After a decade of rapid technological and policy shifts in energy sectors, 2020 has brought disruption across the energy landscape. The consultancy McKinsey’s forecasts from their global energy insights show that a rebound to demand levels before Covid-19 takes one to four years for power, oil and gas, whereas coal demand does not return to 2019 levels.
The decline in coal is forecast to continue, as gas and, increasingly, renewables are more economical alternatives in the power sector. This does not come as alarming news to coal miner Exxaro. The mining sector has been facing pressure from governments, investors, and society to reduce carbon emissions. Mining is cited as being responsible for 4% to 7% of greenhouse gas (GHG) emissions globally.
“One of the things that you do as a coal miner is to sell your coal to power stations and we saw that within our markets (predominantly Europe), which we’re selling coal to, with Germany among the biggest, there were already talks of renewables,” says Mxolisi Mgojo, CEO of Exxaro, reflecting back to almost two decades ago when some European governments kickstarted their long-term plans to phase out coal.
By 2008, as the then head of the coal business at Exxaro, Mgojo witnessed that the shift from coal had started coming on very strong and it was already happening in Europe. It was at this point in time that the miner said, “South Africa tends to be very fast followers if not leaders.” Therefore, if this shift is happening in Europe, it will eventually trickle down to SA. “It was a case of when.”
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.