New beginning for industry that has left a trail of destruction

Mine workers will have hailed Cyril Ramaphosa’s elevation to the presidency as a moment of immense pride and joy. For more than a decade, during the dark days of apartheid, he dedicated his life to the leadership of the National Union of Mineworkers (NUM), challenging the iniquities of the industry.

Ramaphosa’s inspirational leadership imbued mine workers with the courage and self-belief to stare down the mine bosses.

Mine workers have every reason to claim him as their own; a jewel whose sheen was forged in the struggle for the rights of workers and the liberation of our country.

However, they will also be mindful of the fact that their Promised Land still lies ahead, as they remain in the dungeon of their workplaces.

For them, the struggle for a better life continues.

A multitude of mine workers continue to live in deplorable conditions while the captains of industry, the privileged, along with all sorts of dubious characters, rake in fortunes, extracting our country’s mineral resources.

Given the stark inequalities in the industry, mining, along with the land question, continues to evoke fiery emotions among South Africans. It is precisely for this reason that the tentative steps by the president to resolve the impasse around the Mining Charter have been embraced by all stakeholders.

So too the appointment, as minister of mineral resources, of Gwede Mantashe, a wellknown and respected figure in the industry.

These moves signal a new beginning and an acknowledgement that the state, in whose ownership mineral rights are vested, has a responsibility to protect all stakeholders, especially vulnerable groups, from the negative effects of an unbridled pursuit of profits.

Mining has bequeathed our country with a terrible legacy of a degraded environment, polluting our water sources and destroying our fauna and flora while laying agricultural land to waste. On a human level, the collateral damage to society is immeasurable.

Mineral and energy industries continue to puff dark clouds of smoke into the atmosphere and groundwater, creating hellish conditions for surrounding communities. These chemical pollutants have been associated with all manner of ailments — from respiratoryrelated health problems to malignant tumours.

Clearly, the smash-andgrab approach to mining is not sustainable. The practice has left a trail of destruction and destitution, while, in the main, only a narrow interest group has benefited. Consequently, the external costs of mining will continue to outweigh its benefits until a balance is struck on the lopsided scales representing stakeholders.

Unsurprisingly, despite the lure of jobs, communities such as Xolobeni in the Eastern Cape have vociferously opposed mining in favour of tourism.

On the other hand, the mantra of radical economic transformation remains but a pipe dream 14 years after the Mining Charter was adopted.

A Benchmark Foundation study found that companies tended to focus on the construction of clinics and classrooms, while overlooking environmental, economic, social and health issues. Thus, the spectre of underdevelopment continues to haunt the industry.

The 2015 charter assessment by the Department of Mineral Resources noted that “a proliferation of communities living in abject poverty continues to be largely characteristic of the surroundings of mining operations”. Furthermore, the benefits of ownership remained elusive to black economic empowerment (BEE) partners, even as mining groups met the 26% BEE threshold.

CLEARLY, THE SMASH-AND-GRAB APPROACH TO MINING IS NOT SUSTAINABLE … ONLY A NARROW INTEREST GROUP HAS BENEFITED

The benefits of employee share ownership schemes (Esops) and community trusts have also been scarce. Beneficiaries of the schemes have struggled with the reality that while they could own 8% of a mine, payouts are often negligible at vesting.

Thus, cash is often preferred to what is seen as hollow symbolism of share ownership. Perhaps, if configured differently, trusts could still fulfil their mission of spreading the benefits of ownership, but not as currently structured.

The High Court in Pretoria recently issued an order compelling the government and the Chamber of Mines to involve communities affected by mining in the redrafting of the charter.

Balancing these diverse stakeholder interests will be challenging, but it is only through inclusivity that lasting solutions can be found.

For this reason, it remains to be seen whether Aurora, the goddess of the dawn, will shine her light over the industry again and have mercy on mine workers and their communities.