A change in attitudes, from the boardroom to the operational pit level, will be the only way for mines to escape low productivity levels and find a path back to long-term sustainability, says mining consultancy SRK Consulting corporate consultant Roger Dixon.
“With productivity levels currently between 25% and 30% lower than they were a decade ago, it is not enough for mines to focus on isolated areas of operation for a magic bullet,” he emphasises. Dixon adds that the gradual process of continuous improvement will also not result in the reversal of the current “untenable situation.”
He remarks that South Africa’s mining sector is bound by a shaft infrastructure that has long exceeded its planned life and is no longer efficient. Dixon comments that much of the gold industry, for instance, is still running on 60-year-old-plus infrastructure that was only designed for a 40-year life-of-mine.
“There also has not been enough forward ore reserve development, owing to capital constraints and this links directly to productivity,” he states. Dixon also blames the poor performance on the use of “1950s technology” such as compressed-air-driven rock drills, noting that compressed air is one of the most inefficient power sources.
“Perhaps more importantly, however, it is our dated management model that holds back real productivity gains. The mining industry has been through many drastic changes in recent decades – from trade union recognition to violent strikes – but we have not formally reviewed management competences to perform optimally in this new and challenging environment,” he highlights.
Further, Dixon points out that there is a need for mining operations to engage constructively with a wider range of stakeholders, including employees and communities, to find ways of ensuring a wider spread of benefits for more people.
“The problem is that declining productivity has been proceeding alongside persistent inequality among South Africans, as well as a growing population. This is a toxic mix that threatens not only the mining industry, but the legitimacy of capitalism as a whole,” he warns.
Dixon says that one of the ways to bring meaningful change to the industry is through the creation of value by applying fast-developing technology across all elements of mining operations. He believes that digital innovations allow mines to monitor and control various activities significantly more efficiently and safely. Dixon also notes that remote control functions ensure that fewer mineworkers are required to work in high-energy zones at the working face.
“Progress in mining will shift from how well the operation moves material to how well it collects, analyses and acts on information to move material more productively,” he remarks.
Moreover, Dixon points out that the performance of the engineering disciplines in mines is being constantly enhanced by computer capacity and related technology. For example, the integration of skills and experience, along with sophisticated modelling of the orebody, structural geology, geohydrology, geotechnical engineering, mine planning and scheduling is currently able to significantly improve mine efficiencies and reduce risk.
He also highlights that drone technology is being used to deliver high-quality images of pre- and postblast conditions in openpit mines, which is allowing for better blast planning and modelling.