Creativity, innovation keep South Africa’s mining tech manufacturing industry competitive

An admirable degree of creativity exists within the South African mining technology and equipment manufacturing sector, giving manufacturers the necessary flexibility to weather the significant challenges over the past few years, Mining Equipment Manufacturers of South Africa CEO Lehlohonolo Molloyi has said.

He was speaking as part of a panel in a webinar hosted by Creamer Media and sponsored by ABB, AECI Mining, Astron Energy and Epiroc, on April 24.

The webinar, titled ‘Mining Technologies: Showcasing innovation in mining and mining services’, sought to highlight some of the ways key South African manufacturers servicing the mining industry have managed to remain competitive through innovation.

“I think there is resilience among South African manufacturers, amid all the challenges that we have,” Molloyi said, pointing out how the industry has managed to survive through ongoing electricity shortages, national logistical constraints and poor commodity prices, particularly in coal and platinum group metals.

“It's been tough for a lot of manufacturers to be able to sustain their businesses. However, as an industry cluster, we haven’t lost one member during all this time where there's been such challenges in the industry.

“In actual fact, we've grown. From about three years ago, membership has risen from about 35 to about 70 members to date,” he noted.

Molloyi said this indicated sustained optimism in the South African mining industry, despite the many setbacks and challenges.

Moreover, he said the advent of the African Continental Free Trade Area was stirring up excitement among local manufacturers looking to take advantage of the many opportunities lying in wait across the rest of the continent.

“We've taken these challenges on the chin, and that hasn't come easy because some of the added costs cannot be transferred to the client. You've got to somehow find a way to cushion that and hope that, through all these processes, with everything happening, you don't go under, but you survive,” Molloyi said.

South African Capital Equipment Export Council CEO Eric Bruggeman, who moderated the discussion, agreed with Molloyi’s upbeat view of the industry.

“The export numbers are growing. There's a lot of people with a lot of negativity around but you have to look at business and you have to look at the innovation in business and the ways people are working together in South Africa to help industry to strive and be successful,” he said.

Multotec Group of Companies CEO Thomas Holtz agreed with the sentiments expressed by Bruggeman and Molloyi, but also warned that the resilience of the industry was in danger of wearing thin.

“South Africans are getting a bit tired of being resilient. It's a challenge. We deal with the deindustrialisation as a factor. I think this manufacturing industry is struggling. You have to have a mindset of taking on the challenges . . . taking the bull by the horns,” he said.

The general sentiment of the panellists was that evidence of ongoing innovation spells promise for the industry, despite what might seem like bleak economic conditions at present.

“Industry continues no matter what the difficulties are. When you see innovation, you know you're going forward. We have to work closely together to take on the challenges of Africa or the world, to export around the world and to showcase our initiatives.

“That is quite a task, and I believe that we in South Africa are very successful at doing this,” Bruggeman said.