South African mining ranked last among 10 countries in a global modernisation benchmarking exercise, according to survey findings presented Thursday.

Despite that low ranking, roughly two-thirds of surveyed companies across coal, gold, uranium, platinum group metals, diamonds, iron ore, manganese, copper and industrial minerals appear focused on incremental improvement rather than meaningful transformation.

Environmental considerations were treated as a secondary concern rather than central to modernisation efforts.

The findings were presented at South Africa's Mining Modernisation Showcase, an event organized jointly by the Minerals Council South Africa, the Research Institute for Innovation and Sustainability, the Human Sciences Research Council's specialised research unit (HSRC-CeSTII), PwC Smart Mining, the Department of Science, Technology and Innovation, and the National Advisory Council on Innovation.

Organizers described modernisation as an urgent strategic priority for the South African economy.

The numbers tell a mixed story. Fewer than half of surveyed firms introduced any significantly improved goods, services or business processes over the three years studied. Employee training and asset purchases were the most common activities between 2021 and 2023 — improvements to existing operations rather than genuine innovation.

HSRC-CeSTII research specialist Dr. Amy Kahn broke down the survey results for the audience. She reported that 54% of firms engaged in employee training activities, 44% acquired or leased tangible assets, and 40% engaged in engineering, design and other creative work — mostly adopting existing technologies rather than developing new ones. Only a third of firms reported in-house research and development, and an even smaller share engaged in intellectual property activities.

Digital innovation saw moderate uptake. Software development and database activities drew 37% engagement, with the most common outcomes being expanded personnel, increased output, better asset use and fewer safety incidents.

Computerised design and engineering was the most widely adopted technology, followed by telematics, material handling, supply chain systems, the Internet of Things and AI. Higher-cost frontier technologies — blockchain, nanotechnology, advanced manufacturing and robotics — saw limited uptake.

Training gaps are part of the problem. Kahn noted that most training happens in-house or through external private providers, with international training and university or TVET college partnerships largely absent. Sixty-three percent of firms said employees received formal training tied to their research and innovation activities, though a significant share provided none at all.

Money followed a similar pattern. Of nearly R2 billion spent on research and innovation activities — R1.7 billion from mining companies and R251 million from mining services firms — more than half went toward employee training. About a quarter went to engineering and design work, while intellectual property activities received just 0.2% of total spending.

Collaboration remained limited outside a narrow circle. Higher education institutions were the most common partners, followed by competitors, other mining companies, consultants and commercial laboratories.

Government bodies, the Council for Scientific and Industrial Research, Mintek and other research institutes saw far less engagement — and international collaboration was low across the board.

Barriers to modernisation broke down fairly evenly. Thirty-four percent of firms cited human capability shortages — gaps in managerial, engineering, technical, data analysis and digital skills.

Thirty-two percent pointed to governance and institutional barriers, including weak IP protections, insufficient tax incentives and burdensome regulations. Another 32% cited research infrastructure barriers, from restricted ICT access to limited laboratory facilities and commercialisation support.