Mining and local economic development: a case study of the Rustenburg local municipality
Date
2010-06-28T11:23:12Z
Authors
Ndaba, Mpho Brian
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Abstract
Mining is an economic activity that has the potential to develop a region that is impacted
by its operations. The extractive industry also impacts negatively on the surrounding
communities as it may introduce certain undesired practices which may effect the
environment, disturb existing social practices, and promote gender inequality and the
unequal distribution of economic benefits. The end of mining activities can become the
end of a community’s economic existence resulting in misery emanating from economic
hardship or migration to another region that offers economic opportunities.
The majority of mining jurisdictions in the developing world still lack appropriate
regulatory and management mechanisms that will enable their extractive industry to
contribute to the economic well being of the region. The extractive industry has to be
regulated in a sustainable manner that will ensure that its negative effects are well
managed and reduced. This requires proactive solutions by all those who are affected by
mining operations to co-operate in developing strategies aimed at steering the extractive
industry to contribute towards sustainable Local Economic Development (LED).
This research report investigates mining and sustainable (LED). It also pays attention to
international and local approaches in achieving sustainable LED in mining regions. A
case study of the Rustenburg Local Municipality (RLM) has been conducted in order to
ascertain the role of mining in contributing towards sustainable LED. The RLM is a
municipal area which has mining as a dominant economic activity. The municipal area is
currently experiencing an increase in economic activity as a result of its mining sector,
mainly the mining of Platinum Group Metals (PGM). The municipality is struggling to
develop an appropriate mining and LED strategy for its jurisdiction as a result of
inadequate co-operation with stakeholders in the mining sector and insufficient capacity
in the municipality. Owing to inadequate cooperation stakeholders in the mining sector
are developing their own community development programs with limited consultations
with one another.
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The research report found that the development of sustainable LED strategies should
involve all stakeholders; this process should ideally be headed by local authorities as their
responsible with managing and administering development projects in their jurisdiction.
The RLM municipality has the potential to develop sustainable LED strategies aligned to
its mining sector. This requires the strengthening of cooperation between stakeholders
and capacity building in the municipality. The development and implementation of
sustainable LED does not only depend on being spearheaded by the public sector as the
research reports findings reveals that private sector driven sustainable LED strategies are
possible.