Coal resources are abundant in SADC, especially in South Africa, where in 2003, recoverable reserves were estimated at 53.7 billion short tons (5.4 percent of world recoverable coal reserves). In 2003, regional coal production reached 269 million short tons (Mmst), of which South Africa produced nearly 264 Mmst (see Table 5 ). South Africa also consumed the vast majority (98 percent) of the region's coal in 2003. Coal is primarily used in the production of electricity in the SADC region. However, South Africa has a highly developed synthetic fuels industry, in which, the country uses large amounts of coal along with natural gas and condensate to produce oil.

South Africa is the world’s sixth largest coal producer. The Mpumalanga province accounts for 83 percent of South African coal production, while Free State, Limpopo, and KwaZulu-Natal also have producing mines. Anglo American’s Anglo Coal (Anglo), BHP Billington’s Ingwe Coal (Ingwe), domestic mining firms Eyesizwe Coal (Eyesizwe), Kumba Resources (Kumba), Sasol Mining (Sasol), and Swiss-based Xstrata Coal South Africa (XCSA) are all responsible for the majority of South Africa’s coal production. For more information on coal sector in South Africa please see the South African Country Analysis Brief .

Mozambique awarded Companhia do Vale do Rio Doce (CVRD) the rights to develop coal deposits in the Moatize mines. Moatize in northwestern Mozambique is considered to be the largest unexplored coal province in the world, with an estimated 2.4 billion tons of reserves. In May 2006, CVRD announced that it planned to submit a proposal to its executive board to begin work on the Moatize mines. The project will likely include the development and improvement of mine facilities and a power station. Indian company Rites & Ircon has already won a tender to construct a rail line between the mine and the ports of Nacala and Beira, which also can be used by Zimbabwe, Malawi, Zambia and DRC. A new deepwater port north of Beira is also expected.

Despite reserves of approximately 2.3 Mmst, Malawi's Mchenga coal mine continues to produce below peak output due to financial constraints. Mchenga Coal Mines has been searching for additional reserves in the northern Livingstonia coalfields. According to the Ministry of Natural Resources and Environmental Affairs of Malawi the unexploited Mwabvi coalfield in the southern Shire River valley contains proven reserves of 5.5 Mmst, while the Lengwe coalfield contains probable reserves of 11 Mmst.

Zimbabwe's petroleum shortages have affected the country's coal industry. The National Railways of Zimbabwe (NRZ), which transports the majority of the coal produced at Zimbabwe's Wankie Colliery, has been forced to ground some of its trains because of diesel fuel shortages. In September 2005, Rio Tinto Zimbabwe (RioZim) sought investments for the stalled Sengwa coal project. An estimated $2 million is needed to continue work on the project. According to RioZim, the area could have 2.2 billion short tons of coal reserves.

In Botswana, Meepong Resources (a subsidiary of CIC Energy) has ownership rights to the Mmamabula east and Mmamabula south coal prospecting licenses. However, Highlands Star Group (HSG) is seeking an 80 percent shareholding interest in Meepong Resources, which would give them majority ownership. The Botswana Ministry of Minerals and Energy estimates that Mmamabula contains proven coal reserves of 4.7 Mmst. CIC has plans to develop a coal-fired power station, which would supply electricity to the Southern African power grid beginning in 2011, or to supply thermal coal from the mine to power producers already producing electricity.