According to experts, several issues have contributed to the decline in mining output in South Africa.
Mining firms need to invest more in technology to increase their productivity as the sector continues to slump amid falling lose profits internationally.
This is the view of an expert from Resolution Circle, an innovation and technology company affiliated with the University of Johannesburg (UJ).
A recent PwC report said that the global mining sector “faced unprecedented, yet familiar, financial challenges in the past two years”.
The report said that declining commodity prices and rising costs led to a more than 7% decline in revenues among the world’s top 40 mining companies, with profits also shrinking.
It said that the pressure continued in 2024, marking the first time since 2016 that industry revenues would fall for two consecutive years.
“One of the key strategies to improve productivity in mining is the adoption of automation, mechanisation, and process optimisation,” said Revolution Circle senior consultant Keshalen Perumal.
“There is a need for mining firms to digitise their operations by creating digital twins (virtual models of physical operations) that can optimise workflows and de-bottleneck a plant’s operations.”
Perumal said that by digitising operations, mining firms would enable remote monitoring of operations, early detection of equipment and other failures, and preventative maintenance, thus reducing downtime and enhancing efficiency.
Fourth Industrial Revolution skills
Perumal said it was crucial to equip the mining industry workforce with Fourth Industrial Revolution skills.
“A mix of cyclical and structural issues compels leading mining companies to invest for growth and transformation even as revenues and profit margins come under pressure. Reducing resource consumption, like energy, is also crucial.
“Implementing energy demand management and energy efficiency measures can significantly cut costs while supporting sustainability goals.
“All these advancements require a skilled workforce that is trained to operate, maintain, and innovate within these systems. This offers practical solutions to complex challenges and improves the future of employees and communities, long after mine closure.”
Issues affecting output
According to experts interviewed by The Citizen, several issues have contributed to the decline in mining output in South Africa.
Mining expert David van Wyk said that the global demand for platinum and diamonds was negatively impacting the mining sector.
“Diamond mines globally are in a slump because the world is flooded with diamonds, more than enough to give every human on the planet a glass full. Platinum has not recovered globally because of the rise of electric vehicles.”
“As far as gold is concerned, although we still have plenty of gold underground in South Africa, it is too difficult to get to it because it is located far underground, under water and subject to seismicity.
“You send workers that deep, they die from rockfalls due to tremors and you constantly have to pump water.
“You cannot use expensive robots as they cannot function underwater and the frequent tremors and rockfalls will crush them.”
