In a significant development for South Africa’s mining industry, a comprehensive survey aimed at understanding the sector’s investment in research, development, and innovation (RD&I) has been launched. This initiative, a collaboration between the Minerals Council South Africa and the Human Sciences Research Council (HSRC), facilitated by the Research Institute for Innovation and Sustainability (RIIS), seeks to shed light on the dynamics influencing RD&I funding and identify barriers to innovation. The survey is poised to offer fresh insights into how the mining sector, a pivotal player in the global economy and crucial for a low-carbon future, can modernize operations to enhance safety, and ensure social and environmental sustainability.
Historically, the global mining industry has been slow in adopting innovation, with a 2020 study revealing that mining companies allocated less than 1% of their gross revenue to RD&I. This figure starkly contrasts with the investment levels in other sectors, such as the global oil and gas industry and the chemicals and agriculture sectors, which spent 3% and about 17% of their earnings, respectively, on RD&I. Such disparity underscores the mining sector’s relatively low RD&I intensity despite its critical role in supplying essential minerals and metals.
Innovation is deemed essential for the mining sector’s evolution towards sustainable practices and modernization. Leading mining jurisdictions, like Australia, have demonstrated that embracing innovation can significantly improve safety, boost productivity, and foster the adoption of sustainable practices. Sietse Van Der Woude, the Senior Executive for Modernisation and Safety at the Minerals Council, emphasized the necessity of innovation for modernization and highlighted the potential external sources of innovation that could support the mining sector’s progression towards a just energy transition.
The survey’s significance is further underscored by the involvement of the HSRC, Africa’s largest social sciences and humanities-focused research institute, known for conducting annual national surveys on private sector RD&I. Dr. Glenda Kruss, Executive Head at the HSRC’s Centre for Science, Technology and Innovation Indicators, expressed enthusiasm for the initiative, noting its potential to yield critical statistics that could influence the mining industry positively. The survey aims to assist in developing institutional innovation investment policies and establishing previously unarticulated industry RD&I investment benchmarks.
A previous comprehensive review conducted by RIIS, titled the South African Mining Innovation Ecosystem’s Review, highlighted the need for more diverse and innovative funding mechanisms. This need is increasingly pressing as South Africa grapples with diminishing investment attractiveness, a concern highlighted by the Fraser Institute’s annual global mining jurisdictions survey, where South Africa ranked among the least favorable mining jurisdictions for two consecutive years.
The RD&I survey represents a crucial step in enhancing the understanding of the mining innovation ecosystem, indicating how strategic investment can secure the mining sector’s role as a vital contributor to the South African economy. Davis Cook, CEO at RIIS, remarked on the survey’s potential to augment the comprehension of mining’s innovation ecosystem and the significance of considered investment in ensuring the sector’s robust contribution to the national economy.
With an industry-wide call for participation, the survey results, expected to be released in the latter part of 2024, are anticipated with keen interest. This initiative not only highlights the mining sector’s commitment to embracing innovation but also sets the stage for a transformative journey towards sustainability and modernization, ensuring the industry’s continued significance in South Africa’s economic landscape.
