Last year, Deloitte spoke with our sister publication, Mining Review Africa, revealing a concern around the future of mining operators.
Originally published in the ESI Africa weekly newsletter on 2019/01/16 – subscribe today
Of late, across commodity types and the world, the mining sector faces declining ore grades and operating efficiency.
According to Deloitte, operating efficiency is susceptible to costly and capital intensive infrastructure requirements, distant planning horizons and lengthy implementation timelines. Compounding the challenges is the inherent danger in the operating environments and subsequent critical safety considerations.
Mines have thus felt constrained and uncertain as to how to improve. Why is this topic of concern to the energy market?
Coal mines are not only managing operating efficiency challenges but also the exponential growth of renewable energy capacity, which is encroaching on coal’s dominance in the energy sector.
As a baseload resource, coal-fired power could remain the first choice of government to continue powering the nation – especially in a country where trade union activism protects the thousands of semi- and unskilled jobs in the mining of coal.
However, global focus on reducing carbon emissions is now strongly being addressed through solar and wind projects. In energy markets dominated by coal resources, this exponential growth of renewable energy capacity is demanding attention.
Renewable energy development is of great concern in terms of the distant planning horizons of the mining sector.
What are the implications and how should investors, who are currently financing or considering funding coal mines, respond?
It’s a topic we will address in our forthcoming free-to-attend webinar on Coal vs. Renewables: Does coal have a place in Africa's future energy mix?
Book your seat for the live online discussion taking place on 31 January at 14h30 SAST here.
I’m personally looking forward to hearing from the experts and receiving your comments and questions on the subject ahead of the webinar.
Share your thoughts on this topic with me via the ESI Africa Facebook, Twitter or LinkedIn pages.
Read the previous note from the editor here.