The governance of mineral resources in South Africa: the case of a selected mining community in Limpopo Province

Abstract

This study was undertaken in four villages which are Makgemeng, Maroga Phalatseng, Mooihoek, and Legabeng, in the Limpopo Province. The aim of the study was to examine whether local communities were benefitting from the local mine, whether the mine promoted an acceptable number of LED projects; whether the mine complied with the Mineral Petroleum and Resources Development Act 2002 (MPRDA), initiatives such as Black Economic Empowerment and Social Labour Policies, and whether the mine helped the development of the local economy, and whether the mine promoted job creation through down-streaming beneficiation which is the core beneficiation form where a mineral is extracted, processed and sold as a finished product and side streaming beneficiation which is an extended form of beneficiation through infrastructures, roads, harbours, airports, railways, institutions The study was anchored on the modernisation theory with a focus on the Sachs economic stages. Four hundred participants took part in the study. The mixed methods research design which integrates both quantitative and qualitative was applied since the study was aimed at exploring and giving in-depth analysis of the relationship between mineral resource wealth gained by the mining industry, and the ongoing poverty and marginalisation in the four rural mining communities. Literature reviewed for the study establishes that despite mining legislation, local economic development growth in rural mining communities remains problematic due to lack of compliance of the Mining Charter which is a legislative instrument of the MPRDA. South Africa has not managed to advance its state of manufacturing through mineral beneficiation as it continues to export minerals partially processed thereby missing out on the full economic value of job creation and industrialisation. Moreover, minimal transformation amongst the Blacks in the rural mining communities has transpired as envisioned under the MPRDA. Instead, an elite core of Blacks have broken into the mining industry while a majority remain marginalised. It is argued that for South Africa to succeed in promoting mineral industrialization through LED in rural communities, it will have to address the challenges that rural typologies mining communities face which include challenges at municipal capacity level, lack of policy alignment between local and national government, historical mistrust between the mining industry and the community, spatial economics and minimal business attraction. Globalisation it is argued can also be addressed better through the modernization framework which promotes strong state intervention of legislative oversight. Most industrialised states it is asserted reached the final economic stage of services through iii interventionist procedures unlike neoliberalism which promotes minimal state participation in the business sector. Neoliberalism has been the bedrock of South Africa’s economic policies since 1994. Due to neoliberalism, South Africa has been forced to take into consideration global trends focused on increasing economic interdependence, and also constrained the ability of South Africa’s ability to diversify its mining sector and communities. The findings confirm that the Department of Mineral Resources (DMR) should create a program that will serve as a one stop shop to provide mining information for the local government on mining programs facilitated, and ensure that they are managed properly with the communities involved. This program should also capacitate the local government officials in addressing legislative oversight issues such as Social labour policies with the mines so that they don’t go unchecked. Most of the community members perceived that the mine was not genuinely interested in promoting the development of their communities, particularly in regards to LED projects. The government also need to address the low literacy rate at the mining rural communities which has become a roadblock for transformation. Industrialisation requires a qualified human stock that would be able to professionally deliver on BEE related services and development. For MPRDA to succeed as a beneficiation tool, it can only be accomplished through human resource development beginning at basic education. Value-addition to minerals is only achievable by a well-trained and fully equipped labour force The study also confirmed that the mines were unwilling to engage with the communities, did not understand the communities, were not transparent with them on tenders or procurements, and made minimal effort to assist develop the communities. A majority of the mines did not participate in the integrated development plan, and most of the community members indicated that the mine did not view them as stakeholders. Lack of corporate social responsibility efforts to alleviate poverty in the communities will only further tension and conflict within the community. Moreover, this continued practice by the mines perpetuates lack of transformation as required by the MPRDA leading the mining industry to remains predominately under the control of white owned companies and rural communities to remain marginalized and undeveloped. In summary, the DMR should stop relying on the mines to transform and comply to all the MPRDA requirements without any form of effective oversight.