Coal remains the backbone of South Africa’s energy system and a cornerstone of economic activity across Southern Africa. In 2024, South Africa produced approximately 235 Mt of saleable coal, with 65-70 Mt exported, generating substantial export earnings and sustaining close to 100,000 direct jobs (Minerals Council South Africa, 2024).

Yet when the conversation around coal focuses solely on its environmental liabilities, there is a risk of overlooking its potential as a strategic carbon resource. With the right research, development, and innovation (RD&I), coal can be transformed into advanced materials, clean molecules, critical minerals, and high-value co-products, unlocking value chains that extend far beyond combustion.

The coal sector faces an undeniable challenge: global markets are shifting, environmental regulations are tightening, and competitive pressures are rising. For coal to remain viable, it must evolve through RD&I, reimagining its value and role in a changing world.

Coaltech, Africa’s premier coal research association, has for the past 26 years been a member-based organisation bringing together industry, government, and academia. It has consistently demonstrated how targeted RD&I can turn coal from a single-use fuel into a multi-faceted resource base for new industries.

From fuel to multifunctional resource

Innovation in coal is not just about improving its environmental performance in power generation. It is also about unlocking entirely new value chains through a circular economy approach, where all materials and by-products are seen as valuable resources. Through targeted RD&I, coal can become a source of advanced carbon products, strategic minerals, clean molecules, environmental restoration solutions, and water innovation.

RD&I pathways for coal transformation

Advanced carbon materials: South African coal’s structure makes it an excellent feedstock for high-value carbon products. Residual materials from coal beneficiation can be transformed into activated carbon, engineered carbon pellets, and carbon nanofibers for industrial and high-technology applications.

Strategic minerals from by-product streams: Coal ash, discard dumps, and associated shales contain rare earth elements (REEs) and other critical minerals essential for renewable energy technologies, electronics, and defence applications. These can be recovered using processes such as magnetic separation, acid leaching, and zeolitisation.

Water innovation and resource recovery: Mine-impacted water, including acid mine drainage (AMD) and saline brines, can be turned into valuable resources. Advanced treatment can produce potable or industrial-grade water, recover gypsum and magnesium compounds, and extract trace REEs, while zero-liquid-discharge systems eliminate harmful discharges. Treated water can support agriculture, industry, and communities.

Clean molecules: Hydrogen and Syngas with CCS Gasification with carbon capture and storage (CCS) can make coal a source of low-carbon hydrogen and syngas for industrial hubs. South Africa’s high-ash coals can be gasified efficiently with proper design optimisation.

Land repurposing for renewable energy: Post-mining land can be converted into renewable energy hubs, taking advantage of existing servitudes and grid connections. China and other coal regions have shown how former coal sites can be redeveloped into solar and wind farms.

Powering the digital and AI economy: Data centres consume around 1.5% of global electricity (~415 TWh) and could nearly double by 2030. Coal, when paired with high-efficiency low-emission technology and CCS, can provide the stable baseload power needed for AI and high-performance computing. AI hardware manufacturing requires REEs, niobium, and graphite, many recoverable from coal’s by-product streams.

Why transformation matters now

• Economic resilience: Diversification shields against demand decline for thermal coal
• Environmental leadership: Circular utilisation of coal-derived materials enhances economic and environmental sustainability
• Regional positioning: Early adopters will capture new African and global markets in advanced materials, critical minerals, clean molecules, water innovation, and AI supply chains

The economic prize

If the coal industry across the Southern African Development Community commits to these RD&I pathways, the benefits could be transformative:

• For the coal industry: Diversified revenues from high-value products such as carbon fibre and purified REEs, reduced dependence on thermal coal markets, and stronger sustainability performance
• For the mining sector: New industrial clusters, technology and skills uplift, and reduced exposure to commodity cycles
• For the SADC economies: Billions in potential export growth, new skilled jobs, revitalised rural areas through renewable and water reuse hubs, and global positioning as suppliers to the AI and renewable sectors.

Call to action: Join the movement

Players across the coal value chain, producers, technology innovators, research institutions, consultants, and specialist service providers have an opportunity to drive this transformation. By collaborating and investing in RD&I, the industry can create high-value carbon products, recover critical minerals, repurpose mine water, produce clean hydrogen and syngas, redevelop land for renewables, and supply both the energy and materials for the digital and AI economy.

While producers remain central, innovation can and should come from everyone. Whether you are an equipment supplier, process developer, environmental solutions firm, or research collaborator, your expertise can reshape coal’s role in a low-carbon, resource-efficient future. For the last 26 years, Coaltech has united producers, researchers, and policymakers in shaping the future of coal through world-class research. We are a member-based association and invite you to partner with us, join our network of industry leaders, and leverage the innovation already underway.

The science exists. The expertise is here. The opportunity is now. Coal’s future is not about abandoning it. It is about transforming it.

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