Modern Mining August 2021

COVER STORY

Astron Energy unpacks key trends shaping

According to the latest data from the Minerals Council of South Africa, mining contributed R376-billion to GDP, and remains the mainstay of the country’s economy. However, the world of min- ing is changing – in terms of technology, our understanding of its social and environmental impacts, as well as demand for battery metals. Astron Energy identifies several global trends in mining and examines how they are playing out on the local stage.

S afety has always been a key focus area for mining companies, and COVID-19 has only magnified the scope of the issue. Miners are investing in advanced technologies such as augmented and virtual reality, drones, remote vehi- cles, advanced telematics and wearables, as well as learning to apply advanced analytics to the vast quantities of safety data their operations generate. A 2017 report by Accenture found that by implementing four digital initiatives – autonomous operations, smart sensors, connected workers and remote operation centres – South African mining companies could improve frontline performance and safety, and unlock R99-billion in cumulative value creation opportunities. Of course, technological innovations need to be implemented in the context of a company-wide culture of safety. In 2016, following a fatal accident at its Sishen mine, Kumba Iron Ore CEO Themba Mkhwanazi declared that the company would see no more on-the-job fatalities, adopting a six-point approach that shifted focus from accident preven- tion to eliminating fatalities. Since then, the company has seen a 67% reduction in serious incidents – and not one death.

Supply chain visibility using technology The COVID-19 pandemic has exposed the vulner- ability of global supply chains to disruption. This has obliged mining companies to increase visibility along their supply chains, looking beyond tier 1 suppliers to trace materials back to their source. Even prior to the pandemic, however, miners – particularly those in the gold and diamond sectors – were facing scru- tiny of their supply chains around human rights issues. In collaboration with other

Right: Safety has always been a key focus area for mining companies. Below: Mining contributed R376-billion to South Africa’s GDP, and remains the mainstay of the country’s economy.

diamond miners, De Beers is developing Tracr, an end-to-end diamond industry traceability platform built around blockchain technology, with the goal of cre- ating a guaranteed record of sustainability and authenticity for its diamonds. Social impact Research by Ernst & Young found that a trust deficit with communi- ties is one of the most significant risks faced by mining companies worldwide. Investor activism has risen around 70% since 2014 to more than R450-trillion in value – and is putting pressure on

10  MODERN MINING  August 2021