South Africa needs up to 40 new coal mines by 2020, Eskom said on Wednesday.

This would entail an investment of up to R110-billion in coal mining in the country between the present and 2020 ? and a large number of mining rights would have to be awarded in a short space of time, Eskom's coal expert Johan Dempers told a coal conference in Johannesburg.

According to Demper's presentation, the country would need to produce 374-million tons of coal by 2018 to meet growing demand.

By that time, South Africa was expected to produce 385-million tonnes, making the supply buffer between national coal demand and production extremely thin at only three percent, Dempers said in his presentation.

Total South African coal demand was expected to rise by over 40 percent over the next 10 years due to an increase in exports to meet global demand as well as the need for coal at Sasol's coal-to-liquid plants.

Dempers said that seven new mining rights had been awarded by the end of 2008 with a further eight estimated for 2009.

A total of 600 additional engineers would be needed in order to open the new mines.

"Additional skilled labour shortages are projected over the next five years," he said.

Coal transport infrastructure would need to be developed with a target of moving only two percent of coal via road.

This, said Dempers, would require massive investment and co-operation to ensure an intricate conveyer network, strong and expanded rail infrastructure and adequate loading and off-loading facilities.

"Should we fail to act or act too slowly, there will be far reaching consequences for the security of coal supply and cost of electricity ... securing coal supply in the future is a national problem that requires a national solution."