During the 2023 Coal and Energy Transition Day event in Johannesburg, speakers discussed the challenges faced by junior coal miners, particularly related to funding, skills, and logistics. Shammy Luvhengo, the founder and CEO of Ndalamo Resources, highlighted the difficulty of obtaining funding from major banks for junior miners. Although junior miners may have fewer cost-related challenges compared to their listed counterparts, the lack of financial resources can hinder capital investments.

Luvhengo stressed the importance of being agile and diversifying markets to ensure sustainability and profitability. Alan Clegg, chairperson of Shumba Energy, shared the company's transition from coal exporter to a diversified energy company with investments in renewable energy projects. He emphasized the need to align policies in the country to support a smooth energy transition.

Efficient logistics networks were identified as critical for utilizing Botswana's substantial coal reserves effectively. Edwin Elias, CEO of Morupule Coal Mine, discussed the company's focus on logistics and the opportunity for growth within the coal space by collaborating with South African State-owned rail company Transnet Freight Rail.

Luvhengo underlined the significance of proving an investment case for coal miners in the current volatile coal markets. He suggested that attracting investors would require demonstrating a successful track record and embracing more environment-friendly practices. Elias noted the challenges in obtaining funding from major banks and mentioned efforts to collaborate with them on developing criteria to support junior coal miners.

Overall, the speakers acknowledged the ongoing demand for coal in the short term, despite global commitments to transition away from coal in the long term. They emphasized the need for innovative funding strategies and alignment with environmental, social, and governance elements to secure investment and achieve a just energy transition.