In a highly anticipated debut public address at the 2025 Joburg Indaba recently, Moses Madondo, newly appointed CEO of Thungela Resources, delivered a compelling defence of coal’s enduring role in the global energy mix.
In the session titled “In Conversation with Moses Madondo”, he offered a tribute to his predecessor, July Ndlovu – Thungela’s founding CEO, a widely respected “evangelist of coal” – and laid out his own vision for the company and the sector amid a rapidly changing energy landscape.
“The world needs energy,” said Madondo, “and coal remains a cornerstone to meet that demand.”
This was a challenge to the prevailing narrative that coal is a relic of the past. Madondo made it clear that while Thungela supports the global march toward decarbonisation, it does so grounded in realism. Coal, he argued, is a legacy fuel, and a necessary enabler of energy resilience, industrial competitiveness and the long arc of human development – especially in emerging markets.
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 often-overlooked 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 balanced transition
While demand remains strong, Madondo acknowledged 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 R5bn in new high-quality coal developments such as Zibulo, while also pursuing gas projects. South Africa’s energy reality, where coal generates approximately 80% of electricity, makes these investments essential, he says.
Technological innovation: Cleaner coal is possible
Madondo was quick to emphasise that coal’s future hinges on technology. He cited carbon capture and storage (CCS) advancements, high-efficiency low-emission (HELE) plants and operational efficiency improvements as key to making coal cleaner.
“China has already rolled out over 50 carbon capture units,” he said. “The cost of CCS has dropped by nearly 50% in recent years.”
Thungela itself is applying tech-driven optimisations across its operations, boosting productivity while reducing environmental impact. “Efficiency doesn’t just reduce carbon intensity, it also improves profitability,” he added.
Human development and responsible mining
Madondo reminded delegates of a simple yet profound fact: modern life is impossible without mining. And while coal has its environmental critics, the narrative often overlooks its role in driving economic growth, poverty reduction and infrastructure development.
“We mine coal not because we like looking at black rocks,” he quipped, “but because the world still needs what we produce – for power, for development, for a shared future.”
He urged investors, regulators, and society to resist simplistic solutions. “Decarbonisation must happen,” he said, “but not at the expense of human development.”
Coal’s role in a balanced energy future
Madondo’s message was clear: coal is not going away any time soon. Its role in energy security, especially in developing economies, remains critical, and that role must be respected, responsibly managed and technologically improved.
“Coal remains a stabilising force that requires a balance between ambition and availability, transition and inclusion, as well as long-term goals and immediate realities.”
As Thungela Resources enters a new leadership era under Madondo, it does so with a steady hand and a clear-eyed view of the future.
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