4IR - The future of mining in South Africa

BY BY PATRICK WADULA, MEDIA, PR & CORPORATE COMMUNICATION PROFESSIONAL WITH WADULA INVESTMENT GROUP

New developments in the global mining sector have begun evolving over the last 10-15 years, enabling new technologies and automation to be introduced into the exploration, quarrying, mining, and extraction of minerals in open pit and underground mining. However, in South Africa it has been a slow process, with fear and uncertainty about the possibility of job losses in a labour-intensive sector.

The South African mining sector has, for more than 100 years, been considered a labour-intensive industry with a mining method characterised by physically demanding manual drilling methods, and operations punctuated by blasting and cleaning, on a stop-start basis.

The sector is critical to the country’s economic sustainability with between 2 and 4 million people depending on its viability. It employs more than 450,000 people with every job in this sector supporting two downstream jobs. Every employee supports between five and 10 dependents. It indirectly impacts nearly every other industry, since it provides the raw materials for virtually every other aspect of the economy.

The COVID-19 pandemic has helped the mining industry, indirectly, to increase its pace in introducing the fourth industrial revolution or 4IR, innovation, and 4IR technologies into South Africa’s mining industry.

Applications that were previously shunned by employees and unions, such as wearables and the remote monitoring of employees, were embraced to ensure the wellbeing and safety of mineworkers as they returned to work after the lockdown.

According to the recent statistics from the Minerals Council of South Africa, the mining industry’s contribution to GDP declined in nominal terms by 4% in 2020, to a value of R361.6-billion compared to R376.5-billion in 2019. We must accept that these numbers are not going to improve anytime sooner as the Mineral council of South Africa reports that over the last decade, multi-factor productivity in the country has fallen by 7.6%.

Mining cost inflation was 2%-3% higher annually than general inflation, leading to two-thirds of SA’s output being on the upper half of the global mining cost curve. Mining output declined by 10% and minerals sales have contracted by 11%.

Therefore, there is a need to look at smarter ways to improve the way we mine and extract the minerals from the ground in a safer, effective, efficient, and productive manner. With the introduction of 4IR in mining, Artificial intelligence and machine learning can help mining companies find minerals to extract.

The Minerals Council of South Africa states that ultimately, without a shift in our approach to mining methodology, we will fail to mine South Africa’s deep-level complex orebodies profitably, which could see a huge negative impact on South Africa and a failure to turn to account the country’s mineral wealth in the long term.

Recent research has suggested that, should the current decline not be arrested, 200,000 job losses may occur by 2030, which could affect two million people indirectly. With mechanised mining equipment, most mines’ lives will be extended to 2045 and beyond while 24/7 operations will extend mine life to beyond 2040. In addition, deeper resources and Greenfields targets will be added, relying on 24/7 methods.

The Minerals Council is of the view that the positive outcomes of modernisation will outweigh the challenges that will inevitably be encountered along the way. To remain globally competitive and achieve zero harm, the mining sector can ill afford to delay these efforts and the Minerals Council will continue to collaborate with all stakeholders to accelerate this journey.

HOW 4IR IS CURRENTLY CHANGING THE FACE OF MINING AS WE KNOW IN SOUTH AFRICA

A report was recently released by PwC and the Minerals Council South Africa aimed at gaining an understanding of how the mining industry visualises the impact of the fourth industrial revolution (4IR) on its people, processes, and technologies. A survey conducted with some of the leaders of mining companies on how they perceive the evolution of 4IR on their businesses in the years to come; and what steps they are taking to transform their businesses in anticipation of these changes.

The report also looks at how the Covid-19 pandemic has further accelerated the digitisation of the work process, as well as the adoption of automation and other innovative tools in the mining industry.

Twenty-three executives across 19 Minerals Council members were surveyed, and 10 emerging trends identified that are consistent with other international studies and can be used by mining executives and other decision-makers to navigate their digital transformation journey.

It is notable that the largest portion of survey respondents (47%) stated that the CEO was the primary driver of digital transformation in mining businesses, with only 5.2% mentioning the CFO.

The executive head for technical or the group engineering head was seen by 9% of the respondents as being a driver of 4IR within their business. This shows that a top-down approach can certainly start the process and provide the impetus and communications, while operations can help to focus those efforts where they are most needed.

It is noteworthy that 32% of respondents considered themselves as digital champions and innovators that would pilot new technologies without waiting for others to prove it first.

Even though most mining companies were digital novices and digital followers, they were making investments in various initiatives to drive specific benefits. All companies surveyed were investing in digital technologies, with the average investment portfolio across all respondents, around R111m per year.

Minerals Council South Africa CEO Roger Baxter says, using 4IR technologies will make the South African mining sector more globally competitive, more attractive to the best talent and, ultimately, enable mining to contribute even more as the economy and society are reimagined, he commented.

“With the high levels of unemployment, poverty and inequality, a pure technology-focused approach will not be socially acceptable. It is hence encouraging that this report does not only focus on technological issues, but also on issues related to culture and the upskilling and/or reskilling of the workforce,”

THE PROS AND CONS OF MINING TECH

The South African mining sector has, for more than 100 years, been considered a labour-intensive industry with a mining method characterised by physically demanding manual drilling methods, and operations punctuated by blasting and cleaning, on a stop-start basis.

Work done to date has indicated that the conversion to mechanisation significantly extends mine life; preserves mining employment; improves safety and health; and allows the mining of lower-grade orebodies and deeper resources.

