SOCIO-ECONOMIC IMPACTS OF PLATINUM MINING ON

Abstract

Mining is a major economic activity in several countries with significant contributions to exports and infrastructure development. Mining is generally viewed as providing an economic stimulus in the areas/regions where it occurs. In some areas, the local economy depends almost exclusively on mining. However, the abundance of resources has not always resulted in a prosperous populace. Some view resource abundance as a “blessing” and others as a “curse”. The natural curse thesis holds that resource abundance is the cause of lesser economic growth (Buitelaar, 2001). It is also an industry that is often held responsible for causing environmental damage and social disruption. This situation is not unique to South Africa, as this scenario is increasingly manifesting itself in other countries where mining takes place. The questions thus are as follows: What are the impacts of mining, particularly on local communities? To what extent are the economic benefits arising from mining impacting positively and/or adversely on the socio-economic development of the local communities in the area? Is growth translating into human development? This study found that the establishment of Anglo Platinum PPrust has had mixed impacts on locals and hence contradictory views are held about whether the presence of the mine in Mogalakwena is proving to be a “blessing” or a “curse”.