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Instead of relying primarily on traditional geological interpretation, South Africa can turn to artificial intelligence (AI) for help in the same way as has been done with huge success to discover Zambia's biggest copper deposit in a 100 years, South Africa's Mining Modernisation Showcase attendees heard.

To achieve this success, KoBold Metals digitised 300 years of handwritten geology reports, taught geology to AI, used AI models to analyse the vast amounts of geological, geophysical, drilling and historical exploration data to predict where high-grade mineralisation was most likely to occur, and then drilled a hole.

The outcome is that ground has already been broken at Mingomba, where the construction of a $2.3-billion copper mine is under way.

"It's crazy good, and the reason why I've given this example is because this is one of the specific things that South Africa needs to do," PwC Associate Director Smart Mining South Africa Ian Mackay explained at the mine modernisation event led by Minerals Council South Africa, Research Institute for Innovation and Sustainability (RIIS), the Centre for Science, Technology and Innovation Indicators specialised research unit within South Africa's Human Sciences Research Council, the Department of Science, Technology and Innovation, the National Advisory Council on Innovation, and PwC Smart Mining South Africa. (Also watch attached Creamer Media video.)

The need for South Africa to be able to identify deposits where its next mines will be built was emphasised as being ultra urgent given the high dependence of South Africa's economy on mining.

"Before we can go and talk about investors and all the rest of it, we actually need deposits. We need something to put in the cadastral system in order to be able to sell it," Mackay outlined.

Mining cadastres track precise geographic boundaries, active operations, permit expiration dates, and the status of applications and South Africa's has still to be fully developed, amid Minerals Council South Africa pointing out at its 136th annual general meeting in May, that there is an urgent need for a one-stop shop for mineral right applications to coordinate and align all relevant regulations from other departments, to streamline and expedite approval processes.

In addition to optimising exploration, AI can already support a range of mining use cases such as detecting illegal mining using satellite imagery, predicting equipment failures before they happen, improving environmental performance, automating hazardous tasks, and improving metal recovery and processing.

AI could support research into new uses for platinum group metals, find new industrial applications for rare earths and battery chemistries, and potentially help to unlock deep gold resources.

"AI is not magic but used properly, it can help us see earlier, decide faster, operate faster, reduce waste, improve productivity, and unlock new forms of value," Mackay pointed out at the event covered by Mining Weekly.

PwC's full study is based on ten structured, anonymised CEO interviews, additional focus group sessions with line management from a diverse range of miners, and industry meetings and strategy sessions.

South Africa's mining industry is not growing in the way it needs it to grow. Very few large new mines have started in recent years, more mines have closed, economically viable deposits are harder to find, employment continues to decline, and illegal mining, infrastructure failures and community pressure are adding further strain.

Can AI and the Fourth Industrial Revolution help South African mining become safer, smarter, more competitive and more inclusive — or will South Africans allow the opportunity to pass their country by?

Mining is being hit by clima...

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.

Fortescue founder Andrew Forrest called for China and Australia to "always negotiate fairly," at an event in Perth on Monday, as the world's fourth-largest iron-ore maker negotiates annual supply terms with its biggest customer.

Global iron-ore miners have faced increasing resistance from China's state iron-ore buyer, China Mineral Resources Group (CMRG) in annual supply talks over the past year as China seeks better terms for its steelmakers.

Measures by CMRG have included restricting China's vast network of steel mills from buying certain iron-ore products from miners while negotiations were underway.

"Bilateral trade has supported Australian jobs, businesses, and public services, and also provided China with a secure and reliable supply of iron-ore that drove its extraordinary, unprecedented, historic, and industrial growth," Forrest, who is also Fortescue's executive chair, told the Boao Forum Perth, an offshoot of the larger Boao Forum for Asia.

Australia is the world's top iron-ore producer, accounting for some 53% of global supply. It expects iron-ore export earnings to fall to A$108-billion ($75.57-billion) in the 2026/27 financial year from A$117-billion last year as global supply rises.

The "shining light of partnership" should encourage Australia, China, and also Gabon, where Fortescue is building more iron-ore operations, to "grow together," he said.

"Let's always negotiate fairly... true partnerships are built on a partnership of the future."

CMRG notified China's domestic steel mills in early July that from July 15 they must not take delivery of Fortescue's Super Special Fines product held at ports.

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.

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.