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Perceptions of local communities regarding the impacts of mining on employment and economic activities in South Africa

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  • Dikgwatlhe, P.
  • Mulenga, F.

Abstract

Minerals contribute to the economy of South Africa and social well-being of society. The consequences of any challenges to mining could result in a dire situation for the nation's economy and security including the social well-being of society. One such challenge is the need for approval of the social license for a mine to operate, and this is highly influenced by communities. This paper presents the results of a survey of the perceptions of local people on or close to mines on the socio-economic impacts of mining in their communities. The research identified and utilised four factors to assess the perceptions of the community about the socio-economic impacts, namely personal situations, employment and economic activities, community projects and environment, and settlement associated with mining operations in their vicinity in the local community. Data collected for this paper was processed using statistical analysis. Information was collected from 690 residents in different local mining communities of four provinces in South Africa. The study indicated positive impacts and benefits to the community from the mining operations in their areas, including increased direct and indirect employment and improved quality of life. However, the local community experienced negative impacts of mining such as increased migration, inadequate infrastructure and poor services. In this manner this paper has established a better understanding of mining's positive and negative impacts. The study further revealed misunderstandings and unfulfilled expectations concerning the responsibilities of the mining companies and the accountability of government to the community. It is suggested that local municipal councils should promote entrepreneurship, financial assistance and investment in the community, and establish small and medium enterprises for the informal business sector, where most of the unskilled labour is found.

Suggested Citation

  • Dikgwatlhe, P. & Mulenga, F., 2023. "Perceptions of local communities regarding the impacts of mining on employment and economic activities in South Africa," Resources Policy, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:jrpoli:v:80:y:2023:i:c:s0301420722005815
    DOI: 10.1016/j.resourpol.2022.103138
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    References listed on IDEAS

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    1. Kemp, Deanna & Owen, John R., 2013. "Community relations and mining: Core to business but not “core business”," Resources Policy, Elsevier, vol. 38(4), pages 523-531.
    2. Auty, R. & Warhurst, A., 1993. "Sustainable development in mineral exporting economies," Resources Policy, Elsevier, vol. 19(1), pages 14-29, March.
    3. Elbra, Ainsley D., 2013. "The forgotten resource curse: South Africa's poor experience with mineral extraction," Resources Policy, Elsevier, vol. 38(4), pages 549-557.
    4. Sachs, Jeffrey D. & Warner, Andrew M., 2001. "The curse of natural resources," European Economic Review, Elsevier, vol. 45(4-6), pages 827-838, May.
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