EDUARD VORSTER Focusing outside of mining per se is becoming so much more important – to bring transformation, so that playground so that the mine is a catalyst for a macro economy
Following President Cyril Ramaphosa’s speech regarding the Fourth Industrial Revolution (4IR) at this year’s Investing in African Mining Indaba, mining companies made it clear that there will be some change in the near future as people start believing in practical impact of digitalisation and technology a lot more, says global engineering company Aurecon Group resources client director Dr Eduard Vorster.
“Based on the mine companies’ responses, jobs within mining per se may not be created at the same rate of change. Thus, focusing outside mining is becoming so much more important – to transform that space so that the mine is a catalyst for a macro economy rather than solely relying on the mines for job creation.”
In December 2018, government invited the public to nominate candidates to serve on the Presidential Commission on the 4IR. The commission will identify what strategies, policies and plans South Africa should put in place to position itself as a leading country in the technology revolution.
At the Indaba, Mineral Resources Minister Gwede Mantashe spoke about collaboration between mining companies even across borders, with the message to further encourage growth in the industry and create sustainable mining industries; sustainability for mining companies and the way companies interact with the community and the environment, says Vorster.
“Some companies even stated outright that, in future, they may not be allowed to mine the resource in the first place without being aligned with communities. A very strong strategic alignment would be required.”
He believes that the country has the tools needed to solve the infrastructure issue so that mines can engage in more exploration projects. “This brings huge opportunities for mining companies, consultants and governments to streamline their work rate.”
It seems that, for the time being, there will be a dearth of capital expenditure and a focus on stay-in-business spending until those issues are solved, but there will seemingly also be many other opportunities as business is unlocked for future agriculture, energy and water use, he mentions.
Further, Vorster highlights the repositioning around coal. “In the South African environment – which is slightly different from elsewhere – the importance of coal and the notion that, at least in the short term, there will be repositioning regarding the delivery and mining thereof, is very interesting, as while some players have started to divest, new players are entering the markets, bringing a fresh approach to the industry in South Africa.”