OLD KING COAL: Loaded for Bear: Why Minister Mantashe’s affection for coal is rooted in BEE, transformation

Gwede Mantashe, South Africa's Mineral and Petroleum Resources Minister, has long championed the use of coal, earning him the nickname "Old King Coal." While this stance has drawn criticism from environmentalists due to the environmental impact of coal, it's essential to understand that Mantashe's support for coal is rooted in his commitment to transformation and Black economic empowerment (BEE) in the mining industry.

Mantashe argues that all companies in the coal sector are Black-owned and managed, such as Exxaro, Seriti, and Thungela. These entities have seen significant shifts in ownership and management, with Black South Africans now holding a majority stake. For example, Exxaro is 31.47% Black empowered, Thungela is 67.55% Black owned, and Seriti is predominantly Black-owned and managed.

This transformation can be attributed to the decline of foreign investment in South African coal due to climate change concerns. Major European banks have been reducing their exposure to coal, and the UN convened the Net-Zero Banking Alliance in response to the growing pressure against coal. While it's true that Africa contributes a small fraction of global CO2 emissions, the "case for coal" in Africa is rooted in the perceived unfairness of the region being restricted from using its resource endowment like industrialized nations.

Mantashe's perspective highlights the complex relationship between the global energy transition, economic development, and natural resource management. While it's crucial to address climate change, it's also important to consider the historical context and the role of BEE policies in South Africa's economy.