Sector growth potential underpinned by increased stakeholder collaboration
SHAMMY LUVHENGO Spending time looking for the right partner is important, and in business, it is important that a strategic alignment is in place
Consolidating collaborative opportunities in Africa’s mining sector should be a key strategic growth consideration, says coal mining company Ndalamo Resources.
Noting the need to promote sustainable mining practices on the continent, the company highlights the need to advance the standardisation of environmental rules across multiple mining jurisdictions.
“Mining companies tend to pick and choose by adopting an attitude of ‘if I’m not going to be required to make sure that water gets purified before I release it downstream, I’m not going to do it’,” explains Ndalamo Resources CEO Shammy Luvhengo.
Therefore, he says it is important that the sector works with the World Bank and other development finance agencies to assist in coordinating these activities.
In this regard, Ndalamo’s role is to initiate such debate on public platforms; it highlights that mining companies in Africa should have standardised environmental regulations that enable them to find cohesive multi-jurisdictional solutions that sufficiently address the multitude of operational challenges.
In terms of environmental, social and governance contribution, Luvhengo says a mining company’s social licence to operate in a region must be developed in line with, and focus on, recognising what the communities surrounding the mine and its related infrastructure require.
He stresses that companies’ favouring the accumulation of commercial profits over spending time and effort in trying to understand the unique challenges of communities surrounding the mines needs to be addressed by companies.
As such, Luvhengo says Ndalamo emphasises the importance of mining companies’ pursuing social upliftment and ensuring that they do no harm in mine-affected communities by demonstrating the social benefits that are possible when operating in sensitive areas where communities have existed before mining operations were established.
To remain sustainable, Africa’s mining sector needs to devise novel mechanisms to comprehensively mitigate the projected job losses that would result from the adoption of AI in modern mining operations.
There is also a shortage of artisans and boilermakers in Africa, and a gap in the skills required to operate technologically advanced mining equipment.
The sector needs to work harder to promote skills development among mine hauling equipment operators as a way of increasing their status in this sector, thereby ensuring that their skills will be required in the future, Luvhengo adds.
Long-Term Aims
Ndalamo will continue growing its coal portfolio and is assessing some of its currently ongoing projects, particularly with State-owned power utility Eskom.
“Our strategy is in accordance with what Eskom does; however, we have . . . greater ambitions than just operating in coal, as we are looking at other commodities, especially the so-called battery minerals that will enable us to facilitate the diversity required for our investment portfolio,” says Luvhengo.
The company will continue to export coal through the Richards Bay Coal Terminal, in South Africa, and the Matola Coal Terminal, in Mozambique.
As an emerging coal mining company, Ndalamo is cautious about entering other mining jurisdictions in Africa, but Luvhengo highlights that the company is looking forward to establishing and building relationships with like-minded companies on the continent.
“Spending time looking for the right partner is important, and, in business, it is important that a strategic alignment is in place. Spending time understanding what is happening on the continent is key, and if we find ourselves in any country on the continent, we will do our best to ensure that we have local partners whom we can work with,” he concludes.
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