South Africa produces in excess of 255 million tonnes of coal (2011 estimate) and consumes almost three quarters of that domestically. Around 77% of South Africa's energy needs are directly derived from coal and 92% of coal consumed on the African continent is produced in South Africa.
The use of coal in South Africa dates back to the iron age (300–1880 AD), when charcoal was used to melt iron and copper, but large-scale exploitation of coal did not occur until the mid-19th century.
South African Reserves by Coalfields
The largest coal deposits in South Africa are to be found in the Ecca deposits, a stratum of the Karoo Supergroup, dating from the Permian period, between 280 and 250 Ma. The Ecca Group is extensive, covering around two thirds of South Africa (much of it covered by slightly younger rocks - see diagram on the left). Only the northern and north-eastern portion of these Ecca deposits is coal-bearing, but it nevertheless contains more than a third of all coal reserves in the Southern Hemisphere.
Notable coalfields are:
South Africa is one of the seven largest coal-producing and one of the top five coal-exporting countries in the world.
More than a quarter of coal mined in South Africa is exported, most of which leaves the country via Richards Bay. Coal is South Africa's third largest source of foreign exchange; platinum being the largest and gold second. Around 15% of the country's GDP (2000 estimate) is spent on energy and 77% of that is derived from coal.
In 2004, the coal and lignite mining industry generated a gross income of R39 billion and directly employed 50,000 people.
The Witbank Coalfield accounts for 40% of South Africa's coal production.
The five largest coal mining companies account for around 85% of all production. They are Anglo American plc, South32's South Africa Energy Coal,Sasol Mining, Glencore Xstrata, and Exxaro .