Why did I not think of that?

This is the common question asked every time someone comes with a Eureka moment that change the course of destiny.

The answer is simple:

Because you did not think!

While walking on the beach this morning I was pondering over the future of this lovely country of ours. The ANC is on an irrevocable path of self-destruction, the mining industry is shedding jobs as if there were no tomorrow and everybody moan and b*tch because life is so unsure and unpredictable.

Yesterday I read the following article: https://zambiabusinesstimes.com/2017/08/19/mopani-copper-mine-to-invest-us4-billion-to-improve-cost-efficiency-ceo-johan-jansen/  (with the necessary acknowledgement to the publishers and writers thereof) 

The highlights of this for me are:

1. After spending $3 billion since 2000, Glencore is spending another $ 1 billion in upgrading infrastructure on the two mining complexes in Kitwe and Mufulira. (This is almost finished so it started off during a period of subdued commodity prices).
2. The Zambian Government increased royalties from 6 to 9%.
3. Price of electricity almost doubled in the last few years. There is still some unhappiness about the last increase.
4. The significant statement in the article is: CEO Johan Jansen: “To secure our future, we have to double our copper output over the next five years and nearly halve our costs by using better technology and increasing skilled manpower.”
5. Jansen an ex-Lonmin and ARM manager, is also enthusiastic about spending $20 million on a training facility for the workforce. This is one mining company with three shafts; compare this to the R 30 million Sibanye Resources just announced to be spending at the mining faculties of UJ and Wits. (There are other contributions by other mining companies to the same institutions) Everybody currently familiar with training centres for workers know that workers are trained in a classroom to qualify for their job underground. I really hope this has changed over the last few years since I stopped going underground in SA. When I started my mining career in the 1970’s we were trained in special working places used specifically for that purpose.
6. In another article which I can’t find the link right now, it was also announced that Mopani workers will be up-skilled to earn a decent wage in the next few years. I think the target was K12,000 (around ZAR 18,000) for the lowest paid employee. And it is not going to take 5 months of strikes and killing 35 workers to get there. It is self-imposed by Mopani management.
7. As a side note I can mention that I have found Zambia to be a very nice country to live in with friendly people and although there has been a bit of political turmoil in recent months things look like settling down again. The government is open for business and welcome investment. Like all other African countries they are aware that they do not get their fair share and they do make mistakes but they are always ready to admit their mistakes and to adjust their policies. The future of Copper, Cobalt and Nickel to name a few are looking good due to the drive for electric cars, so the country will start prospering again.

So what does this have to do with Eureka moments you may ask!

Well in recent weeks it was announced that a total of 21,000 jobs were on the line both the gold and platinum sectors. I noticed that since 1987 when the gold industry first came under pressure the remedy was every year: reduce labour.

This is now 30 years ago this spiral started. I think it was Einstein who said: only a fool would repeat the same mistake and expect different results. So the answer to rising cost year in and year out is reduce labour, increase the cut-off grade and reduce production.

Elandsrand mine, now Kusasalethu, used to be the flagship in the Anglo stable in its heyday, setting the trend for low cost, high efficiencies with the same grade as today. HarmonyGold recently decided to only mine the high grade areas to make it profitable. No double production, half the cost scenario here and the shaft infrastructure are quite new in terms of opposition mines. I know AMCU created a lot of labour problems there, so maybe it is a substantiated decision. On the other hand everybody are frustrated.

After stating all of the above, I can just come to one conclusion: The mining industry is waiting for someone to create this required Eureka moment, and then everybody is going to ask:

Why did I not think of that?

And my answer will be:

Because you did not think!!!!!

So:

Start thinking, the answer is right in front of you (and you do not have to spend $ 1 billion to achieve the goal)