IRP will reshape SA's coal industry amid modest production gains

SOUTH Africa's Integrated Resource Plan (IRP) 2025 is set to significantly reshape the country’s coal industry, the Minerals Council of South Africa has said, even as coal output rose 1.5% in September amid a broader mining recovery.

- TAWANDA KAROMBO

On a year-on-year bases, total mining production for South Africa increased by 1.2% in September, primarily driven by coal alongside platinum group metals and gold.

However, Bongani Motsa, acting chief economist for the Minerals Council, said on Friday that Eskom’s coal consumption could flatten, posing significant disruptions for the coal sector, mainly asa result of the IRP.

“The IRP 2025 marks a pivotal shift, with no new coal-fired power plant build planned. Without technological interventions such as carbon capture and storage, Eskom’s coal consumption could decline by approximately 60 million tons by 2042,” said Motsa.

This marked decline in coal uptake by Eskom “would have significant socioeconomic implications, potentially undermining South Africa’s ability to generate foreign exchange” earnings.

In 2024, coal exports alone generated over R113 billion in foreign exchange for South Africa.