Mining production optimisation in South Africa

Abstract

South Africa has arguably the largest reserves of mineral resources in world. This resource abundance is clearly not being utilised, as South African mining production has fallen year on year, while other resource rich countries increased production during the current sustained commodity cycle which is driven by large emerging economies. This study, exploratory in nature, attempted to determine whether the production techniques used by South African mining companies are efficient enough to allow South Africa to compete in an increasingly globalised sector. The study also attempted to determine what and how other factors affect the production output in the South African mining sector. The information was gathered by means of an online questionnaire, both qualitative and quantitative in design that was completed by 31 respondents at management level, currently engaged in mining production The factors affecting production were found to be both non-technical, such as legislation and labour related and technical factors within the production cycle Operating in a price taker global market, South African mining techniques certainly need an overhaul in comparison to international mining operations. Stakeholders within the sector need to recognise that a symbiotic relationship is needed to drive production in the sector instead of the current seemingly parasitic relationship.