JOHANNESBURG (miningweekly.com) – Effective procurement and supply chains can be a key competitive advantage for mining businesses operating in Africa, CGC Consulting Services CEO Clive Govender said at the Cross-Border Mining Services Indaba, in Johannesburg, on Tuesday.
“A good supply chain is key for reducing poverty, unemployment and inequality . . . if it is handled properly,” he said.
He expects rapid change to occur in the mining industry over the next ten years, on the back of declining orebodies and decreasing availability of 'tier one' assets. To thrive amid this volatility, he stated, companies will have to reconsider how to drive efficiency and effectiveness in the mining sector.
Govender suggested that the mining industry should radically shift to a new way of working, which includes taking advantage of supply chains, to ensure efficiencies.
“[The industry] needs to look at how it can capitalise on the ‘new dawn’ that mining is seeing in Zimbabwe and South Africa, especially looking at mining services and supply chain procurement and management in Africa,” he stated.
Major challenges in mining supply chains in Africa were related to skills and the capabilities of suppliers around mines, said Govender, noting that mining houses should ensure that they develop skill sets with suppliers and companies around them.
“This will enable them to contribute to the mine value chain, which is quite significant and needs to be aggressively worked on.”
Govender pointed out that the mining industry is a high input-cost driven business and to be competitive, supply chains have to be optimised.
“The transportation and movement of material is key.”