How South Africa's mining industry can improve environmental performance through sanitation system modernization within ESG

The South African mining sector is under constant pressure to improve environmental performance, support worker well-being, and demonstrate tangible progress toward Environmental, Social, and Governance (ESG) goals.

While energy efficiency and water security often attract attention, sanitation infrastructure frequently remains an underestimated vulnerability. The standard of sanitation maintained on site is increasingly becoming a clear indicator of how seriously a mining company approaches innovation, human dignity, and resource management, rather than merely meeting a basic requirement.

In remote, high-intensity mining operations, especially deep underground, sanitary conditions have historically been extremely primitive. Systems based on crude containment or simple buckets create significant problems for both on-site personnel and management.

For underground workers, poor conditions directly threaten health, personal comfort, and daily dignity. For operational teams, managing these systems generates considerable logistical difficulties. Transporting waste from deep underground sections to surface treatment facilities requires time, energy, and constant coordination.

Shaft infrastructure is limited, and waste servicing schedules are regularly disrupted by emergencies or equipment repairs. Every additional trip to haul heavy waste containers consumes valuable shaft availability, increases transport costs, and raises overall fuel emissions on site.

The solution to these problems lies in shifting the focus from continuous waste transportation to its treatment directly at the point of generation. Recent local engineering developments concentrate on placing compact automated treatment units directly in remote mining locations. These closed-loop systems filter, clean, and recycle liquids on site instead of constantly hauling raw waste to the surface. Through continuous liquid reprocessing, such systems can reduce the volume of physical waste requiring removal by up to 80%.

Such an 80% reduction fundamentally changes daily mine logistics. Moving only 20% of the initial waste volume significantly reduces the strain on shaft infrastructure, decreases fuel consumption, and minimizes hazards on site. From a water resource management perspective, reusing liquids sharply lowers the demand for fresh water for sanitation, helping mines protect local water reserves in drought-prone regions.

Mine sanitation technologies must be not only theoretically advanced but also capable of withstanding real South African conditions. Imported solutions designed for milder environments often fail underground, where dust, intensive daily use, and limited budgets prevail. Local developments strike a sensible balance between efficient treatment technologies and simple, robust mechanisms.

Designing equipment that is accessible for installation and easy to maintain ensures that sustainability upgrades remain practical, allowing operations to continue uninterrupted deep underground. Beyond improving water efficiency and logistics management, better mine sanitation solves a key operational problem—worker health and absenteeism. Health management initiatives in the sector have shown that hygienic, well-maintained sanitary facilities directly reduce the spread of illness among underground crews, leading to a noticeable decrease in health-related sick leave.

The human impact of clean infrastructure directly reflects on operational stability. Ensuring employees have access to safe and dignified amenities fosters a healthier workforce, which in turn reduces shift delays, improves site safety, and supports stable daily production output.

As sustainability reporting becomes more detailed, mining executives are re-examining every aspect of their operations. Modern sanitation touches all three aspects of ESG. From an environmental standpoint, reducing waste transport lowers site emissions, and recycling systems conserve regional water resources. From a social standpoint, improved facilities protect employee health, safety, and daily dignity, directly reducing days lost to illness. From a governance standpoint, mitigating risks associated with waste handling helps operations remain fully compliant and avoids costly environmental fines.

Sanitation in the mining industry can no longer be a secondary concern. Adopting practical, locally developed technologies is the most effective way for South African mining companies to transform an old operational problem into a clear victory for water resource management, team well-being, and ESG leadership.

The quality and reliability of municipal services in South Africa are declining for many citizens. Reasons for this include aging infrastructure, insufficient maintenance levels, financial strain, and management issues that are outpacing population growth.

Differences Between Municipalities

A gap has widened between municipalities that manage effectively and those facing constant difficulties. This results in many rural communities, informal settlements, and small towns experiencing unreliable water supply, deteriorating sanitation, and limited waste collection, according to independent consultant Dianne Davis.

Dianne Davis notes that South Africa's municipal services reflect both progress and increasing strain. She emphasizes that since 2015, millions of households have gained access to electricity, plumbing, and improved sanitation thanks to ongoing investments in vital infrastructure. However, for many citizens, the quality and reliability of these services are falling due to a combination of aging systems, inadequate maintenance, financial problems, and administrative complexities that cannot keep pace with population growth.

Financial Burden and Service Restoration

According to Davis, rising municipal tariffs increase the burden on households. Many families are forced to pay twice: once through municipal fees and service payments, and a second time for private alternatives such as solar panels, water tanks, boreholes, and security systems.

The independent consultant believes that South Africa's problem is no longer just about expanding access, but about restoring stable service delivery. This requires competent leadership, preventative maintenance, transparent financial management, and increased accountability. She adds that with the right reforms, the country possesses the necessary technical knowledge, institutional foundations, and examples of local success to create municipalities that provide reliable, affordable, and sustainable services to every household.

Water Crisis and Investment

According to Old Mutual Alternative Investments, the water supply issue in South Africa is simultaneously a revenue efficiency and infrastructure problem. The manager of private alternative investments argues that every lost liter reduces the municipal income needed to maintain the network from which the leaks originate. This leads to pipe weakening, reduced revenue, delayed repairs, and accelerated wear and tear.

