Mining, climate require reimagining for African context
Continent’s social and economic imperatives are as important as the energy transition
From a South African perspective, coal remains a critical commodity to help us reliably navigate the energy transition
The extraction of valuable metals and minerals is central to South Africa’s economy. As of 2023, the country remains a leading producer of gold, diamonds, copper, coal, iron ore, uranium and platinum.
Today the mining sector contributes R425bn to GDP and employs about 477,000 people, underlining its significant economic role and employment impact.
Since its inception the African Mining Indaba has endeavoured to establish itself as a platform for reimagining historical patterns of resource extraction and production, with a focus on sustainable practices and equitable development.
The gathering serves as a knowledgesharing and networking event, providing an opportunity for industry leaders to converge on the most pressing issues and challenges confronting the sector.
It serves as an annual platform for industry leaders, governmental representatives, key mining stakeholders and interdisciplinary experts to exchange insights and perspectives.
This year’s indaba took place against the backdrop of a world grappling with sustainability challenges, heightened ESG (environmental, social and governance) pressures, and imperatives for sustainability and circularity.
ESG performance has emerged as a pivotal concern in global supply chains. Governments across the globe are exerting increasing pressure on investors to prioritise green objectives and align financial strategies with environmental sustainability goals.
Initiatives such as carbon taxation and import tariffs, which include the EU’s Carbon Border Adjustment Mechanism (CBAM), are reshaping global supply trends and exerting significant influence on the mining sector, particularly in Africa.
The issues on the indaba agenda are multifaceted and nuanced. On one hand, there’s a pressing need to carefully manage the extraction of finite resources. Conversely, the global energy transition and the push for electrification are amplifying the demand for specific commodities, leading to a notable uptick in mineral extraction activities.
Africa’s minerals and mining sector plays a pivotal role in the global landscape of electrification, sustainability and the ongoing global energy transition.
Today, as we find ourselves at a historic juncture with the world endeavouring to innovate its way out of an impending environmental crisis, the spotlight is shifting from traditional resources such as gold and diamonds to critical transition minerals.
These transition minerals encompass a spectrum of resources including copper, which remains the cornerstone in wiring and electrification. Additionally, minerals such as nickel, cobalt and lithium are crucial in solar, wind, and hydropower installations, as well as in the production of battery energy storage systems and electric vehicles.
These critical transition minerals are economically significant resources essential for facilitating the global energy transition, yet they are accompanied by heightened risks of supply disruption.
There is a debate in both an emerging market and African context around the term critical minerals; what needs to be fully appreciated is that “critical” may mean different things in developing markets such as the African context as opposed to developed markets which are focused on the energy transition alone.
In Africa, there are foundational elements of social and economic development, which are equally if not more important than the energy transition.
A clear example of this is how critical coal currently is to the energy and petrochemical sectors of South Africa: 80% of power comes from coal, and while this may transition, the fuel remains critical to ensuring stability of the power supply in the country while we transition.
From a South African perspective, coal remains a critical commodity to help us reliably navigate the energy transition — we cannot simply switch it off.
With 2024 poised to be a geopolitically tumultuous and economically precarious period, this year’s African Mining Indaba was tasked with addressing sustainability within the context of rising geopolitical tensions surrounding the security of critical transition mineral supplies.
As the world’s attention turns towards Africa for solutions to the critical transition mineral demand, the gathering saw experts explore compelling business cases for inclusive, just, net-zero strategies in mining, balancing economic viability with environmental and social responsibility.
The future of mining, particularly in Africa, is undergoing a process of reimagining and negotiation in response to unprecedented geopolitical and environmental challenges.
We must strive towards enhancing the resilience of our people and communities while concurrently decarbonising operations and supply chains.