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Coal mining: The backbone of Mpumalanga’s economy

Coal mining has significantly contributed to the economy of Mpumalanga, contributing 5% to the region’s total employment. The province is home to about 86% of South Africa’s coal mining jobs and produces approximately 83% of the country’s coal.

According to the Mpumalanga Economic Growth Agency (MEGA), coal mining has driven a 25% increase in employment in the province, underlining its importance as a key economic activity. Areas within the Nkangala District, such as Emalahleni (Witbank) and Middelburg, have seen significant contributions from coal mining, which has created a ripple effect throughout local communities. This boost to the economy has led to the development of various local businesses, as the demand for goods and services to support the mines grows.

This demand extends beyond mining companies to local businesses, such as construction firms building mine infrastructure and schools and healthcare services catering to mining families. These services help ensure that mining operations run smoothly and support the broader community.

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Over the years, Mpumalanga’s share in the country’s coal mining employment has increased remarkably, from 80% in 2011 to 86% in 2019. However, it faces even more significant tests with the upsurge of illegal mining and the pivot toward renewable energy globally.

The planned decommissioning of coal-fired power stations is expected to have a major impact on Mpumalanga’s economy. This, coupled with the growing push for renewable energy, will require careful planning to ensure a successful transition. Studies show that to make this transition work, Mpumalanga will need to invest in higher education and skills training in the energy sector. While high-skilled jobs in renewables will represent a large portion of employment opportunities (68–80%), there will also be a significant demand for unskilled labor during the construction phases of renewable energy projects.

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Studies suggest that Mpumalanga’s resilience and adaptability during this transition will be critical determinants of its economic future. The South African Chamber of Mines reports that about 92,000 employees are employed in the coal mining industry, a great number of whom are based in Mpumalanga. These workers include skilled and semi-skilled labor, such as miners, engineers, truck drivers, and plant operators. Additionally, many other service jobs, like catering and logistics, are indirectly supported by the coal industry, further strengthening the local economy.

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Mining Review Africa
Content Team

Mining Review Africa

Mining Review Africa is a platform promoting advancement and sustainable development in African mining, providing insights on technology, finance, and industry trends through engagement with mining companies and suppliers.