26/05/2026
MD Vuslat Bayoglu spoke at the SAIMM Pyrometallurgy International Conference 2026 about the growing importance of coal in a world where AI is driving unprecedented electricity demand. As AI infrastructure expands, countries need to consider how to produce affordable, reliable electricity using all forms of energy.
AI and smelters share striking similarities in power consumption. Using the US, the world’s biggest AI market, as an example, Bayoglu said AI is already competing with traditional energy-intensive industries like aluminium smelters for access to electricity. Big tech firms can afford to pay 3 to 4 times more for power than smelters, reshaping energy markets.
Bayoglu said the country should treat developments in the US concerning AI and electricity as a cautionary tale. SA’s ferroalloys sector is already under pressure from electricity constraints. Removing affordable, abundant coal power could worsen industrial decline. Embracing a practical approach to power generation ensures enough supply to meet the demand for traditional industries and AI.