For many years, the South African economy has been dominated by the mining sector, given the country’s vast reserves of gold, coal, platinum and a number of other metals and minerals. Although there has been a gradual shift in the economic contribution of the mining sector over the past 20 to 30 years, the mining sector remains of critical strategic importance.
The coal sector in South Africa produces 224 million tonnes of coal a year. South Africa is the world’s seventh-largest coal producer after China, USA, India, Australia, Indonesia and Russia. Some 21% of South Africa’s production is exported, with the balance used domestically, mainly as a source of power.
Coal is the major source of energy in South Africa. Production from existing mines is limited and there is expected to be an imbalance between supply and demand over the next 10 years. The Waterberg coalfield contains approximately 40% of South Africa’s remaining coal resource and is considered to be the next viable source of coal in the future.
The South African mining industry is strictly regulated, with a well-developed legislative framework that seeks to develop and protect all stakeholders who are affected by mining. We see it as our responsibility to keep abreast of policy and legislative amendments that influence the development and successful management of our mining projects and operations.
Given the role of the mining industry in South Africa for more than a century, the country’s infrastructure is well developed. Resgen intends to add to the country’s existing infrastructural capacity, not only to benefit our business operations but also to add to the development of the national and local economy.