The global consumption of coal is expected to increase by 4 per cent per
annum between 2010 and 2030 in line with the rising global demand for energy.
To boost production, the South African coal mining industry needs to open up
new mines in the Waterberg coal basin to replace the depleted mines in the
Highveld, Witbank and Ermello coalfields in Mpumalanga.



    (Logo: http://www.newscom.com/cgi-bin/prnh/20081117/FSLOGO)



    New analysis from Frost & Sullivan (http://www.chemicals.frost.com), A
Strategic Analysis of South Africa's Coal Mining Industry, finds that South
Africa's coal production will struggle to meet demand over the next few
years. However, despite the environmental and logistical constraints that the
South African coal mining industry is facing, coal production is likely to be
on the upward trend by 2011 if new mines are opened in the Waterberg
coalfield.



    If you are interested in a virtual brochure, which provides a brief
synopsis of the research and a table of contents, then send an e-mail to
Patrick Cairns, Corporate Communications, at patrick.cairns@frost.com, with
your full name, company name, title, telephone number, company e-mail
address, company website, city, state and country. Upon receipt of the above
information, a brief brochure will be sent to you by e-mail.



    ""South Africa's coal mining industry remains unbalanced, with rising coal
demand on one hand and constrained supply sources on the other,"" notes Frost
& Sullivan Research Analyst Wonder Nyanjowa. ""With the global demand for coal
rising by an annual average of 4 per cent, the country's available supply
capacity may not be able to cope with the upsurge in demand.""



    The expansion of Eskom's electricity generation capacity, together with
Sasol's capacity expansion, is set to increase South Africa's coal
consumption by 75 million tonnes per annum. However, coal supply will remain
stagnant.



    ""Limited rail and port facilities at Richards Bay Coal Terminal are
expected to slow the growth of South Africa's coal exports,"" cautions
Nyanjowa. ""Growth prospects will further be hampered by tightening
environmental laws in many parts of the developed world.""



    Increased calls by the United States and other developed countries for a
moratorium on the continued use of coal-fired power stations will also dampen
export demand for South Africa's coal in international markets.



    ""The South African coal mining industry needs to position itself well in
order to meet the increased demand for coal in domestic and international
markets,"" remarks Nyanjowa. ""The Waterberg coal basin which currently has one
operating colliery represents the future of electricity generation and coal
mining in South Africa.""



    A Strategic Analysis of South Africa's Coal Mining Industry is part of
the Chemicals & Materials Growth Partnership Services programme, which also
includes research in the following markets: South Africa's Gold Mining
Industry, South Africa's Platinum Mining Industry and, Diamond Mining
Industry in Central and Southern Africa. All research included in
subscriptions provide detailed market opportunities and industry trends that
have been evaluated following extensive interviews with market participants.



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    A Strategic Analysis of South Africa's Coal Mining Industry
    M3DE

    Contact:
    Patrick Cairns
    Corporate Communications - Africa
    P: +27-18-468-2315
    E: patrick.cairns@frost.com

    http://www.frost.com





Source: Frost & Sullivan

Patrick Cairns, Corporate Communications - Africa of Frost & Sullivan, +27-18-468-2315, patrick.cairns@frost.com; Logo: http://www.newscom.com/cgi-bin/prnh/20081117/FSLOGO

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