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vol.23 issue4Estimating the opportunity cost of water for the Kusile and Medupi coal-fired electricity power plants in South Africa author indexsubject indexarticles search
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Journal of Energy in Southern Africa

On-line version ISSN 2413-3051

Abstract

NKAMBULE, Nonophile P  and  BLIGNAUT, James N. The external costs of coal mining: The case of collieries supplying Kusile power station. J. energy South. Afr. [online]. 2012, vol.23, n.4, pp. 85-93. ISSN 2413-3051.

The aim of this paper was to quantify the external costs of mining and transporting coal to the Kusile coal-fired power station in eMalahleni. Monetary values were estimated for a number of impacts including its contribution to climate change, human health effects of classic air pollutants, mortality and morbidity, impacts of water pollution and water consumption. The results of the study disclosed that coal mining and transportation will inflict costs to both the environment and humans of between R6 538 million and R12 690 million per annum, or between 20.24 c/kWh and 39.3 c/kWh sent out. The external effect of water consumption (opportunity costs of water) constitutes over 90% of the total cost, followed by global warming damage costs and ecosystem services lost due to coal mining. The estimated externality cost is approximately between 50% and 100% of the current average electricity price.

Keywords : external costs; coal mining; coal transportation.

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