Riding the perfect storm facing the mining sector

Abstract

The South African mining industry has made a significant contribution to the country’s economy for more than a century. Changes in legislation for mining operating licences, stricter health and safety targets, and stronger focus on reducing the impact on the environment coupled with increasing labour and electricity costs are some of the major impacts that significantly changed the landscape in which the mining industry now operates. Further to this, low commodity prices force South African mines to seek new, more technically advanced, cost-effective ways of increasing production without compromising occupational health and safety. Research, development, and innovation (RD&I) in the mining sector are therefore required to ensure that mining operations find solutions that are cheaper, safer, and more efficient. Alternative programmes must be developed and put in place to translate South Africa’s comparative mineral endowment advantages into more sustainable and globally competitive strengths. This paper will discuss the recently developed and accepted South African Mining Extraction Research, Development & Innovation (SAMERDI) strategy which has a strong focus on productivity-related aspects for ensuring that the mineral resources can be converted into mineable reserves economically, safely and with minimal impact on the environment. Furthermore the paper will discuss the merits of revitalisating the Mining RD&I environment through the strenghtening and consolidation of offerings in a manner that is collaborative and ultimately sustainable.