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South Africa’s energy and mining companies say their future lies in diversifying into broader energy businesses as the electricity market becomes increasingly competitive, while maintaining that coal will remain central to the country’s energy security for years to come.Speaking at the Coal & Energy Transition Day in Johannesburg on Wednesday, Eskom group CEO Dan Marokane said Eskom was transforming into a “future-fit national energy company”, with the state utility expanding its presence in renewable energy through Eskom Green. Seriti Resources CEO Mike Teke, who also chairs FutureCoal, said Seriti was “an energy business that is producing coal”.Their comments come as South Africa’s electricity sector undergoes reform, with greater competition emerging in generation and electricity trading, while Eskom separates its generation, transmission and distribution businesses.The changes are prompting traditional energy players to reconsider their roles across the electricity value chain.The debate around coal’s role in the energy mix has moved beyond a coal-versus-renewables argument, with industry players saying the two can co-exist as countries seek to maintain energy security and affordability while reducing emissions.Speaking to Business Day on the sidelines of the conference, Teke said developing economies would continue to require affordable and reliable baseload power, pointing to resilient coal demand in parts of Asia as evidence that the fuel would continue to play a role in the global energy mix. He said this reinforced the need for coal producers to diversify into other energy sources rather than abandon the fuel.Seriti Resources, established in 2017 through the acquisition of Anglo American’s coal assets, including New Denmark, later expanded by acquiring South32’s South African coal assets. The company entered renewable energy through its 2022 acquisition of wind energy developer Windlab, which became the foundation of Seriti Green.“Coal will remain a part of the future energy mix, and I am not saying that irresponsibly. I understand climate change,” Teke said.Exxaro Resources executive head of coal Caroline Shirindza said the group had dispelled the narrative that coal is shrinking within Exxaro and remained a formidable part of the business, with the group focusing on life extension of its reserves, with it being the foundation of the business.Coal will remain a part of the future energy mix, and I am not saying that irresponsibly. I understand climate change.— Mike Teke, Seriti Resources CEO “Although we are not going out there to look for new reserves, the reserves that are in close proximity to our mining operations present an opportunity for us to expand; that is what is next. We continue to unlock value within coal,” she said, adding that the group was in the process of future-proofing.Exxaro operates five coal mines and supplies Eskom’s Matimba and Medupi power stations from its Grootegeluk mine in Lephalale, while its Matla mine services the Matla power station.Marokane said coal would remain “a strategic national asset”. “The problem is not coal. The problem is emissions,” he said.Teke and Marokane welcomed a more competitive electricity market, saying competition would drive investment and improve the sector, although Marokane said clear rules and regulatory certainty would be essential. Teke said Seriti Green would compete with Eskom Green but remained open to partnerships where commercial opportunities existed. “Competition will take this country to the next level,” he said.
