Opportunity Issue 108

Going beyond extraction?
Absolutely, it is more than just about digging holes in the ground. It
really is carrying the soul of people and transporting to a new future.
What will tell us that a Just Energy Transition is in fact occurring?
That expression, “Just Energy Transition”, requires elaboration. From
an energy perspective, a Just Energy Transition first and foremost
considers the fact that our current energy systems are largely based on
coal. More than 75% of our electricity is coal-based and that remains a
valuable energy and economic resource for South Africa. The whole value
chain of electricity generation from coal mining to coal burning cannot
be immediately abandoned. The potential negative impact of rapidly
reducing coal inputs without consideration of the social and economic
impact, would be unjust.
How we adopt and adapt to new energy systems is important and a
Just Transition would be occurring where we plan for continued (albeit
declining rate of) use of coal but at the same time, we also plan to install
renewables much more aggressively than we’re doing currently. In terms
of generation capacity, we must be clear on what is viable and what is not.
What are the possibilities of renewables? We should be ambitious and bold
in terms of our renewable energy goals across a range of technologies,
considering the constraints in terms of grid-scale storage, transmission
limitations, sentiments towards nuclear energy and the pace of regulatory
changes towards further democratisation of electricity management.
The second part on the Just Transition is to look at the social aspect, ie
how the shift in energy technologies is going to cause a shift to new skills
and capabilities as well as livelihoods. We should not abandon people in
current employment and in locations where coal-based mining and energy
activities are based. We need to apply our minds to the social setting where
coal is and how that is going to change (and needs to change). What are
the alternative livelihoods? What are the new economic opportunities
that we can create and invest in that will sustain livelihoods?
Are you still engaged in the work of the Impact Catalyst?
I have been Chairman of the Impact Catalyst for the past three years.
The entity was created from the vision and anticipation of livelihoods
beyond mining. Mines are transitionary by nature. What alternative
economic opportunities can be developed when the mineral resource
has been exhausted? This consideration must start while the current
mines are functioning and generating a source of revenue to invest in
future economies. In addition, future mine sites must be developed in a
manner that will have minimum impact on livelihoods compared to today.
The Northern Cape is attracting mining investment.
Credit: Vedanta Zinc International
Anglo Platinum’s hydrogen truck is the result of
collaborations which are likely to increase within the
sector in the years ahead. Credit: Anglo American
Is there within the Minerals Council a desk
dealing with the Just Energy Transition?
The Just Energy Transition is multi-faceted and it can never be located in one
place, so each one of us, in different ways contributes to the conversation and
activities related to the JET. One of our senior executives is a commissioner
on the Presidential Climate Commission.
What is the potential for South Africa to help the
world transition to a lower-carbon future?
The significance of South Africa’s mining industry to the domestic and global
socio-economic setting remains unquestionable. It starts with the role it can
Richards Bay Coal Terminal is a key
component of the logistics chain that
ensures South Africa’s minerals can be
exported. Credit: RBCT