The Citizen (Gauteng)

Green energy transition must be socially conscious, says coal miner

- Tebogo Tshwane

One of South Africa’s largest coal miners, Exxaro Resources, warns that while transition­ing to greener and cleaner sources of energy is critical, it must happen in a way that takes South Africa’s social and economic challenges into account.

As climate crisis activism takes hold across the globe, the industry has faced strident anti-coal lobbying, said chief executive officer Mxolisi Mgojo.

Although transition­ing to a low-carbon economy was imperative, it would not happen overnight and it had to be a “just transition”, he added.

“With the economy growing at less than 1% and an alarmingly high unemployme­nt rate that is close to 30%, with youth unemployme­nt exceeding 50% and high levels of poverty, we must be considerat­e and informed about saying coal won’t be relevant in South Africa’s future.”

Mgojo was speaking at the official launch of the company’s new green headquarte­rs in Centurion on Monday, where he was joined by Minister of Employment and Labour Thulas Nxesi.

Exxaro is the largest coal supplier to Eskom.

On Friday, government published the Integrated Resource Plan (IRP), the blueprint of SA’s energy mix for the next decade, which will see divestment away from coal energy towards renewables, particular­ly wind and solar.

By 2050, the government envisions Eskom’s electricit­y generation from coal will be largely decommissi­oned.

The IRP states that the socioecono­mic impact of decommissi­oning these Eskom plants has not been quantified or included in the document.

The industry employs more than 80 000 people and accounts for close to 20% of the jobs in the mining industry, according to numbers from Minerals Council SA.

Mgojo said that as coal production declined, jobs, regional developmen­t, political- and environmen­tal impact would all require attention and assessment and that the process needed to be viewed as a “shared challenge for all”.

“If you look at many other countries that have taken this transition, it is indeed critical that we ensure that unions and communitie­s are not neglected in this transition.”

This will involve ensuring technical skills developmen­t, strategies that encourage labour redeployme­nt, upskilling and retraining to ensure that workers are able to transfer between sectors.

In his keynote address, Nxesi described the unveiling as “auspicious”, particular­ly in light of the economic challenges which SA is currently facing.

The minister outlined the department’s new employer mandate, stressing that there would be a greater focus on job creation and job preservati­on.

Nxesi also encouraged businesses to engage with the state on how it could reduce red tape and bureaucrac­y to reduce the costs of doing business in the country.

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