Many discussions would centre on energy and power infrastructure in Africa in the next decade and this would affect the mining sector significantly, said exploration and geology consulting company MSA Group MD Keith Scott.
Speaking during the Geology Society of South Africa’s Africa Exploration Showcase earlier this month, in Melrose, in Johannesburg, Scott mentioned that, with more exploration and discovery of commodities in Africa, many African countries would have to focus on ensuring that they develop the necessary power and energy infrastructure.
This will attract more investment, which will subsequently allow for more growth of the mining sector in Africa.
“Foreign direct investment is lured by a stable and reliable environment that will guarantee a return on investment. When investors are uncertain, owing to a lack of infrastructure that will guarantee mining, they tend to shy away from investing,” he explained.
Based on this, he added, although mineral resources were available, what drove the sector globally was whether these could be turned into commodities that would generate money for the companies.
Though some might argue that the high commodity prices in the past decade were a cause for concern, as the sector seemed to be at high risk, Scott said, commodities continuously changed and would not always remain constant, as they moved in cycles.
Moreover, following the global economic crisis of 2008, he highlighted that recovering from the crisis would take time, as there were no “green-shoots” out of the crisis. However, industry had to be patient and allow for the transition to take place at its own pace.
Consequently, Scott said, the need for higher- level skills in the mining industry had also become more evident. “We have done well in providing work and getting low-level skills in the mining industry, but we now need quality and qualified geologists and engineers, as the global trend is heading towards technological advancement.”
The increasing need for qualified geologists and engineers was a consequence of the realisation that more efficient technology being made available for the sector reduced commodity prices, he noted, citing the advanced technological advancement in shale gas exploration in the US, as an example.