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Why You Should Consider Investing In The South African Engineering Industry

Macrotrends put South Africa’s population at 60,414,495 in 2023, a 0.87% increase from the previous year. This increase in population sustains the relevance of the simple thesis – the demand for infrastructure increases with an increase in population.

Simply put, more houses need to be built, and roads and efficient transport systems need to be designed to facilitate the mass movement of people. Likewise, safe and hygienic food needs to be produced in mass to feed the increasing population. These are problems that need the unique problem-solving skills of engineers.

South Africa is also rich in natural resources including gold, diamonds, iron, silver, titanium, and manganese that require special engineering skills to exploit. Engineers can invest directly, or consult for corporations and governments in South Africa. Here are the reasons why you should consider investing in the South African engineering industry.

A Growing Construction Industry

The South African construction industry is expected to see a 5.0% growth in 2023. Even though South Africa’s short-term growth has been hit, its medium and long-term growth projection hold. It is estimated to grow steadily in 2023 and keep the momentum through to 2027. During this period, it is expected to grow by 5.8%. According to updates in South Africa Construction Industry Databook Series – Market Size & Forecast by Value and Volume, Q1 2023, the output in South Africa’s construction is estimated to hit ZAR 276,797.9m in 2027.

The growth in construction is forecasted to come from different sectors of construction including healthcare construction, public sector, educational construction, redevelopment & maintenance, commercial green building, commercial building construction, residential building construction, industrial green building construction, infrastructure construction, institutional green building, and green infrastructure construction. Engineers can invest in any of these construction sectors either directly as a contractor or as a consultant for construction companies operating in South Africa.

As an engineering consultant, you can design client projects according to international standards while observing South African policy demands. You can also invest as an engineering technical service provider. Here, you’ll undertake client projects as a contractor or serve as a project manager to oversee the construction works for the client. You will also liaise with the consulting engineer on behalf of your client in the course of the construction work.

Opportunities in the Mining Sector

South Africa’s mineral reserves still stand as one of the most valuable in the world today with an estimated value of USD 2.5 trillion (R 20.3 trillion). Generally, South Africa’s mining sector is approximated to be the 5th largest globally based on GDP. As such, it offers numerous investment opportunities to engineers. Some of the highest paying jobs are still within the mining sector. There are multiple ongoing mining projects in South Africa that you can invest in depending on the stages of a project’s life cycle. These stages include:

Grassroots

Activities in this stage are done in areas that are under-explored to determine the usefulness of the orebody (prospective or not)

Pre-feasibility

The collection of valuable strategic data/information is done at this stage. This information is useful to long-lead and equipment manufacturers as it aids in the planning, control, and management of product lines.

Feasibility

Resource improvement is done in this stage. It involves determining the best processes, planning, and selecting the equipment to use. It is also at this stage that tendering process happens. Contracting of engineers and engineering consultants also happens in this stage (the engineering procurement construction (EPC) and procurement construction management (EPCM))

Other stages include bankable, execution, operational, dormant, dormant L/R, closed, and completed.

Engineers can invest in all these stages. Some of the engineering opportunities in all the mining stages include:

Civil works
Perimeter drilling
Engineering survey
Geophysical survey
Process method planning
Design and consulting
EPCM and EPC
Construction
Infrastructure building
Process plant construction
Shaft-sinking
Refurbishment
Maintenance, repairs, and replacement services
Environmental impact assessment

The construction and mining sector in South Africa provides immense engineering investment opportunities. These opportunities are likely to increase with the changing demographics of South Africa and increased demand for South Africa’s high-value natural resources. Identifying an opportunity in either construction or any mining stage and exploiting it can yield high dividends in the medium and long term.

Consultant Engineering Water

Rand Water, South African Green Industries Council in joint effort to conserve water

Rand Water and the South African Green Industries Council (SAGIC) are undertaking joint – and individual – water conservation efforts to reduce the traditional spike in water use in spring and summer and encourage the responsible and judicious use of water.

The joint alliance aims to promote a reduced use of water to mitigate the seasonal strain on supply, assist with compliance with water-use license allocations and reduce future impact on water reserves in storage dams, especially if a strong El Niño develops as expected.

Water demand usually surges during spring and summer, in part owing to gardeners, landscapers and food producers watering to encourage new plant growth, including lawns, or to start early vegetable production, which places strain on the water reticulation systems for all suppliers.

However, the primary challenge this season will be to encourage and activate a downward turn in the yearly spring water use spike amid a host of challenges, including South Africa’s growing population and their wide range of water use in daily activities, the impact of anthropogenic development on climate change and seasonal climate variations brought about by El Niño and La Niño.

“The need to use water responsibly and conserve water is essential in a world where scientists are predicting more erratic rainfall and drier seasons. Furthermore, climate models forecast the number of dangerously hot weather days will double over half of the country,” the parties said in a statement on Tuesday.

