The state of digital transformation in the South African mining industry: Ten insights into fourth industrial revolution (4IR) 2023 report is now available. The report provides new insights, validates existing insights from the previous report, and articulates the mining industry’s commitment to using digitalisation and technology for the ultimate creation of business value in the mining sector.

The Minerals Council South Africa, in collaboration with PwC and the Mandela Mining Precinct, launched its first study into ‘The State of Digitalisation and 4IR in SA Mining’, in 2020. The study’s findings were summarised in 10 insights. These insights were received well and disseminated globally.

The 2020 study focused on digital transformation and 4IR readiness and was expanded to include environmental, social and governance (ESG) aspects to bring the industry in line with what is expected of companies in the modern world.

Key insights identified:

Insight 1: Mining chief executive officers (CEOs) and their executives are being deliberate: In contrast to 2021, today, the mining CEO is focused on innovation rather than a top-down, initiative-based approach. Leaders now see digitalisation and 4IR as a de facto part of mining. According to the survey, 100% of respondents are making the transition to digital, including using technology for their ESG programmes.

Insight 2: Technology is being applied where it has the greatest measurable benefit: Digitalisation is providing miners with visibility and transparency of their business – it is reducing bureaucracy and, ultimately, providing us with the ability to make better decisions. The major data-driven decision-making platforms will be maturing from 2025 to 2027 and are expected to challenge our assumptions about how we mine.

Insight 3: The hunt for value requires cooperation and compromise: Cost leadership, efficiency and profitability remain the number one concern of mining CEOs – with overall business sustainability and longevity being number two. The fight for capital allocations is based on measured benefits, which has been a challenge in the past for digital – digital programmes are often difficult to qualify before execution, requiring a ‘leap of faith’ and indirect benefits are difficult to measure, as is the ability to enable future value.   

Insight 4: Digital tools do not just measure, they contribute (the union perspective): Labour unions are key stakeholders in the mining industry and have a unique perspective on the value of digitalisation and 4IR. Two surveyed unions tell us that digital technology is essential to improving health and safety and plays a key role in communication. They also tell us that the greatest strength of digital is that it enables workers in their daily duties and provides on-the-job assistance.

Insight 5: The imperatives for sustainability and the crown jewels: After seven decades of peaceful trade, the world started to de-globalise in 2023. Data are at the centre of business success and sustainability in this new world and data will be the most intensely managed part of the mining business over the next 10 years, because trustworthy information is needed in real time. CEOs anticipate a shift from reactive to proactive management – which requires these new tools.

Insight 6: We are up to the challenge and have the tools we need to win: South African miners have not been satisfied with the progress in digitalisation and 4IR transformation since 2019. The CEOs agree, for the most part, that the past three years have spurred on the development, use and understanding of technology in the mining space, but unanimously agree that we could have done better.

Insight 7: Mining is about people – and we need to fight globally for talent: Leadership is key, while culture can replace scarce skills. Mining needs to create an environment that attracts young talent in a world that also needs data scientists and digital natives. However, we also hear about success stories where the workforce is enabled and transformed digitally over time – without the importation of new skills.

Insight 8: ESG – critical for business survival or a tick-box? While ESG may be one of the latest buzzwords related to business and sustainability, the response to environmental, social and governance drivers is not in any way new to the mining sector. However, the way in which mining companies in South Africa need to engage with these drivers is changing. That requires a fundamental rethink in terms of the risks and opportunities presented by these drivers and the underlying system changes that they demand.

Insight 9: ESG – regulations shape ESG requirements (for better or worse): While legislation drives the responsible business agenda for our mining industry, embedding ESG into an organisation is more than just compliance – it is centred on the ability to create long-term value.

Insight 10: ESG drives long-term value: Without a blueprint or clear regulations, miners have chosen their own preferred path and reporting for ESG. Unions argue that there is less focus on social and governance issues as more attention is given to environmental protection, but all parties regard ESG as a path to a sustainable mining future, and digital as the means to accomplish these goals.

The full report is available to download from the Mandela Mining Precinct website.