Technology will transform conventional SA mining - PwC

Johannesburg – South Africa’s mining companies are incorporating the use of innovative technology to improve conditions in the industry.

According to Michal Kotzé, energy, utilities and mining industry leader at PwC Africa, who was speaking at the launch of PwC’s SA Mine report last week, the South African mining industry will undergo a “significant transformation” in the next decade.

“Technology will drive a lot of what we currently see in the mining industry going forward. Conventional mining does not have a long life. It is expensive and unsafe,” he said. “Mining will not be available in the current form and format in the medium term in South Africa.”

New technology and innovation will bring about a different way of working which should be embraced by the industry.

Despite the global economic slowdown and reduced demand for commodities, Kotzé said there is a future for South Africa’s mining industry. “We have a fantastic resource base,” he said. South Africa’s industry also has good infrastructure, compared to other countries on the continent.

Boosting commodities

New infrastructure requirements may arise, which can change the supply and demand process. This can impact commodity prices, making them more attractive, said Kotzé.

Poor investor confidence has led to the withdrawal of investment from the mining industry. Some mining executives have acknowledged that they should not have invested in big projects. Some of these projects were not feasible, given the slump in the commodity cycle.

READ: Mining sector suffers R60bn knock on low commodity prices

“The lesson that has been learnt is that the hurdle for investing in projects has been set higher,” said Kotzé.