The supply chain disruptions that came with Covid-19 created serious headwinds in the mining and minerals sector, which is still battling the impact of volatility and rate hikes.According to Hans Modipane, executive: logistics, sales and marketing at SA Cargo Services, exporters are increasingly reluctant to containerise because it is simply no longer viable, thanks to the unsustainable rates.“We are definitely seeing more cargo move to bulk vessels,” he told Freight News. “This means cargo that we receive for containerisation is then also taking more time to move out of our facilities, creating a bot tleneck.”The issue is compounded by ongoing challenges at the ports, often resulting in further delays for both imports and exports. “From our discussions with most carriers, the sector will continue to see capacity constraints, lack of space on vessels, a shortage of 20-foot containers, and higher freight rates.”Smaller mining houses in particular are reeling under the impact of all this, considering they face the same logistical challenges as the big players – but often the issues are compounded due to the lack of large feasible offtake agreements, little or no access to rail solutions, and other inefficiencies in their supply chains.According to Modipane, dealing with multiple stakeholders for a single export parcel is no longer a feasible option for many mining houses. “We have invested heavily in finding solutions for our mining clients. Via our Vertically Integrated SA Cargo Solutions (VISACS), we are focusing on executing our logistics pit-to-port solution for our key mining clients. This has proven to be popular, seeing that rail capacity is a major concern for many commodity houses.”Sales and marketing manager Mndeni Ngcobo said the key was to form long-term partnerships and networks. “It is all about finding a service provider who can deliver a scalable solution.”Both Modipane and Ngcobo are cautiously optimistic about the outlook for the mining sector. “Certainly there are several new industry developments to keep an eye on, with energy, automation and climate change at the top of the list. We need effective and reliable energy in order to keep our mines operating. Having access to the right technologies, which are able to mine operational data, will not only make us an efficient industry but will also assist us in fighting climate change as we look at more feasible and logical ways of utilising energy,” said Ngcobo. “Looking at volumes, we believe it will remain tricky given the current global market instability.”Citing coal exports as an example, he said with volumes down to less than 59 million tonnes, which happened to be the lowest since 1996 (and down 16% from 2020), it was clear that mining was in for some rough times.“South Africa has some of the largest coal deposits in the world. However, it needs to find various ways to offset this commodity going forward as we are one of the many countries that signed the Paris Agreement in 2016. In a nutshell, given the high coal prices and the record-high liquefied natural gas (LNG) prices, and the current logic around global energy transition, it makes the swap to green renewable energy look even cheaper.”Modipane said another trend was the rise in demand for high-grade chrome in Europe. “We are seeing an increase in requests for the value-added service of container lining. This is the process of lining containers with plastic material in order to make it easier for customers to off load and clean the containers at destination. "Dealing with multiple stakeholders for a single export parcel is no longer a feasible option for many mining houses.– Hans Modipane
