A social licence to operate within mining communities : a case study of Kumba in the Northern Cape Province, South Africa

Abstract

South African mining operations are increasingly taking into consideration the credibility carried by the so-called Social Licence to Operate (SLO). Unlike stipulated mining regulations and acts, Social Licence to Operate does not follow a documented process, but a ‘gentleman’s agreement’ between the mining company and its surrounding communities. To put the practice of Social Licence to Operate into perspective, one needs to go as far back as the history of mining in South Africa. With this thought in mind the question arises: ‘Has the communities surrounding mining operations always been consulted or are they placed at the forefront from the early stages of the operation?’ One of the characteristics of a Social Licence to Operate is that it should take place before, during and after the completion or closure of the mining operation. Fair enough, most mining companies might have missed the opportunity to include the communities from the first phase; however, there is still a need to maintain the Social Licence to Operate. Social Licence to Operate should not be seen as an only way to maintain a healthy relationship with the community members without compromising the return on investment. Another way is to ensure a strong emphasis on community members as part of stakeholder partnership with the mine. This relationship can have win-win outcomes for both the mine and communities, without one party manipulating another party. The purpose of this study was to look into a Social Licence to Operate within mining communities: a case study of Kumba in the Northern Cape Province, South Africa. Herewith a brief framework of the study: Chapter One is the Orientation and Background information of the research project; Chapter Two gives a theoretical orientation of Corporate Social Responsibility (CSR) and related concepts; Chapter Three outlines the findings from Sishen mine (Kumba Iron Ore) in Kathu obtained during the field work; Chapter Four highlights findings from some of the community members interviewed during the field work in the surrounding communities of Sishen mine, and the last chapter, Chapter Five, provides a conclusion drawn from the research project and recommendations thereof.