Digging deep into African mines

Africa is home to a significant portion of the world's mineral resources that include platinum group metals (PGMs) gold, coal, copper and iron ore. The continent is estimated to hold about 30% of the world's mineral resource deposits, has a population of 1 billion people and is expected to deliver steady Gross Domestic Product (GDP) growth of approximately 5% annually between 2013 and 2018.

The mining industry is a key driver of growth for many African economies and is a key source of foreign currency and employment. It also provides a catalytic role for the development of the continent's infrastructure network including ports, railways, and roads. In South Africa, the mining industry accounted for approximately 9% of the country's GDP in 2012. In the past decade, rising commodity prices and a strong demand for mineral commodities, particularly from China and India, resulted in resource rich African economies generating billions of dollars in foreign exchange receipts. Ghana and Mozambique's mining industries accounted for approximately 60% and 66% of the two countries' foreign exchange receipts respectively in 2012.

New business models

Mining is a capital intensive, long term and technology driven business. Africa's mining companies require stable and predictable regulatory frameworks, compliance with health and safety regulations, and effective and efficient operations in order to build and sustain competitive advantage. The rapidly changing global economy, increasing emphasis on productivity and optimal asset utilisation require mining companies to adapt in order to deliver value to shareholders. Africa's mining industry will need to adopt new business models underpinned by high productivity, cost control, compliance with health and safety regulations in order to cope with the changing fundamentals in the global mining industry.

Africa's mining companies are inter-dependent with the communities they serve and countries they operate in. There have been increased calls from African governments for mining companies to contribute significantly to the socio-economic development of communities that are affected by mining activities. Mining companies have the opportunity to contribute to the economic prosperity of the communities and countries they operate in by employment creation, skills and training investment, and the payment of taxes and royalties to governments. These companies are facing increasing pressures to develop business and social partnerships based on mutual value creation with local communities, governments and other interested stakeholders.

The mine of the future in Africa

Existing ore bodies in Africa are estimated to be exhausted in the next 25 years to 40 years, leaving behind deep level ores in remote areas that are more geologically complex to extract. Extremely challenging environments such as remote locations, tough ore conditions (hardness of rock, thickness of overburden), mining at great depths and environmentally sensitive areas are envisioned to be the operating conditions of the mine of the future. It is forseen that mines will be automated and totally integrated with field devices (sensors, actuators, motors and drives). Control solutions (DCS, SCADA), Manufacturing Execution Systems (MES), ERP and SAP would be integrated to develop a constant stream of information from which strategic and tactical decisions could be made. Mines will be using intelligent machinery and equipment for rock blasting and drilling, as well as intelligent transportation and logistics systems. These changesNike Air Max 1 For Sale