A Presidential Commission of Enquiry into the conservation of South Africa's coal resources was appointed in 1970. This Commission, in co-operation with the Chamber of Mines of South Africa, established a national inventory of South Africa's in situ and extractable resources and reserves of coal of various types and grades by several mining methods. South Africa's future demand for coal by all market sectors and the specifications of coal required, were also established by means of econometric models. A comparison of potential supply and anticipated demand indicated serious defi- ciencies of certain types of coal and the need for the conservation of others. This paper describes recommendations for alternate strategies for the optimum utilization of available resources. Con- sideration was given to various policies relating to pricing, exports, taxation and incentives, and to the possibility of the substitution of higher grades of coal by lower grades. The steps so far taken to develop a national coal policy in South Africa are described.