For decades, Africa’s mining sector has been hindered by inadequate infrastructure, including power, water supply, and notably, roads and rail. This has been a significant challenge for the development of the continent’s mining industry.
A critical question arises: who should be responsible for Africa’s logistical infrastructure challenges – the government or the industry? This question will be at the heart of the “Disruptive Discussions at Mining Indaba 2024,” where experts will debate solutions to this longstanding issue.
Laura Cornish, Head of Content for Investing in African Mining Indaba, emphasizes the importance of this discussion, recognizing the economic benefits that could be unlocked through improved infrastructure. This includes not only the mining sector but also manufacturing and construction.
A specific session titled “Who should pick up the logistics tab? Government or industry?” is scheduled for February 6th at the Indaba. It will feature top executives from the iron ore and coal sectors in South Africa and other African countries. The panel includes Marcus Courage, Gerard Rheinberger, July Ndlovu, Marcel Bruhwiler, Dr. Nombasa Tsengwa, and SUN Siyuan.
South Africa’s coal industry, for instance, is struggling due to Transnet’s inadequate rail capacity and maintenance. A recent derailment in KwaZulu-Natal that disrupted the coal export line to Richards Bay underscores this issue.
In contrast, the iron ore industry, rich in deposits across Africa, has been dormant due to lack of rail capacity. The Simandou iron ore project in Guinea, a collaboration between Rio Tinto, the Guinean government, and other companies, is a prime example. With an initial funding of US$11.6 billion, this project is expected to significantly contribute to Guinea’s economy and is seen as a model for the rest of Africa.
The successful collaboration in Simandou raises the question of whether such partnerships could be the solution to Africa’s broader infrastructure challenges. The experience offers valuable lessons for South Africa in addressing its own mining infrastructure issues.
Marcus Courage, CEO of Africa Practice, highlights the growing alignment between the public and private sectors in understanding the link between mining logistics infrastructure, poverty reduction, and climate change. He points to innovative contracting and risk-sharing arrangements that enable sustainable commercial financing for infrastructure projects.
As the mining industry gathers at the Mining Indaba to discuss these critical issues, the spotlight will be on how Africa can leverage its resources for economic growth, while tackling logistical challenges through collaborative efforts.
