Mining Weekly

Mining companies operating in Africa are starting to understand the importance of developing infrastructure that will not only enable easy access to their operations but will also benefit their host communities, says newly established logistics and materials management consultancy Greiner Mendi & Associates (GMA).

GMA MD Lars Greiner tells Mining Weekly that some host governments on the continent are also starting to take a holistic approach to developing railway and port infrastructure and want to collaborate with the private sector to do so.

“Historically, project operators were driven by the need to construct infrastructure for the benefit of their operations, with little overflow for the country and the people surrounding the project,” he says.

Greiner notes, however, that GMA has noticed a shift in the industry and that mining companies are assessing the multiple benefits of infrastructure. For example, some mining companies that require railway infrastructure might consider incorporating passenger capability.

“One cannot establish infrastructure using a five-year plan; it can take up to 20 years to build adequate infrastructure for the greater good instead of just for the benefit of a particular mining project or government.”

He highlights certain mining companies operating in West African States that are collaborating with railway-line companies to initiate railway projects that incorporate passenger facilities.

“Moreover, the Liberia and Togo governments are granting port concessions to private companies for up to 25 years, which is great because it enables the port operators to develop port infrastructure. This is also why we are starting to see an increase in port productivity in these two States,” says Greiner.

Stagnant Infrastructure
Greiner tells Mining Weekly that the lack of sufficient infrastructure on the continent is a result of dormant development over the past few decades, causing Africa to lag behind in terms of sufficient infrastructure.

“In some areas, infrastructure development has actually regressed, if you consider the railways that existed in the 1960s, compared with those that we have currently,” he adds.

Greiner says that, in some areas where there is existing infrastructure around mining operations, the minerals have already been mined out.

Subsequently, new mining projects with untapped resources are being established at more remote locations.

“Getting goods to a mine site has, therefore, become increasingly complicated. In some areas, this can be attributed to a lack of bridges and road width, low-hanging power lines and communities situated near major roads.

“High rainfall is also a complicating factor in West Africa and some parts of Central Africa, as moving heavy equipment in wet muddy areas is quite tricky,” adds Greiner.

Key to Africa’s Success
Greiner says mining companies, host countries and all other mining industry stakeholders need to focus on infrastructure development. “It is key to the success of mining in Africa and needs to be prioritised above everything else, including mining.”

He explains that, with the current decline in commodity prices, many investors have been cautious about establishing new mining projects on the continent, pointing out that some projects have even been shelved.

“I believe the main reason for this cautious approach is the cost of developing infrastructure.

“In future, the operation with better infrastructure and better accessibility to minerals is going to drive the development of Africa’s mining industry. Therefore, if infrastructure in Africa retains its status quo, it will hinder the industry from meeting its full potential,” Greiner emphasises.

He adds that inland international border crossings on the continent are also a challenge, particularly when crossing multiple borders. “Sometimes, it can take up to a week for cargo to cross a border. Simplifying border-crossing legislation could assist with infrastructure development and might also encourage trade and investment on the continent.”