Blog

Investing in African Mining Indaba - 25th Anniversary Day 3

The coal sector is an extremely important industry. According to the International Energy Agency (IEA), coal-fired power remains the largest source of electricity production worldwide, with a share of 37%. In South Africa, coal is even more important, as it accounts for 80% of our energy production. 


That doesn’t mean we, as a coal business nor as a collective industry, should sit back and relax. The world is changing, and it is changing fast and this requires us to adapt constantly. We must gear ourselves to be disruptors if we don’t want to be disrupted. 


Dealing with some of these changes, from coal disinvestment to the surge of technology, requires us to diversify from an operational and even a client perspective to stay resilient. The time of being able to comfortably rely o‌n o‌ne resource, o‌ne core business activity, and o‌ne key off-taker is long gone. 


It is true what Nonkululeko Nyembezi-Heita, Chairman of the Johannesburg Stock Exchange, said during o‌ne of today’s panel discussions: “Projecting the present o‌nto future gives you no guarantees. The coal sector shouldn’t take comfort in the notion that things won’t change.” 


That is why Exxaro is looking ahead. We have been doing so for quite some time and we will continue to do so. 


Mxolisi Mgojo, Chief Executive Officer, Exxaro Resources, President, Chamber of Mines of South Africa.