The convergence of ESG, circular economies and digitalisation in South Africa’s mining sector

A recent study conducted by RIIS on behalf of the Mandela Mining Precinct’s Real-Time Information Management System (RTIMS) Programme, has explored how the convergence of ESG, digitalisation and circular economies can transform South Africa’s mining sector into a more sustainable, competitive and resilient industry.   

Drawing on case studies, key informant interviews and focus groups, our research identified real opportunities for improvement across the mine value chain, noting benefits such as resource optimisation, safer working conditions, more transparent reporting, reduced environmental impact, greater resilience to ESG risks, increased investment and enhanced reputational capital. 

Notably, while South Africa’s mining sector is making great strides toward modernisation and sustainability, scaling adoption of technological interventions to include small mines has proven challenging. The industry as a whole is thus characterised by pockets of innovation, confined to large operations. Furthermore, transformation is typically limited to the excavation phase of mining.  

Looking ahead, clear opportunities exist to deepen adoption in the following areas: 

• The use of satellite imaging, data analytics and machine learning to enable geological modelling for drill-free exploration, supporting sustainable operations right from the start. 
• Sensor-based sorting and nanotech recovery of metals from waste, to support waste reduction and repurposing of salvaged materials. 
• The use of blockchain for end-to-end traceability across supply chains. 

From tick-box to strategic integration

The study went on to note that mining companies tend to engage with ESG, circular initiatives and digitalisation as a kind of tick-box exercise, or in an ad-hoc fashion. To support the shift toward long term strategic integration, RIIS began development on a maturity assessment which will enable mining companies to benchmark their progress with respect ESG, digitalisation and circularity, and chart a way forward for improvement.

Mining, especially for critical minerals, underpins the Just Energy Transition as well as the electric vehicle revolution. In addition, with global markets increasingly prioritising sustainability, countries and industries that don’t adapt risk being left behind.  

Digital technologies can future proof the industry. With proper skills development and sector-wide collaboration, it is possible to scale innovation, support small mining operations and align with global and national sustainability goals.

The Mandela Mining Precinct is a public-private collaboration between the Department of Science and Innovation (DSI) and the Minerals Council of South Africa. It is an initiative aimed at revitalising mining research, development and innovation in South Africa to ensure the sustainability of the industry.

Share On: