The fourth industrial revolution: assessing the potential socio- economic effects of automation in a South African coal mine – a case study

Abstract

Industrial revolutions have been in existence since the end of the 18th century. The revolutions were adopted to improve productivity and efficiency in all industries worldwide. Before 2010, three industrial revolutions occurred, and now we are in the advanced technologies industrial revolution called the Fourth Industrial Revolution. Technological advancement is integral to the Fourth Industrial Revolution in various industries, including mining. The digital, physical, and biological aspects are three technological drivers of the Fourth Industrial Revolution. For everyone adopting innovation, the fusion of these technologies creates new markets and growth opportunities and influences the socio-economic status. All the previous industrial revolutions have been associated with socio-economic disruptions, and the Fourth Industrial Revolution will not be different.

In the Fourth Industrial Revolution era, automation in the mining industry’s production process has increased. Low, middle, and full automation have been applied in the mining industry, with full automation being the latest adoption. The mining value chain from exploration, mining, processing, marketing, and trade has been using the latest technologies related to Fourth Industrial Revolution, such as drones, driverless trucks, and trains.

Mining giants in developed countries have adopted automation to reduce operating costs, improve safety, access low-grade ore, and improve productivity and efficiency. Companies that have embraced automation have remained competitive. Loss of employment and skills shortage are some of the challenges of automation adoption. Developed countries are in the lead of automation adoption and research of the potential socio-economic effects compared to developing countries such as South Africa. As a result, there is minimal information on the potential socio-economic effects of automation adoption in developing countries.

The explanatory mixed-method was used to investigate the potential socio-economic effects of automation adoption in an opencast coal mine in South Africa. The study assessed the level of understanding of automation and the perception of the potential socio-economic effects of automation adoption. Factors that may impede a successful automation adoption and possible mitigation measures were investigated. The information was gathered through an online questionnaire completed by 102 respondents and qualitative interviews completed by 8 respondents.

The identified socio-economic effects by participants were closely related and were not significantly different from the literature findings. The differences in responses were noted in the depth and scope of the benefits and challenges. There is a general view by participants that automation is inevitable. The misalignment in the education system, skills shortage, high unemployment rate, a strongly unionised labour force, and high socio-economic inequality are some challenges to mitigate for automation adoption to succeed.