ACTUAL and planned investments in 53 coal expansion projects in southern Africa totalled $45.58bn IN 2012 and the momentum is set to continue, analysts Frost &amp; Sullivan said on Wednesday.<br /> <br /> Frost &amp; Sullivan’s figures include projects which are in prefeasibility, bankable feasibility and construction phases. Some of the biggest projects are Exxaro’s Grootegeluk Medupi Expansion Project (GMEP) in the Waterberg, which is close to completion, its Thabametsi and Groote-geluk third-phase developments, Sasol Mining’s investment in new shafts to replace ageing mines, and the group’s coal to liquids Project Mafutha, which is on hold.<br /> <br /> In its latest report, Production and Investment Forecast in Southern Africa’s Coal Mining Industry, Frost &amp; Sullivan said coal expansions were being driven by rising global and regional demand for energy, expectations of rising coal prices over the next three to five years as India seeks coal for its power stations and abundant coal reserves in Southern Africa. Last year, 266.1-million tonnes of coal were produced in the region and this will rise 16% to 308-million tonnes by 2018.<br /> <br /> Frost &amp; Sullivan mining analyst Wonder Nyanjowa said in the report that despite the depletion of the Witbank, Ermelo and Highveld coal beds, South Africa would remain the region’s biggest producer.<br /> <br /> Mozambique, which had several large coal projects and was upgrading infrastructure, was likely to overtake Zimbabwe as the second-biggest regional coal producer.<br /> <br /> The main constraints on expansion were lack of power for mines and shortages of critical engineering skills, he said. According to PwC’s South Africa Mine survey, also released on Wednesday, which analyses the financial statements of the biggest JSE-listed mining companies, coal maintained its position as the biggest revenue earner this year.<br /> <br /> It accounted for 28% of all commodities revenue earned by South African miners, compared with 22% earned from platinum group metals and 20% from gold.<br /> <br /> This was despite a steady decline in the price of benchmark coal exported through Richards Bay to below $72 a tonne by mid-September from above $90 a tonne in December. The price has since firmed to $86.59 a tonne this week.<br /> <br /> <p> PwC said South Africa’s coal production has been steady over the past 10 years, with marginal increases in the past two years. Investment in export infrastructure should help lift output as long as prices do not fall further. </p> <p style="text-align:center;"> <img src="/upfiles/news/image/20131114/20131114143632_0366.jpg" alt="" /> </p>