICAN BUSINESS 2020