Mining and Exploration

Mining and South Africa go hand in hand. The country owes much of its development to its rich natural resources. And although mining’s contribution to national GDP is now a fraction of what it once was, it is still the eighth largest mining country in the world when production values are taken into consideration. Much of this production is in zinc, the output of the subject of this article, Gamsberg Mine, now the centerpiece of the world’s largest zinc mining and processing complex.

In a previous visit to Barrick Gold’s Pueblo Viejo mine in 2019, Business Excellence noted that the success of the firm was inextricably linked to the success of the Dominican Republic’s mining industry. A joint venture with Newmont, total investments in the Pueblo Viejo mine have already passed $1.3 billion. To put this in context, 2019 was a record year for foreign direct investment (FDI) in the Dominican Republic, and total FDI was estimated at a little over $3 billion.

It is now eight years since Business Excellence covered First Quantum Mines for the first time. The company had just been awarded one of almost 30 mining licenses granted by the Zambian government. Global copper prices were on a downward trend that wouldn’t bottom out until late 2015. After a $1.1 billion investment, most investors would be forgiven for feeling anxious.

Botswana is home to one of the fastest growing economies in the world. Despite being a landlocked country with a miniscule population of a little over 2 million people, Botswana is an undoubted Sub-Saharan success story. Academics argue about the reasons for this success, but two reasons are mentioned again and again. The first is good institutions. The second, has been the country’s ability to exploit and market its outstanding mining resources.

When Business Excellence last visited El Teniente in June 2019, global copper prices were hovering at around $6,000 per ton, in a year of price declines for all base metals. What a difference two years have made; in 2021, copper is trading at close to $10,000 per ton, and continues on a consistent upward trend that began in the first quarter of 2020 - just as Covid-19 was arriving in Latin America.

Gold mining plays a central role in the modern history of Colombia. The myth of El Dorado - a mythical land of abundant gold and diamond reserves - was what first led the Spanish to settle the country at Santa Maria at the beginning of the 16th century. And by the 19th century, the country had already become the world’s largest gold producer. Reflecting this historical importance, here’s even a museum dedicated to gold in the country’s capital, Bogota.

Five years ago, INDIMIN pioneered introducing AI's practical use in mining operations through its Smart Mining Coach platform. The platform was the first intelligent mining assistant whose objective is to motivate and empower decisions on the ground and remotely. It also improves productivity, safety, and collaboration between people who are in mining operations. INDIMIN has collaborated with companies like Anglo American, Collahuasi, CMP, ENAEX, and MOLYCOP Australia.

Para una empresa minera en el Perú, las prácticas sostenibles son el núcleo de su licencia para operar. Alrededor del mundo, cada vez más empresas se han dado cuenta de que la única forma de ser económicamente viables es operar de manera ambiental y con responsabilidad social. El cambio climático, la escasez de recursos y la eficiencia energética resuenan cada vez más con la industria minera.

The recently re-elected president of Tanzania, John Magufuli stated in November 2020 that his government predicts economic growth of 8% for the country over the next five years.  This isn’t unreasonable given that the country’s GDP has grown by a CAGR of around 7% over the five years of Mr. Magufuli’s first mandate. Given that over half of the country’s export income comes from gold, the success of Shanta Gold is inextricably tied with the fortunes of Tanzania.

Lithium, the lightest of all metals, is one which almost everyone has heard of, but just a portion of people are aware of its modern day importance. To draw an analogy, lithium is to the 4th industrial revolution (the mass digitization which the world is currently undergoing) as steel was to the first industrial revolution. It is an essential component of the rechargeable batteries which keeps the fourth industrial revolution moving.