Factors necessary for effective adoption of modernisation in the South African mining industry

Abstract

The sustainability of the mining industry in South Africa is under threat due to global and local pressures including high production cost, low profit margins, labour unrest and rising demands by government. These additional local pressures have limited economic recovery for the industry, resulting in job losses including multinational mining companies exiting the country. However, the mining industry remains one of the highest employers in South Africa, hence the need to transform to become productive through modernisation. The adoption of technology innovation has been experienced as a credible solution in other industries, where integration of technology has been employed to solve problems and improve efficiencies. The objective of the study was to explore the organisational factors that support or inhibit the acceptance of technology solutions for adoption of modernisation in the mining industry of South Africa. A qualitative, exploratory research method was selected to understand relevant adoption factors for the mining industry. Thirteen interviews were conducted with management from mining organisations across four commodity clusters. Thematic analysis was employed to uncover deeper meaning around the factors that influence acceptance of technology solutions. The key factors identified were found to be: 1. Value drivers associated with perceived benefits; 2. Execution processes to ensure integration of technology into current business processes; 3. Change management and communication driving acceptance of technology solutions; and 4. Stakeholder engagement. Key enablers were found to be innovative culture, research and development and business ethics. An adoption model was proposed as a guide to mining organisations in South Africa on factors that need to be addressed in driving acceptance of technology for modernisation of the industry.