Economic and Management Sciences

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Browsing Economic and Management Sciences by Author "Badenhorst, Elizna"

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    Socio-economic influences of mining on community: A case study of Khumani mine
    (University of the Free State, 2022) Badenhorst, Elizna; Cloete, J. S.; Marais, J. G. L.
    The South African mining industry is understood to form part of the core of state building in the country. The impact of mining has led to various developments in South Africa, such as the Mine Health and Safety Act, 29 of 1996, the Mineral and Petroleum Resource Development Act, 28 of 2002, the Mining Charter, and Social Labour Plans (SLPs), together with a multitude of mandatory codes of practice. Unfortunately, the mining industry also contributed to many social challenges and inequalities in their local communities (Burger, Marais and Van Rooyen, 2018). This study explored the socio-economic influences of the Khumani mine on the Gamagara local municipality community in the Northern Cape. The research aimed to understand the social and economic outcomes of mining activities on surrounding communities and evaluate how mining companies and the government attempt to address these consequences. Empirical research was conducted on the Khumani mine through a qualitative enquiry. Key informant interviews were conducted with various role-players, such as community leaders, officials from NGOs, government officials, mining officials and others. The study's key findings are aligned with the elements described in the available literature. The study determined that Khumani mine provided significant socio-economic contributions to the local community; however, the influence of their contributions in terms of SLP and CSR initiatives is short-lived, and return on investments is not calculated, thus falling short of ensuring the sustainability of projects. The mining industry is abrasive and disrupts natural landscapes, local communities, and their economies. Although social disruptions are understood to even out over time, mining companies must ensure that they capacitate impacted communities to support their livelihoods sustainably. The successful implementation, diversification and continued monitoring of sustainable development initiatives can ensure that the economic benefits experienced through mining boom cycles can support host communities during lower commodity prices and eventual mine closure.