CASE STUDY 7 CONTINUED Challenge The MMP was formed to facilitate RDI into many of the challenges faced by South Africa’s mining sector: Declining contribution of mining to GDP: The share of mining to the GDP in South Africa declined from 21% in 1980 to 8.2% in 2020.65 Ageing mines: Mines faced challenges such as resource depletion and outdated technologies, which led to cost-ineffective and unsafe mining conditions. Skill gap: Lack of skilled professionals in the mining sector in South Africa, particularly in research and development, led to a loss of institutional knowledge and capacity to innovate.66 Reliance on imports: Heavy dependence on imports from foreign original equipment manufacturers (OEMs) limited local value addition and led to rising costs. Solution Research and development: The MMP was formed to support the implementation of the South African Minerals Extraction Research, Development and Innovation (SAMERDI) strategy. Their core research focuses on mine longevity, orebody knowledge, real-time data systems, mechanized mining and the application of technology centred around people. Industry partnerships: Through collaboration with MEMSA and other sector bodies such as the Mining Qualifications Authority and Mine Health and Safety Council, the MMP supports local manufacturing and reduces reliance on imported mining equipment. Technology modernization: Various initiatives on modernizing technology, such as the development of a “digital twin for trackless mobile machinery” and “collision prevention systems” have been undertaken. Capacity building: Collaborations with academia and research institutions help in skill development and developing capacity for people in the mining sector. Impact The MMP has had a significant impact on South Africa’s mining sector:67 Extended life of mines: MMP’s Longevity of Current Mines (LoCM) programme develops technologies to extend production from ageing mines. Improved safety: Real-time monitoring and collision prevention technologies aim to reduce accidents and improve safety – a core focus of all MMP initiatives. Comprehensive industry-wide approach: Initiatives to understand job impacts of modernization, build capacity of mining professionals and address environmental and social issues have all contributed to the advancement of the mining industry. Securing Minerals for the Energy Transition: Finance for Southern Africa 25

Securing Minerals for the Energy Transition 2025