EY: what we really need to know from the Mining Indaba 

30 January 2020

With mining in an endless state of uncertainty in South Africa, a director at EY Africa has named four key areas that need to be addressed by the Minister at the Mining Indaba which starts in Cape Town next week Monday. 

KhethiweCebekulu, partner at EY Africa in Johannesburg, said: “Considering the Mining Indaba’s theme this year is to optimise growth and investment in a digitized mining economy, it is particularly important to recognise that the only route to long-term sustainability in the mining industry is to have certainty on regulatory policies and infrastructure security. 

“Now more than ever, local and international investors need policy clarity on how collaboration between government and the private sector can work.” 

Cebekulu noted that there were four issues that miners and investors would be most interested in; 

1) Ongoing Eskom woes and the impact on the mining sector 

“Eskom’s battle to keep the lights on deeply impacts mining production and revenue streams. If Eskom can’t be relied on, will mining companies then finally be allowed to create their own energy sources? We can’t wait any longer for the necessary changes in law to allow miners to do this. We would also be interested in how the Minister sees self-generation impacting the sector,” she added. 

2) Licensing, especially relating to the increase of illegal mining 

License to operate has been identified as a key concern for mining operators so one would want to see a clearly defined government strategy around the issue. The stakeholder landscape is shifting, with more focus being placed on geopolitical risk, increased pressure from investors and the need to improve the sector brand. Within the SA context, the illegal mining industry continues to grow, costing the government, and by extension all South Africans, billions in lost revenue. 

Said Cebekulu: “To date the scourge of illegal mining seems unstoppable and we need to understand how the government plans to tackle it.” 

3) The future of mining

By better understanding the future skills required of the mining industry workforce, industry stakeholders will be able to strategically plan their workforce and sustain their competitive advantage in global markets. 

“Transforming mining operations will require investment in the workforce of the future. For example, there will be increasing demand for data and digital literacy skills across all phases of the mining value chain that will redesign most occupations as the human-to-machine interface evolves and becomes more prevalent. These skills can be expected to increase in demand into the future and play an important role in enhancing decision-making and optimising everyday work, “ Cebekulu added. 

4) How can 4IR be implemented in South African mines 

“It is becoming increasingly clear that the future of mining is being stimulated by the 4IR, a business enabler and factor in risk management,’ Cebekulu noted.

The benefits of deploying the digital and technology innovation in the mining operations are undeniable. “Some of the benefits realised are unlocking improvements in productivity, safety and environmental management, but we need greater clarity on how this develop in local mines,” she concluded. 

Issued by Grant Henry on behalf of EY Africa, 30 January 2020