The study found that 44% of firms introduced new or significantly improved products or services during the period, while 46% implemented process innovations. However, most innovation focused on adapting and integrating existing technologies rather than pioneering new ones.
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South Africa’s mining industry risks falling further behind its global competitors unless it accelerates investment in research, innovation, skills development and digital technologies.
This is according to a series of reports launched by the Minerals Council South Africa on Thursday. The reports paint a picture of an industry that is embracing technology but remains constrained by regulatory uncertainty, infrastructure bottlenecks and critical shortages of technical skills.
The publications include a study on research, development and innovation (RDI) investment patterns in the mining sector, a global benchmarking report comparing South Africa with leading mining jurisdictions, and a report examining the growing role of artificial intelligence (AI) and Fourth Industrial Revolution (4IR) technologies in mining.
The flagship report found that while South African mining companies are increasingly modernising their operations, innovation is driven more by adopting existing technologies than by developing new ones.
The study, led by the Human Sciences Research Council's Centre for Science, Technology and Innovation Indicators (CeSTII) in partnership with the Minerals Council South Africa and the Research Institute for Innovation and Sustainability (RIIS), surveyed 180 mining and mining services firms between 2021 and 2023. Of these, 61 RDI-active companies were analysed in depth.
It found that 44% of firms introduced new or significantly improved products or services during the period, while 46% implemented process innovations. However, most innovation focused on adapting and integrating existing technologies rather than pioneering new ones.
Mining companies were also found to invest heavily in employee training, engineering and design, software development and new equipment, reflecting a focus on improving operational performance rather than undertaking long-term research.
RDI expenditure among surveyed firms totalled R1,978 billion during the 2023 financial year, with mining companies accounting for the overwhelming majority of spending. Yet the report noted that investment was funded almost entirely from internal company resources, with limited support coming from government programmes or venture capital.
Speaking at the launch, Minerals Council's senior executive for modernisation and safety, Sietse van der Woude, said the reports marked an important milestone in advancing the industry's transformation.
"The launch of these publications marks another significant milestone in advancing South Africa's mining modernisation agenda and reinforcing the sector's commitment to innovation-led safety, growth, inclusive industrial development and global competitiveness," Van der Woude said.
The research identified governance weaknesses, infrastructure challenges and shortages of engineering, managerial and technical skills as among the biggest obstacles to modernisation.
According to the report, around two-thirds of surveyed firms indicated they required specialised skills to modernise their operations, while more than one-third had not provided formal workforce training during the survey period.
Dr Nazeem Mustapha, who heads CeSTII, said South Africa continued to lag behind leading mining nations in research capacity.
"In South Africa the number of researchers per capita is about five times lower than Australia. This gives us an indication of how far behind the curve South Africa is relative to countries that have perhaps more actively and aggressively pursued modernisation in mining practices," Mustapha said.
The report also found that mining firms relied heavily on universities, consultants and suppliers as partners in innovation but had relatively limited collaboration with international organisations, potentially restricting access to global expertise and emerging technologies.
Meanwhile, the Global Benchmarking Report compared South Africa with 10 leading mining countries and concluded that successful mining jurisdictions combine technology adoption with coherent policy, sustained investment and strong partnerships between government, industry and research institutions.
RIIS principal Sylvesters Okello warned that South Africa's opportunity to become a preferred supplier of critical minerals would not remain open indefinitely.
"South Africa stands at a defining crossroads in mining modernisation. Despite holding world-class mineral wealth and a capable private sector, the country trails global leaders due to regulatory uncertainty, critical skills gaps, and fragmented innovation efforts," Okello said.
"The findings are clear: South Africa's window to position itself as a preferred global critical minerals supplier is open now, but it will not stay open indefinitely. Government, industry, and research institutions must act with urgency and genuine coordination before faster-moving competitors close the gap."
The third report, produced jointly by PwC and the Minerals Council, examines how AI is reshaping mining through automation, predictive maintenance, improved safety, operational efficiency and better decision-making.
PwC South Africa associate director for mining transformation Ian Mackay said AI would increasingly become central to mining competitiveness.
"By bringing together industry voices and practical experience, we aim to help mining leaders navigate complexity, make better decisions and unlock sustainable value."
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