A leading global supplier of coal for steel-making and electricity generation
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Annual revenue: R63.02 ($5.8bn)
Coal SA’s contribution to the Group's operating profit in 2014: $350m (R3.8bn)
Number of employees: 24,653
Women in mining: 19% female workforce
38% of senior management, 56% of middle management, and 66% of junior management positions are held by historically disadvantaged South Africans (2014)
Corporate social investment spend: R143.8m in 2014
Enterprise development spend: R52.5m in 2014
The amalgamation of Anglo American’s metallurgical and thermal coal operations has led to the emergence of a truly global coal business with assets in South Africa, Australia, Canada and Colombia.
This business, under the leadership of Seamus French, became effective on 1 January 2014, and is supported by regional management teams in South Africa, under the leadership of Themba Mkhwanazi. We also have operations in Australia, Canada and Colombia.
Our global executive leadership team has set out its near-term business integration plan. Primary focus areas include:
Our coal business in South Africa produces thermal coal largely for domestic use with a portion being supplied to the export market. Goedehoop, Greenside, Kleinkopje, Landau, Mafube and Zibulo collectively supplied 18.2 Mt of coal in 2014 for the export market while Kriel, New Denmark and New Vaal solely supplied Eskom. Isibonelo produces an annual five million tonnes for Sasol Synthetic Fuels under a long term contract. Together, these operations produced 37.6Mt of coal in 2014, with 59% used for local power generation.
Coal South Africa wholly owns and operates seven mines – Goedehoop, Greenside, Kleinkopje, Landau, New Denmark, Isibonelo and New Vaal and has a 73% shareholding in Anglo American Inyosi Coal (AAIC), the broad-based black economic empowerment company we created in June 2010.
AAIC took full ownership of our Kriel operation, the Zibulo multi-product mine and the greenfield projects of New Largo, Elders and Heidelberg. Included in the AAIC business is the double-staged Phola coal washing plant, a 50:50 joint venture with BHP Billiton Energy Coal South Africa (BECSA).
We also have 50% interest in Mafube, a joint venture with South African diversified resources group Exxaro.
Our operations route all export coal through the Richards Bay Coal Terminal (RBCT) in which we hold a 23.2% stake.
Like all our business units, we aim to leave a lasting positive impact in all the communities in the areas where we operate, creating shared value and a sustainable future for all South Africans.
We are also actively involved in finding cleaner coal solutions for the world’s energy needs by developing new technologies in areas such as clean coal, carbon capture and storage, and reduction of methane emissions.
CEO, Coal South Africa
Globally Seamus French is the CEO of Anglo American’s Coal business. The coal business in South Africa is led by Themba Mkhwanazi as the CEO of Coal South Africa since May 2014. Prior to his appointment he was Rio Tinto’s regional general manager for America, responsible for delivering technical and operational improvements across Rio Tinto’s businesses in the region.
Themba has held a number of senior roles within the resources industry, including COO of Richards Bay Minerals, during which he was responsible for mining, smelting and processing operations. Before that, he was a managing director with the Huntsman Corporation in South Africa.
His full list of positions have included process engineer at Sasol; shift plant manager, business improvement senior coach, plant manager, area manager and MD of Huntsman Tioxide; COO Richards Bay Minerals; and GM expansion support and regional GM technology and innovation at Rio Tinto.
Coal provides heat to make electricity and steel. It’s still the great driver of the industrial world, fueling the power stations and steelworks of emerging and fast-growing economies.
Thermal coal is the heat source for around 40% of all electricity generated globally today.
In South Africa thermal coal is what the country uses most to generate its electricity. In fact, around 77% of South Africa’s primary energy needs are provided by coal. This is unlikely to change in the decades to come as there is a distinct lack of alternatives to coal as a viable source of energy.
India and China’s reliance on imported thermal coal is expected to drive continued growing demand in the long term.
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