South Africa's state-owned power utility Eskom is projected to experience a coal shortfall ranging from 650 million to 700 million tonnes until 2050.

However, this shortfall presents a potential opportunity for emerging miners to step in as major producers step aside, local media reported, citing Dan Mashigo, Eskom's general manager of Primary Energy, at a conference.

This deficit amounts to around 30 million tonnes annually. Some producers said they were interested in filling that shortfall.

Mashigo highlighted strict quality and reliability requirements for tender submissions. While the tenders are dynamic and based on Eskom's evolving needs, he acknowledged the responsiveness of junior miners due to their eagerness.

Gunn Ndebele, the group business manager at the Overlooked Group, mentioned their significant growth in monthly tonnage from 80,000 tonnes to 850,000 tonnes over the past decade. This year it expected the monthly output to reach 1 million tonnes.

To fill the gap, quotas that coal miners must supply to Eskom before entering the export market could be imposed, another producer said.

However, Mashigo voiced Eskom's opposition to this approach, citing adverse consequences observed in Indonesia's coal mining sector when a similar strategy was employed.

Instead, Eskom favors a "willing buyer, willing seller" system, believing that the domestic and export sectors can coexist.

(Writing by Riley Liang  Editing by Harry Huo)
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