SUPPORTING THE DOMESTIC
SUPPORTING THE DOMESTIC ENERGY SECTOR AND GROWING A DIVERSE PORTFOLIO Pinagare Mogodi, CEO of the Matsapa-A-Botshelo Group (MAB GROUP), reflects on the coal industry, where his company is increasingly making a big impact, and notes the remarkable strides being made by MAB Construction in building communities and creating jobs across a wide variety of projects. 6
MINING AND CONSTRUCTION In the global environment where fossil-fuels are under pressure, how do you see the future of coal for South Africa and Africa? In the short term (five-10 years), the demand for coal may remain relatively stable, especially in regions where coal is a significant part of the energy mix. However, as more countries and industries shift towards cleaner energy sources, the demand for coal is expected to decrease. In terms of economic impact, the coal industry is likely to continue contributing to the economy through employment and revenue. However, there might be a need for diversification to mitigate the economic impact as the global demand for coal diminishes. Environmental pressures could increase from international entities and environmental organisations to reduce coal usage due to its contribution to greenhouse gas emissions and climate change. This may lead to stricter regulations and scrutiny. Pinagare Mogodi, MAB GROUP CEO, right Medium-term future (10-20 years): • Diversification: It becomes crucial for South Africa and Africa to diversify their energy mix. Investing in and adopting renewable energy sources such as solar, wind and hydroelectric power will be essential for energy security and sustainability. • Infrastructure development: Countries might need to invest in new infrastructure for renewable energy production and transmission. This could create new job opportunities and stimulate economic growth. • Global market dynamics: The global market for coal may continue to shrink, affecting export revenues for countries heavily reliant on coal exports. This emphasises the importance of transitioning to alternative energy sources and finding new economic opportunities. • Environmental regulations: Stricter environmental regulations may be implemented globally, further incentivising the transition away from coal. This could lead to the phasing out of coal-fired power plants and a decrease in coal mining activities. • Technology: Advances in clean-coal technologies or carbon capture and storage (CCS) could influence the medium-term outlook. If these technologies become economically viable and widely adopted, they could potentially extend the lifespan of the coal industry, albeit with reduced environmental impact. Do you supply the domestic and export markets? As MAB GROUP, our primary focus is on exporting high-grade coal to international markets, including countries such as India and China. Our coal portfolio consists of various grades, including RB1, RB2 and RB3. Recognising the significant demand in these markets, we are in the process of expanding our operations by opening offices in India. This strategic move aims to strengthen our presence and better serve our clients in one of our key markets. Simultaneously, we understand the importance of maintaining a strong presence in the domestic market. To contribute to local energy needs, we are actively exploring partnerships with local power utilities such as Eskom 7
