Mining Mirror February 2018 | Page 24

Indaba preview Which aspects of mining should we prioritise when we talk about modernisation? What are the challenges and the opportunities in what we refer to as ‘modernisation’? A key element of the mine of the future will be the absence of humans working in dangerous conditions; rather, they [22] MINING MIRROR FEBRUARY 2018 would be replaced by robots doing the ‘coalface’ work in these high-risk areas. Hennie Theart Partner and corporate consultant (Geology) – SRK Consulting (SA) mining process that potentially employs very little labour. This will of course require the continual improvement of communication technology in terms of IT infrastructure — not just at mine level but in-between mines and service providers. This trend will also disrupt our conventional occupational structure, with fewer semi-skilled workers being required and more highly skilled people being employed. The traditional mining-related disciplines will need to be increasingly infused with IT skills, and the skill sets most in demand are likely to be those that merge engineering ability with technological insights. These are the skills that will implement the use of driverless vehicles, for example, or the use of robots underground. As a company that welcomes the opportunities of the Fourth Industrial Revolution, we also look forward to improved levels of profitability in the mining sector through a more sustainable recovery. This will create more space for consultants like SRK to focus on high-level strategic and technical interventions that could move the mining sector forward and help place it on a more productive footing. Modernisation of mines will lead to automation, which in turn will result in less people at the coalface in underground mines. There seems to be a dearth of new exploration projects in South Africa specifically. Do you feel this is the case in the rest of Africa as well? Do you think it is a global concern? If it is, what are the reasons for it? Exploration worldwide is at a low level, as recovery since the last financial meltdown has not really filtered through to the exploration industry. This slowdown is largely confirmed by the high unemployment figures among exploration geologists in the world’s prominent mining countries. The investment market is still very hesitant to commit to new exploration projects, as a result of the implosion of many large expenditure projects. These projects failed at the end of the last boom period, due to the inherently low grades of the mineral deposits considered, or overly optimistic cost estimates for establishing infrastructure. The lack of exploration activity in South Africa is caused by various factors, including uncertainty in the regulatory environment, with the associated lack of confidence in the security of mining project tenure. Other factors are the deteriorating or inefficient infrastructure, and the expected future costs of electricity and water. There is also a lack of investment in new exploration targets in other African countries where similar regulatory uncertainties exist. In terms of mining projects, there does seem to be some uptake in advanced downstream projects where there is already a known reserve estimate; this is very much the case in Africa. In those African countries where the economies were in the past based largely on oil revenue, there is some interest in stimulating exploration for other natural resources. However, expectations in these jurisdictions are yet to be adjusted for the different business models required, the returns, and the timing of the returns expected from a non-oil based minerals industry. b