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Mining modernisation, with private and public sectors as drivers, is an urgent strategic priority for the South African economy, a study undertaken by industry leaders, researchers, government partners, and innovators from across the South African spectrum reported very forcefully this week.

"We see that our competitors are investing heavily in digitisation and automation, as well as critical minerals and beneficiation.

"They're moving really quickly, and because they're moving really quickly, they're able to attract a lot of investment," Research Institute for Innovation and Sustainability (RIIS) consultant Ashleigh Muller reported during the Modernisation Showcase that displayed a strong partnership between Minerals Council South Africa, the Centre for Science, Technology and Innovation Indicators' specialised research unit within South Africa's Human Sciences Research Council, PwC Smart Mining, the Department of Science, Technology and Innovation, and the National Advisory Council on Innovation. (Also watch attached Creamer Media video.)

"We know that mining is a significant contributor to our national GDP. We also have a really strong mineral wealth endowment. We have established historical markets that we can make use of, and most importantly, we have a legacy of mining experience that we can draw from.

"But the problem is that the benefits that come from these advantages are increasingly being offset by … aging infrastructure, lack of skills, and slow adoption of technology really hinders our ability to be globally competitive.

"I think everyone in this room understands that South Africa … has an adoption and implementation problem. South has the raw materials to lead but the regulatory, skills and technology gaps must be closed with urgency and coordination," Muller pointed out.

The purpose of the global benchmarking of South African mining was to understand the best practices being undertaken by other mining jurisdictions across the globe and to see what lessons South Africa could learn and implement from them.

"Not necessarily because we're looking for a copy-paste solution. We understand that each mining jurisdiction is unique, but there are lessons to be learned from each of the nine", which were classified under the categories of 'visionaries' – Australia and Sweden – 'competitors' – Canada, China and Chile – and 'contemporaries' – US, India, Brazil and Saudi Arabia.

The only 'green' achieved by South Africa was in markets and value chains. South Africa's 'reds' were under the headings of 'enabling environment' and 'advanced technology' and 'yellows' in the categories of human capital, sustainability, health, safety and security and exposed were the critical gaps of technology adoption, enabling environment and governance.

INNOVATION PRIORITIES

Drawing on work published by South Africa's State-owned CSIR and public research initiative Mandela Mining Precinct, seven innovation priorities for the uplifting of South Africa's mining sector were identified, namely:

diigital transformation and automation,;exploration and mineral intelligence; research and development intellectual property; decarbonisation and energy modernisation; inclusive and responsible innovation; andvalue addition and beneficiation.

These priorities align closely with South Africa's Cabinet-approved Critical Minerals & Metals Strategy, which is designed to create 2.3-million jobs and boost mining's contribution to GDP to 12% by 2030 through local beneficiation, but with success dependent on the resolution of energy, logistics, skills and regulatory issues.

South Africa's innovation priorities were described as being well-defined but in need of implementation speed, funding, and cross-sector coordination to eradicate...

Mining Weekly Editor Martin Creamer talks about China’s Five-Year Plan, which has a focus on platinum group metals; the benefits of AI efficiencies, particularly for lower quality operations; and DRDGold’s regional tailings storage facility, which forms part of its R10-billion ex

This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.

Newmont, the world's biggest gold miner, beat second-quarter profit estimates on Thursday after a rally in bullion prices outweighed the impact of lower output, while it forecast steady production in the third quarter.

Gold has rallied on safe-haven demand and hopes of US interest rate cuts, although a stronger dollar and a crude oil-led inflation scare amid the Iran war have occasionally limited gains.

Prices of the yellow metal averaged $4 506.41/oz in the second quarter, up about 37% from a year earlier.

Newmont's quarterly average realized price for gold was at $4 414/oz, compared with $3 320/oz a year ago.

Quarterly gold production fell to 1.29-million ounces, from 1.48-million ounces a year earlier, hurt by lower output at Cadia owing to seismic events and at Ahafo South, Penasquito and Yanacocha owing to lower grades from planned mine sequencing.

Earlier this month, Newmont said the expansion of its Red Chris mine in British Columbia would depend on whether the project fits within its capital allocation framework and delivers value accretion.

CEO Natascha Viljoen said on Thursday Newmont has received all critical approvals and is working with the British Columbia government on mining investment terms.

But the C$500-million ($355.09-million) support "that we received from the British Columbia government is not a pre-requisite for us to take a decision on Red Chris Mine," she said.

The company expects third-quarter gold production to be broadly in line with second-quarter output. Operations at Cadia returned to normal levels as of mid-June.

Newmont said unit costs are expected to increase in the third quarter, mainly owing to higher sustaining capital spend, and could also be affected by higher oil prices, while remaining sensitive to royalties tied to gold prices.

The miner expects to invest $1.4-billion of development capital in 2026.

Newmont posted an adjusted profit of $2.10 apiece for the quarter ended June 30, compared with analysts' average estimate of $1.99, according to data compiled by LSEG.

This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.

