South Africa has designated coal a “strategic resource”, a move that could limit exports to protect supplies for domestic power plants, reported Reuters.
“Our intention is to ... ensure there is a balance between security of supply locally but also without losing the global markets,” Mining Minister Susan Shabangu told a coal conference in Cape Town.
South Africa’s largest utility, state-owned Eskom, has raised concerns over adequate coal supplies. According to the article, Eskom relies on coal to generate 85 percent of the electricity that powers Africa's biggest economy.
South Africa is one of the world's largest suppliers of thermal coal. Questions are now being raised as to how fewer coal exports will affect the South African economy.