Country analysis: South Africa

The Republic of South Africa, a major coal producer and exporter, has a highly developed synthetic fuel industry and small reserves of oil. South Africa is the continent's largest energy consumer (primarily coal and petroleum) and Africa's second largest energy producer (mainly coal) behind Algeria. South Africa is a prominent member of the Organization of African Unity (OAU), the Southern Africa Development Community (SADC), and the Southern Africa Customs Union (SACU).

South Africa's economic growth averaged only 1.8 % from 1980-2000, but has picked up in the last three years; real gross domestic product (GDP) grew at 2.5 % in 1999, 3.1 % in 2000 and 2.3 % in 2001. Real GDP is predicted to grow by 2.3 % in 2002. In the 1980's, South Africa experienced double-digit inflation, but the government's fiscal policies have helped to reduce inflation significantly.
Inflation was 5.3 % in 2000, and 6.3 % in 2001. Despite these positive trends, Foreign direct investment remains below expectations. Fixed investment, which accounted for 27.5 % of GDP in 1981, accounted for only 14.9 % of GDP in 2000.
South Africa's currency, the rand, lost 6.5 % of its value against the dollar during the first eight months of 2001. Following the terrorist attacks on the United States, the rand lost nearly 10 % of its value against the dollar, the euro, and the UK pound. The falling currency, when combined with higher prices for imported oil, has prompted fears of increased inflation in the country.

Coal
Coal is the primary fuel produced and consumed in South Africa and is one of the country's largest sources of foreign exchange. The country's coal reserves are mainly bituminous, with relatively high ash content (about 45 %) and low sulphur content (about 1 %). South Africa's recoverable coal reserves are estimated at 61 bn short tons (6 % of the world reserves).
The South African government plans to conduct a national study to determine the extent of the country's remaining coal resources. The studywill also survey the discard (waste) coal from current and former coal operations in the country. As much as 1 bn tons of discard coal is on the surface in South Africa.

Production
According to data from the South Africa's Department of Mineral and Energy Affairs (DME) and Chamber of Mines, coal production in 2000 was 247.2 mm short tons or 224.3 mm tons. In 1999, South Africa was the world's sixth largest coal producer.
BHP Billington subsidiary, Ingwe Coal (Ingwe), Anglo American's coal division, Anglo Coal (Anglo), and Swiss-based Glencore's Enex Resources (Enex), are the largest coal producing companies in South Africa. Coal production in South Africa is concentrated in a few regions, with the Mpumalanga Province accounting for 80.8 % of the national total.
The Northern Province produced 10.3 %, the Free State 7.5 % and KwaZulu-Natal produced the remaining 1.4 %. Elitheni Coal is studying the possibility of developing coal deposits in the Emalahleni district of the Eastern Cape Province, where coal was first mined from 1857 to 1917.

Mining was discontinued as larger reserves with better quality coals were found in Mpumalanga and KwaZulu-Natal. There is currently no market for the Emalahleni coal, a low-grade smokeless anthracite. Elitheni Coal and Marubeni Europower of London, a subsidiary of Japan's Marubeni Corporation, have formed a joint-venture with the objective of establishing boiler operations in industrial areas to supply steam.
As the South African mining industry is still predominantly White-controlled, emphasis has been placed on stimulating Black-owned companies in the coal industry, as well as throughout the energy sector as a whole.
In compliance with South African law and the objectives stated in the government's Energy Policy White Paper, large corporations have made room -- often through the sale of existing assets -- in the South African energy sector for emerging Black-owned firms.
These Black-owned firms are commonly referred to as "empowerment" groups by industry, the government and the South African media. In November 2000, Anglo and Ingwe sold assets for $ 222 mm to the black empowerment group Eyesizwe Coal (Eyesizwe), creating South Africa's fourth largest coal mining company.

Anglo (11 %) and Ingwe (9 %) will retain equity interest in Eyesizwe and have undertaken to hold their shares for at least two years. Eyesizwe anticipates production of 19.9 mm short tons per year, of which nearly three-quarters is under contract to the state-owned electric utility, Eskom.
In November 2001, Eyesizwe announced that it had initiated talks with Kumba Resources (Kumba) about establishing a strategic partnership in the South African coal sector. The deal would create the second largest provider of coal to South Africa's domestic market. Kumba, the newest major coal producer in South Africa, was formed following the split of domestic firm Iscor's mining and steel assets.

