As the global energy landscape gradually shifts, South Africa faces the challenge of transforming its coal industry. Currently, 74% of the country’s electricity still comes from coal, and it operates approximately 108 coal mines, 14 coal-fired power plants, and dedicated coal transport ports. To achieve its 2050 net-zero emissions target, South Africa must phase out coal while minimizing the impact on workers and communities.
Key Economic Impact
Research indicates that the immediate closure of coal mines and power plants would have significant economic repercussions. South Africa’s coal sector directly provides over 100,000 jobs and indirectly supports thousands more. Without proper planning, these jobs could be lost. Research by Sandip Pai and Jennifer Broadhurst suggests that coal infrastructure can be repurposed into new agricultural and renewable energy hubs to achieve a just transition.
Pilot Projects in Action
In South Africa, there are already pilot projects exploring the repurposing of coal resources. The Grootvrey coal-fired power plant is constructing a climate-smart horticultural center, using the mine site to grow crops and provide agricultural skills training. Renewable energy hubs are utilizing existing road, rail, and power grids to support clean energy production and electricity storage. These transitions must be part of a regional strategy that promotes the coordinated transformation of mines, power plants, railways, and ports.
Challenges & Funding Gaps
However, progress on the transition has been slow. The policy framework lacks legal enforceability, and Eskom, South Africa’s state-owned power utility, lacks sufficient funding. International partner groups have pledged approximately $14.3 billion in funding, but complex approval procedures have prevented timely disbursement to project sites.
A pilot project by Glencore demonstrates that treated mine water can be used to grow winter wheat on reclaimed land, highlighting the potential of post-mining landscapes. Coal mine sites can also be used to grow industrial crops such as hemp and jute, supporting the development of textile, construction, and bioenergy industries.
Researchers point out that a truly just transition must ensure that affected workers and communities benefit economically and socially, and avoid exacerbating past inequalities.
Post time: Apr-02-2026