Most
commentaries on the status of the mining
industry in South
Africa
refer to the decline in our rankings within the international
comparisons. Mining is essentially the industry that developed the SA economy
and which spawned the support industries that provided the equipment and
services.
Our unique
Government Certificate of Competency evolved from the early 1900s to develop
safer working conditions and improved skills for the activities of the mining
industry. A recent international survey ranked SA at the top of the list for
the value of minerals in the ground at the awesome figure of R2,5 trillion,
well ahead of Russia
in second place. With such credentials we have, however, declined in our competitiveness
as growth markets have increased the demand for resources. We effectively lost
out on participating in the last resources boom that witnessed countries such
as Australia, Canada, many in Africa north of us and many in South America actively rise in the provider stakes.
Various reasons are debated for this, but the most frequently identified are
poor and slow policy making, the references to nationalization, the reduction in
our capacity for research and development and the accompanied loss of
experienced skills. In more recent times, the sudden increase in energy costs
and industrial strike action have added to the reversal in our competitiveness.
In September
the next Electra Mining exhibition will be held which is one of the largest of
its type internationally, and which from all accounts, will be well supported. In
particular the action in Africa north of us is
significant and we have seen many of our project management, design and
construction skills moving to manage these northern projects. Some of our EPCM
companies have such projects that make up the bulk of their order book. Further afield, estimates put the human
resources running the Australian mining industry to be over 50% of South
African origin.
With the
slump in the platinum price which has placed a number of mines on a caretaker
basis or a scramble to try and manage with fewer contracted resources, can the
stakeholders, being investors, government, and the mining industry address the
skills issues that are even in the present circumstances in short supply? Most of those with whom I interact express
the fear about what are we going to do when the lights really come on again -
once the European and American recessionary conditions change and the world
demand for minerals resumes?
Reports on
the diminished R&D capacity and skills in the research establishments, that
in the 80s and early 90s were world leaders in mining research and development,
are of great concern as the ability to innovate disappears. Clearly mining
activity also depends on reliable infrastructure and good logistics which are
not well positioned either at present.
In the vein
of " ‘n boer maak a plan” in which South Africans have shown an adept ability,
can we tackle this huge challenge and get our competitiveness on the rise? It
cannot be beyond our ability and willingness to do some serious mining skills
development together with that needed across the whole engineering domain. It
is time we saw some next steps in the action territory after the publication of
the diagnostic report of the National Planning Commission. It could be in
danger of becoming another book shelf study.
We really
need to curtail our incessant, negative outlook on this state of affairs and
try to get collective, positive group action to turn our mining status around.
However, from where will this be triggered and what will catalyze the process?
Perhaps the
Electra Mining event could energise some reality here. The SAIMechE is to
facilitate the first of its Soap Box sessions which will be interesting to
watch. Let’s hope the speakers will be able to address some of these issues and
spawn some industry enthusiasm to make things happen. One can safely say that
the survival of South Africa
depends on it.