Eyesizwe stated in January 2002 that it hoped to finalize its deal with Kumba in the first half of 2002. In January 2002, Kumba announced, that its main empowerment partner, Tiso Consortium, had exercised its option to acquire 5 % of the issued share capital of Kumba. In March 2002, Anglo announced it had purchased a 9.6 % share of Kumba, with an option to acquire an additional 10.5 %.
In November 2001 BHP Billington announced that it was closing its Rietspruit colliery (coal mine) six months ahead of schedule. Rietspruit's output was reduced by 40 % in December 2001, and mining operations was planned to end in May 2002. 150 workers, less than a fourth of the normal operating personnel, will be retained to rehabilitate the facility.

Exports
South Africa is the world's second largest net exporter (defined as production less consumption) of coal. In 1999, South African net coal exports were 85.2 mm short tons behind Australia's 178.3 mm short tons of net exports. In 2000, the DME reported that South Africa exported 77.1 mm short tons.
The top recipients of South African coal in 2000 were Spain, the Netherlands, France, Israel, India, Germany, Italy, the United Kingdom, Portugal, South Korea, Taiwan, Belgium, Morocco, Denmark, Japan, Brazil and Turkey. These countries received more than 90 % of all South African exports.
The vast majority (96 % in 2000) of South African coal exports are shipped through the Richards Bay Coal Terminal (RBCT), the world's largest coal export facility. Only shareholding members of the RBCT company can use the export facility. Current shareholders include: Ingwe, Anglo, Enex, Tesa (Total Exploration South Africa), Sasol, Kangra and Eyesizwe. Ingwe, Anglo and Enex combined own 86 % of the RBCT. RBCT has the capacity to export 79.4 mm short tons of coal annually.

Other port facilities utilized for coal exports are Durban and Matola Coal Terminal (MCT) located in Maputo, Mozambique. Durban had coal exports of 2.1 mm short tons in 2000. Kumba currently exports its coking coal through the Durban facilities. 1.2 mm short tons of South African coal was exported through MCT in 2000.
Exports through MCT could increase in the future as infrastructure is upgraded and added. The rail link between South Africa and Maputo is undergoing a $ 13.8 mm upgrade, and there are plans to dredge the harbour to accommodate larger vessels. MCT management anticipates the facility to have the capacity to export 5.5 mm short tons of coal by 2006.

To help facilitate the participation of small independent and empowerment companies in the coal export sector, a new coal export facility was planned. The South Dunes Coal Terminal (SDCT), was to be located at Richards Bay, but apart from the RBCT. The SDCT was to have a capacity to export 13.2 mm short tons of coal annually. SDCT partners include: Kumba, Eskom Enterprises and Golang Coal.
In June 2001, the RBCT exporters and the SDCT partners reached an agreement to expand the RBCT. The expansion will increase the annual export capacity of RBCT by 11 mm short tons, and the SDCT firms entitlement will be 7.2 mm short tons peryear. Te expansion of the RBCT is considered the most cost-effective method of expanding South Africa's coal export capability as no new rail infrastructure is needed.

Ingwe and Anglo, the two largest shareholders in the RBCT, will forego their participation in the expansion of the export facility. In March 2002, the SDCT firms secured $ 41 mm (R 475 mm) in financing to help expand the RBCT.
Total cost of the expansion is $ 52 mm (R 600 mm), with the remaining $ 11 mm (R 125 mm) to be financed by RBCT shareholders. The RBCT expansion is expected to be completed by mid-2004.

Consumption
South Africa's domestic consumption of coal was 163.0 mm short tons in 1999. The DME reported domestic coal sales of 170.5 mm short tons in 2000. Electric power generation and the synthetic fuel industry account for approximately 90 % (source DME) of South Africa's coal consumption.
Other major coal consuming sectors include: the non-synfuels industrial sector (3.3 % of local consumption), metallurgical industries (3.7 %), and the merchant & domestic sectors (2.5 %). Iscor's steel plants are the main consumers of domestic coking coal in South Africa. Three-fourths of the requirements are met by Kumba's mining operations in South Africa. Iscor also utilizes imports of coking coal and supplies from other local producers to satisfy the remainder of its requirements.

