Coal has continued to confound sceptics as energy security continues to top the agenda in the global economy. At the inaugural London Indaba – a conference of mining executives and policy makers – Menar highlighted coal’s resilience in bolstering economic growth.
The event took place on 26-27 June, at the InterContinental Park London Lane, UK under the overarching theme: Why Africa is important for the future of mining and mining is important for the future of Africa.
In a presentation to the gathering on whether coal was a winner or loser amid the global economic demands for growth and the ongoing energy transition towards decarbonisation, Menar MD Vuslat Bayoglu focused on the importance of adopting a balanced approach that considers the role of coal in curbing energy insecurity.
Bayoglu emphasised how coal came to the rescue at crucial moments to major economies, testifying to its continued resilience. Coal use increased in the past two years, partly because of the Russia-Ukraine war, resulting in countries like Germany turning back to coal as an affordable alternative to Russian gas.
In the aftermath of the Covid pandemic, China was unable to generate enough power which caused the country to experience loadshedding. “To tackle this, China increased its coal production because they understood the importance of securing energy supply to maintain the country’s manufacturing sector. African countries on the other hand are being told to stop using coal and this will have a detrimental effect on our economies,” says Bayoglu.
An estimated 600 million people in sub-Saharan Africa alone do not have access to reliable electricity. South Africa’s ongoing loadshedding crisis shows how a country’s economic growth can be stunted by inadequate power supply.
A balanced approach to coal meant that the world would continue to benefit from the fuel’s reliability. “With the availability of emission reduction and abatement technologies, we can uphold our dual commitment to protect the environment while supporting access to electricity and economic growth,” Bayoglu said.
Bayoglu stated that there wasn’t sufficient renewable capacity to produce adequate energy supply. “What South Africa does have, are coal fired power stations that can help us achieve energy security to support industries and communities. With the world’s energy consumption expected to increase, we can anticipate coal to still play a significant role in the future.”
