- South Africa is uniquely positioned to leverage emerging trends in renewable energy, artificial intelligence (AI) and mega-computing, according to the latest EY report.
- To capitalise on these trends, South African mining companies are encouraged to invest in digital innovation and embrace AI and other digital tools to enhance operational efficiency and mineral exploration.
South Africa is uniquely positioned to leverage emerging trends in renewable energy, artificial intelligence (AI) and mega-computing, according to the latest EY report on risks and opportunities in the mining sector.
The report underscores the dual focus on sustainability and digital transformation as key drivers for the future growth of the mining industry. South Africa, with its strategic mineral wealth and ongoing energy transition, stands at the forefront of these global shifts.
The energy narrative for South Africa is not just about increasing renewable capacity, which is targeted to reach 32 GW by 2030. It encompasses a three-pronged strategy: transitioning energy generation, energy storage solutions, and electrification expansion. These elements of the energy transition present significant opportunities for South African miners, given the nation’s rich deposits of critical minerals necessary for these technologies.
Beyond energy, the report highlights the burgeoning demand from the AI and mega-computing sectors. The AI revolution, alongside the expansion of data centres, requires an array of minerals for semiconductors and processors.
South Africa’s reserves of silicon, palladium, cobalt and rare earth elements could serve as vital alternatives to the current supply dominated by China, which controls about 75 per cent of the world’s rare earth mineral production.
The implications for South Africa are profound. Not only can the nation meet domestic needs for renewable energy infrastructure, but it also has the potential to supply international markets, particularly in Europe and Asia, where the demand for minerals used in wind turbines, electric vehicles and energy storage systems is soaring.
To capitalise on these trends, South African mining companies are encouraged to invest in digital innovation and embrace AI and other digital tools to enhance operational efficiency and mineral exploration.
A focus on sustainable practices will ensure that mining operations are environmentally friendly and socially responsible to meet global standards and consumer expectations, while developing new alliances will form partnerships not just within the mining sector but with tech firms and renewable energy companies to integrate vertically and horizontally across value chains.
By aligning with these global trends, South Africa’s mining industry is not only setting the stage for sustainable long-term growth but also positioning itself as a pivotal player in the global supply of minerals essential for the future of technology and energy.
This strategic foresight could transform the nation into a hub for critical minerals, fostering both economic prosperity and environmental stewardship.