The mining sector is an important catalyst in fostering intra-Africa trade, as well as opening up value chains in new technologies with significant social benefits, said engineering consultancy SRK Consulting MD Andrew van Zyl.

Speaking at the Investing in African Mining Indaba, held in Cape Town in early February, Van Zyl said mining operations across Africa were creating economic momentum for new local markets, contributing to broader social transformation.

“Mines play a vital role, often underestimated, in bringing critical mass to the adoption of valuable technologies that would otherwise struggle to gain a local foothold in communities around Africa.

“Decentralised renewable energy is a good example, which can rapidly transform livelihood opportunities, productivity and general standards of living within communities,” he noted.

The application of solar PV power installations at mining operations creates demand for local inventories and technical expertise for installation and maintenance of such systems, highlighted Van Zyl.

He added that once mining investment incentivises the establishment of local service providers, communities and small businesses are able to access associated technologies more affordably, thereby opening opportunities to adopt innovations that improve livelihoods.

“These processes can advance transformation even more effectively when a country’s relevant legislation, regulations and incentives are aligned with the economic and technological opportunities,” added Van Zyl.

Referring to related developments in South Africa, Van Zyl pointed out that the renewable energy licensing exemption threshold for solar and other energy plants increased from 1 MW to 100 MW in 2021, enabling greater levels of private renewable-energy generation.

Local mines have since connected about 3.5 GW of non-grid power projects, within a pipeline that could reach 5 GW by 2030.

Van Zyl says the Investing in African Mining Indaba’s focus on collaboration reflects the reality that technological advancement also requires regulatory innovation, with both technical and legal aspects “demanding engagement, courage and scientific rigour”.

He added that while investors and project leaders base key decisions on certainty and predictability, the mining sector is still expected to improve continually.

“Innovating is seldom simple, so it does require a commitment from clients, professionals, operations and government bodies to consider new ideas and technologies in the context of lessons learnt. This means reflecting carefully on what has worked in the past or elsewhere and applying innovations with the flexibility to make adaptations whenever necessary.

“We also need to have the courage to share the reasons some innovations have failed as this facilitates progress, helping others avoid making the same mistakes,” said Van Zyl.

He also encouraged more discussion on ways to bring in new ideas into the mining ecosystem, at reduced levels of risk.

Developmental Impact

In emphasising the critical role South African mining plays in terms of job creation, Van Zyl reiterated figures shared at the Investing in African Mining Indaba by mining industry employers organisation the Minerals Council South Africa, which show that mining supports nearly 900 000 jobs and the livelihoods of 3.6-million South Africans.

“Minerals Council South Africa CEO Mzila Mthenjane notes that mining is a powerful multiplier and that growing mining grows the economy and jobs,” said Van Zyl.

Strengthening mining’s developmental impact also relies on strong international project relationships, he said, adding that with growing involvement of China-based mining companies and financial institutions in Africa’s mining sector, SRK Consulting collaborates with colleagues across its practices in China to support project delivery across the continent.

“This kind of technical collaboration is always rewarding – facilitating sound communication and expectations across the project pipeline. This has particularly supported our work in the Democratic Republic of Congo, Ghana and Zambia, but also in a growing selection of other countries around [Africa],” concluded Van Zyl.