COAL & ENERGY
Standing on the shoulders of giants In his opening remarks, Madondo acknowledged Ndlovu, who was recently inducted into the Mining Hall of Fame, as a“ giant among giants” who helped shape Thungela into a globally competitive coal producer.“ I don’ t promise to be the‘ evangelist of coal’,” Madondo joked,“ but I will add my voice.”
What followed was a clear-eyed analysis of coal’ s current and future role in global energy markets.
Coal demand: not plateauing, but peaking
According to Madondo, global coal demand hit a record 8.8 billion tonnes in 2024, as reported by the International Energy Agency( IEA) – a figure that continues a decade-long trend of successive demand highs. And while talk of“ peak coal” persists in policy circles, the plateau keeps moving higher.
In countries like India and China, coal remains the dominant energy source. Together, they accounted for 34 of the 43 gigawatts( GW) of coal-fired power commissioned globally in 2024, with another 26 GW added in 2025 so far. These developments emphasised a truth Madondo insists the world must confront:“ The increase in coal demand in the East more than offsets reductions in the West.”
He also pointed to geopolitical instability – from the Ukraine war to shifting US-China trade dynamics – as a catalyst for countries re-evaluating their energy security strategies.“ Nations no longer want to depend on a single source of energy,” he said.“ Coal offers abundance, affordability, and reliability.”
The irony: cleaner energy requires coal In a surprising twist, Madondo highlighted an oftenoverlooked paradox: the global energy transition depends on coal. Solar panels, wind turbines and EV batteries all require thermal coal for their production.
“ The irony of the energy transition is that it still requires coal to enable it,” Madondo noted.“ It’ s not as green as we suggest it is.”
He referenced growing international acceptance of this reality, noting that major financial institutions like Lloyds of London and BlackRock have softened earlier climate stances and resumed support for fossil fuels, including coal.
Financing, policy and the need for a balanced transition While demand remains strong, Madondo acknowledged that the sector faces headwinds. Tightening policy frameworks and limited financing options have made new coal investments increasingly difficult.
“ This has become the new normal,” he said,“ and has led to underinvestment in new coal projects, making the conservation and optimisation of existing assets even more critical.”
Thungela, he noted, is investing R5 billion in new
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