Digital Transformation Opportunities and Challenges in the South African Mining Sector

Abstract

The sustainability of the South African mining sector is under threat due to multiple factors affecting the sector, these include high production, and labour costs, the decline in global commodities prices, aging infrastructure, plant and equipment, and strict health, safety, and environmental regulations. Most South African mining companies are operating old mines that are reaching their end of life. Therefore, South African mining companies are looking for innovative ways to remain sustainable and competitive.

The purpose of this research was to understand the potential Digital Technologies and Solutions that the South African mining sector can adopt, in addition to explore some of the Drivers and perceived Barriers to their adoption in their mining and operationsprocesses.

A qualitative, exploratory research method was used to conduct the study, and thematic approach analysis was employed to explore the study objective. Nine participants were interviewed from different South African mining companies operating different commodities, and only participants in senior, middle, and junior management roles were selected for this study. Participants’ interview responses were recorded, and transcribed, and data analysis using a thematic approach was applied. Six themes emerged from the data analysis; these themes were composed of twenty-five categories. These categories were identified as drivers and barriers for South African mining companies to adopt potential digital technology and solutions in their mining and operations.

The barriers due to the South African mining sector’s complex environment were identified as the reasons for the slow adoption of digital technologies and solutions by the mining sector. The mining sector must adopt digital technologies and solutions that are suitable for their environment