Modi Mining - Mining Outlook - Issue 11

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IN MINING ROOTED

Holding itself to a higher standard and committed to its creed, ‘performing for impact’, Modi Mining is a catalyst of positive change, offering mining services and products of the highest quality whilst safeguarding the communities in which it operates. Sam Molefi, Managing Director, tells us more

As it undergoes a significant transformation, the African mining industry is witnessing an undeniable shift towards sustainable and socially conscious operations.

Demand is also increasing for contract miners who not only deliver on technical capabilities but on community impact initiatives and compliance to the prevailing laws.

A prime example of an awardwinning company successfully delivering on an emerging criterion for social responsibility is Modi Mining, who is on a mission to provide the best possible outcomes for all impacted by its work.

“It’s an exciting time to be involved in the sector, particularly for Africanowned businesses,” opens Sam Molefi, Managing Director.

As it continues to tap into the region’s vast mineral resources with the collective interests of local communities in mind, Modi Mining emerges as an ethical organisation that sets the bar for others to follow in its footsteps.

Elsewhere, digitisation, environmental, social, and governance (ESG) integration, and local ownership are also key trends shaping the future.

“Companies that can adapt to this new paradigm will thrive,” Molefi observes.

DISCIPLINED, AGILE, AND COMMITTED

A 100 percent black-owned contract mining company operating across South Africa (SA), Modi Mining emerges as a key player in the region’s mining and minerals landscape.

Its clients include respected industry names such as Exxaro Resources Limited (Exxaro), Impala Platinum, Glencore, and SibanyeStillwater, amongst others.

Currently employing over 1,000 staff across multiple sites,

WHAT INITIALLY DREW YOU TO WORKING IN THE MINING INDUSTRY?

Sam Molefi, Managing Director: “My journey in mining spans 29 years, beginning in the Gold Fields region, SA, and extending through technical and leadership roles at Valterra Platinum (formerly Anglo American Platinum), Sasol, and a Managerial role at JIC Mining Services.

“I was drawn to the industry because of its ability to transform economies and impact communities at scale.

“Over time, my interest evolved from technical expertise to strategic business development, driven by a desire to build a mining business rooted in operational excellence and inclusive growth.

“This led to the founding of Modi Mining in 2007, which today employs over 1,000 people and serves some of SA’s leading mining companies.”

“ONE OF OUR CORE VALUES, ‘WINNING WITH OUR PEOPLE’, NOT ONLY SPEAKS TO VALUING ALL STAKEHOLDERS BUT ENSURING THE COMMUNITIES WE ARE A PART OF SHARE IN OUR SUCCESS”
– SAM MOLEFI, MANAGING DIRECTOR, MODI MINING

Modi Mining’s operations span both underground and opencast environments.

“We are known for delivering under challenging conditions with a strong safety record and high operational standards,” Molefi tells us.

Providing specialised mining services, Modi Mining operates across several key areas such as underground and opencast mining,

alongside offering civil services.

Standing out from the competition, the company’s operational discipline, agility, and commitment to inclusive growth continue to differentiate it.

In short, Modi Mining’s capabilities have seen it deliver at scale, whilst the company is still agile enough to take on small projects, led by a team of experienced professionals.

“With outstanding levels of

expertise and industry knowledge, our care-driven leadership team leads and influences the organisation from all levels,” he prides.

Most importantly, as a transformation-driven business –not just in terms of ownership, but in terms of hiring, training, supplier development, and community partnerships – the company further differentiates itself.

LEADING THE FUTURE OF SUSTAINABLE MINING FOR EMERGING MINING COMPANIES

INTRODUCTION

Mining is the largest economic sector in South Africa and often triggers complex compliance issues that require expert and in-depth legal intervention. Imperatively, the success of mining companies depends on their utmost compliance, ability to navigate strict regulatory frameworks and the implementation of good corporate governance principles.

SGA LAW AFRICA’S ROLE

In assisting mining companies achieve sustainable mining, SGA Law Africa provides strategic compliance plans for risk assessments, risk management, risk mitigation, as well as monitoring and testing for mining operations, thus helping mining companies achieve compliant, responsible and efficient mining.

SGA Law Africa’s compliance expertise enables mining companies to manage risks and operate in a costeffective manner that takes into account development in the mining sector operations as well as the protection of the environment.

SGA Law Africa works enormously with emerging and leading mining companies, notably, Modi Mining by helping it maintain sustainable mining operations, through efficient compliance with the regulatory frameworks.

Modi Mining is a reputable mining operations company that provides contract mining services, underground and open cast mining and manufactures mining supplies to mines in the gold and platinum sector.

It is an essential requirement that mining activities in South Africa must operate in an environmentally sound manner. Therefore, in assisting mining companies maintain a good compliance record, SGA Law Africa crafts suitable compliance and risk assessment plans for mining companies and provides checks and balances to assist emerging miners to implement compliance regulations, risk assessments and monitoring.

The key focus areas implemented by SGA Law Africa in assisting mining companies achieve compliance and sustainable mining are:

• Helping mining companies obtain mining rights and conduct mining operations that adhere to:

• Environmental Impact Assessments (EIAs), social and labour plans and financial provision and planning for environmental rehabilitation and mine closure;

• Minerals Petroleum and Resources Development Act (MPRDA) which governs mining rights in South Africa;

• National Environmental Management Act (NEMA) for Environmental Management;

• Mine Health and Safety Act (MHSA) for safety mining operations; and

• Broad Based Black Economic Empowerment Act (BBBEE) for an all-inclusive economic empowerment.

