The extractive industries and 'shared, inclusive and sustainable development' in South Africa

Abstract

In the 140-odd years after the first diamond was found in South Africa in 1866, mining catapulted the country from a predominantly agrarian society into a modern industrial nation. For the biggest part of this period, mining drove and human development followed. This 'order of importance' was largely the result of the huge wealth and influence of the mining houses, the (perceived) importance of the sector for the development of the country, and the broader skewed power dynamics of colonial and apartheid rule. Over the last decade, national government enacted new legislation by which it attempted to ensure that mining is made more serviceable to the post-1994 objectives of (1) broad-based societal reconstruction; (2) shared and inclusive growth; and (3) regional and rural development. A key component of this new legislation has been a provision to ensure that mining companies make tangible contributions to regional and rural development and human settlement in 'mining areas'. Recent events, such as widespread strikes, the tragic loss of many lives, and continuing harsh living conditions, have raised, what has been a nagging question since the introduction of the new legislation, i.e.: Has the new legal framework (really) assisted in (1) ensuring that communities in mining areas enjoy a greater of the wealth created by the industry; (2) enhancing regional and rural development in mining areas; and (3) establishing a more symbiotic relationship between mining, regional and rural development planning and human development? In this paper, research in a mining area during the course of 2011 and 2012 is used to explore this question. Use is made of documented evidence and interviews with key role-players in the mining industry, municipal and provincial government, the private sector, traditional leadership structures and communities.