Through collaboration between various mining sector stakeholders – including local governments, community stakeholders and strategic collaborators – mining companies are finding ways to keep their operations running efficiently, ensuring that they remain viable in an increasingly competitive and volatile landscape, reports diversified miner BCR Holdings.

Despite South Africa’s mining industry being one of the most advanced on the continent, it has not been immune to setbacks, the company notes.

This is evidenced by statistics from Minerals Council South Africa in September, showing a decline in mining production of 2.3% on a year-on-year basis. Three commodities were mainly responsible for this decrease, namely coal, iron-ore and platinum group metals.

Facing significant headwinds, such as loadshedding, aging infrastructure and ongoing labour unrest, operations across the sector are constantly being disrupted. BCR highlights estimations in 2023 showing that the South African mining industry lost R100-billion in profit owing to the country’s unreliable electricity supply, railway constraints and market price fluctuations.

However, as a cornerstone of South Africa’s economy, BCR notes that the mining industry is vital to the country’s growth, and to overcome this challenging environment, collaboration has emerged as a “powerful tool” for navigating industry pressures.

As a major industry segment, the opencast mining sector plays a pivotal role in providing critical minerals such as platinum, chrome and coal, to various global supply chains. However, opencast mining also faces numerous challenges, such as infrastructure constraints, fluctuating commodity prices, regulatory uncertainties and growing pressure for sustainable practices.

In response, BCR notes that strategic partnerships have become a key driver of success, helping mining companies navigate these complexities while boosting efficiency.

One of the major benefits of such partnerships, the company says, is the shared knowledge and resources they bring.

“In a sector as complex as mining, access to a broader network allows companies to streamline their processes, improve project planning, and manage risks more effectively,” says BCR Holdings cofounder Reon Barnard.

He advises that South Africa’s opencast mining companies should reassess the main roadblocks that are negatively affecting production and identify opportunities for collaboration.

“The country’s significant infrastructure and logistical challenges are severely hindering the efficient movement of goods. Bottlenecks, delays and cable theft, have inadvertently forced mining companies to transport produce by road at a cost of seven times more per tonne.”

To address this, mining companies are increasingly entering into public-private partnerships.

By working alongside government entities, such as Transnet, BCR notes that companies can advocate for better transportation networks, while also contributing to community development projects that align with both their operational needs and the broader national interest.

BCR Holdings, which specialises in chrome ore mining across Southern and Central Africa, was co-founded by Walter Murry and Barnard and takes a proactive approach to infrastructure development within the communities where it operates.

“Through partnerships with the government and collaborations with key industry players and local businesses, BCR Holdings has enhanced its ability to add value within its mining portfolio. This includes building roads, enhancing local facilities and ensuring that transportation networks are capable of supporting its mining projects,” says Barnard.

Technology-based collaborations are another way to optimise processes and find new, more modernised solutions. These can include partnerships with mining drone suppliers for site inspections and surveying, virtual reality-based employee training and using AI consultancies for exploration efforts.

With increasing pressure on global industries to meet climate targets, mining will also play a pivotal role to provide the necessary minerals and metals for construction. According to the World Bank, production of lithium and cobalt will need to increase 500% by 2050 to meet this demand.

Strategic collaborations in opencast mining will be essential to realise the new-era renewable-energy infrastructure.

Barnard makes it clear that when it comes to economic uncertainties, strategic collaborations can once again be the answer for opencast mining operations. “BCR’s partnership with prominent players in South Africa’s mining landscape serves as a prime example of how shared expertise can optimise operations and ensure successful project delivery, particularly in challenging economic conditions.”