The social and economic impact of mining in the Brits area of Madibeng Municipality, South Africa

Abstract

Mining has a potential to contribute to economic growth of any country. Mining deposits in the South African Bushveld region can benefit the entire country. There are reserves for PGM’s and Chromate. Mining conglomerates have over the years earned profits from mining operations in the region. South Africa has the most unequal society in the world. The poverty levels remain very high. The mining sector remains the most unstable sector with labour unrest due to salary disputes or demand for better working conditions of service in the last 5 years which affects production and ultimately revenue. With mining being a mostly export market, the price of commodities are affected by the continuous fluctuation of the local currency (Rand). The Social Labour Plans (SLP) approved by Department of Mineral Resources as part of mining licence applications are not fully adhered to by the mining companies. Mining communities and mining companies continue to have strained relationship due to mining companies not keeping up to their promises contained in SLP. The communities embark on marches that halt production demanding employment and infrastructure development from the mines. The mining communities still live in terrible environments with a need of basic services. A desktop analysis was done by collecting data and by using qualitative and quantitative methods to evaluate conduct of mining companies. The affected areas were visited and observations were made on developments in immediate affected places. Mining is governed by regulations such as Mining Charter, Mineral and Petroleum Resources Development Act (MPRDA), environmental laws and most belong to the Chamber of Mines all of which encourage and support Corporate Social Responsibility (CSR) to the communities mostly affected by their mining operations. Mining companies contribute a minimum towards CSR and maximise their profit. All the mining companies must create a single trust which they will donate funds into. The trust must be used to fund infrastructure development in the Brits area. Mining management must be held accountable for their failure to deliver on their SLP in line with relevant SA legislation.