As the world shifts away from fossil fuels dependence, South Africa’s, coalfields will be hard hit. Decommissioned mines will leave in their wake job losses and acid-leached land. To help offset the impending damage to the economy, the Presidency has come up with a bold initiative for the mass planting of industrial cannabis to provide jobs for locals and rehabilitate the environment.

News 24 reports that a new report by the Presidential Climate Commission (PCC) and conducted by Genesis Analytics, released on 28 August 2024, identifies the hemp industry as one of four focus areas for economic development in highveld regions of Mpumulanga. 

Sunset Over the Coalfields Could be Replaced by Hemp Sunrise

It looks at employment creation opportunities to be realised by 2030 - which will be of importance as coal power stations are due then to begin shutting down. To offset this the PCC says new industries such as hemp and sustainable aviation fuels should be developed as well existing industries like citrus and timber production.

Although coal mining and coal utilities are not the biggest employers in Mpumalanga they are sizable industries and closures will result in the loss of between 12 000 and 24 000 jobs by 2030.

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The report says that the development of hemp on an industrial scale is not only feasible but desirable with private sector interest already expressed in the concept. This was one of the inputs during the Presidency’s Phakisa workshop a year ago in which the use of cannabis to detoxify old mineland was highlighted. Research has already been done in Gauteng and the North-West provinces were there are an estimated …abandoned mines. Cannabis, as an excellent leacher of heavy metals from the soil, could be planted for non-consumption purposes, such as making hempcrete blocks and fibre for textiles.

The report indicates that about 240 000 hectares of degraded mine land could potentially be used to grow hemp for industrial uses - mainly fibre. This means there won't be competition with land for food production. According to the report, the mining industry and specific mining companies had expressed interest in repurposing mining land for agriculture too.

Hemp to be Used to Rehabilitate 10% of Highveld Coalfields

"An estimated 24 000 direct jobs can be created in hemp cultivation when applying a conservative estimate of a 10% conversion of mine land that requires rehabilitation," the report read.

"An additional 297 full-time jobs could be created to process 144 000 tonnes of hemp per year into high-value bast fibre, hurd and green micro-fibre," it added.

About 80% of the country's coal mining takes place in Nkangala and Gert Sibande Districts where there are 11 coal-fired power stations. The research indicated that the "quickest and lowest-risk way" to create new jobs was to grow the existing economy. It is also lowered investment risk to scale up existing industries than develop new ones - because the market and related infrastructure were already in place.

Other 'Post-Coal Economic Drivers

The report identified South Africa's potential to produce Sustainable Aviation Fuels (SAF) as another sunrise industry. It said that existing oil refineries could be converted to produce SAF to offset the high cost of converting sugar cane to jet fuel, but that came with its own complications in that there was no existing supply chain or market (or indeed feasibility – it costs 2,5 times as much to produce jet fuel from sugar cane as it does for conventional fuel.

Existing industries that should pick up the slack include timber processing"There is steady local demand for wood for particle board and poles, and strong demand for chemical wood pulp and cellulose. Policy choices on using wood in building construction could stimulate additional local demand and support the sawmilling industry," the report read.

The province already hosts about 40% of the country's wood plantations. Based on feedback from companies, there is also growing demand for wood. The country also has local capacity to "competitively produce" wood products, the research highlighted.

There is also a potential to tap into carbon credit markets to finance plantations.

Citrus and citrus processing was another existing sector that could be developed as an agro-processing masterplan already existed and there is an established industry body - the Citrus Growers Association of Southern Africa. But the report warned there were logistics challenges and an unresolved trade dispute with the EU - over concerns of a pest, the False Codling Moth and fungal disease Citrus Black Spot. "It is unclear when or how this will be resolved," the report read.

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