The mining equipment manufacturing sector faces a range of challenges, owing to rapid technological advancements, environmental concerns, fluctuating demand and the increasing complexity of mining operations, says domestic equipment manufacturer cluster Mining Equipment Manufacturers of South Africa (Memsa).

The most pressing of these challenges involves sustainability and environmental regulations, supply chain disruptions, a lack of viable logistics and rail infrastructure, evolving workforce challenges, digital transformation and data management, as well as capital intensity and financing.

The association hopes that many of these challenges will be addressed at this year’s Investing in African Mining Indaba.

Stricter environmental regulations and expectations placed on mining companies regarding carbon footprint reduction are pushing manufacturers to develop environment-friendly equipment, notes Memsa board member Matimba Mahange.

Prioritising the development of energy efficient and emissions-reducing equipment can provide local mining original-equipment manufacturers with a competitive advantage when selling to mines that are under increasing pressure to comply with environmental, social and governance regulations.

He says the mining equipment industry relies on a complex, global supply chain, which further compounds these challenges, with the effects of global disruptions, such as the Covid-19 pandemic and geopolitical tensions, having affected the availability and cost of critical materials.

Therefore, the local supply chain of diversified suppliers – including investment in local sourcing and maintenance of buffer stocks to reduce dependency on single regions or vendors – needs to be strengthened.

The geographical disparity between domestic end-users and international suppliers, coupled with failing freight rail, and pressured road and port networks, results in increased transport and logistics lead-times and cost, he elaborates.

This is aggravated by manufacturing inputs such as raw materials, steel, water and power, being disrupted over the past few years, especially loadshedding and water availability inconsistencies, adding to the cost of doing business.

Meanwhile, the manufacturing sector is facing skills shortages globally in numerous fields, including those of engineering, data analysis and robotics, which are essential for the manufacture of modern mining equipment, Mahange says.

Incorporating digital technologies and the Internet of Things (IoT) for smart and connected equipment involves managing and analysing vast amounts of data – a transition with which many companies struggle, which is aggravated by rising cybersecurity risks.

Building a strong digital infrastructure, adopting standardised data protocols and investing in cybersecurity measures are, therefore, essential.

Manufacturers can also partner with technology companies to leverage expertise in IoT, machine learning and data analytics.