Synthetic fuels
South Africa has a highly developed synthetic fuels industry, which takes advantage of the country's abundant coal resources and offshore natural gas and condensate production in Mossel Bay. The two major players are Sasol (coal-to-oil/chemicals) and Mossgas (natural gas-to-petroleum products). Sasol has the capacity to produce 150,000 bpd, and Mossgas 45,000 bpd.
Sasol is the world's largest manufacturer of oil from coal, with coal liquefaction plants located at Secunda (oil) and Sasolburg (petrochemicals). Started by the government in the 1950s to help reduce South Africa's dependence on imported oil, the company was privatised in 1979. In 1996, Sasol began an upgrade and expansion program at its Secunda facilities to reduce costs and to help it remain competitive. The project was completed in 2001 following the installation of the ninth new synthetic fuel reactor.

In early 2000, Sasol launched a study of the feasibility of replacing coal with natural gas as the synthetic-fuel feedstock, utilizing natural gas reserves in neighbouring Mozambique. Sasol estimates that the switch to natural gas will reduce investment expenditures in its coal mining operations and the high costs of compliance with environmental regulations associated with coal.
The project is expected to start delivering natural gas to South Africa during the first half of 2004. The project consists of several major components including the development of the Pande and Temane gas fields in Mozambique.

The 536-mile (865 km) transport pipeline will run from the Mozambican fields to Secunda. Sasol will convert its existing pipeline-gas network to natural gas, and supply natural gas to industries in South Africa, including its own facilities. Sasol will switch its Sasolburg plants from coal to gas feedstock and utilize natural gas at Secunda to supplement coal-based growth there.
The pipeline will be owned by a joint venture between Sasol, SAG, and the government of Mozambique. The parties have made provision for the future inclusion of Black empowerment shareholders as well as privatisation initiatives.
Sasol has signed Memoranda of Understanding with two empowerment groups for local gas distribution companies in Mpumalanga and KwaZulu-Natal. On May 3, 2002, President Chissano of Mozambique and President Mbeki of South Africa, officially launched the project at a ceremony held at the Temane gas field in the Inhambane Province of Mozambique.

Mossgas began production in 1993 and remains state-owned. The company is part of the Central Energy Fund (CEF) group of companies through which the SAG's interest in the liquid fuel industry is owned, developed and managed commercially.
The DME announced in 1999, in line with the recommendations of the Energy White, the merger of the CEF commercial interests into a national oil company. Mossgas, along with Soekor Exploration & Production (Soekor), and elements of the Strategic Fuel Fund (SFF) will be joined to create the Petroleum Oil and Gas Corporation of South Africa (PetroSA). The merger process is expected to be completed in 2002.
The Mossgas plant receives feedstocks of natural gas and condensate from gas fields in Mossel Bay through a pair of 56-mile (91 km) pipelines. The facility also has the ability to process up to 8,000 bpd of imported condensate. The onshore plant is situated approximately 8 miles (13 km) west of Mossel Bay. Mossgas converts the gas into a variety of liquid fuels including motor gasoline, distillates, kerosene, alcohols and LPG.
Oil and natural gas
South Africa has recently begun to develop and exploit its reserves of conventional oil. The country imports crude oil primarily from the Middle East, with Saudi Arabia and Iran as its chief suppliers. South Africa has been trying to diversify its sources of imported crude and to reduce its dependence on oil imports from Iran, which previously dominated South African oil imports. Nigeria is now the third largest supplier of imported oil to South Africa.
Exploration PetroSA (formerly Soekor) plans to concentrate its exploration efforts on South Africa's western and southern coasts. Several discoveries have been made on Block 9, which is located within the Bredasdorp Basin. The FA, EM and EBF natural gas fields currently supply feedstocks to the Mossgas synfuel facility.

Oribi, the first significant and commercially viable oil discovery on Block 9 was made in 1990. Two other significant finds, Oryx and Sable have been made on the block. PetroSA, and its Sable field partner Pioneer Natural Resources (Pioneer), announced the results of their Boomslang discovery in February 2001.
The find, located on the southern portion of Block 9, tested at a combined rate of 3,120 bpd of oil, 26 mm cfpd of natural gas, and 300 bpd of condensate. PetroSA and Pioneer plan to drill additional wells (appraisal) on Boomslang, as well as on the EBB discovery. EBB, discovered in 1991, originally tested at 46 mm cfpd of natural gas and 1,830 bpd of condensate. Pioneer also holds the rights to offshore Block 7.
Two natural gas discoveries are located on Block 11A, which lies east of Block 9. PetroSA made the Ga-A find in 1969. The discovery had a combined flow rate of 24 mm cfpd from two reservoirs. The Ga-Q field was discovered in 1983, and it had an initial test flow rate of 11.4 mm cfpd. Additional appraisal drilling is planned on Block 11A.

