Service Issue 85

S
mining and energy
How has decarbonisation affected your coal export business?
Our current reach in the global coal market is significant, with our
coal export business playing a vital role in supplying coal to various
international markets. We have established strong partnerships and
distribution channels that allow us to export coal to destinations around
the world, including Asia, Europe and the Americas. Our commitment
to quality, reliability and customer satisfaction has enabled us to build a
solid reputation as a trusted supplier in the global coal market.
Decarbonisation efforts have indeed impacted our coal export
business, as there has been a growing shift towards cleaner energy
sources globally. This transition has led to increased scrutiny and
regulation of coal use, particularly in developed economies, where
governments and industries are setting ambitious targets to reduce
carbon emissions and phase out coal-fired power plants.
We have observed a decline in demand for thermal coal, especially
in regions where decarbonisation policies are stringent. This has
prompted us to adapt our business strategies and diversify our
product portfolio to include higher-value commodities that are less
affected by decarbonisation trends, such as metallurgical coal for
steel production.
We are actively exploring opportunities to invest in renewable
energy projects and transition towards cleaner energy sources
ourselves. While the decarbonisation of the coal market presents
challenges, it also presents opportunities for innovation and
growth in alternative energy sectors. As a responsible corporate
citizen, we are committed to navigating these changes responsibly
while continuing to meet the evolving needs of our customers and
stakeholders in the global energy landscape.
How does regulation such as the EU’s carbon border adjustment
mechanism (CBAM) that penalises carbon-heavy imports,
affect MAB?
Regulation has significant implications for MAB and its operations.
As a company engaged in the export of coal, which is a carbonintensive
product, MAB may face challenges and increased costs
associated with compliance with such regulations.
The implementation of CBAM could lead to additional costs for
MAB, as it may be required to pay carbon taxes or tariffs on its
coal exports to the European Union. These costs could affect the
competitiveness of MAB’s coal exports in the European market,
potentially reducing demand and impacting the company’s revenues.
CBAM may necessitate changes to MAB’s operational practices
and investments in emission-reduction technologies to mitigate the
carbon footprint of its coal exports. This could require significant
investments in cleaner production methods, carbon capture and
storage technologies or renewable energy alternatives, which may
increase operating costs and impact profitability.
To navigate the challenges posed by regulations like CBAM, MAB
may need to adopt a proactive approach by investing in sustainable
practices, improving energy efficiency and diversifying its product
portfolio to include lower-carbon alternatives. Additionally, engaging
in dialogue with regulatory authorities, stakeholders and industry
partners to advocate for equitable treatment and exploring potential
exemptions or incentives may also be essential strategies for MAB to
mitigate the impact of such regulations on its business operations.
BIOGRAPHY
Pinagare Mogodi (“Pina”) is the co-founder and managing
director of MAB. He comes from a family with a long history of
construction, mining and trucking projects in the North West. He
expanded this into a well-established mining and construction
company which now boasts a management team with over 60
years’ collective experience in the industry. Mogodi holds a
bachelor’s degree in accounting and management from Eduvos
(Institute), has completed a project management and Pastel
accounting short course and has a certificate in tactics: strategic
planning and management.
Please discuss your perception of coal’s longevity in South Africa.
Coal has historically played a significant role in South Africa’s energy
landscape, serving as a primary source of electricity generation and
driving economic growth. However, the country is now facing increasing
pressure to transition towards more sustainable energy sources as part
of the Just Energy Transition (JET). Considering this transition, coal’s
longevity in South Africa is likely to be influenced by several factors:
Environmental regulations. Stricter policies aimed at reducing
carbon emissions are expected to impact the future of coal-fired
power generation. Compliance with these regulations may require
significant investments in emissions-reduction technologies or the
gradual phase-out of coal-fired power plants.
Renewable energy expansion. The rapid growth of renewable
energy sources, such as wind and solar, presents an alternative
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