“This suggests that South Africa on average will be hotter and drier, thereby placing strain on the country’s already perilous freshwater resources, and impacting negatively on livestock, agriculture, human health and biodiversity.”

Water conservation is an important element of water supply planning and necessitates the responsible use of water, using water-wise efficiency improvement mechanisms, the parties highlighted.

For nearly three decades, Rand Water’s Water Wise team has worked with SAGIC and its alliance partners to produce environmentally responsible, water-wise marketing materials, with numerous campaigns and a range of educational material produced both individually and jointly.

The success of these have been difficult to measure when linked to specific water use reduction, although the Water Wise brand is now commonly used across green industry websites and in a range of online social media.

“It is also evident that SAGIC members have implemented many changes within their individual membership requirements to encourage water-wise practices among their membership. The benefits have, in turn, been passed on to South African consumers,” the parties said in the joint statement.

However, there remains much to be done to reduce the existing water use curve in spring and early summer.

SAGIC members, such as the South African Nursery Association have launched a host of ‘water warrior’ initiatives which will be rolled out across the 2023/24 spring and summer season, while Rand Water, through its Water Wise team, remains committed to continue with research, developing and producing new relevant and innovative information for both green industry businesses and end-users.

It is also hoped that the public and private sectors will be influenced to find new and innovative ways to reduce water use and use water responsibly this season, while still maintaining their businesses, gardens, parks and landscapes to a high standard.

Engagements between Rand Water, SAGIC and the South African Local Government Association will continue to encourage water-wise education, job-friendly irrigation times in municipal bylaws and responsible wording when organs of State require reduced water use.

Consultant Engineering Water

Climate change and mine water management

South Africa is experiencing a warming trend that is about 1.5 times the global average. Kirsten Kelly talks to Mehmetcan Özkadıoğlu, hydrologist at SRK Consulting, about the impact of climate change on mine water management.

‘Warming Stripe’ graphs are quite iconic images for climate change studies to show how earth is getting warmer since the beginning of last century. It can be either used as an average temperature or anomaly version (anomaly preferred). Generally the blue and red colours tell the story without the colour bar

“South Africa is currently undergoing notable climate transformations – a trend that’s becoming more and more evident,” explains Özkadıoğlu. “Climate change projections are predicting a temperature increase of 1°C to 2°C across the country by mid-century. Accompanying this, we are anticipating a shift in rainfall patterns, leading to an increase in rainfall for some of the areas and a decrease in overall rainfall trends in other areas, which could potentially lead to drier and wetter mining conditions. At the same time, the climate models project an increase in the intensity of rainfall and the frequency of storm events, increasing the risk of mine flooding. The probability of extreme heat events, which can intensify evaporative losses, is also expected to rise. These changing climate patterns are essential to incorporate in the mine water management strategies, highlighting the urgency of climate change considerations in our decision-making processes.”

Mehmetcan Özkadıoğlu, hydrologist at SRK Consulting

Climate change significantly impacts water resources, and the following are key considerations for the mining industry and mine water management in South Africa.

Water scarcity: Climate change is projected to significantly impact on water resources, with a major concern being the potential decrease in water availability. This can result in water scarcity, posing a challenge to water-intensive mining operations.

Extreme weather events: A key principle in thermodynamics is that as air temperature increases, so does the atmosphere’s ability to hold water vapour. This can lead to more severe and frequent storm events. These extreme storm events can disrupt mining operations, damage crucial infrastructures – such as stormwater structures, tailings, water supply dams, open-pit operations and waste rock dams, among others – and pose safety risks.

Changes in water quality:

Changes in temperature and precipitation due to climate change can affect the quality of water. Increased rainfall intensity, for instance, can lead to a rise in sediment loads in the surface run-off, affecting the quality of water used as the mine process water. On the other hand, decreased rainfall and increased temperature can result in higher concentrations in contact waters and reduce the water quality.

Increased energy consumption:

For mining operations that are delving deeper and encountering lower ore grades, there is an escalating demand for water and an increase in mine waste. This situation contributes to a rise in energy consumption and expands the industry’s carbon footprint.

Reputational risks:

Failure to adequately factor in the impacts of climate change on mining operations could lead to disputes with host communities, potentially affecting the social licence to operate, as water supply may be reduced for the communities.

Adaptive strategies and precautions

Mining companies must anticipate different climate change scenarios and then consider the impact on the operational and closure phases of a mine’s life. There are various adaptive strategies:

Tailings storage facilities

Understanding the potential impacts of climate change is key for the design, construction, operation, and closure of tailings storage facilities (TSFs).

The Global Industry Standard on Tailings Management (GISTM) is a framework developed to prevent tailings dam failures. It aims to achieve the safe and secure management of tailings facilities by establishing clear expectations for companies, governments and other stakeholders. In the context of climate change, GISTM can help mining companies adapt by promoting the use of best practices in tailings management, considering climate change in risk assessments and improving the resilience of tailings facilities to extreme weather events.

