Mining Mirror February 2018 | Page 20

Indaba preview energy that are environmentally friendly is gaining momentum. As a result, it is very likely that the coal mining industry will be disrupted. Automation can extend the length of working shifts, which have for many years been eroded by increased travelling time to get underground. • • • • • • • Increased level of unionism; Policy uncertainty; Increased labour cost; More pressure from the Department of Mineral Resources (DMR) to comply with health and safety; More pressure to comply with the Mining Charter; Lack of skill set to deal with increasing technology; and Fluctuations in commodity demand and prices. Professor Fred Cawood Director – Wits Mining Institute What are the challenges that you think the mining industry will face in the next few years. always start with the ore body, which is the fundamental asset, and then work our way through the mine to the market. South Africa’s unique ore bodies require a unique approach for converting them into profit. Phase two of the modernisation drive in South Africa is mechanisation (integrating machines and technology systems with people and processes). Mechanisation is currently underway in South Africa. Phase three is automation, for example robotic rock cutting. What are we doing about it in terms of research? What do we need to know about modernisation? Modernisation in South Africa is happening in stages, with phase one being optimisation. Optimisation is a continuous mining objective. It is important to [18] MINING MIRROR FEBRUARY 2018 [18] MINING MIRROR FEBRUARY 2018 At Mining Phakisa, the national government, its research councils, universities, private (vendor) partners, mining companies, and all their stakeholders worked together and developed a strategy, which requires implementation. Mining R & D is difficult and expensive. The industry is cyclical, which makes it hard to get proper and sustainable funding for real R & D. Inadequate funding causes reshuffling of existing knowledge, which is not a long-term solution. Finally, the political economy for mining is ‘charged’. How can mine managers start preparing for the future? It is a matter of innovation or extinction. New professions that will combine traditional ‘silo’ disciplines and skills will emerge, like data scientists who will deal with big data systems. The challenges for managers are how to use big data for decisions on mine safety, worker health, and operational efficiency, and how to convert tomorrow’s ore bodies safely into cash today. Which aspects of mining should we prioritise when we talk about modernisation? Understanding mining, people, and systems for profit. What is your vision of the ‘mine of the future’? There is no doubt that modernisation will eventually lead to automation. Because the mine of the future will be technology-intensive, there will be less people underground. Going forward, the sustainability of mines and the mining industry will become a big issue. There must be benefits for all stakeholders, and developing a South African meaning of sustainable development is critical. One thing is certain: there can be no sustainable development without mining industry (and mine) sustainability. For this we need a better investment framework that gives clarity and certainty in the political economy space. We also need realistic commodity pricing models that can afford the full cost of mining; for example, stakeholder expectations have a cost and the commodity price has to reflect the total profit left after paying all such costs.