{"id":4820,"date":"2015-06-11T11:48:12","date_gmt":"2015-06-11T09:48:12","guid":{"rendered":"http:\/\/www.statssa.gov.za\/?p=4820"},"modified":"2015-06-11T19:18:07","modified_gmt":"2015-06-11T17:18:07","slug":"the-importance-of-coal","status":"publish","type":"post","link":"https:\/\/www.statssa.gov.za\/?p=4820","title":{"rendered":"The importance of coal"},"content":{"rendered":"<p>Calls to decrease the world\u2019s dependence on coal as an energy source are well intentioned. Lower use would reduce greenhouse gas emissions, and less demand would lower the environmental risk of coal mining. However, as the world moves away from coal, South Africa will need to consider the implications. The country depends heavily on the mineral as a source of economic value, employment and energy.<\/p>\n<h4>Coal as a source of economic value<\/h4>\n<p>It might come as a surprise to many that coal is now more important to the South African economy than gold. The coal mining industry contributed approximately R37 billion to the economy in 1993, with gold contributing R115 billion (value added at constant 2010 prices). In 2013, coal contributed R51 billion to South Africa\u2019s economy, compared with gold\u2019s R31 billion<sup>1<\/sup>.<\/p>\n<p>&nbsp;<\/p>\n<p>Measured at current prices, coal is now king. The mineral\u2019s contribution to overall mining value added rose to 22,5% in 2013 from 17,4% in 1993. Platinum group metals (PGMs) came a close second in 2013, at 21,0%. Gold\u2019s contribution fell to 18,5% in 2013 from 51,1% in 1993<sup>1<\/sup>.<\/p>\n<p><a href=\"https:\/\/www.statssa.gov.za\/wp-content\/uploads\/2015\/06\/percentage-contribution-of-mineral-production.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-4824\" alt=\"percentage-contribution-of-mineral-production\" src=\"https:\/\/www.statssa.gov.za\/wp-content\/uploads\/2015\/06\/percentage-contribution-of-mineral-production.png\" width=\"1034\" height=\"573\" srcset=\"https:\/\/www.statssa.gov.za\/wp-content\/uploads\/2015\/06\/percentage-contribution-of-mineral-production.png 1034w, https:\/\/www.statssa.gov.za\/wp-content\/uploads\/2015\/06\/percentage-contribution-of-mineral-production-300x166.png 300w, https:\/\/www.statssa.gov.za\/wp-content\/uploads\/2015\/06\/percentage-contribution-of-mineral-production-1024x567.png 1024w, https:\/\/www.statssa.gov.za\/wp-content\/uploads\/2015\/06\/percentage-contribution-of-mineral-production-100x55.png 100w\" sizes=\"auto, (max-width: 1034px) 100vw, 1034px\" \/><\/a><\/p>\n<p>In terms of mineral sales, coal contributed 27% to sales in 2014, followed by PGMs (21%), iron ore (16%) and gold (13%)<sup>2<\/sup>.<\/p>\n<p>South Africa is the fourth largest coal producer in the world, according to the <i>South Africa Yearbook 2013\/14<\/i>, published by Government Communications<sup>3<\/sup>. 28% of South African coal production is exported. With an estimated 116 years of proven coal reserves remaining<sup>4<\/sup>, the mineral is set to remain a valuable resource for South Africa\u2019s economy for as long as demand remains.<\/p>\n<h4>Coal as a source of employment<\/h4>\n<p>The coal mining industry is an important employer. The mining industry as a whole employed a total of 535\u00a0457 individuals at the end of June 2012. The coal mining industry was the third largest employer, employing 91\u00a0605 individuals (17% of the total mining workforce). The PGM industry ranked first (206\u00a0764 or 38%), followed by gold (144\u00a0084 or 27%)<sup>5<\/sup>.<\/p>\n<p><a href=\"https:\/\/www.statssa.gov.za\/wp-content\/uploads\/2015\/06\/distribution-of-employed.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-4825\" alt=\"distribution-of-employed\" src=\"https:\/\/www.statssa.gov.za\/wp-content\/uploads\/2015\/06\/distribution-of-employed.png\" width=\"995\" height=\"595\" srcset=\"https:\/\/www.statssa.gov.za\/wp-content\/uploads\/2015\/06\/distribution-of-employed.png 995w, https:\/\/www.statssa.gov.za\/wp-content\/uploads\/2015\/06\/distribution-of-employed-300x179.png 300w, https:\/\/www.statssa.gov.za\/wp-content\/uploads\/2015\/06\/distribution-of-employed-100x59.png 100w\" sizes=\"auto, (max-width: 995px) 100vw, 995px\" \/><\/a><\/p>\n<p>The number of employed has grown. Employment in the coal mining industry rose by 75% between 2002 and 2012, falling a close second behind the PGM mining industry (78%). Employment in the gold mining industry dropped by 29% over the same period<sup>4<\/sup>.