“The design and construction of current tailings dams have not fully considered the fluctuating climate patterns and the recent intensification of extreme weather events. It is now imperative to incorporate planning for an uncertain climate future into risk management strategies. Take, for example, the lifespan of certain tailings dams, which are projected to continue operation for the next three to five decades before the closure phase. Despite their closure, these dams will continue to be vulnerable to the impacts of climate change. Therefore, it’s critical that we factor in future climate conditions not just during the operational stages, but also throughout the subsequent closure and post-closure phases of these dams,” says Özkadıoğlu.

Considering a future where a region experiences a rise in rainfall patterns, it’s essential to acknowledge the impact this shift in rainfall pattens will have on a range of operational aspects, hydrological and hydraulic processes. These include, but are not limited to, the infiltration of precipitation into TSFs, the decant from the TSF impoundment area, and the storage conditions of both the TSF and downstream return water dams. TSFs must be capable of storing and effectively releasing extreme storm volumes to prevent uncontrolled discharges from TSF. The design of diversion channels, which redirect excess run-off away from the TSFs, may need to be re-evaluated in response to these changes.

The increase in air and surface temperature, alterations in wind patterns, variations in cloud cover, and other factors will affect the evaporation process. Additionally, it is important to consider that extreme weather events may potentially cause damage to the structure, necessitating a more resilient and robust design. The impacts of climate change will vary for each mine, depending on its specific location.

Climate change assessment

Extreme event analysis (probable maximum precipitation) statistical analysis done by SRK

“Traditionally, water resource infrastructure design has been based on the principle of ‘stationarity’, assuming that probabilistic characteristics of hydrologic and meteorologic processes remain consistent over time. However, it is evident that climate trends are shifting, making it insufficient to rely on historical climate data from the 1950s, for instance, when designing structures like TSFs. Therefore, it is necessary to incorporate future climate projection models into our studies, relying on modelling techniques to predict and anticipate future climate patterns,” states Özkadıoğlu.

SRK Consulting adopts a comprehensive approach to addressing climate change, starting with a thorough analysis of local climate trends to establish baseline climate readings. Through this analysis, we assess the accurately representative historical baseline climate conditions for the site, downscale existing climate change models to match the site-specific conditions, and evaluate the rate of change for various parameters, considering the near-, mid- and long-term future. By thoroughly studying the unique characteristics of each mine, potential risks associated with climate change are identified, leading to the development of effective solutions. This meticulous approach ensures that SRK Consulting is well equipped to address the challenges posed by climate change in an informed and proactive manner.

“It is important to remember that each mining operation is unique and, therefore, the climate change assessment should be tailored to suit the specific circumstances of each mine. The study should be a dynamic and ongoing process that can be updated as our understanding of climate change evolves and as more data become available,” adds Özkadıoğlu.

This process entails reconciling historical climate records obtained from on-site weather stations, regional weather stations and relevant climatic gridded models, if necessary, to address any gaps in physical data availability. Climatic gridded models (or climate reanalysis) are scientifically generated to provide a comprehensive historical climate record, ensuring the completion of missing datasets. It is important to note that the selection of the most representative models undergoes rigorous statistical bias correction and adjustment studies to ensure their accuracy and reliability.

The projected future climate models utilised in our analysis are based on global circulation models (GCMs). While historical datasets have traditionally been used to study climate patterns, GCMs are better suited for generating synthetic datasets to investigate the potential impacts of climate change on a global or continental scale. These computer-driven models can be scaled to provide site-specific projections, aiding in weather forecasting, enhancing our understanding of climate dynamics, and projecting climate change.

Currently, the latest climate change models detailed in the Intergovernmental Panel on Climate Change’s Sixth Assessment Report (AR6) – specifically the Coupled Model Intercomparison Project (CMIP6) – are used to predict different climate change scenarios. These scenarios incorporate the concept of Shared Socioeconomic Pathways (SSPs) to represent different future greenhouse gas emissions and socioeconomic conditions.

There are four different SSPs (SSP1-2.6, SSP2-4.5, SSP3-7.0, and SSP5-8.5) within CMIP6. Each one represents a distinct pathway of future greenhouse gas emissions and socioeconomic conditions. SSP1-2.6 represents a lower-bound scenario where sustainability efforts are adopted globally, resulting in significant reductions in greenhouse gas emissions. On the other hand, SSP5-8.5 represents an upper-boundary scenario where fewer climate protection measures are being taken, leading to higher greenhouse gas emissions. Each SSP scenario includes 35 different models, creating a large dataset. This dataset requires detailed statistical analysis and risk profiling to support decision-making processes.

“We are already experiencing climate change. It is vital that we first identify the potential risks, and then actively develop strategies to mitigate and adapt to these future climate scenarios,” concludes Özkadıoğlu.