CASE STUDY:

The stakes in Africas mining sector are extremely high as these companies face challenges of profitability in the form of unfavourable commodity prices and tougher operating conditions. While commodity prices have improved slightly since their 2008 lows, prices remain stagnant, limiting revenue potential for mining companies.

Declining ore grades at current depths also mean that companies have to mine deeper to reach new deposits, significantly increasing the cost of extraction. Particularly in deep level hard rock mining, significant resources cannot be safely and profitably mined with existing mining methods. The imperative to modernize will in turn have social consequences.

As a result, social innovation becomes as important as technical and business innovation. Mining at these depths also introduces additional safety issues due to the high risk of rock falls, flooding, gas discharges, underground earthquakes, and ventilation problems.

Question 1 (25)

Critically discuss all the elements of innovation planning that the mining sector will need to implement in order to deal with these challenges they are facing.

Question 2 (25)

Incorporating the phases of innovation, the triggers to innovation and innovation business models, explain how the mining sector can navigate the challenges highlighted in the case study.