MINING
Sustainable environmental technologies crucial to SA mining industry's future
The future of mining in South Africa is bright; however, it is critical that sustainable environmental technologies are employed in mining operations, says GIBB Mining Managing Director, Alan Wingrove. What is the expected growth of the mining sector for 2022? With the global economy recovering from the Covid-19 pandemic, the demand for commodities has been strong to rebuild stockpiles and/or to satisfy the increased demand on the ground. As a result, commodity prices have boomed. The Ukrainian crisis has sparked a global energy crisis with crude oil and coal prices escalating exponentially. Mining houses worldwide are cashflush, with shareholder returns in record territory. In South Africa, all mining houses are doing well, but could have done better to exploit the high commodity prices were it not for the Eskom and Transnet constraints. There remains an uneasiness to invest in South African new mines with long-term commitments, but rather to invest in Brownfield expansions and carbon footprint reduction initiatives.
What are some of the key challenges expected in 2022? The socio-political landscape remains volatile, which
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impacts the critical focus needed to address the South African economic woes and in turn, the levels of unemployment. The drive for sustainable energy solutions is commendable and necessary but will not solve the electricity supply uncertainty in the near-term for current and future mining operations. Nevertheless, the 100MW self-generation capacity limit provides mines with the opportunity to lock-in predictable escalation on electricity costs going forward. Self-generation also facilitates sustainability for local communities beyond mine closure.
What are the opportunities for the sector? The commitment by the majority of nations to a zero carbon economy by 2050 has shifted the needle in terms of the production of e-vehicles and concomitant demand for battery minerals and copper. Supply and demand will dictate a shift in metals of the future.
