Coal, renewables and the reality of SA’s energy transition

By Heleen Tshibumbu

At the 8th Coal and Energy Transition Day in Johannesburg, industry leaders argued that South Africa’s future energy mix should not be framed as coal versus renewables, but as a practical transition that balances security, growth, jobs and lower-carbon technologies.

South Africa’s coal sector is no longer debating whether climate change is real. That much was clear at the 8th Coal and Energy Transition Day, held on 22 July 2026 at the Country Club Johannesburg, Auckland Park. The event brought together coal producers, government representatives, state-owned entities, investors, logistics players and renewable-energy voices to examine how the country can move toward cleaner energy without undermining energy security.

Chairing the opening conversation, Bernard Swanepoel set the tone with a simple message: the industry may not always agree, but the conversations are beginning to align. For him, the debate should not be reduced to renewables versus coal. Instead, South Africa needs an ethical and responsible transition that recognises the role coal still plays in powering economic activity while steadily building cleaner sources of energy.

Coal’s continuing role in energy security

For Thungela CEO Moses Madondo, the central issue is reliability. Thungela remains largely coal-focused, but its strategy is shaped by the belief that developing economies need dependable power to industrialise, create jobs and grow. “The developing world needs reliable energy, and coal enables that,” he said.

Madondo argued that South Africa needs a realistic policy approach. Cutting coal abruptly out of the energy mix, he suggested, is not practical in a country that still depends on it for baseload power and economic stability. Thungela’s focus is therefore on improving sustainability, lowering emissions intensity, exploring cleaner coal technologies and carbon capture, and using renewable energy to support its own mining operations.

The company is also pursuing a gas project in Lephalale, which Madondo described as part of its move toward lower-carbon energy options. He emphasised disciplined capital allocation, noting that mining is a long-term investment and that companies must choose carefully where to expand. For Thungela, coal remains a long-life asset, but the company is also investing in technologies and projects that support South Africa’s broader energy future.

Beyond coal, not without coal

Mike Teke, chairperson of FutureCoal and group CEO of Seriti Resources, urged the coal industry to stop being hesitant about its own story. FutureCoal, he noted, continues to expand internationally, with new chapters planned in India, Australia and China. In his view, the industry should lead the conversation on sustainable coal rather than retreat from it.

Teke’s argument was not that coal should stand apart from renewables, but that South Africa must embrace both. Seriti Green, the company’s ‘beyond coal’ strategy, is built on this idea. The company mines coal, rehabilitates its sites and sees future possibilities in repurposing land for renewable-energy projects such as solar farms.

Seriti’s move into renewable energy has already produced tangible results. Although some questioned whether Mpumalanga had sufficient wind resources, Seriti Green developed wind turbines that now generate 155MW of clean energy. Teke rejected the idea that this amounts to greenwashing, describing it instead as the evolution of a mining company into a broader energy company. Wind is the current focus, with solar expected to follow.

He also highlighted Seriti’s partnerships with the University of Johannesburg and the University of the Witwatersrand, aimed at attracting talent and developing a new kind of miner. On artificial intelligence, Teke was clear that people remain central: AI and machines may improve operations, but they still require skilled operators, industrial engineers and human judgement.

Futureproofing coal through technology and responsibility

Caroline Shirindza, Exxaro’s executive head of coal, pushed back against the perception that Exxaro is moving away from coal. The company, she said, continues to see value in its coal assets, including Matla and Grootegeluk, which remain contracted to Eskom. The Lephalale coal resource is substantial, with supply estimated to extend as far as 2071.

At the same time, Exxaro is contending with a changing market. Export opportunities remain important, particularly as demand shifts toward the East, but logistics constraints continue to limit performance. Shirindza noted that rail capacity remains a major challenge, with Transnet’s constraints affecting how much coal can be moved from mines such as Grootegeluk.

For Shirindza, futureproofing coal means investing in research, safety, communities and environmental responsibility. She described Zero Harm as possible, not only for workers but also for the environment, provided the sector continues to invest in the knowledge and technologies needed to close existing gaps.

Artificial intelligence, she added, is already part of coal mining’s evolution. Mechanisation is not new to the sector, and AI can support safer, more efficient operations. However, she stressed that people must be reskilled and remain at the centre of decision-making. AI may help mines learn faster and operate better, but it does not replace good leadership.

A transition that must work in practice

Across the day’s discussions, one theme stood out: South Africa’s energy transition cannot be built on slogans. It must work in practice. That means acknowledging coal’s current role, investing in cleaner technologies, expanding renewables, improving logistics and ensuring communities are not left behind.

The conversations were frank, sometimes uncomfortable and often pragmatic. Coal producers are under pressure from policy, markets and decarbonisation targets, but they are also positioning themselves as participants in the transition rather than obstacles to it.

As Swanepoel suggested at the outset, the task is not to force a choice between coal and renewables. The real challenge is to design an energy future that is secure, cleaner, affordable and responsible. Ultimately, one that keeps the lights on while moving South Africa steadily toward a lower-carbon economy.

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