The mining sector is an important catalyst in fostering intra-Africa trade, as well as opening up value chains in new technologies with significant social benefits, said engineering consultancy SRK Consulting MD Andrew van Zyl.
Speaking at the Investing in African Mining Indaba, held in Cape Town in early February, Van Zyl said mining operations across Africa were creating economic momentum for new local markets, contributing to broader social transformation.
“Mines play a vital role, often underestimated, in bringing critical mass to the adoption of valuable technologies that would otherwise struggle to gain a local foothold in communities around Africa.
“Decentralised renewable energy is a good example, which can rapidly transform livelihood opportunities, productivity and general standards of living within communities,” he noted.
The application of solar PV power installations at mining operations creates demand for local inventories and technical expertise for installation and maintenance of such systems, highlighted Van Zyl.
He added that once mining investment incentivises the establishment of local service providers, communities and small businesses are able to access associated technologies more affordably, thereby opening opportunities to adopt innovations that improve livelihoods.
“These processes can advance transformation even more effectively when a country’s relevant legislation, regulations and incentives are aligned with the economic and technological opportunities,” added Van Zyl.
Referring to related developments in South Africa, Van Zyl pointed out that the renewable energy licensing exemption threshold for solar and other energy plants increased from 1 MW to 100 MW in 2021, enabling greater levels of private renewable-energy generation.
Local mines have since connected about 3.5 GW of non-grid power projects, within a pipeline that could reach 5 GW by 2030.
Van Zyl says the Investing in African Mining Indaba’s focus on collaboration reflects the reality that technological advancement also requires regulatory innovation, with both technical and legal aspects “demanding engagement, courage and scientific rigour”.