The company points out that practical and measurable opportunities exist for investors here. It lists solutions such as smart metering, leak detection, pipe replacement, pressure management, and performance-based models that can help municipalities reduce losses and improve service delivery. In the water sector, some of the most attractive investment opportunities may lie in improving the efficiency of existing systems.

Structural Changes in Construction

Meanwhile, Christo Owen van der Reyde, an associate professor at the Faculty of Economics and Management Sciences at the University of the Free State, notes that the construction sector, long a cornerstone of capital investment in South Africa, is undergoing a profound structural transformation.

He cites data from Statistics South Africa (Stats SA) showing that the industry's contribution to GDP has fallen from 4.2% in 2008 to approximately 2.3%. Total output has decreased from 156 billion rand in 2016 to less than 100 billion rand. Van der Reyde also notes a geographical shift in activity: Gauteng's share of construction revenue has dropped from 39% in 2020 to 35%, while the Western Cape's share has risen to 24%, reflecting a change in regional investment dynamics.

Cycle of Hardship in Construction

In the expert's view, South Africa's construction sector is in a difficult situation: declining investment suppresses production capacity, criminal activity on sites deters capital, and job fragmentation limits household consumer spending. To change this trajectory, decisive steps are needed: eradicating extortion on construction sites, expanding public-private partnerships (PPPs) to mitigate risks in large projects, and supporting the growth of small and medium enterprises (SMEs) to ensure long-term economic sustainability.

In South Africa, electricity supply has become one of the most unreliable aspects of daily life. For nearly two decades, the country has faced energy uncertainty, which is a consequence of an aging coal fleet built primarily between the 1960s and 1990s that can no longer meet growing demand.

Energy System Problems and Prices

Over the last year, grid reliability has improved, with energy availability exceeding 65%. However, this is accompanied by constant and increasing pressure from prices. Direct tariffs increased by 12.74% in April 2025, with a further planned increase of 8.97% for 2026. As a result, the average consumer's bill has risen by almost 180% over the last ten years.

Eskom's recovery is noticeable: more than 350 days have passed without scheduled outages, and generation indicators have stabilized. Nevertheless, in 2025, over 91,000 unique distribution-level emergency outages were recorded across South Africa. These ongoing interruptions are mainly unplanned and lead to store closures, spoiled goods, and sudden power loss for households.

A New Vision for Utilities

Today, the problem goes beyond simply maintaining power supply; it concerns accessibility, predictability, reliability, and access to services. The essence is to give people confidence in daily services, which will determine the definition of future utilities. Modern consumers are no longer willing to accept an outdated model where the service provider merely delivers a service and issues a bill, leaving customers to solve uncertainty problems.

Consumers require solutions that help them understand, manage, and optimize both energy consumption and their financial well-being. It is believed that the utility of the future must do much more than just supply electricity. It must integrate technology, financial analytics, and customer-centric services into a single seamless experience, providing peace of mind and control for customers.

The Results of Certainty

Crucially, such a system must provide certainty, not as an abstract idea, but through tangible results. This means a student can study without interruption, and households and businesses receive predictable costs for planning. Furthermore, financing must make essential services like water and electricity more affordable, and knowledge of available support must be guaranteed. It is these results that make certainty a catalyst for opportunity.

A study conducted by the University of the Free State in the town of Rouimsig showed that with sufficient energy supply, 99% of children could study longer at night, 80% of residents could work longer, 94% reported a reduction in cough from paraffin/candles, 85% felt safer, and 78% gained new previously inaccessible earning opportunities.

The difference between having certainty and living without it determines people's ability to fully participate in the economy and realize their potential. This conviction is the basis for the growth and evolution of Wetility.

The Evolution and Mission of Wetility

Wetility was initially conceived as a utility that needed to go beyond its innovative solar subscription model, which offered clients zero upfront costs, thereby removing the initial capital barrier and serving as an entry ticket to the market. However, the vision has always been much broader—the name itself connects the concepts of 'we' and 'utility,' as the brand was created with the client's needs in mind.

After the company managed to provide uninterrupted power supply on a large scale with its initial offerings, the need arose to ask fundamental questions about the broader energy experience of South Africans and the long-standing lack of certainty. South Africa's problem is not just about energy access, but about certainty regarding it; therefore, the future requires a new model, which Wetility is building—a technologically equipped utility designed to provide certainty through accessibility, reliability, predictability, and financial inclusion.

Innovation and Financial Inclusion

This vision extends beyond solar energy; it is also based on smart metering, AI-powered energy management, financial solutions, reward programs, and access to credit. Among the innovations is OneBill, a solution that addresses a structural problem common across the continent. In many parts of Africa, electricity payment systems are fragmented, exclusionary, and disconnected from the overall financial lives of the people who depend on them.

OneBill responds to this reality by integrating grid and solar electricity, credit access, and financial services into a single experience, ensuring savings for households that have long been underserved by both the energy and banking sectors. This innovation simplifies the energy experience and demonstrates how utilities can create value.

To date, the company has invested over 1.5 billion rand in more than 10,000 systems, allowing customers to save between 20% and 40% on monthly electricity bills. In the context of the transition to fair energy in South Africa, it is necessary to rethink what a utility can be and what consumers should expect from it. The utility of the future must be proactive, not reactive; intelligent, not transactional; and designed around the customer experience, not just infrastructure.