<\/p>\n<h4>Coal as a source of energy<\/h4>\n<p>Coal is South Africa\u2019s dominant energy source. 77% of South Africa\u2019s energy needs are provided by coal, according to the Department of Energy<sup>6<\/sup>. Eskom produces 95% of electricity used in South Africa<sup>7<\/sup>, and its coal-fired stations produce about 90% of electricity produced by the utility<sup>8<\/sup>.<\/p>\n<p>&nbsp;<\/p>\n<p><sup>1 <\/sup>Stats SA: Gross domestic product (P0441), 3<sup>rd<\/sup> quarter 2014 (click here). <a href=\"https:\/\/www.statssa.gov.za\/?page_id=1854&amp;PPN=P0441&amp;SCH=5957\">https:\/\/www.statssa.gov.za\/?page_id=1854&amp;PPN=P0441&amp;SCH=5957<\/a><\/p>\n<p><sup>2 <\/sup>Stats SA: Mining: Production and sales (P2041), April 2015<i> <\/i>(<a href=\"https:\/\/www.statssa.gov.za\/publications\/P2041\/P2041April2015.pdf\">click here<\/a>).<\/p>\n<p><sup>3 <\/sup>Government Communication and Information System (GCIS): <i>South Africa Yearbook 2013\/14<\/i> (click here).<\/p>\n<p><a href=\"http:\/\/www.gcis.gov.za\/content\/resourcecentre\/sa-info\/yearbook2013-14\">http:\/\/www.gcis.gov.za\/content\/resourcecentre\/sa-info\/yearbook2013-14<\/a><\/p>\n<p><sup>4 <\/sup>Stats SA: Environmental economic accounts compendium (click here). <a href=\"https:\/\/www.statssa.gov.za\/?page_id=1854&amp;PPN=Report-04-05-20\">https:\/\/www.statssa.gov.za\/?page_id=1854&amp;PPN=Report-04-05-20<\/a><\/p>\n<p><sup>5 <\/sup>Stats SA: Mining industry, 2012 (click here). <a href=\"https:\/\/www.statssa.gov.za\/?page_id=1854&amp;PPN=Report-20-01-02\">https:\/\/www.statssa.gov.za\/?page_id=1854&amp;PPN=Report-20-01-02<\/a><\/p>\n<p><sup>6<\/sup> Department of Energy: Coal resources (click here) <a href=\"http:\/\/www.energy.gov.za\/files\/coal_frame.html\">http:\/\/www.energy.gov.za\/files\/coal_frame.html<\/a><\/p>\n<p><sup>7 <\/sup>Stats SA: Electricity generated and available for distribution (P4141), April 2015 (click here).<\/p>\n<p><a href=\"https:\/\/www.statssa.gov.za\/?page_id=1854&amp;PPN=P4141\">https:\/\/www.statssa.gov.za\/?page_id=1854&amp;PPN=P4141<\/a><\/p>\n<p><sup>8<\/sup> Eskom: Understanding electricity (click here) <a href=\"http:\/\/www.eskom.co.za\/AboutElectricity\/ElectricityTechnologies\/Pages\/Understanding_Electricity.aspx\">http:\/\/www.eskom.co.za\/AboutElectricity\/ElectricityTechnologies\/Pages\/Understanding_Electricity.aspx<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Calls to decrease the world\u2019s dependence on coal as an energy source are well intentioned. Lower use would reduce greenhouse gas emissions, and less demand would lower the environmental risk of coal mining. However, as the world moves away from coal, South Africa will need to consider the implications. The country depends heavily on the&nbsp; &nbsp;<a href=\"https:\/\/www.statssa.gov.za\/?p=4820\" class=\"btn btn-mini btn-info pull-right\" style=\"margin:10px 30px;\">read more &raquo;<\/a><\/p>\n<div class=\"clear\"><\/div>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[],"class_list":["post-4820","post","type-post","status-publish","format-standard","hentry","category-articles"],"_links":{"self":[{"href":"https:\/\/www.statssa.gov.za\/index.php?rest_route=\/wp\/v2\/posts\/4820","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.statssa.gov.za\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.statssa.gov.za\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.statssa.gov.za\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.statssa.gov.za\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4820"}],"version-history":[{"count":12,"href":"https:\/\/www.statssa.gov.za\/index.php?rest_route=\/wp\/v2\/posts\/4820\/revisions"}],"predecessor-version":[{"id":4826,"href":"https:\/\/www.statssa.gov.za\/index.php?rest_route=\/wp\/v2\/posts\/4820\/revisions\/4826"}],"wp:attachment":[{"href":"https:\/\/www.statssa.gov.za\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4820"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.statssa.gov.za\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4820"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.statssa.gov.za\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4820"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}