Community perceptions of mining : the rural South African experience

Abstract

Globally private companies and multi–nationals, including mining companies, have recently, in the current and post financial crises environment, seen their public image badly scarred, fermenting a negative image towards business in general, but also specifically towards the mining industry. This negative perception can also be seen in the South African mining industry, as reflected in various media reports on high profile, and often violent, community protests and labour disputes in the mining industry. Communities feel that they are not benefiting sufficiently from the proceeds and wealth generated from resources that belong to them. Communities are, therefore, exerting more pressure on governments and mining companies to allow them to have a greater say in the operations and subsequent benefits derived from minerals extracted from resources within such communities. This leads to the problem statement of this particular study wherein an exploration company wants to establish the perceptions of a rural farming community in the western part of the North West Province of South Africa with regard to possible mining operations in the area. The aim of the research is to establish what the perceptions are of a rural farming community in South Africa with regard to mining and the possible establishment of a mine within their community by the exploration company, resulting in a better understanding and management of such perceptions. The study will look at the perceptions of community members towards mining within a 30 km radius of the actual position of the possible future mine. Perception is defined as “an interpretation or impression based on one’s understanding of something”. Perception is a balance of simultaneously seeing (senses) and understanding (cognitive). Understanding also involves a process of evaluating and then acting. Perception can also change over time and people’s negative perceptions towards mining can, therefore, be undone. The outward symptom of tensions between companies and communities manifest in the form of conflicts. Conflicts can be the cause of large financial losses for the mining companies involved. Conflicts are mainly caused by the negative impacts of mining on local communities, but can also be the result of disputes between local factions competing for a share in the rewards from the mining activities. Mines have many positive impacts and provide key socioeconomic infrastructure such as roads, clinics, schools, housing, water and electricity. Negative impacts of mining can be anything from forced relocations, crime and the loss of a sense of community to environmental impacts such as erosion, acid mine drainage, noise and dust pollution, landform changes and ecological impacts. Corporate Social Responsibility (CSR) specifically calls on mining companies to also respond to their other stakeholders (employees, customers, affected communities and the general public) with regard to issues such as climate change, human rights and employee welfare and not only to its shareholders. To encourage the mining industry to address issues relating to CSR the South African Government included elements of CSR in legislation. The two main portions of legislation dealing with the language of CSR, whilst impacting on mining, are the Broadbased Black Economic Empowerment Act and the Mineral and Petroleum Resources Development Act. The socio–economic conditions of the community indicate that the levels of education and income are low with high levels of unemployment. The community is generally very poor and much has to be done to provide many community members with basic services. Crime levels are, however, low with most crime of a less serious nature. The methodology followed in the study is based on a qualitative study in the form of individual interviews using purposive (criterion based) sampling. To enhance the outcomes of this study it was deemed appropriate to also use quantitative methods to compliment the qualitative approach. The structured interview used in this study was designed to access the perceptions of community members with regards to possible mining operations in the area. Forty–eight individual interviews were used for the study from a population of 70 (N). The sampling frame selected for the study is composed of farmers directly affected by possible mining (group 1), other farmers from the study area (group 2), local business people (group 3) and residents from the local town (group 4). The data analysis is structured logically according to the subsections (main–themes) of the interview to explore each of these main–themes in detail. Sub–themes were developed by using coding (open, axial and selective) to identify words, phrases or sentences that reflect single, specific thoughts to open up the text to reflect the various core concepts (‘perceptions’). The interview results indicate that the community has a positive perception towards mining in general. Responses from farmers who stood to be directly affected by a possible mine are still highly positive, but are significantly less so when compared to the entire sample population. Negative perceptions highlighted by respondents include the increase of crime, the pollution of groundwater, the reduced availability of groundwater, the loss of productive farmland, the increased cost of housing and the increased incidence of diseases. The mining industry will, therefore, have to take more time to listen to local communities and become more responsive to their needs and expectations. Every time a mining company breaks its promises to community members, every time that a mining company is dishonest, every time senior executives are seen to be rewarded undeservingly and excessively, the negative perceptions towards mining companies are reinforced and entrenched. Social and labour plans should be developed with genuine community involvement, determining the real needs and communicating clearly what the mining company can and cannot do. It is further important to manage and develop and/or adjust these plans on a continuous basis in conjunction with the community. Mining companies should market themselves better and advertise to the community and the country as a whole what good they are doing within and for communities.