The future of modernisation in South African mining will not be forged by individual companies or institutions working in isolation but collectively by industry leaders, researchers, government partners, and innovators from across South Africa's mining community, who gathered on Thursday, July 23, for this shared purpose.

"The modernisation of our mining industry is not a task any single organisation can undertake alone," Minerals Council South Africa CEO Mzila Mthenjane emphasised at the council's upbeat Modernisation Showcase event undertaken in partnership with the Research Institute for Innovation and Sustainability (RIIS), the Centre for Science, Technology and Innovation Indicators' research unit within South Africa's Human Sciences Research (HSRC-CeSTII) Council, PwC's Smart Mining, the Department of Science, Technology and Innovation, and the National Advisory Council on Innovation. (Also watch attached Creamer Media video.)

"Periodically, an industry must pause and answer two questions honestly: where are we and where are we headed? Not where we believe we are or where our communications suggest we are. But rather, where the evidence, tested against international practice, indicates we are and stand. That is the purpose of today."

Over recent months, three independent but complementary pieces of research have been completed, each examining modernisation in South African mining from a different perspective.

The group has defined modernisation as the people-centred adoption of new technologies, mining methods, skills and systems to enable mining that is safer, healthier, more productive, more competitive and more sustainable.

The research pieces are:

The Global Benchmarking Report, prepared by RIIS and the Minerals Council South Africa, which situates South African mining against its international peers.The RDI Survey Report, prepared jointly by HSRC-CeSTII and RIIS, which establishes the extent of research, development and innovation activity in this sector, and where it is concentrated.The 10 Insights into 4IR Report, prepared by PwC, which examines where AI and Fourth Industrial Revolution technologies have moved into genuine operational use, and where they have not.

"Each of these reports carries value independently. Together, they constitute something more substantial: a comprehensive view of modernisation in the country's mining industry – the investment we are making, our standing relative to the rest of the world, and the practical extent to which advanced technology is being deployed on our mines," Mthenjane pointed out at the event covered by Mining Weekly.

"This matters, because mining matters. South African mining remains a principal engine of this economy. Our members account for a large portion of the country's mineral production – more than 90% based on annual minerals sales by value – and sustains close to half a million jobs directly, with more than three-million dependent on the sector indirectly.

"The challenges before us are well understood: ageing infrastructure, deepening and increasingly complex orebodies, constraints in energy and logistics, and a global investment community with no shortage of competing jurisdictions for its capital.

"Opportunities are also abundant, including a domestic and global minerals demand for infrastructure and basic services development, driving the energy and technology transition and elevating significant social prosperity.

"In this context, modernisation is not a discretionary pursuit. It is what will keep this industry safe, healthy, competitive, and viable for future generations," Mthenjane explained.

This showcase, accordingly, is intended to:

create genuine space for evidence-informed dialogue among industry stakeholders – dialo...

This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.

Canadian miner Teck Resources managed to deliver another quarter of strong operational and financial performance in the three months ended June 30, generating significant earnings and robust cash flow on the back of strong copper sales volumes, a favourable commodity price environment and disciplined execution across its operations.

Teck president and CEO Jonathan Price says the company achieved a third consecutive quarter of stable operating performance at the QB mine, which demonstrates the progress made to strengthen reliability and consistency at one of the world's most important new copper operations.

"These results reinforce the strength of our business and position us well to advance the planned merger with Anglo American to create a global critical minerals champion with the financial strength, operational capability and portfolio quality to deliver significant value for shareholders," Price adds.

Teck's adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) totalled $2.2-billion in the second quarter, which marked a 204% increase on the second quarter of last year. Ebitda in the prior corresponding quarter amounted to $722-million.

The group's adjusted profit attributable to shareholders increased from $187-million, or $0.38 apiece, in the second quarter last year to $948-million, or $1.93 apiece, in the reporting quarter.

The profit attributable to shareholders was $854-million, or $1.74 apiece, compared to attributable profit of $206-million in the same quarter last year - marking a 314% increase.

Cash flow from operations of $1.7-billion increased Teck's net cash position by $756-million during the second quarter this year, with its liquidity standing at $10.3-billion at the end of June - including $6.1-billion of cash.

Notably, the company's copper segment generated gross profit before depreciation and amortisation of $1.8-billion in the second quarter, compared with $673-million in the same quarter last year. This was driven by higher production and record copper prices, which averaged $6.05/lb in the quarter under review.

Teck produced 135 900 t in the quarter, which marked a 25% year-on-year increase, with production increases having been recorded across all of its copper operations.

The zinc segment generated gross profit before depreciation and amortisation of $353-million in the reporting quarter, compared to $159-million in the same quarter last year. This segment also benefited from higher commodity prices and continued focus on cashflow generation through Teck's optimised feed strategy at the Trail Operations.

Teck remains on track to produce between 455 000 t and 530 000 t of copper in the full year, and between 410 000 t and 460 000 t of zinc, which would deliver between 190 000 t and 230 000 t of refined zinc.