Africa must embrace the shift to renewable energy, and process minerals instead of just exporting them
The world is moving into another super cycle – a period of sustained expansion, fueled by strong growth for products and services. These events lead to an increase in demand for raw materials and manufactures, and the demand for these resources often exceeds what the manufacturers can supply.
As we move towards a just energy transition and strive to decarbonise our economy, South Africa’s mining industry must provide the critical minerals needed to ensure this transition is successful. “We as an industry play a vital role in shaping the world,” said Duncan Wanblad, Group Chief Executive at Anglo American.
During his keynote speech at the Investing in African Mining Indaba, held in Cape Town last week, he emphasized that industry and government must work together to unblock and open barriers to develop and maximize the economic and social value that mineral resources can bring. society in general. “For many mining countries in Africa, there is a great opportunity to bring the supply of metals and minerals to a new level, and use this economic momentum as a catalyst to attract investment in clean energy, and of course drive rapid economic growth. This opportunity is certainly good too much to pass up [on].”
But to get this right, real and tangible action is needed, says Ian Sanders, Global Mining and Metals Sector Leader at Deloitte. The management team and board members need to stop talking and start acting, he said. One of the mining businesses taking action is Anglo American. The brand’s much-talked-about green hauler is the world’s first zero-emission hydrogen-powered vehicle that can carry a 290-ton payload.
According to Anglo American Platinum CEO Natascha Viljoen, this truck is not only part of Anglo’s decarbonisation strategy, but also shines a spotlight on South Africa, and South African business capabilities. “In the past, our president has called on businesses to get involved, and I think we’ve underestimated the level of urgency that we have to do — to do what we can, and start doing that,” he said.
“I think we can all agree that the energy transition provides a once-in-a-generation opportunity for Africa. I would describe this transition as similar to how the industrial revolution transformed the Western world,” said Fortune Mojapelo, CEO of Bushveld Minerals. Rather than just looking at what Africa can do to ensure the supply of minerals needed to power and enable the renewable energy revolution, several speakers at the event highlighted the importance of transforming the mining industry’s value chain. There needs to be a movement away from “pits to ports” and adding different steps along the supply chain – such as processing and production – so that commodities distributed around the world can add extra value to local economies.
This, many agree, is an important step to ensure that Africa gets the most from the global energy transition – by making better use of capital and harnessing the important minerals that lie beneath the ground.
– Joanne Carew