Imagine unlocking R153 billion in value by 2026 through mining modernisation – what does this really mean? To find out, the HSRC, in collaboration with the Minerals Council of South Africa and supported by the Research Institute for Innovation and Sustainability, launched a research project to explore the patterns, gaps and opportunities in research, development and innovation for transforming South Africa’s mineral industry. By Kgabo Ramoroka, Theodore Sass and Viwe Sigenu
South Africa’s mining industry is under increasing pressure to adapt to a changing global landscape, and move quickly to adopt key advanced technologies related to automation, digitalisation and artificial intelligence.
South Africa’s mineral production is declining, and some mines have closed. However, the Minerals Council South Africa (MCSA) argues that modernisation can extend the life of mines through more innovative production methods.
Modernising the sector is a key strategy in the country’s innovation policy documents, such as the 2019 White Paper on Science, Technology and Innovation and the 2022 Science, Technology and Innovation Decadal Plan.
These documents have laid the groundwork to modernise key sectors, putting forward research, experimental development and innovation (RD&I) strategies that are inclusive and sensitive to society’s needs.
R&D spending
Data from the HSRC’s 2021–2022 South African National Survey on Research and Experimental Development (R&D Survey) show that mining companies spent R645.9 million on R&D to mine minerals, and mining-related activities, 71.2% of which was for the mining of metal ores such as the copper (excluding the gold and uranium) sub-sector. Such disparities in sectoral R&D performance require attention for the industry to progress.
To realise the full potential of mining modernisation, we must understand current sector-specific system elements, such as skills, RD&I and networks. An effective integration of expert perspectives and public engagement is the starting point for understanding mining modernisation.
In 2023, the HSRC launched a collaborative research project with the MCSA and the Research Institute for Innovation and Sustainability (RIIS).
Established in the 1850s, The Okiep Copper Mine is one of the richest copper ore bodies ever found. Photo taken in 2017 by Waitabout, CC BY-SA 3.0,Wikimedia Commons.
Examining mining modernisation
Modernisation presents challenges and opportunities that require careful examination and strategic action. Challenges such as declining R&D capacity, experience gaps and research duplication are well-known, but not how they affect modernisation efforts in the mining sector.
The research team developed a framework with a strong focus on human capabilities (knowledge, competencies and skills), technological capabilities (competencies built up by the firm in technology application), actors (private, public and competing companies), networks (ability to forge relationships), research infrastructure (access to laboratories) and institutional support. These are all considered key dimensions of a firm’s ability to upgrade operations.
Engagement and reflections
The HSRC in partnership with MCSA hosted a research workshop which offered valuable insights and raised questions about what is next for mining modernisation. One of the main insights was that there is no clear framework currently for achieving inclusive and sustainable mining modernisation in South Africa.
Participants agreed that the most prevalent challenges to modernising the domestic mining industry were:
- Declining capacity and capability in mining RD&I
- A lack of experience and understanding of the mining environment
- Duplication of research and academic efforts
The CSIR’s Sibongile Ntsoelengoe reported that declining RD&I investment in mining was a major challenge. Mining is directly linked to national economic performance and, therefore, impacted by economic growth, infrastructure spending and geopolitics.
While South Africa’s mining industry earnings soared to R184 billion by March 2024, the industry continued to be plagued by loadshedding and inefficient logistical networks. However, Ntsoelengoe believes that by adopting digital technologies, a potential R156 billion in value could be added to the industry by 2026.
The following additional opportunities emerged during the discussion:
- Multi-stakeholder partnerships in research and innovation can contribute to industry transformation.
- Leveraging existing government support initiatives will enhance RD&I performance.
- Inclusive and sustainable RD&I investment must be promoted.
- Research and innovation must be responsive to a wide range of stakeholders and grand societal challenges.
Research opportunities
Professor Glen Nwaila, of the South African Mining Extraction, Research, Development and Innovation Research Centre at the University of the Witwatersrand, said the need for mining productivity increased the requirement for technological advancement and human capabilities.
“First are drivers, for example, the physical environment of the mine, changing policy imperatives and market risks,” said Nwaila.
“Secondly are the enablers, which require embedding technology in culture and human resources, awareness of the environment and rigorous data quality and management.
“Lastly, the maturity domains entail understanding how to leverage digital skills, infrastructure and technology, and processes at the heart of system capabilities.”
Insights from the workshop guided further activities. A questionnaire was developed in collaboration with RIIS. The workshop and the cognitive testing exercises offered valuable insights into the development of the new survey instrument.
This was tested with the I-team (short for “innovation team”), a collection of mining companies that are members of the MCSA, tasked with the goal of delivering new approaches, methods, inventions and applications to drive value in the market.
At the time of writing, the questionnaire was being used to collect data on advanced technologies and processes in different mining value chains, human and technological capabilities, research infrastructure, networks, and governance of and by firms in the minerals industry for a three-year period (2021–2023).
This data will be combined with R&D data from the HSRC’s R&D Survey to help understand the modernisation of mining in South Africa.
Moving forward
The mining sector is constantly evolving and adapting to new ways of operating through automation, digitalisation and renewable energy. The domestic minerals industry requires evidence-based interventions to upgrade mining.
The nature, extent and timing of engagements within the research process will influence the use and uptake of research evidence to create impact. In this sense, the HSRC assumes an intermediary role in the research process between society, science and innovation practitioners to understand the current status and potential role of RD&I in the modernisation of mining in South Africa.
Stakeholders emphasised partnerships, a universal understanding of mining modernisation and the development of measurement indicators.
The partnership between the HSRC and MCSA presents a unique approach to conducting research, which seeks to be responsive to a wide range of stakeholders and grand societal challenges as envisaged in the 2019 White Paper on Science, Technology and Innovation.
Conclusion
Collaborative design of appropriate indicators and measures of modernisation for policy evidence with industry players presents an opportunity to ensure policy cohesion and synergy. To date, the HSRC team has engaged with stakeholders to understand experiences at the site level and how modernisation in mining can be enhanced.
Apart from consolidating research efforts and streamlining technological advancements, collaboration efforts also hold the potential to break down “silos” and encourage a collective approach for impact.
Research contacts
Kgabo Ramoroka, a senior research specialist, Theodore Sass, a senior researcher, and Viwe Sigenu, a researcher, in the HSRC Centre for Science, Technology and Innovation Indicators
