By Andrew van Zyl, managing director, SRK Consulting (South Africa)
It is probably an understatement to say the world has become an unpredictable place over the past decade, but there are exciting opportunities to build more resilience in communities around Africa – with mining as a key driving force.
It is seldom disputed that mining is a powerful pioneer sector that can kick-start much needed economic diversification. All images supplied by SRK Consulting
From climate change impacts that have exacerbated floods and droughts, to a global pandemic and geopolitical instability, there has been a lot for mines to deal with recently. Then there are the usual commodity cycles to navigate, which have become even more volatile with rapid technological changes related to the energy transition, further impacting commodity prices.
Driven by global decarbonisation efforts, there is plenty of uncertainty about the future of vehicles driven by internal combustion engines – and hence about the demand for metals needed for catalytic converters. Even within fast-evolving battery technology, there is little agreement about exactly which concepts will prevail to lead the market. This means continued uncertainty about which metals and minerals will be in most demand.
Factors like these make for unstable ground on which to plan and execute new mining projects, on which Africa is still partly reliant for its growth prospects. It is seldom disputed that mining is a powerful pioneer sector that can kick-start much needed economic diversification.
Just as mining has been buffeted by these forces, so too, communities around the continent have also been affected. These unsettled conditions confirm that a key goal for all stakeholders in Africa’s development is to foster community resilience, equipping vulnerable societies with a measure of protection or future-proofing against tomorrow’s unexpected challenges.
For all the recent challenges, it is heartening to witness how mining has endured; it has in fact been given more tools with which to more effectively create positive social and economic benefits. There are two fields focussed on in this regard: energy and water.
Energy drive
In the age of energy transition, Africa has one key advantage over the world’s developed economies. We need more energy generation than we have, so we are not trading off one source of energy for another. Rather, we can embrace any renewable sources which can deliver power at a competitive cost – and mines around Africa have not been slow to do that.
In South Africa alone, the mining sector is reported to have 7.5GW of renewable energy projects in various stages of development. This country provides a good example of what can be done with the right government facilitation, as this surge in capacity was almost impossible until relatively recently. The legal regime in power generation enacted in 1922 effectively cut out private sector involvement, and when this was eased a few years ago, the mining sector moved quickly to harness renewable energy.
Jang’ombe community meeting working through a local Swahili speaking community facilitator.
The ‘small energy’ revolution
This demonstrated a few things: firstly, how difficult it is to coordinate ‘grand scheme’ projects, despite them being potentially game-changing for everyone; and secondly, how effective government can be when it simply facilitates or incentivises action by a large number of independent and smaller players.
For instance, the prospect of a large hydro-electric scheme that could serve many countries with clean energy is appealing for all the right reasons. However, such projects carry an enormous weight of complexity and coordination, requiring considerable and sustained commitment by many interested parties. Sometimes the inertia is too much, and the wait is too long.
By contrast, individual companies – even households – are relatively agile in their response to opportunities that serve their needs, and can dedicate resources relatively quickly and efficiently. Where there is sufficient common interest, each of these contributions can add up to an unprecedented groundswell. This is what has happened in the renewable energy space in many African countries, including South Africa.
Power to remote communities
In this context, the mining sector is not just serving its own need for energy. Clearly, it is advancing the global drive toward lower carbon emissions, but it is also opening doors for renewable technology to enter and transform communities around Africa. Especially in remote local economies where basic services are minimal, the adoption of solar energy by a mine can initiate or foster a valuable supply chain in related skills and products. With characteristic entrepreneurship in most parts of the continent, these new sectors are rapidly embraced by communities to enhance business, education and other facets of life.
One of the advantages of emerging renewable energy generation and storage systems is that they do not necessarily need the investment and infrastructure of traditional national grids. This has the effect of taking what was primarily a national government responsibility just a few decades ago, and placing that capability into the hands of private enterprise and community members.
Building resilience
Where communities have a reliable energy supply, they will have better access to communication and can improve their productive ability. All these factors build quality of life, but they also make individuals, households and communities more resilient to the changing world around them. Whether electricity is used for lighting to make communities safer, for extending business hours, for allowing after-hours learning or for pumping water, the benefits of affordable energy are myriad. In this way, more energy allows communities to future-proof themselves to some extent against uncertainties – not least of all from climate change and economic challenges.
Mines have recognised the importance of community engagement, and much has been achieved in placing the groundwork for a more collaborative future with stakeholders. Through these efforts, we are likely to see the energy investments made by mines having an enhanced impact on local communities. This is already gaining traction through mines’ innovative supplier development programmes and carefully negotiated corporate social investment initiatives.
Andrew van Zyl, managing director, SRK Consulting (South Africa).
Future water needs
Alongside energy generation and distribution, the question of access to water is high on Africa’s list of developmental priorities. Again, the mining sector has been focused on this issue for many years, and has made considerable progress. With our growing understanding of existing and expected climate change impacts, it has taken on more urgency – as shifts in temperatures and weather patterns have the potential to destabilise and impoverish especially rural African local economies.\
Initially, mining’s response to water management focused on conservation and efficiency – using less water and recycling more. These efforts have taken great strides and achieved many successes, and they continue unabated. However, there has also been an important, higher-level reconsideration of how water management is approached, based on sustainability thinking that looks beyond the confines of each mining licence.
Stewardship
Water stewardship is today the name of the game, driven by an approach which considers the whole catchment in which a mine is located, and which calls for collaborative planning and action among all stakeholders in that catchment. The minerals sector is among those leading this charge, with global mining players committing themselves to water stewardship principles and actions. This paves the way for involving communities, other mines and businesses, as well as government agencies in the quest to protect water resources and make them available to all who need them.
This is well articulated by the International Council on Mining and Metals (ICCM), which lists water stewardship among its environmental resilience commitments. The goal, says the ICMM, is to use water in ways that are socially equitable, environmentally sustainable and economically beneficial.
In addition to emphasising inclusive stakeholder engagement, the ICMM sees water stewardship in the context of maximising benefits to host communities – and minimising negative impacts – so that societal challenges can be more effectively managed. Finally, it links this theme to other vital principles in the journey of responsible mining: human rights; risk management; environmental performance; conservation of biodiversity; and stakeholder engagement.
Amid many challenges, the mining sector has been given more tools with which to more effectively create positive social and economic benefits.
Learning
Mining is setting itself increasingly ambitious goals in the face of recent global priorities, and it is worth appreciating that these aims have demanded significant innovation and change. As a sector which must prioritise human safety in the face of inherent risk, these changes have all had to be well considered.
At the same time, learning invariably comes with a measure of failure and – without compromising safety – mining has something to learn from our colleagues in more adventurous industries like technology and venture capital. To continue getting better at what we do, new directions must be explored and tested, and not all of these will be successful.
We need not be disheartened, though, as we learn something valuable from every effort, and need to continue supporting those scientifically driven experiments and innovations that the future demands.