An offshore natural gas discovery was made in March 2000 close to South Africa's border with Namibia. Located in Block 2, off South Africa's western coast, the find is reportedly part of the same reservoir, which extends to the Kudu prospect (operated by Shell) off the coast of Namibia. Kudu's potential reserves are estimated at 20 tcf.
Denver-based Forest Oil reported that the find, AK-1, flowed at a rate of 52.8 mm cfpd of natural gas and 342 bpd of condensate. Forest's initial estimates placed recoverable reserves at 200 bn cf of natural gas.
Forest drilled three appraisal wells in 2000-2001, of which two were successful. One appraisal well flowed at 71.4 mm cfpd of natural gas and 1,376 bpd of condensate, while the other had flows of 53 mm cfpd and 182 bpd respectively.
Forest revised its estimate of total reserves for the discovery, renamed the Ibhubezi field, to 2.5 (tcf). Forest stated that production, which may be channelled towards regional electricity production, is not expected to begin prior to 2004. Forest, and its partner, Denver-based Anschutz Overseas Corporation, control 70 % and 30 % respectively of South Africa's Blocks 1 and 2. In September 2000, Forest and Anschutz offered a 10 % share in both blocks to South African firm, Mvelaphanda Holdings (MVP),in accordance with SAG's directive encouraging Black participation in the upstream sector.

South Africa's recent offshore success is sparking interest in further developments. Sasol holds the rights to Blocks 3A and 4A, which are adjacent to the West Coast and south of Forest's holdings. In February 2002, Colorado-based Global Energy Holdings (GEH) announced the formal approval of its prospecting agreement for Block 3 b/4 bn from the DME and the South African Agency for Promotion of Petroleum Exploration and Exploitation (Petroleum Agency SA).
The seven and one-half year agreement for Block 3 b/4 bn covers 7.1 mm acres (29,000 sq km) offshore western South Africa in waters ranging in depth from 900 feet to 4,000 feet (300 to 1,200 meters). In January 2002, Petroleum Geo-Services (PGS) and Petroleum Agency SA announced a joint cooperation agreement to promote deepwater exploration acreage in South Africa.
The area, Block 2 bn and acreage west of Blocks 5 and 6, contains 39.5 mm acres (160,000 sq km). PGS will shoot and market 2D seismic data, with the survey commencing in the first half of 2002.

Production
The Oribi oil field began production from a floating production, storage and offloading vessel (FPSO) in May 1997, South Africa's first conventional oil production. The field currently produces a light oil (API 42 degree) at the rate of 10,000 bpd with 15 mm cfpd of associated gas, which is flared. The Oryx oil field lies 3.7 miles (6 km) from the Oribi field and was tied back to the Oribi's FPSO production facility. Oryx began production in May 2000, and currently produces at 12,000 bpd. The Oryx reservoir is similar in type and age to Oribi. Combined, the Oribi and Oryx fields have to date produced over 23 mm barrels of oil.
PetroSA and Pioneer announced plans for the development of the Sable field in June 2001. The field will be developed with six subsea wells tied back to a FPSO. The FPSO will have the capacity to process 60,000 bpd of oil, re-inject 80 mm cfpd of natural gas and recover natural gas liquids. Production of 40,000 bpd is expected to begin in the first quarter of 2003. Total recoverable oil reserves are estimated to be 25 mm barrels. Associated gas, which will be re-injected to improve liquids recovery, may be recovered at a later date as part of a planned natural gas development project.

The FA natural gas field currently produces at a rate of 194 mm cfpd gas and 9,500 bpd of condensate. The FA production platform is one of the largest single structures ever constructed in South Africa. Nine production wells have been drilled from the platform. Four production wells on the FAR and FAH satellite gas fields are linked to the platform by subsea systems.
The production wells on the EM and EBF gas fields are connected to the FA platform by a 32-mile (52 km) pipeline, 18 inch diameter pipeline that has been designed for the future tie-in of other gas fields in the area. Refining and Downstream Oil Activities South Africa has the second largest refining capacity in Africa.
South Africa's total refining capacity (excluding synthetic fuel plants) of 468,547 bpd is surpassed only by Egypt's. Its refined products are both sold in the local market and exported, mainly to other parts of Southern Africa, but also into both the Indian and Atlantic basin markets. Refinery problems in mid-2001 forced South Africa to reduce fuel exports by half to several SADC-member countries.

