Mozambique to overtake Zim in coal mining

Mozambique to overtake Zim in coal mining
Published: 18 November 2013
Research and consultancy firm Frost and Sullivan has forecast that the rising demand for energy and new power projects in southern Africa, along with escalating costs of coal, could lead to an increase in mining activity in the region in the near-term.

According to the firm, demand for coal and mining activity is also likely to improve due to infrastructure projects like rail and ports developments in the region.

"Despite environmental concerns, coal continues to play an important role in the energy mix of many countries, which use it for electricity generation, and as feedstock for synthetic fuels and steel manufacturing. Coal is expected to account for nearly 69 per cent of the total global energy consumption in 2030," Frost & Sullivan said.

Data from firm shows that southern Africa had 53 coal expansion projects in 2012, worth about US$45,6bn and the total coal production in the region stood at 266.1mn tonnes. Part of this production was used for exports to Europe, India and China. Coal production is expected to touch 308mn tonnes by 2018.

Frost & Sullivan analyst Mr Wonder Nyanjowa said, "As the market grows, South Africa is poised to consolidate its lead as the largest coal producer in southern Africa despite the depletion of the country's Witbank, Ermelo and Highveld coal mines."

The analyst added that Mozambique is likely to overtake Zimbabwe as the region's second largest coal producer in the coming days.

- African Review
Tags: Coal,


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