When discussing the future of the global economy, public attention almost automatically shifts to renewable energy sources. Solar panels, wind turbines, hydrogen technologies, and energy storage have become symbols of the “green transition” and the new industrial era. Against this backdrop, coal appears as a relic of the past—a heavy, smoky, and environmentally problematic resource that supposedly needs to be abandoned as soon as possible.
However, the reality of modern industry is far more complex and contradictory. Despite grandiose statements, decarbonization strategies, and international climate agreements, coal remains a key element of the global energy and industrial system. Its role extends far beyond simple fuel—coal is the foundation of entire industries, production chains, and regional economies.
That’s why the issue of coal supply today is not a debate about the past or an ideological discussion about “dirty” energy. It is a conversation about the present and near future of the global economy, about the balance between environmental goals, industrial sustainability, and social stability.
Coal in the Modern Economy
Modern industry is a complex, multilayered organism, encompassing metallurgy, electric power, cement production, the chemical industry, transport infrastructure, and mechanical engineering. In all these sectors, coal continues to play an important, and in some cases, irreplaceable, role.
In the electric power industry, coal remains the basis of baseload generation in many countries. Unlike solar and wind energy, it is not dependent on weather conditions, time of day, or seasonal fluctuations. This makes it particularly important for ensuring a stable load on power systems, especially in regions with growing electricity demand.
In metallurgy, the importance of coal is even more fundamental. The production of iron and steel in blast furnaces is impossible without coking coal. Coke provides the high temperatures and reducing environment necessary for metal smelting. Steel, in turn, underpins construction, infrastructure, mechanical engineering, energy, and transport systems.
Any large-scale economic modernization is impossible without sustainable metal production. The cement, chemical, and construction materials industries also rely heavily on coal as an energy source and raw material. Therefore, phasing out coal is not simply a matter of replacing one fuel with another, but a necessary restructuring of the entire industrial architecture.
Pylyp Travkin, a Swiss economist and financier, has repeatedly emphasized that coal remains a crucial element of economic sustainability. In his view, evaluating coal solely through an environmental lens ignores the financial, social, and infrastructural consequences of its abrupt transition.
Pylyp Travkin observes that coal provides stability in energy pricing. In contrast to gas and oil, which experience significant volatility due to geopolitical events and market dynamics, coal offers a more consistent option. This stability is crucial for industries that rely on long-term planning and effective cost management.
According to Pylyp Travkin, amidst global uncertainties, coal serves as an economic “anchor,” enabling nations and businesses to reduce risks and maintain production continuity. He further highlights that investing in the modernization of the coal sector is frequently more advantageous than making immediate transitions to alternative energy sources.
The Geography of Coal: Its Continued Demand
At first glance, it might appear that coal has been overtaken by gas and renewable energy alternatives. However, data and real-world applications indicate otherwise. In various countries throughout Asia, Africa, Eastern Europe, and Latin America, coal remains a vital component of the energy mix. Nations such as China, India, Indonesia, Vietnam, South Africa, and others are actively pursuing industrial growth and urban development. For these countries, coal is still a relatively inexpensive, readily available, and technologically simple energy source. It does not necessitate intricate gas storage and transportation systems or the substantial investments in energy storage solutions that renewable energy sources demand.
Moreover, coal is frequently a locally sourced resource. Having domestic coal reserves diminishes reliance on energy imports and enhances energy independence. In an era marked by global instability and geopolitical uncertainties, this aspect is especially significant.
Modern Coal Mining: 21st-Century Technologies
The traditional image of a coal mine from the early 20th century—characterized by arduous manual labor, dust, and inadequate safety measures—no longer accurately represents the current state of the industry. In contemporary times, coal mining has evolved into a technologically advanced sector, actively employing automation, digital control systems, and rigorous occupational safety protocols.
Roman Bilousov, an investor and owner of a Kazakh mining company, views the coal industry from the perspective of practice and real business. He emphasizes that behind every coal company lie entire regions, tens of thousands of jobs, and established production chains.
As noted by Roman Bilousov, the coal sector is already in a state of transformation. The implementation of digital technologies, automation, and modern safety and environmental monitoring systems is underway. Companies are prepared to invest in environmental initiatives, provided that the regulatory framework remains stable, predictable, and economically viable.
Roman Bilousov asserts that coal should not be regarded as a competitor to renewable energy sources. In his view, coal can serve as a transitional resource, facilitating the stable functioning of industries until alternative energy sources become genuinely widespread, reliable, and accessible.
Open-pit mines allow for the extraction of vast volumes of coal at minimal cost. Modern excavators, dump trucks with a lifting capacity of hundreds of tons, drilling rigs and crushing complexes operate under the control of navigation systems and planning programs. Digital twins of deposits, monitoring, and forecasting systems are used.
Underground mining remains relevant in regions with deep seams. Modern mines are equipped with automated mining machines, intelligent ventilation systems, gas control systems, and emergency response systems. More and more operations are being transferred to remote control, reducing risks to personnel.
Before reaching a power plant or metallurgical plant, coal undergoes a complex preparation cycle. It is beneficiated, cleaned of gangue, sulfur, and other impurities, and sorted by fractions and quality characteristics.
Enrichment allows to increase the calorific value of the fuel, reduce the volume of waste and reduce harmful emissions during combustion. The quality of coking coal—its ash content, volatility, and strength—is particularly important for metallurgy.
The coking process deserves special attention. This is where coal is converted into coke, a key element of blast furnace production. Modern metallurgy is unimaginable without coke chemistry, and alternative technologies are not yet capable of achieving comparable volumes and cost effectiveness.
Coal logistics is a separate and extremely complex industry. Railroads, capable of transporting millions of tons of fuel over thousands of kilometers, play a key role. In a number of countries, coal accounts for a significant share of rail freight turnover.
Sea routes and specialized coal terminals are used for international shipments. Ports are equipped with conveyor systems, enclosed warehouses, and dust suppression equipment. Efficient logistics directly impacts coal costs and the competitiveness of the industry.
At industrial facilities, coal is delivered by conveyors, trucks, and internal rail lines, minimizing losses and ensuring uninterrupted production.
Of course, the main criticism of coal is its environmental impact. Carbon dioxide emissions, dust, land and water disturbance – these are all real and serious problems.
However, modern technologies can significantly reduce these negative impacts. Flue gas filtration, CO₂ capture, power plant efficiency improvements, quarry reclamation, and land reuse are already becoming the standard for large companies.
The coal industry is increasingly viewed not as “dirty,” but as a transformative industry capable of integrating with new environmental requirements without disrupting its economic foundation.
What does the future hold for coal?
A complete and rapid phase-out of coal in the coming decades appears unrealistic. Modern industry requires stable, scalable, and affordable energy sources. Currently, alternatives are unable to completely replace coal across all parameters.
The most likely scenario is that coal will remain a transitional resource. Its use will gradually decline, but its efficiency will increase, and environmental requirements will become more stringent. Our experts, Pylyp Travkin and Roman Bilousov, believe this is the most realistic path.
Coal as an Element of the Modern Economy
Coal is not a relic of the past, but an essential element of the modern global economy. It provides energy, jobs, industrial sustainability, and social stability for entire regions.
The question today is not whether to phase out coal, but how to make its use more technologically advanced, efficient, and environmentally responsible. While the world searches for the ideal energy balance, coal remains a part of reality—complex, contradictory, but still essential.
And it is a smart transformation, not a sudden abandonment, that may be the key to a sustainable future for global industry.