Africa’s mining struggles: Is ‘positive disruption’ the way to go?

Africa’s mineral riches may be a global site for sore eyes, but how much has mining done to improve the lives of those who inhabit the ground above?

Well, this year’s Investing in Africa Mining Indaba will reflect on the industry’s inhibitors while re-imagining the future of mining on the continent.

Set to take place in Cape Town from 5 to 8 February, the conference will focus on the power of ‘positive disruption’ in the industry.

The concept entails transforming the status quo and business practices within the mining sector, while embracing new strategies and innovation.

ALSO READ: Manufacturing and mining production bounce back

Charity begins at home

Director and Head of Mining and Minerals at Cliff Dekker Hofmeyr (CDH), Vivien Chaplin believes the Indaba can potentially contribute to positive disruption – if done right.

“While the Indaba possesses the potential to catalyse optimistic developments across the continent, for South Africa at least, the starting point is the honest and frank evaluation of the current domestic situation,” he said.

The local mining industry has been faced with multiple challenges in recent years including load shedding, retrenchments, illegal mining and logistical issues.

“Despite its rich resources and private sector expertise, South Africa grapples with persistent issues, which primarily stem from governmental action and inaction,” Chaplin said.

ALSO READ: ‘The fight against illegal mining is seeing results,’ says Ramaphosa

Logistical nightmares

Transnet’s dysfunctional freight rail network has affected various industries, forcing many to use trucks as an alternative. Additionally, the country’s congested ports have worsened the logistical nightmare.

“The congested ports and inadequate rail systems have not just caused South Africa to miss the commodities boom, and pass up opportunities for investment, job creation, and GDP growth but have led to the stagnation, downsizing, and failure of mining companies,” Chaplin explained.

He blamed the parastatal’s ongoing challenges on poor leadership.

“A persistent lack of prudent financial management and investment in transportation infrastructure over an extended period has resulted in a decay of critical infrastructure and led to widespread corruption, exacerbating the problem.

“While the private sector is indeed willing to assist, the additional burden on private entities adds to operational costs which many companies will just not be able to bear,” he said, suggesting that Government and Transnet’s pockets were running empty.

However, Chaplin explained that meaningful collaboration between Government and the private sector could enable South Africa to transform its mining industry.

ALSO READ: Manufacturing, mining slightly up, business confidence passive

Embracing positive disruption

Changing traditional systems requires more than just talk, but decisive action and willingness to evolve.

Chaplin said embracing positive disruption would require a number of factors.

• a proper understanding of “what is required for the future” – whether this be for sheer survival or (hopefully) to create or take advantage of new opportunities;
• an honest and frank evaluation of “where we are now” (which is not always a comfortable conversation);
• a pro-active, creative, and positive mindset to find solutions to current obstacles and challenges;
• being receptive to innovation, new developments, and change.

“To unleash the potential of positive disruption at this year’s Indaba, a transition from rhetoric to tangible actions is required,” he concluded.

ALSO READ: ‘It’s a very critical situation’- Gold One miners reportedly ‘running out of food’