Coaltech, a leader in innovative coal research and development, has signed a landmark Memorandum of Agreement (MoA) with the Mpumalanga Green Cluster Agency (MGCA) to undertake research and development activities to support the formulation of innovative solutions and technologies to support the Just Energy Transition (JET) work in Mpumalanga.
This strategic collaboration seeks to unlock green economy opportunities while addressing the socio-economic and environmental challenges associated with South Africa's coal mining sector which include remediating and repurposing of land, Biofuel/biogas production, Industrial hemp production, Mine water reticulation, repurposing of decommissioned coal fired power stations to renewable sources and Ash beneficiation.
The South African coal mining landscape is heavily concentrated within Mpumalanga, which hosts 65 of the country’s 78 operating coal mines, contributing 80% of the nation’s coal production. The Mpumalanga Growth Agency reports that coal mining has contributed to a 25% increase in employment in the province, highlighting its crucial role as a key driver of the local economy.
Within the province, five municipalities – Emalahleni, Govan Mbeki, Msukaligwa, Steve Tshwete, and Victor Khanye – account for 70% of national coal output.This regional concentration underscores the need for targeted and collaborative strategies to ensure an inclusive process to create alternative economic pathways.
The partnership between Coaltech and MGCA is designed to address these unique challenges and opportunities. Through a project-based approach, the MoA lays the groundwork for initiatives in critical areas. These efforts aim to foster economic development, empower local communities, and position Mpumalanga as a hub for sustainability and green innovation.
“Our partnership with MGCA aligns with Coaltech's mandate to drive innovation and sustainability within the coal sector,” said Avhurengwi Nengovhela, CEO of Coaltech. “By leveraging Mpumalanga’s unique position within the coal industry, we aim to harness green economy opportunities that contribute to environmental sustainability while creating meaningful economic and social value for the region and its communities.”
This dynamic collaboration is expected to catalyse initiatives that not only support Mpumalanga's transition efforts but also serve as a model for other regions around world confronted with transition related challenges.
Nkosinathi Nkonyane, the Acting CEO at the MGCA, emphasized the significance of the partnership, stating, “This MoA represents a critical step forward in supporting Mpumalanga's green economy ambitions. By combining MGCA's expertise in project facilitation and funding with Coaltech's capabilities in research and implementation, we are building a robust framework for advancing Just Energy Transition initiatives that will have a
lasting impact on the region.”
This partnership reflects a shared commitment to create alternative economies in the region including green initiatives. Together, Coaltech and MGCA are poised to create a legacy of innovation, sustainability, and resilience for Mpumalanga and South Africa as a whole.
