ASHLEY NYIKO MABASA: Tech-driven innovation pivotal to SA’s mining resurgence

Modernising the mining sector offers SA the tantalising prospect of unlocking about R26bn in value. As a cornerstone of the national economy the industry’s health is crucial for job creation, exports and GDP growth, its contribution having risen from R219bn in 2012 to R444bn in 2023, translating to 6.3% of GDP.

The recent unveiling of the Critical Minerals & Metals Strategy by mineral & petroleum resources minister Gwede Mantashe signals a welcome, if belated, effort to reshape regulatory frameworks and position these minerals at the heart of the nation’s economic future. 

Yet the path to this mineral-rich future is fraught with challenges. Concerns linger regarding the industry's limited input into the strategy’s formulation, a point raised by Minerals Council SA CEO Mzila Mthenjane. While Mantashe has acknowledged the need for a detailed implementation plan incorporating industry perspective, the initial disconnect raises questions about the collaborative spirit required for successful execution. 

A particularly significant hurdle lies in developing downstream manufacturing technology. China’s dominance in mining technology manufacturing (35% of global output) underscores SA’s technological deficit. The nation’s meagre investment in research & development is a stark illustration of this gap.

A paltry R645.9m spent by mining companies on R&D in 2021-22, with the lion's share focused narrowly on metal ore extraction (excluding gold and uranium), pales in comparison to Africa’s total R&D expenditure of $15bn, itself a fraction of the global investment. The contrasts with the US figure of more than $700bn in R&D spending in 2023 across all sectors, including significant allocations to mining technology, is sobering. 

While the Critical Minerals & Metals Strategy laudably emphasises R&D to transform mineral wealth into advanced products and processes — targeting battery materials, fuel cells, advanced beneficiation and next-generation solar technologies — its ambition is juxtaposed with a simultaneous focus on supporting start-ups leveraging existing manufacturing capabilities.

The strategy also rightly promotes AI and internet of things (IoT)-based innovations in mining and mineral processing to enhance efficiency and competitiveness. However, translating these aspirations into tangible outcomes will require a concerted and well-funded effort. 

The mining sector now faces a strategic imperative: how to leverage technology to advance the extraction and processing of critical minerals while simultaneously preserving and generating new value. This value creation is essential as the industry grapples with increasing pressure to remain globally competitive. With mineral deposits situated at ever greater depths and production volumes in decline, innovation is no longer a luxury but a fundamental necessity for survival. 

Consider Mponeng Gold Mine, the world’s deepest, stretching nearly 4km into the Earth. As mining operations push these physical boundaries, technological innovation becomes indispensable for maintaining safety, productivity and, ultimately, profitability.

The challenges are amplified in hard-rock mining, which constitutes a large portion of global operations yet yields a disproportionately small share of run-of-mine production. Underground mining, while more targeted, is inherently more costly and less productive than open-pit methods.

Recent incidents such as the entrapment of workers at Sibanye-Stillwater’s Kloof mine serve as stark reminders of the risks associated with ageing infrastructure and potentially insufficient maintenance investment, further highlighting the urgent need for technological upgrades. 

In underground hard-rock mining geological constraints often dictate the chosen extraction method, limiting operational flexibility. Consequently, operators must prioritise maximising net asset value over the mine’s lifespan, a process advanced technology can optimise.

Mzila has rightly identified a data-driven approach and digitalisation as central to driving informed policymaking engagement. The case of Mponeng, operational since 1986 and facing increasing depth and complexity, underscores the broader imperative for technological transformation across SA’s entire mining landscape. 

Enter digital twins and IoT. Digital twins offer a revolutionary toolkit for mining engineering. At their core they are virtual replicas of physical systems that harness machine learning and real-time data to model and optimise performance. These sophisticated tools can simulate critical mining processes — from drilling and blasting to hauling and mineral processing — enabling the identification of inefficiencies and the enhancement of workflows, ultimately leading to reduced energy consumption and lower operational costs. 

Furthermore, by meticulously analysing equipment data digital twins can predict potential failures before they occur, minimising unplanned downtime and costly maintenance expenses. When seamlessly integrated with IoT the primary goal becomes the optimisation of operations, particularly in the realms of maintenance and process automation. IoT capabilities enhance asset performance, facilitate improved maintenance management and streamline the overall mining process. 

Over the past decade SA’s multi-factor productivity in mining has declined by a concerning 7.6%. Simultaneously, mining cost inflation has outpaced general inflation by 2%-3%, placing two thirds of local output in the upper echelons of the global cost curve. The strategic adoption of IoT and digital twin technologies offers a tangible pathway to reverse this worrying trend by driving efficiency gains, reducing operational costs and ultimately bolstering the sector's global competitiveness. 

SA’s mining future hinges not solely on its abundant subterranean resources but crucially on the intelligent and decisive application of technology in their extraction, processing, and management. Digital innovation, particularly the adoption of digital twins and IoT solutions, is not merely a desirable possibility; it is an undeniable necessity for the sustainable growth and revitalisation of this vital sector. 

• Mabasa is executive manager in the office of the deputy minister of mineral & petroleum resources and co-chairperson of the Brics Youth Council.