Botswana, Lesotho, Namibia and Swaziland import nearly all of their oil products from South Africa. Zimbabwe, due to a shortage of foreign exchange, also had been relying heavily on South African fuel imports. The Natref refinery is undergoing a $ 123-mm capacity expansion project. When completed in 2002, refining capacity will increase by nearly 17,000 bpd, and include the ability to produce low-sulphur diesel.
Multinational companies, including BP, Shell, Caltex (ChevronTexaco), and TotalFinaElf are major participants in South Africa's downstream petroleum markets. In July 2001, it was announced that Black empowerment group Thebe Investment Corporation purchased a 25 % share of Shell's South African downstream retail and marketing business.
Shell, with its Sapref refinery (Durban) partner BP, signed an agreement with Black empowerment firm Southern Tankers to transport oil from the refinery to other South African locations. Southern Tankers will cover all of the refinery's coastal shipping requirements.

Several local firms also are involved in South Africa's downstream including the Black-owned firms, Naledi Petroleum and Afric Oil. Proposed amendments to South Africa's Petroleum Products Act would allow synthetic fuel producers Sasol and Mossgas to enter the retail market.
In August 2001, it was announced that Sasol had signed an agreement with Petromoc, Mozambique's state-owned oil marketing and distribution firm, to market petroleum products to Mozambican service stations and commercial customers. The joint venture also plans to develop service stations in Mozambique.
The first privatisation in South Africa's gas distribution sector was completed in August 2000, when a consortium led by the US-based Cinergy and the Black empowerment group, Egoli Empowerment Holdings, was chosen to purchase Johannesburg's Metro Gas Company. Renamed Egoli Gas, the consortium announced in September 2000 the signing of a 20-year contract with Sasol Gas. In terms of the supply agreement, Sasol Gas will provide the Johannesburg area with 2.5 mm cf per year, with an option to increase the supply up to 7 mm cf per year.

Other projects to use natural gas are planned for South Africa. Negotiations are continuing between the SAG and Shell, operator of Namibia's offshore Kudu gas field. Initial plans call for the gas to piped from the Kudu field to Cape Town, where it will supply fuel for a 1,200-2,000 MW power station.
The SAG would like for Shell to commit gas supplies to other buyers, possibly extending the pipeline to the Mossgas synfuel facilities at Mossel Bay. Sasol and Belgian-based Tractebel have signed a memorandum of understanding (MOU) for the development of gas-fired co-generation in South Africa.

Electricity
Parastatal company Eskom, one of the largest utilities in the world, generates nearly all (approximately 95 %) of South Africa's electricity. Eskom's generating capacity (39,870 MW), which is primarily coal-fired (35,627 MW), also includes one nuclear power station at Koeberg (1,840 MW), two gas turbine facilities (342 MW), six conventional hydroelectric plants (661 MW), and two hydroelectric pumped-storage stations (1,400 MW).
Eskom also has 3,556 MW of mothballed coal-fired generation, and is currently constructing 1,426 MW of additional coal-fired capacity at its Majuba plant. South African municipalities own and operate 2,436 MW of generating capacity, of which the majority (1,932 MW) is coal-fired. An additional 836 MW of generating capacity is privately held.
In December 2001, US-based AES completed its purchase of a 600-MW coal-fired power plant. The Kelvin power plant was purchased from the Johannesburg Metropolitan Municipality for the price of $ 23 mm.

South Africa's National Electricity Regulator (NER)is responsible for the licensing of electricity generators, transmitters and distributors in the country. NER is also overseeing the restructuring of South Africa's electricity supply industry (ESI) in accordance with existing legislation and the Energy Policy White Paper.
The legislation and regulation is crucial to the government's continuing electrification program. The NER licensed Eskom as the National Transmitter for South Africa. The transmission license provides for: non-discriminatory access by generators being dispatched centrally, offering a transmission service to parties who are in a position to take supply directly off the transmission system, central dispatch of power stations participating in the National Power Pool, and organizing the exports and imports of electricity to South Africa.
A transmission license was issued to a private company, Montraco, to provide a specific transmission service from the National Transmission System to specific supply points in Mozambique and Swaziland. In addition to serving the domestic market, Eskom also exports power to Botswana, Lesotho, Mozambique, Namibia, Swaziland and Zimbabwe.

