The impact of mineral extraction on local economic development of mining towns: a Marikana perspective
Date
2017
Authors
Khenisa, Matthews Bhekuyise
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Abstract
The research examines the relationship between mineral extraction and sustainable economic development of local mining communities. The research will focus specifically on Marikana within the Rustenburg Local Municipality. The research investigates the efficacy and implementation of the regulation and legislative framework relevant for the transformation of the mining industry as well as the sustainability of the local economic development.
In terms of the MPRDA, mining companies are obligated to submit a social and labour plan (SLP) when applying for mining rights. The main purpose of the SLP as per the guidelines, regulation 46, is to ensure the improvement of infrastructure, poverty alleviation and community development of the host community and in the situation from which most of the labour is sourced and being addressed. The Act further prescribes that the SLP should be aligned to the municipality‟s integrated development plans (IDP). Sec 100 of the MPRDA further prescribes the development of the mining industry charter. The charter, aims at addressing the integrated sustainable LED of the host communities, the facilitation of meaningful participation of HDSA in the mining and mineral industry.
This research adopts an interpretative social science approach. The design that the research took is a qualitative approach. Primary data was collected through semi-structured interviews conducted with eight interviewees. Participants consisted of two companies (mining house, Research Company), four policy experts from local and national government, two community representatives from the ward committee and the business forum. Secondary data is from the journals, academic writings, SLP and the IDP of the municipality.
The results show there are challenges with compliance with SLP and the Charter prescripts from the mining houses, also there is a debate about mining houses‟ commitment in implementing sustainable LED as there is a view that they are only focused on small, economically unsustainable projects and that they reserve mega
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projects for white established businesses to the exclusion of black start-up companies.
The view that the regulator is encouraging lack of accountability of the mining houses because of lack of applying punitive measures against non-performance is also gaining traction. The issue of lack of capacity of the regulator to monitor local projects was highlighted as a contributor to mining houses‟ noncompliance.
Inadequate stakeholder engagement, lack of alignment of the SLP, IDP and the priorities of the community creates a challenge due to lack of buy in and ownership of LED projects implemented.
The research found that there is a need to improve alignment of the IDP, SLP and the community's priorities, improve stakeholder engagement process and also to enforce the prescripts of the Act where there is lack of adherence.
KEY WORDS: Local economic development, Social and labour plans, Integrated development plans
Description
A mini-dissertation submitted in partial fulfilment of the requirements for the degree of Masters of Management (in Public & Development Management) at the University of the Witwatersrand, Johannesburg
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Citation
Khenisa, Matthews Bhekuyise (2017) The impact of mineral extraction on local economic development of mining towns: a Marikana perspective, University of the Witwatersrand, Johannesburg, <http://hdl.handle.net/10539/23640>