By Charmaine Ndlela
South Africa risks falling further behind global mining competitors unless government, industry and research institutions accelerate the modernisation of the sector, according to three new reports released by the Minerals Council South Africa.
The studies warn that while mining companies are increasingly adopting technologies such as artificial intelligence (AI), the country continues to lag behind leading mining nations because of regulatory uncertainty, weak research and development investment, critical skills shortages and a fragmented innovation ecosystem.
The reports were launched during the Mining Modernisation Showcase in Johannesburg.
They South Africa’s progress in research, development and innovation (RDI), benchmark the country’s mining industry against global competitors, and examine the growing role of artificial intelligence and Fourth Industrial Revolution (4IR) technologies in mining operations.
Addressing delegates at the showcase, Minerals Council South Africa CEO Mzila Mthenjane said modernisation is no longer a strategic choice but an economic necessity.
“South African mining remains a principal engine of this economy,” Mthenjane said.
“Our members account for more than 90% of the country’s mineral production by value and sustain close to half a million direct jobs, while more than three million livelihoods depend on the sector indirectly.”
He said the industry faces ageing infrastructure, increasingly complex ore bodies, energy and logistics constraints, and growing international competition for mining investment.
“In this context, modernisation is not a discretionary pursuit. It is what will keep this industry safe, healthy, competitive and viable for future generations,” he said.
Mthenjane described modernisation as the people-centred adoption of new technologies, mining methods, skills and systems to build a mining sector that is safer, healthier, more productive, sustainable and globally competitive.
The reports collectively paint a mixed picture. While mining companies are embracing digital technologies, South Africa remains behind global leaders in creating the broader policy, research and skills environment needed to support long-term innovation
One of the reports, Modernisation of Mining in South Africa: Research, Development and Innovation Patterns and Firm Capabilities (2021–2023), found that mining companies are focusing more on adopting existing technologies than investing in research and development.
The study identified governance challenges, limited investment capacity and shortages of engineering, managerial and technical skills as major barriers slowing the pace of modernisation.
Dr Nazeem Mustapha, who heads the Human Sciences Research Council’s Centre for Science, Technology and Innovation Indicators, said South Africa has significantly fewer researchers than competing mining nations.
“In South Africa the number of researchers per capita is about five times lower than Australia. This gives us an indication of how far behind the curve South Africa is relative to countries that have perhaps more actively and aggressively pursued modernisation in mining practices,” he said.
The Global Benchmarking Report, compiled by RIIS and the Minerals Council South Africa, compared South Africa with ten leading mining countries and concluded that successful mining economies combine technology adoption with supportive policy frameworks, infrastructure investment and strong collaboration between industry, government and research institutions.
RIIS Principal Sylvesters Okello warned that South Africa’s competitive advantage cannot be taken for granted.
“South Africa stands at a defining crossroads in mining modernisation,” he said.
“Despite holding world-class mineral wealth and a capable private sector, the country trails global leaders due to regulatory uncertainty, critical skills gaps and fragmented innovation efforts.”
Okello said the country’s opportunity to position itself as a preferred global supplier of critical minerals would not remain open indefinitely.
“The findings are clear. Government, industry and research institutions must act with urgency and genuine coordination before faster-moving competitors close the gap.”
Artificial Intelligence
Artificial intelligence also featured prominently in the latest 10 Insights into 4IR in South African Mining report, produced jointly by PwC and the Minerals Council.
The report found that AI is increasingly being used for predictive maintenance, real-time safety monitoring, geological analysis and energy optimisation, helping mining companies improve operational efficiency while strengthening worker safety.
PwC Associate Director for Mining Transformation Ian Mackay said AI should be viewed as a tool that enhances human capability rather than replacing workers.
“What we see clearly is that AI is not being viewed as a replacement for people. Mining leaders see it as a way to strengthen human capability, enabling safer operations, better decisions and faster responses in an increasingly complex operating environment.”
Mackay said one of the sector’s biggest structural challenges remains the sharp decline in mineral exploration.
According to the study, exploration activity has fallen to about four percent of what it was roughly two decades ago, reducing the discovery of new mineral deposits and limiting future mining projects.
“We don’t have huge big new mines that are being started,” Mackay said.
He said that digital technologies could help identify new mineral deposits while extending the life of existing mines.
Senior Executive for Modernisation and Safety at the Minerals Council South Africa, Sietse Van Der Woude, said the reports represent an important milestone in strengthening the industry’s innovation agenda.
“The launch of these publications marks a significant milestone in advancing South Africa’s mining modernisation agenda and reinforcing the sector’s commitment to innovation-led safety, growth, inclusive industrial development and global competitiveness,” he said.
He added that building a safe, healthy and globally competitive mining industry would require sustained collaboration between government, industry, academia and technology partners.
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