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Coal plays an important role in the country’s economy as it is accountable for nearly three quarters of Eskom’s fuel supply. The industry is also responsible for providing the coal-to-liquids (CTL) industry, established by the South African fuel company, SASOL, who produces around 35% of the country’s liquid fuel.

The New Largo Project, the South African coal industry’s second largest operation, is focussed on producing around 12 to 15 million tonnes of coal per annum for supply to the one of the main power stations –  Kusile Power Station.
Mining has long been essential to the growth and advancement of South Africa’s economy and has contributed largely in making its economy the strongest on the continent.
Coal production in South Africa is focused in large mines, with 8 mines responsible for 61 % of the output. About 46.5 % of our country’s coal mining is underground, whereby 53.5 % is produced from open-cast mining tried and tested methods (SA Yearbook 2007/08). 
South African coal sector has undertaken many unions and some name changes over the last few years. Three major coal producers whom emerged are BHP Billiton Energy Coal South Africa; Anglo American Coal and Xstrata. The fourth largest is Exxaro Resources Limited, South Africa’s largest black-controlled varied mining company, whose entrance into the market was anticipated by a merger of the Eyesizwe and Kumba’s coal base and industrial minerals divisions. 


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