Speaking in the context of recent earnings commentary and discussions at Mining Indaba 2026, Madondo emphasised that market noise should not be confused with long-term demand dynamics. His remarks underline a broader theme in the coal sector: supply discipline, energy security concerns and infrastructure constraints are supporting the commodity even as decarbonisation accelerates.

Verbatim

•    “Coal remains a fundamental pillar of global energy security, even amid transition rhetoric, it still underpins reliable baseload generation.”
•    “We must separate short-term market noise from long-term structural signals, the fundamentals for coal demand are intact.”
•    “Energy transition ambition must be matched by infrastructure reality, without the latter, promised alternatives cannot fully replace coal.”
•    “There is a need for coal, and there is also a need for investment into coal, because where demand exists, supply must meet that demand.”
•    “Africa’s growth trajectory demands affordable, reliable energy, and for now, that means coal will play a key role in powering industrial competitiveness.”

Coal as a pillar of energy security

Madondo has consistently described coal as a cornerstone of global baseload generation. He argues that electricity demand continues to rise faster than the pace at which reliable alternatives can be deployed at scale. In his view, coal remains embedded in energy systems because it delivers affordability and reliability, attributes that many emerging markets prioritise as they industrialise and expand electrification. He has stated that even amid strong transition rhetoric, coal still underpins stable power generation in key regions. For energy-intensive economies, particularly in Asia and parts of Africa, baseload coal-fired capacity remains integral to grid stability.
Infrastructure reality versus policy ambition

A recurring theme in Madondo’s commentary is the gap between climate ambition and infrastructure execution. He has highlighted that the energy transition requires massive investment in grids, storage, renewable generation and critical minerals, yet the pace of build-out does not currently match policy targets. According to his perspective, alternatives cannot fully replace coal until scalable and affordable substitutes are deployed at system level. This mismatch creates ongoing demand for existing coal capacity while longer-term solutions mature. For investors and operators, this dynamic reinforces the importance of understanding structural supply-demand balances rather than reacting to short-term price fluctuations.

Investment discipline and supply constraints

Madondo has also pointed to underinvestment in new coal supply as a key factor shaping future market conditions. Tighter financing conditions and policy restrictions have made new coal projects increasingly difficult to develop. While this aligns with climate objectives, he argues it also risks constraining future supply in markets where demand persists. His message is clear: where demand exists, investment must follow, otherwise markets risk tighter balances and sharper price cycles. Existing low-cost producers, particularly those with established infrastructure and export capabilities, may therefore retain strategic importance in a constrained supply environment.

Responsible coal in developing economies

Another central pillar of Madondo’s stance is the concept of “responsible coal”, improving efficiency, reducing emissions intensity and exploring technologies such as carbon capture and storage. He acknowledges that the energy transition is underway but stresses that developing economies require affordable energy to support growth, industrialisation and job creation. In this context, coal continues to provide a practical solution for regions where renewables alone cannot yet meet baseload demand. Madondo’s argument suggests that coal’s future is not defined solely by decline but by adaptation, with efficiency improvements and emissions management playing an increasing role.
 

HAVE YOU WATCHED OUR MITV INTERVIEWS FROM MINING INDABA 2026?

Outlook

The overarching message from recent commentary and earnings discussions is that coal fundamentals remain intact despite uncertainty. Energy security concerns, rising demand and investment constraints collectively support a market environment where coal continues to play a significant role. For mining companies, traders and investors operating in the sector, the key takeaway is strategic clarity: short-term volatility should not obscure long-term structural drivers that continue to underpin coal demand in a complex global energy system.