Sibanye Gold CEO Neal Froneman on the future of mining

The mining industry in South Africa is facing a critical juncture as it grapples with the need to modernize and mechanize operations to increase productivity. Neal Froneman, the CEO of Sibanye Gold and Vice President of the Chamber of Mines of South Africa, recently spoke with Chris Bishop from Forbes Africa magazine about the future of mining in the country. Froneman emphasized the urgent timeline for the industry to adopt appropriate technology within the next 10 years to ensure continuous, 24/7 mining operations. He stressed that failure to do so could lead to the industry's decline, with significant negative impacts including job losses for up to 200,000 individuals and a broader economic ripple effect affecting 2 million people in South Africa. The primary focus of the discussion was the importance of transitioning towards mechanization and modernization to enhance operational efficiency. Froneman highlighted an ongoing collaborative effort between industry stakeholders and the government to invest in technology development, with a substantial investment of 650 million rand already allocated to this initiative. The key goal is to reduce reliance on blasting underground, a major pain point in mining due to its safety hazards and environmental impact. By shifting towards non-explosive rock-breaking methods, such as mechanical rock-breaking, mining operations can significantly improve safety conditions, increase productivity, and extend the lifespan of mines. The challenges faced by the mining industry, particularly in gold mining, have been exacerbated by factors such as increasing mine depths and lengthy commuting times for workers. Froneman pointed out that miners spend a significant portion of their working hours traveling to and from the mine face, leaving limited time for actual production. Safety-related tasks like roof bolting further reduce the time dedicated to productive mining activities. The adoption of new technology could address these issues by enabling continuous rock-breaking processes, thus maximizing production output and mine efficiency. In addition to enhancing productivity, the implementation of modern technology is expected to have positive cascading effects on gold extraction and mine longevity. By transitioning to continuous rock-breaking cycles and minimizing unnecessary rock extraction, miners can focus on extracting gold-bearing ore more efficiently while reducing dilution. This streamlined approach not only boosts production output but also optimizes resource utilization and operational infrastructure. Addressing concerns about potential job losses resulting from mechanization, Froneman emphasized the importance of upskilling workers to adapt to the evolving technological landscape. He underscored the need for a collaborative effort between industry stakeholders and labor unions to ensure that the transition towards mechanization does not lead to significant job cuts. By investing in training and upskilling initiatives, miners can enhance their productivity, earn higher wages, and contribute to a more sustainable workforce ecosystem. Froneman acknowledged the existing challenges of building trust between capital and labor within the mining industry, citing historical tensions and mistrust as key barriers to progress. He outlined a strategic approach adopted by the Chamber of Mines of South Africa to address these trust issues systematically and foster better collaboration between industry players and labor unions. Despite the complexities involved, Froneman expressed confidence in the industry's ability to navigate these challenges and drive meaningful change towards a more technologically advanced and sustainable mining sector in South Africa.