By:Miningreview

Mini is part of BCG’s Industrial Goods practice, focusing on metals and mining. He studied at the University of Cape Town and attained a BCom degree in economics and finance and an Honors degree in financial analysis and portfolio management.

While he has always had an interest in business and investment, he relishes working in the mining sector. “I found a home in mining because of the type of projects available in the sector. These projects are quite operational, but when things happen, you can quickly see the results. Also, it is a critical industry for South Africa, not just in terms of generating revenue, but also the impact it has on mining communities,” he states.

While mining’s contribution to the country’s GDP has decreased in recent years, Mini emphasizes it still has a vital role, particularly in the green energy transition. “There’s significant focus on sustainability and reducing GHG emissions, and the mining sector is fully aware of this. As such, the industry is going through changes to meet these requirements.

“There needs to be recognition that mining is vital to ensure the global green energy transition. With the type of critical minerals in South Africa, we play a significant role in moving towards more renewable and sustainable energy usage worldwide.”

It is no secret that South African miners face challenges. Over the past few years, infrastructure and power deficiencies have hampered operations. Investor sentiment is low, and many international companies have raised concerns about long waiting times to obtain a mining license and other regulatory issues. Mini states, however, that these challenges are not insurmountable if the government and the private sector work together.

He explains, “Over the last few years, there have been a number of examples where mining businesses have worked closely with the government to try and unlock some of the challenges they face. For example, mining companies are helping government deal with operational issues at Transnet. Also, it’s almost incumbent upon the private sector to work with the government to ensure it is aware of the regulatory challenges and work together to overcome them.

“The opportunity within these challenges is for public and private partnerships to become more prevalent. It is an exciting dawn in South Africa where the power of partnerships is being explored, from a private sector perspective and in political spaces.”

Preparing for the new age of mining

Mini points out that as we move towards a greener economy, it is important to consider human capital. “We need to ensure we adequately plan for the unskilled and skilled jobs required as a result of the transition so that we don’t get caught behind.”

Furthermore, he states that technology, particularly AI, can unlock further potential in the South African mining sector. “There are real applications for AI. A case in point: it can be employed in predictive maintenance and to increase recoveries in processing operations in PGM mining. That is why the workforce must have the right skills to ensure effective use of this technology.”

Although South Africa has considerable untapped minerals resources, investment in the mining sector has been a concern. However, that does not mean the end of the road, and Mini says companies should explore other ways to fund their operations. One such option is streaming; companies provide upfront funding to mines in exchange for purchasing minerals and metals at a discounted price, once mines are operational.

“There are also innovative funding methods that have worked in other parts of the world where capital might not be available in-country or in the market. This includes public funding and off-take agreements. These are opportunities we should explore in South Africa,” he adds.

Mini says there is also potential for off-take agreements to be signed in-country. Currently, many mining companies, especially those mining critical metals, have signed such agreements outside the country. This hinders beneficiation, which is high on the agenda of South Africa and many African countries. However, he believes if the necessary incentives are in place, in-country beneficiation will increase.

“We already have processing facilities in the country so, perhaps government could offer tax relief or other mechanisms to enable beneficiation.

Furthermore, there is an opportunity for cross-border beneficiation in the region. If governments are willing to work together, it will encourage investment. Going forward, government-to government partnerships will be crucial and critical.”

Many say mining in South Africa is a sunset industry, however, Yandi Mini is an optimist and enthusiastic about what the future holds. “Yes, mining’s contribution to the GDP has decreased, but it is exciting we live in a country where we are diversifying our economy. Mining still plays a key role in job creation and SLPs that enable socioeconomic development.

“We live in a country where we can vocalize the challenges. So, I feel positive about the future mining industry in South Africa because I think the level of public discourse is healthy. I also believe it’s important for mines and mining communities to thrive, creating several successful economic nodes within the country. Mining is critical for our future. It will continue to grow in different ways, and I think it will be an exciting industry for years to come,” Mini concludes.