Business as usual...for the mines

By John Capel

Mining continues to drive South Africa on many fronts — economically, socially and politically. No day passes without it being in the news. Thus one would have thought that the annual Mining Indaba Conference which ended in Cape Town recently would have included in its deliberations the people whose lives are most affected by the mines’ operations. Simply put, the indaba did little to dispel the notion that mining companies are only interested in achieving maximum profits at the expense of local communities and the environment in which they operate.

This blatant exclusion meant that the organisers missed yet another golden opportunity to engage with all key stakeholders including community representatives and trade unions.

According to Mining Indaba’s website, the conference was only open to investors and industry. One assumes therefore, that community representatives could also have attended (they are, after all, directly impacted upon by the mining the industry) had they been able to afford the exorbitant fee of between R1 900 and R11 000 per person. Speakers were by invitation only and included top global economists, industry analysts and mining management.

This conference was a perfect platform for everyone involved and affected by mining to engage with one another other and for all voices to be heard. The choice of the venue, Cape Town, which is far away from the bulk of the country’s mining communities, was possibly another premeditated move bent on ensuring that ordinary folk from mining communities such as Mpumalanga, Limpopo and North West are marginalised. The plush International Convention Centre, where the indaba was held, stands in stark contrast to the humble dwellings of the majority of community members who are the custodian of these mineral riches.

In research conducted on mining for several years, many companies say that they do counsel with communities and listen to their concerns. Yet there was no evidence of this in Cape Town.

Research studies, covering gold, coal, platinum, copper, diamond and uranium in South Africa, Tanzania, Malawi, Zambia, Botswana and the Democratic Republic of Congo, have revealed a number of similarities. These studies reveal, among others, the following key issues:

Companies are reluctant to engage properly with communities and other key stakeholders often seeking agreement with a few influential partners or offering them financial incentives to agree to mining.

The full impact of mining is not explained properly and empty promises are made around jobs that rarely meet community expectations.

The focus of mining is business as usual, with short-term profit maximisation at the expense of sustainable development and people.

Where mining takes place, communities are often disorganised, or lack an understanding of mining and are generally not in a strong position to adequately address their concerns.

Sustainability is viewed by mining companies as only having to report and showcase one or two community projects.

There is an unlevel playing field. Communities are at a serious disadvantage as they lack the know-how or financial resources in negotiating how mining takes place or their rights.

Mining comes at a cost to the environment and the community’s economic and social status quo. Coal mining causes a major threat to the Lakes District of Mpumalanga, the Olifants River, Kruger National Park and ultimately Mozambique.

For the communities of Maandagshoek, Mohlohlo, Wakkerstroom, Belfast and elsewhere, mining brings with it pollution, illness, loss of land and income, alcoholism, prostitution, sexually transmitted diseases and HIV and Aids. Once the minerals are mined out, as in many parts of Gauteng, communities are left to contend with mine waste, derelict and dangerous buildings, acidic surface and ground water and nothing by way of sustainable economic activity on the ground.

In my understanding of global corporate responsibility, the community, rather than the company, is the starting point of economic life. For the community to be sustainable, all members (consumers, employees and the community at large) need to be recognised and not only shareholders. There is a need for:

Improved relationships between corporations, communities and ecosystems.

More support for a sustainable system of production and a more equitable system for the distribution of the economic benefits of production and improved environmental care.

Increased participation of all stakeholders and those most affected by the activities of corporations in the decision-making processes of mining companies and the preservation and protection of the environment for present and future generations.

* John Capel is the chief executive of The Bench Marks Foundation, an independent organisation monitoring corporate performance in the field of corporate social responsibility.