Mining can power better lives in Africa
WITH THE WATER crisis in Cape Town reaching critical levels there’s never been a more pertinent time to reflect on sustainability in South Africa and, of course, the entire continent. Africa already faces major issues, such as poverty and food shortages. Unfortunately, these and other problems cannot be dispelled overnight.
Yet there continues to exist a massive potential across the continent; which, if tapped into and utilised correctly, will see its landscape moulded into something much more sustainable in the medium- to long-term. With access to large amounts of natural resources, mining organisations need to play their part in shaping a sustainable future.
The mining landscape
As it currently stands, mining in South Africa is in a precarious position. It exists in a changing political landscape, which is creating uncertainty for the industry.
The primary goal of 2018, it seems, is for the mining industry and the government to work together to provide certainty. Right now, high levels of uncertainty, paired with record lows in sentiment, have resulted in poor levels of investment.
Tackling this issue head-on rests largely on the shoulders of the Minerals and Petroleum Resources Development Act’s Mining Charter, which comes up for review in the coming months.
In recent weeks, the US dollar has weakened. While this poses several benefits for South African citizens, such as potentially lower fuel costs and cheaper imported goods, it affects mining in the form of lower export revenues. An optimal and fairly-priced currency, among others, is what is required for sustainable growth of the industry.
The mining industry is a large part of South Africa’s economy, and it plays a role in uplifting several other sectors. All will be affected if exports are severely affected due to the weaker dollar and resulting stronger rand.
Being relatively young in the mining industry has given Exxaro the advantage of agility – without any legacy issues. There exists an opportunity to do things differently, and the organisation subscribes strongly to this principle. It will certainly be a strong focus moving further into 2018.
Coal remains a key commodity for the group. Our resolution is that it is the fuel the organisation will continue to use to power itself, and the country, for the foreseeable future – in a consciously sustainable manner.
At the same time, to cultivate a better level of efficiency by improving volumes without increasing costs, the coal mining company will be pursuing and implementing innovations, while maintaining the highest standard of safety and working conditions for employees.
The overall supply chain stands to benefit greatly; this is due to the rise of innovations such as the Internet of Things.
Challenges
Racing leaps in technology will open doors for improved interconnectivity between the various activities in the mining value chain.
There is the growing realisation and acceptance that the challenges the country faces cannot be solved by the government or business alone. As a result, in 2017 we joined a collaborative development platform, with other mining companies, civil society groups and provincial government, to create a model which has the potential for regional socio-economic development impact and application in other parts of South Africa, and even other countries.
In anticipation of potential threats to coal mining, we are looking at renewable energy solutions, in addition to our Cennergi investment, to find new ways to generate and supply energy and manage energy consumption.
As we explore our mineral reserves, we are discovering opportunities to further realise our purpose through, inter alia, our growing water treatment experience and land management for potential food production.
In the global and local context of global warming, natural disasters, unnecessary waste and innovative technological developments, we believe that there is an opportunity for Exxaro to power better lives in Africa and beyond.