Thesis (Ph.D. (Public Administration)) -- University of Limpopo, 2017 / This study was undertaken in four villages which are Makgemeng, Maroga Phalatseng,
Mooihoek, and Legabeng, in the Limpopo Province. The aim of the study was to examine
whether local communities were benefitting from the local mine, whether the mine promoted an
acceptable number of LED projects; whether the mine complied with the Mineral Petroleum and
Resources Development Act 2002 (MPRDA), initiatives such as Black Economic Empowerment
and Social Labour Policies, and whether the mine helped the development of the local
economy, and whether the mine promoted job creation through down-streaming beneficiation
which is the core beneficiation form where a mineral is extracted, processed and sold as a
finished product and side streaming beneficiation which is an extended form of beneficiation
through infrastructures, roads, harbours, airports, railways, institutions
The study was anchored on the modernisation theory with a focus on the Sachs economic
stages. Four hundred participants took part in the study. The mixed methods research design
which integrates both quantitative and qualitative was applied since the study was aimed at
exploring and giving in-depth analysis of the relationship between mineral resource wealth
gained by the mining industry, and the ongoing poverty and marginalisation in the four rural
mining communities. Literature reviewed for the study establishes that despite mining
legislation, local economic development growth in rural mining communities remains
problematic due to lack of compliance of the Mining Charter which is a legislative instrument of
the MPRDA. South Africa has not managed to advance its state of manufacturing through
mineral beneficiation as it continues to export minerals partially processed thereby missing out
on the full economic value of job creation and industrialisation. Moreover, minimal
transformation amongst the Blacks in the rural mining communities has transpired as
envisioned under the MPRDA. Instead, an elite core of Blacks have broken into the mining
industry while a majority remain marginalised. It is argued that for South Africa to succeed in
promoting mineral industrialization through LED in rural communities, it will have to address the
challenges that rural typologies mining communities face which include challenges at municipal
capacity level, lack of policy alignment between local and national government, historical
mistrust between the mining industry and the community, spatial economics and minimal
business attraction. Globalisation it is argued can also be addressed better through the
modernization framework which promotes strong state intervention of legislative oversight.
Most industrialised states it is asserted reached the final economic stage of services through
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interventionist procedures unlike neoliberalism which promotes minimal state participation in
the business sector. Neoliberalism has been the bedrock of South Africa’s economic policies
since 1994. Due to neoliberalism, South Africa has been forced to take into consideration global
trends focused on increasing economic interdependence, and also constrained the ability of
South Africa’s ability to diversify its mining sector and communities.
The findings confirm that the Department of Mineral Resources (DMR) should create a program
that will serve as a one stop shop to provide mining information for the local government on
mining programs facilitated, and ensure that they are managed properly with the communities
involved. This program should also capacitate the local government officials in addressing
legislative oversight issues such as Social labour policies with the mines so that they don’t go
unchecked. Most of the community members perceived that the mine was not genuinely
interested in promoting the development of their communities, particularly in regards to LED
projects. The government also need to address the low literacy rate at the mining rural
communities which has become a roadblock for transformation. Industrialisation requires a
qualified human stock that would be able to professionally deliver on BEE related services and
development. For MPRDA to succeed as a beneficiation tool, it can only be accomplished
through human resource development beginning at basic education. Value-addition to minerals
is only achievable by a well-trained and fully equipped labour force
The study also confirmed that the mines were unwilling to engage with the communities, did not
understand the communities, were not transparent with them on tenders or procurements, and
made minimal effort to assist develop the communities. A majority of the mines did not
participate in the integrated development plan, and most of the community members indicated
that the mine did not view them as stakeholders. Lack of corporate social responsibility efforts
to alleviate poverty in the communities will only further tension and conflict within the
community. Moreover, this continued practice by the mines perpetuates lack of transformation
as required by the MPRDA leading the mining industry to remains predominately under the
control of white owned companies and rural communities to remain marginalized and
undeveloped. In summary, the DMR should stop relying on the mines to transform and comply
to all the MPRDA requirements without any form of effective oversight. / Human Science Research Council (HSRC)
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:ul/oai:ulspace.ul.ac.za:10386/4287 |
| Date | January 2017 |
| Creators | April, Funeka Yazini |
| Contributors | Sebola, M.P. |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | xviii, 247 leaves |
| Relation |
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