South Africa and the other members of the SADC signed a Memorandum of Understanding in August 1995 to establish the Southern African Power Pool (SAPP). Eskom is expanding its involvement across the continent. In October 2000, Nigeria's National Electric Power Authority (NEPA) signed a partnership agreement with Eskom to help improve electricity supply. Eskom will help develop NEPA's repair capabilities, execute transmission line projects, and participate in rehabilitating, operate and transfer (ROT) schemes for the running of Nigeria's power stations.
Uganda, in September 2001, chose Eskom as one of two entities to bid for two concessions in its power sector. In November 2001, Zimbabwe's state-owned utility, Zimbabwe Electricity Supply Authority (ZESA), awarded Eskom a contract to assist in the management of its main power station. ZESA's Hwange station provides 40 % of the country's power. Eskom purchased a 51 % interest in Zambia's Lusemfwa Hydropower Company in December 2001.

Environment
In 2000, 74.4 % of total energy consumption in South Africa was from coal consumption. This reliance on coal, a highly carbon-intensive fossil fuel, has negative environmental impacts. For example, electricity generation from coal combustion in the industrial sector is the prime contributor to air pollution. Mining, itself, adversely effects the environment through the disruption of ecosystems and the pollution of groundwater.
South Africa is a comparatively energy and carbon intensive country with respect to other African countries, as well as relative to many "developed" nations. In 2000, energy intensity in South Africa was 27.2 thousand Btu per $ 1995 GDP, while carbon intensity was 0.62 tons of carbon per thousand $ 1995 GDP.

Per capita energy consumption and carbon emissions, on the other hand, are high in comparison with the rest of Africa, but relatively low when compared to many "developed" nations. In 2000, South Africa's per capita energy consumption was 106.3 mm Btu, while per capita energy-related carbon emissions registered 2.4 mm tons of carbon.
The most widely used renewable energy source in South Africa is fuel wood, which meets the daily energy needs of more than one-third of the country's population. Deforestation attributed to increased fuel wood consumption by a growing population has prompted interest in developing other renewable energy sources, particularly solar, which could play an important role in supplying power to isolated rural areas not currently connected to the electric power grid.

Country overview
President: Thabo Mbeki (since June 1999)
Deputy President: Jacob Zuma
Independence: May 31, 1910 (from United Kingdom)
Population (2001E): 43.6 mm
Location/size: Southern Africa/1.2 mm sq km (471,445 square miles, nearly twice the size of Texas)
Major cities: Pretoria (capital), Johannesburg, Durban, Cape Town
Languages (official): Afrikaans, English, Ndebele, Northern Sotho, Southern Sotho, Swazi, Tsonga, Tswana, Venda, Xhosa, Zulu

Ethnic groups: Black (75.2 %), White (13.6 %), mixed race (Coloured) (8.6 %), Asian (2.6 %)
Religions: Christian (Dutch reformed, other Protestant and Catholic denominations) 60 %, Jewish, Hindu, Muslim, and traditional African religions
Defence (1999E): Army, 54,300; Navy, 8,000; Air Force, 11,140; Medical Corps, 6,000

Economic overview
Minister of Finance: Trevor Manuel
Minister of Trade and Industry: Alec Erwin
Currency: 1 rand (R) = 100 cents
Market exchange rate (06/22/02): $ 1 = 10.26 R
Nominal Gross Domestic Product (2001E): $ 114.7 bn
Real GDP growth rate (2000E): 3.1 % (2001E): 2.3 % (2002F): 2.3 %
Inflation rate (consumer prices) (2000E): 5.3 % (2001E): 6.3 % (2002F): 5.9 % Merchandise exports (2001E): $ 33.2 bn
Merchandise imports (2001E): $ 27.3 bn
Trade balance (2001E): $ 5.9 bn
Major Exports (2001): Gold, diamonds, other metals and minerals, machinery and equipment
Major imports (2001): Machinery, foodstuffs and equipment, chemicals, petroleum products, scientific instruments
Major trading partners: Japan, Germany, Italy, United Kingdom, United States
Current account balance (2001E): $ 1.7 bn

