• INSIGHT
construction and other extortion type-mafias thrive best in communities where they are allowed to operate and spread misinformation, a pushand-pull dynamic.
Based on our clients ' experience, if a local community is given a real seat at the table where decisions are made around a particular project, are treated with respect and provided with real and tangible opportunities, the community will endeavour to expel these bad actors. The costs of associating with extortionists are far higher than working with mining operators, who, in a best-case scenario, show themselves to be genuine actors.
A separate benefit is enhanced labour relations. A workforce that can objectively see the work done by a mining firm to improve their standard of living is far more willing to listen at the negotiation table than those who feel neglected and exploited.
For example, a mine requires transport infrastructure to move people and materials in and out of the facility. Expanding this infrastructure by a fraction above the needed cost can make an exponential difference in the lives of those who work and live around a mine. Real beneficiation at its heart is as much about building relationships and trust as it is about sharing the benefits of built infrastructure.
Creating an enabling environment for beneficiation – the role of the state As much as beneficiation occurs between local communities and mining operators, government attitudes and policies are crucial in whether or not beneficiation is successful at a national and industry level.
From a policy perspective, the state has the tricky task of balancing regulation and creating an enabling environment for foreign and local investment. The more heavy-handed a state is from a regulatory perspective, the easier it will be for investors and mining companies to look for calmer waters. However, a laissez-faire approach will likely invite abuses due to the nefarious and creeping nature of unchecked power.
Furthermore, a government may put in place legislation and policy that is outstanding in theory but is never enforced or implemented as envisaged. Zimbabwean law, for example, is based on sound jurisprudence, but enforcement and implementation are either nonexistent, piecemeal or skewered to suit specific interests.
Africa’ s influence in the global mining industry is expected to grow in line with mineral needs to drive the energy transition. If African states are to make the most of this opportunity, governments should seek to collaborate with the mining industry and their constituents through real governance, compliance, shared interest and creating an environment where all parties can benefit simultaneously.
Source: supplied by Webber Wentzel
References:
1. https:// unctad. org / news / critical-minerals-africa-holds-keysustainable-energy-future #:~: text = Africa % 20is % 20home % 20to % 20 sizeable, 0.6 % 25 % 20of % 20iron % 20ore % 20globally.
2. https:// www. moneyweb. co. za / news / companies-and-deals / a-briefhistory-of-the-royal-bafokeng-nations-mining-story /
3. https:// www. mining. com / web / de-beers-signs-10-year-sales-dealfor-botswana-diamonds /#:~: text = Representatives % 20of % 20De % 20 Beers % 20and, a % 20joint % 20statement % 20on % 20Sunday.
The 2025 Mining Indaba theme: " Futureproofing African mining, today," highlighted the pivotal role of Africa in shaping the global energy transition. From addressing challenges like loadshedding to leveraging our continent’ s vast mineral wealth for cleaner energy solutions, the Indaba was this year – as it always is – a platform where industry leaders, policymakers and stakeholders come together to create sustainable strategies. For more on this event, visit: https:// miningindaba. com / home.
38 • African Mining • May 2025 www. africanmining. co. za