Negative pressures, such as declining coal prices, loadshedding, and logistical challenges faced by State-owned freight company Transnet, have influenced coal miners' approaches to the just energy transition (JET), resulting in varying responses across the sector, according to Spencer Eckstein, Business Development Director at African mining specialist service provider Ukwazi.

These pressures have impacted coal miners' revenue and profitability. Some companies have adopted a "wait and see" approach, while larger producers are looking to transform themselves into energy companies. A few are engaging with government and public entities to address climate change and net-zero emissions issues. Some producers are considering carbon storage or trading strategies, although underground gasification is viewed as unfeasible in the South African context.

Eckstein emphasizes that flexibility is essential in JET policy implementation, with alignment of interests and incentives among government, labor, and coal producers. The coal sector comprises a range of companies that differ significantly in culture, size, and complexity, so approaches and responses will vary.

It's crucial for coal companies to understand their current environmental impacts and engage with stakeholders for forward planning in JET implementation. A measured approach can help companies avoid costly missteps. Eckstein suggests that coal miners may eventually replace diesel equipment fleets with hydrogen-powered equipment to reduce emissions significantly.

Additionally, the implementation of clean coal technologies (CCTs) in power plants to reduce emissions following coal combustion has been limited in South Africa due to high costs. While CCTs can help reduce emissions, stricter regulations and more consistent enforcement are also needed. South Africa's adoption of renewables has been hindered by legislative red tape and grid-related constraints.

Ukwazi has extensive experience working with major coal producers in South Africa, primarily focusing on technical studies and optimizations to address cost and environmental challenges. The company plans to further consolidate its position in the sector.