SGA Law Africa leads mining companies into conducting environmentally sound mining operations.

In the plight of climate change and global warming, mining companies are forced to maintain compliance in order to mitigate environmental challenges. Emerging miners that wish to achieve a clean compliance slate and excel in the mining sector have a great companion in SGA Law Africa which leads the sustainable mining principle.

SGA Law Africa understands the complex nature of compliance laws and therefore provides clear, concise and perfectly drafted compliance plans that serve as an excellent guide for mining companies to keep abreast with overall compliance requirements.

SGA Law Africa is renowned for its impeccable solution driven and dynamic expertise which create and enable a thriving environment for mining companies. In 2017, Modi Mining received the Black Umbrellas National Enterprise Development Award, ranking as the entrepreneur of the year for its astounding work and excellence in providing reputable mining and civil services

SGA Law Africa recognises such incredible efforts and strides and remains on board to assist Modi Mining

to maintain an incredible compliance status that at all times aligns with the law and Sustainable Development Goals (SDGs).

CONCLUSION

SGA Law Africa enables mining companies to excel in their work by ensuring overall compliance. Emerging miners that wish to achieve a clean compliance slate and excel in the mining sector have a great legal companion in SGA Law Africa.

“That’s what makes us more than just a contractor; we’re a strategic partner,” Molefi adds.

PROJECTS AND PARTNERS

Modi Mining is proud to have been appointed two years ago by Exxaro, an SA-based diversified resources company, to execute a contract mining project in one of its opencast coal mines.

“We successfully delivered an average of 550,000 tonnes per month of combined topsoil, subsoil stripping, and hard stockpile mining,” Molefi outlines.

This output resulted in an impressive 130 percent yield in year one, followed by 179 percent in year two, exceeding what the company set out to achieve in the initial business plan.

“Our excellent performance in this instance was accomplished due to zero lost time injury cases, whilst

MODI MINING’S SERVICES – AT A GLANCE

Operating across a range of mining sectors whilst offering a comprehensive portfolio of civil services, Modi Mining’s services in each are wide ranging. These include:

UNDERGROUND (HARD ROCK) MINING SECTOR – Stoping, developing, underground construction and equipping, and trackless/mechanised mining services.

OPENCAST MINING SECTOR –Load and haul, rollover mining, rehabilitation.

CIVIL SERVICES – Material handling and stockyard management, bulk earthworks, and construction of tailings storage facilities (TSF).

“FOR US, SUPPLIER RELATIONSHIPS ARE NOT TRANSACTIONAL. WE BUILD LONGTERM PARTNERSHIPS BASED ON TRUST, SHARED VALUES, AND MUTUAL GROWTH”
– SAM MOLEFI, MANAGING DIRECTOR, MODI MINING

we only recorded a single medical treatment case (MTC) over the twoyear period,” he details.

The company’s supply chain, meanwhile, has been a critical part of Modi Mining’s value chain, having worked closely with some of its original equipment manufacturers (OEMs) and local suppliers for many years.

By maintaining a close relationship with its partners and suppliers, the company ensures equipment availability is consistently at an all-time high, further supporting local suppliers with preferential commercial terms to ensure they provide high-quality

services and products in return.

Equally important to Modi Mining is its commitment to local procurement, prioritising partnerships with blackowned and community-based enterprises.

“For us, supplier relationships are not transactional. We build long-term partnerships based on trust, shared values, and mutual growth,” Molefi confirms.

SHARING SUCCESSES

With people at the heart of Modi Mining’s success, it focuses heavily on skills development, mentorship, and internal promotion.

“We run performance recognition programmes and regularly celebrate team milestones,” Molefi explains.

The company also believes in empowering its site leadership teams to make decisions, driving accountability and building a high-performance culture across all levels of the business.

Elsewhere, Modi Mining prioritises corporate social responsibility (CSR), viewing itself as at one with the communities in which it operates.

“One of our core values, ‘winning with our people’, not only speaks to valuing all stakeholders but ensuring the communities we are part of share in our success,” he impassions.

The company recognises that whilst its mining operations are essential to the economy, it is equally crucial to ensure that the benefits of the mines’ successes are shared with those who need it most.

“CSR is not just a box-ticking exercise for us, it’s part of our DNA,” Molefi shares.

Indeed, Modi Mining also supports youth development, sponsors local school initiatives, and contributes to health outreach programmes in the areas where it operates.

“Our goal is always to create shared value and leave a positive footprint in the communities we touch,” he adds.

EXPANDING HORIZONS

Looking ahead, Modi Mining intends to deepen the culture of interdependence amongst its employees, bolstering resilience and operational excellence in all it undertakes.

The company also intends to expand its horizons by adding new names to its existing client base, girded by internal transformations, involvement in various industry platforms, and direct solution selling.

Modi Mining also intends to strengthen its internal operations.

“We will reinforce ourselves internally by streamlining systems,

strengthening leadership, and driving a culture of high performance,” Molefi muses.

Reflecting on his leadership style, Molefi notes how leading by example and empowering those around him has helped the company to achieve its continued success.

“I value operational discipline, but I also value taking care of people and building a culture of accountability and performance.

“At the end of the day, leadership is about building others up, creating opportunities, and driving purpose with clarity,” he passionately concludes.

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