The Minerals Council is of the view that the positive outcomes of modernisation will outweigh the challenges that will inevitably be encountered along the way. To remain globally competitive and achieve zero harm, the mining sector can ill afford to delay these efforts and the Minerals Council will continue to collaborate with all stakeholders to accelerate this journey.

The adoption of the new technologies requires reskilling the mine workers. According to the PWC research of the mining companies’ response to 4IR, most respondents believe there will be a change in the nature of the workforce to more skilled employees over the next 5 years and a decrease in unskilled workers.

IN SUMMARY, THE TOP THREE CHALLENGES TO IMPLEMENTATION OF 4IR TECHNOLOGY IN SA MINES ARE:

- Low data management maturity

- Low workforce skills

- Concern about cyber security

HAVE WE ADOPTED INTERNATIONAL TOOLS AND PRACTICES?

The PWC reports that they had identified 10 emerging trends they believe are consistent with other international studies and can be used by local mining executives. The trends include how industrial IOT will get the biggest share of the budgets. It says the sector outlook for industry-wide adoption is bright as mining organisations are reporting successful deployments of IOT and the positive impact it has on their bottom line.

The report says SA’s mining community plan to use 4IR technologies over the next five years, adding that most implemented technologies found to be condition monitoring at nearly 80% across all respondents, and connectivity and IOT at almost 60%.

“Nearly 50% of respondents had piloted AI programmes recently and expect the implementation numbers to increase significantly over the next five years. 35% of respondents were using robotic process automation, with another 10% planning to implement it within five years. Nearly a third of all respondents already use virtual reality (VR) to train staff, while 20% were currently piloting and a further 28% intended to implement VR training within five years,” reads the report.

HOW UNIONS ARE APPROACHING THESE CHANGES

The unions in the mining industry are closely monitoring the changes coming with the introduction and adoption of 4IR technologies with mixed feelings.

The Minerals Council of South Africa which represents 84 companies across the mining industry that employs almost half a million workers, cannot ignore the trade unions who represent the workers in the industry.

That is why the Minerals council’s approach to the introduction and implementation of 4IR in the industry is that it should be ‘People-centric’. This means the focus is not only on technology advancement at the mines but also on work culture, upskilling and reskilling, and that 4IR should be able to create new better, safer, healthier, and more fulfilling jobs.

Frans Baleni, former general secretary of the National Union of Mineworkers once said: “the reality on the ground calls for a serious conversation with key stakeholders on this matter of the 4IR and the future of work.”

“Never before has it become so compelling for organised labour to stand up as one voice and participate in shaping the 4IR than today. It is a fact that non-participation may lead to labour concluding that the 4IR is a curse and not an opportunity.”

Gideon du Plessis, General Secretary of Solidarity’s advice to unions is to make “skills development” the core of their salary negotiations as from this year to enhance job security for their members.

WHO ARE THE KEY PLAYERS IN SOUTH AFRICA (BRANDS AND COMPANIES?)

Rio Tinto, Exxaro, Sibanye Stillwater, Goldfields, Anglo American and Baletsema Mining Services are the key players leading with introduction and implementation of 4IR technologies into their operations.

RIO TINTO

Rio Tinto is now the world’s largest owner and operator of autonomous haulage systems (AHS). The AHS trucks can operate nearly 24 hours per day, every day of the year, no longer stopping for shift changes and employee breaks but only for refuelling and maintenance.

Worker safety has also improved since the program’s founding with employee exposure to hazards and risks associated with operating heavy equipment, such as fatigue, exposure to noise and dust or soft tissue issues, decline.

SIBANYE-STILLWATER

One other company that is pushing technology into South African mining is Sibanye-Stillwater. The company is involved with DigiMine, a 21st-century state-of-the-art mining laboratory. The aim of the laboratory is to make mining safer and sustainable using digital technologies. The goal of the laboratory is to transfer surface digital technologies into the underground environment – the enabler for a mine that can automatically observe, evaluate, and act. The ultimate objective is to use technology to put distance between mine workers and the typical risks they are exposed to daily.

EXXARO

Exxaro’s 4IR technologies involved introducing a ‘digital twin’ approach which is a virtual replica of physical assets, which can be used to analyse data and monitor systems. The company has simplified its mining operations by creating visualised operations, as well as automating the value chain end-to-end. Gold Fields has accelerated its technology adoption to track its supply chain activities and get a hold of backup suppliers for certain products.

BALETSEMA MINING

Another company that is promoting 4IR in the mining industry is Baletsema Mining and Technology Services, a mining consulting company, providing a comprehensive range of technical, operational, and business improvement solutions and products to the mining sector. The company is passionate about the technological evolution of mining and the impact of the Fourth Industrial Revolution(4IR) on the South African mining sector.

LEADERSHIP ON 4IR AND MINING

President Cyril Ramaphosa addressing the Investing in African Mining Indaba in February this year stated that as the government played its role in creating an environment in which mining thrives for the benefit of all South Africans, he urged the industry to take advantage of the technological advances underpinning 4IR.

He was encouraged by “some of the mining houses that were already making use of technology – no longer for purposes of replacing people with machines – but fundamentally to improve efficiency, guarantee safety, produce a skilled workforce and, most importantly, preserve jobs.”

While many other industries have been leading the transition to the age of connectivity, AI and big data, mining experts agree that this industry has some catching up to do, particularly when it comes to upskilling its labour force.