MAKING MINING MATTER IN A SAFE , SUSTAINABLE , ENVIRONMENTALLY CONSCIOUS WAY
AFRICAN BUZZ •
MAKING MINING MATTER IN A SAFE , SUSTAINABLE , ENVIRONMENTALLY CONSCIOUS WAY
The industry ’ s procurement spend , enterprise development projects , and education and training through SLPs that underpin mining rights are the ideal mechanism to improve our host communities ' lives and create sustainable livelihoods beyond the lives of mining operations .
As the global mining industry is increasingly judged by the highest of Economic , Environmental , Social and Governance ( EESG ) standards , the Minerals Council and its members are firmly steering a course towards greater transformation , community engagement and upliftment , and contribution to the country and society .
By the Minerals Council South Africa
The recent report from the auditor general into the state of South Africa ’ s municipalities is a clarion call for mining companies that their social and labour plans ( SLPs ) and community engagements must be beyond reproach .
In May , auditor general Tsakani Maluleke issued a report showing that of the country ’ s 257 municipalities , just 38 received a clean audit in 2022 , three less than the year before . Looking at the country , the extent of the problem becomes even more glaring . Just 17 municipalities of the 38 were in eight provinces outside the Western Cape .
For mining companies , as with all other businesses , this is an unmitigated disaster . These municipalities are the operational and political structure overarching the communities in which mining companies operate . The deterioration in the functionality of municipalities makes engagement difficult around the implementation of financially and operationally complex SLPs .
Partnerships are essential to ensure SLPs are effective . Mining companies cannot operate in a vacuum . Ideally , functional municipalities make better partners to ensure the benefits of SLPs reach communities , provide upliftment and empowerment , job creation and opportunities .
The auditor general ’ s report showed a third of municipalities did not have a permanent municipal manager and a quarter did not have a permanent chief financial officer resulting in a deterioration of trust between citizens and governing bodies , collapsing infrastructure and service provision .
In these instances , angry communities are susceptible to being exploited by individuals or organisations with narrow interests to extort favourable contracts or benefits by stirring up community frustrations and directing them at mining companies to demand they provide what municipalities are unable to supply or build .
It is more important than ever that the mining industry forges relationships built on mutual trust , cooperation and partnership with our communities through SLPs and other initiatives . The economy is not growing , and job prospects are poor for school leavers and youth in general .
The industry spends more than 1 % of its net profit after tax on community development projects annually . Mining companies often implement social development initiatives before they start production or selling products .
Including a global EESG-leading practice is vital to societal acceptance of mining and securing our future . Going beyond regulatory compliance and demonstrating lasting social value are fundamental to building trust and demonstrating leadership .
For the mining industry , there is increasing focus on raising awareness of why mining matters to stakeholders : employees , host communities and the broader economy . It continues to strive to be a trusted , reliable partner for all stakeholders .
Fundamental to this partnership is the quest for the transformation of an industry that was for generations forged along deeply divisive and damaging racial and gender lines . The industry has made tremendous strides in healing these divides . It is as committed as ever to transformation and continuing the sustainable and impactful initiatives that should result in true economic value creation beyond mere compliance . It is committed to positive social impact , especially in host communities . The industry foresees a future characterised by increasingly shared values and collective buy in by all stakeholders and beneficiaries comprising our employees , communities and customers .
The industry is increasingly aligned to global EESG standards , and it is strongly correlated to the UN ’ s Sustainable Development Goals .
The value the mining industry shares comes in many forms and is not just financial . Through its total economic contribution , it has enabled local companies to grow and thrive by being very deliberate about procuring from local suppliers in our host communities ; those owned by black South Africans and those owned by women and young people .
The mining and quarrying sector spent R504-billion in 2022 on buying goods and services . The mining industry strives to allocate 60-80 % of its annual procurement expenditure on HDSAempowered companies , which includes black-owned , womenowned and youth-owned companies .
The industry grew employment to nearly 469,000 during 2022 from 460,000 the year before . Mining industry employees ’ earnings of R174-billion were substantially higher than R165- billion the year before . The sector spent more than R5-billion on human resources development , with a further R1.7-billion paid through the skills development levy .
The Minerals Council is determined to continue playing a meaningful role in the economy , society and communities in which member companies operate . We will ensure that our social licence to mine is beyond reproach and that we continue making mining matter in a safe , sustainable , environmentally conscious way .
www . africanmining . co . za African Mining Publication African Mining African Mining • July 2023 • 5