The future SA of energy and mining is digital, local and low carbon

“For equitable benefit sharing, community engagement and transparent governance are vital for sustainable mining.” – Jarredine Morris

South Africa possesses strategic reserves of critical minerals, such as palladium, manganese and vanadium, which help with developing essential renewable energy technologies. While these resources position the country as a key player in the global energy transition, their extraction needs to be balanced.

This was according to Jarredine Morris, co-head of Africa at Carbon Trust, who was presenting – in a breakaway session at Seacon, the Sustainability and ESG Africa Conference – on Mining and Energy Transitions: From Extraction to Innovation.

“To ensure that there is equitable benefit sharing and proper environmental stewardship, environmental impact statements, community engagement and transparent governance are all vital components of responsible and sustainable mining.

“Achieving this requires coordinated policy frameworks, infrastructure development and active participation from the private sector. Challenges also include high capital requirements, technology and adoption gaps, and regulatory hurdles,” said Morris.

Morris maintained that successful implementation can significantly boost the country’s economic competitiveness and reduce its dependency on global markets.

She added that, while small, medium and micro enterprises are crucial for innovation and local economic development in the energy and mining sectors, they face significant barriers such as limited access to capital, market entry challenges and technology adoption issues.

“Solutions to some of these challenges include innovative and blended financing models, public private partnerships and regulatory reforms to create more enabling environments.

“This is important for inclusive economic growth and to foster a more dynamic economic ecosystem, entrepreneurship and innovation.”

Barriers to sustainability in energy and mining

However, there are several barriers that hinder the success of sustainability initiatives in South Africa’s energy and mining sectors, said Morris.

This includes infrastructure bottlenecks in rail and logistics which limit the operational efficiency of companies, policy uncertainty and fragmented regulations that create challenges for investors, also adding that environmental degradation and community opposition can stop projects and erode public trust.

“One way for the country to combat this is to have a just, inclusive and sustainable transition in its energy and mining sectors.

“This revised collaboration across government, industry and communities needs to align on goals and resources, while embracing green technologies at the same time.

“Bolstering digital innovation and supporting local enterprises is also critical to ensure that there is a sustainable future for the country.

“The future for energy and mining in South Africa is low carbon, digital and local and needs proactive leadership, which is essential to navigating the complexities and seizing the opportunities ahead.”

Cover photo:   X/ESG Africa Conference