Energy overview
Minister of Mineral and Energy Affairs: Ms. Phumzile Mlambo-Ngcuka
Proven oil reserves (1/1/02E): 29.4 mm barrels
Oil production (2001E): 224,000 bpd, of which about 186,000 bpd is synthetic
Oil consumption (2001E): 482,000 bpd
Net oil imports (2001E): 258,000 bpd
Crude refining capacity (1/1/02E): 468,547 bpd
Natural gas production/consumption (2000E): 49.4 bn cf
Recoverable coal reserves (2000E) : 61 bn short tons
Coal production (2000E): 247.2 mm short tons
Coal consumption (2000E): 170.5 mm short tons (domestic sales)
Coal exports (2000E): 77.1 mm short tons
Electricity generation capacity (1/1/00E): 43.1 GW
Electricity generation (2000E): 194.4 bn kWh, of which 180.0 bn kWh was thermal, 13.0 bn kWh nuclear and 1.3 bn kWh hydroelectric
Electricity consumption (2000E): 181.5 bn kWh

Environmental overview
Minister of Environmental Affairs and Tourism: Mohammed Valli Moosa
Total energy consumption (2000E): 4.6 quadrillion Btu* (1.17 % of world total energy consumption)
Energy-related carbon emissions (2000E): 105.9 mm tons of carbon (1.6 % of world carbon emissions)
Per capita energy consumption (2000E): 106.3 mm Btu (vs. US value of 351.0 mm Btu)Per capita carbon emissions (2000E): 2.4 tons of carbon (vs. US value of 5.6 tons of carbon)
Energy intensity (2000E): 27,218 Btu/$ 1995 (vs. US value of 10,918 Btu/$ 1995)** Carbon intensity (2000E): 0.62 tons of carbon/thousand $ 1995 (vs. US value of 0.17 tons/thousand $ 1995)**
Sectoral share of energy consumption (1998E): Industrial (57.1 %), transportation (17.9 %), residential (15.6 %), commercial (9.4 %)
Sectoral share of carbon emissions (1998E): Industrial (65.4 %), transportation (17.5 %), residential (11. %), commercial (6.1 %)
Fuel share of energy consumption (2000E): Coal (74.4 %), oil (21.1 %), natural gas (1.1 %)
Fuel share of carbon emissions (2000E): Coal (81.4 %), oil (17.9 %), natural gas (0.8 %)
Renewable energy consumption (1998E): 386 t Btu* (0 % increase from 1997)
Number of people per motor vehicle (1998): 7 (vs. US value of 1.3)
Status in climate change negotiations: Non-Annex I country under the United Nations Framework Convention on Climate Change (ratified August 29th, 1997). Not a signatory to the Kyoto Protocol.
Major environmental issues: Lack of important arterial rivers or lakes requires extensive water conservation and control measures; growth in water usage threatens to outpace supply; pollution of rivers from agricultural runoff and urban discharge; air pollution resulting in acid rain; soil erosion; desertification.
Major international environmental agreements: A party to the Antarctic-Environmental Protocol, Antarctic Treaty, Biodiversity, Climate Change, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Marine Dumping, Marine Life Conservation, Nuclear Test Ban, Ozone Layer Protection, Ship Pollution, Wetlands and Whaling.

* The total energy consumption statistic includes petroleum, dry natural gas, coal, net hydro, nuclear, geothermal, solar and wind electric power. The renewable energy consumption statistic is based on International Energy Agency (IEA) data and includes hydropower, solar, wind, tide, geothermal, solid biomass and animal products, biomass gas and liquids, industrial and municipal wastes. Sectoral shares of energy consumption and carbon emissions are also based on IEA data.
**GDP based on EIA International Energy Annual 2000

Energy industry
Organization: Ingwe, Anglo, Enex, Eyesizwe, Kumba
-- major private coal producers; Eskom
-- parastatal electric power company; Sasol
-- coal-to-liquid synthetic fuels & chemicals group (privatised in 1979); Petronet
-- petroleum pipelines and tank farm; Petroleum Oil and Gas Corporation of South Africa (PetroSA) whose subsidiaries include: Mossgas
-- gas-to-synthetic fuels plant; Soekor (the Southern Oil Exploration Corporation)
-- oil and gas exploration/development; & Strategic Fuels Fund
-- strategic oil storage facility and state oil imports;
Major coal fields: Waterberg, Witbank, Highveld
Major coal ports: Richards Bay
Coal terminal: Durban
Oil refineries (1/1/02E capacity): Shell/BP-Durban (172,000 bpd); Caltex-Cape Town (105,000 bpd); Engen-Durban (104,000 bpd); National Petroleum-Sasolburg (87,547 bpd)