AMN - Innovation key to growing African mining sector - comment by Yolanda Torrisi

Innovation is the key to success in a mining sector plagued by low commodity prices, mining becoming deeper, labour strikes and ore bodies becoming more difficult to find.

Deloitte conducted a study recently which specifically looked at how mining companies in Africa are innovating to strengthen and enhance their positions. The report titled Innovation State of Play: Africa is the second in a three-part global series which also looks at Canada and Australia.

Deloitte Africa Mining Leader Andrew Lane says the survey underpins some key questions for the industry. Is mining as an industry future-proofing its collective prospects through innovation? If not, how can this impact the success stakes for all operations? Are mining companies integrating their innovation strategies throughout their organisations? If they are failing to respond to the rapid pace of industry change, how quickly can they apply innovation effectively? 

The report identifies three ‘ambition levels’: Core innovations aimed at optimising existing products for existing customers; adjacent or incremental innovations which expand new business to the company; transformational or new innovations which are breakthrough and inventions in the marketplace.

The report shows that the African mining sector is placed about midfield in terms of its innovation implementations and on the lower end of competent on the maturity scale. This allows Africa to have plenty of scope to lead in innovation particularly in operational applications to unlock greater efficiencies.

The study showed that the current breakdown in the region’s mining innovation was a relatively balanced 61% core, 23% adjacent and 16% transformational. This innovation ambition matrix, which has a similar trend line to that of the Canadian market - 68% core, 19% adjacent and 13% transformational - is considered to be healthy. While both markets have a strong focus on core products and markets, which include an emphasis on technological solutions to optimise old techniques as and when needed, there is significant scope to unlock higher levels of adjacent and transformational innovation.

What was specifically found in Africa is that companies find it a challenge to spread risk and are less likely to adopt adjacent and transformational innovations in-house but may be successful through an external ecosystem.

For the potential of innovation to grow and create a sustainable mining sector, companies need be clear about what they are working on and how they envision their businesses of tomorrow. It is important for senior management to champion innovation and the appropriate governance structures need to be in place.

Yolanda Torrisi is Chairperson of The African Mining Network and comments on African mining issues and the growing global interest in the African continent. Contact:yolanda@yolandatorrisi.com