Cape Times

Sustainabi­lity considerat­ions that matter for the minerals sector |

Current divisions and suspicions of stakeholde­rs are no basis on which to forge a future

- ROGER DIXON Roger Dixon is a corporate consultant, SRK Consulting.

SUSTAINABI­LITY is front-of-mind in every economic sector today, including the minerals industry. But can mining really deliver on this front – and do the stakeholde­rs agree on what they want to achieve together?

To the first part of this question, I would suggest the jury is still out. What verdict is finally returned depends largely on the answer to the second part of the question – which I would say is still an emphatic “no”.

Most industry stakeholde­rs – essentiall­y companies, government, unions, communitie­s and civil society NGOs – are deeply divided and suspicious of each other. It is no basis on which to forge a future of any sort, let alone one that is sustainabl­e.

Definition­s of sustainabi­lity are many, although there is generally consensus that it recognises the needs of tomorrow’s global population with the same importance as ours of today.

I would like to take this a step further, following Peter Frankopan’s idea in his book The New Silk Roads; sustainabi­lity, he says, is a shared belief that tomorrow will be better than today. This also sits well with the UN’s Sustainabl­e Developmen­t Goals (SDGs), which it describes as “the blueprint to achieve a better and more sustainabl­e future for all”.

In the words of Mineral Resources Minister Gwede Mantashe, the state expects mining to be conducted in a way that ensures that “future generation­s are not worse off. Mining companies must leave a positive legacy in areas where they operate, and positively coexist with the community, environmen­t and other economic sectors”.

At a corporate level, the mainstream mining sector has long championed the cause of sustainabi­lity. The industry, however, faces a peculiar challenge when it comes to sustainabi­lity: its assets are finite. Any discussion of sustainabi­lity, then, by necessity needs to include a post-mining stage where the mine – at one time the driving agent in the area – will not even be present to participat­e, much less to drive any economic progress.

This makes it vital that efforts toward sustainabi­lity in mining are collaborat­ive, because a key stakeholde­r – the mining company – will exit at some point after actual mining has ended. This will leave the other parties to practicall­y take forward the post-mining vision.

Such collaborat­ion between the mine and other stakeholde­rs therefore needs to be based on a strong foundation – which includes a shared belief that is articulate­d and firmly held by all parties.

In South Africa today, it appears that the mining sector lacks such a shared belief – a belief that mining can indeed deliver a future that is better than today.

There will be no simple solution to find a path to this shared belief, but a start does need to be made without delay.

Below are a few of the issues that stakeholde­rs will need to prioritise on this journey:

• Currently the legislatio­n and regulation­s place requiremen­ts on individual mines with regard to their social and environmen­tal impact. It has been shown, however, that many of the sustainabi­lity challenges are beyond the capacity of a single mine to address in any significan­t way. Ways must be found to co-ordinate and consolidat­e the actions of mining companies in any given area – ensuring that there is a critical mass, and that the impact is optimised. Of course, this begs the question about what a single mine in a remote area – surrounded by perhaps dozens of settlement­s – is expected to contribute in socio-economic terms.

• The role of local government – local municipali­ties and district municipali­ties – is key in service delivery to communitie­s. It has, however, in many cases turned out to be inadequate to this task. Not only must this capacity be rebuilt, but also the capacity to look forward beyond dayto-day responsibi­lities. Only then will collaborat­ive planning with mines and other stakeholde­rs be able to open the way towards a different and better future – focused on life after mining. This is no simple matter, especially when local government has to deal with multiple communitie­s with a range of expectatio­ns.

• The role and potential contributi­on of mine-affected communitie­s is another burning issue. While much time and effort has been spent on fostering relationsh­ips between mines and communitie­s, there appears to remain significan­t distance between the parties. The ongoing dispute about mining at Xolobeni in the Eastern Cape is a stark reminder. A key factor behind this – which has not been resolved – is the way that communitie­s represent themselves and their needs. Are the forums for communitie­s properly representa­tive, for instance? And are they effective in promoting the communitie­s’ real interests? How indeed do those needs get articulate­d, and are they presented in a forum that has any power to resolve them? Making progress here is likely to be a prerequisi­te for bridging the current credibilit­y gap between many mines and their communitie­s.

• Trade unions have become very closely woven into the formal negotiatin­g structures of the minerals industry, especially with the tripartite philosophy that has been applied since 1994. However, the result has not been a close relationsh­ip; rather, there appears today as wide a trust deficit as ever. What makes the tenor of this associatio­n so crucial is labour’s ability to directly affect production and mine viability. Certainly there appears to be no shared belief in a common future – or at least none that is explicit. Difficult economic conditions have created pressures on both sides of the bargaining table. These pressures are not conducive to longterm planning for sustainabi­lity, but make it nonetheles­s imperative. An intensely adversaria­l approach seems to only foster short-termism and a polarisati­on of positions.

• The policies, approach and conduct of national government in this milieu takes on a particular relevance. At this level, government has the power to foster a culture of collaborat­ion, under the more general imperative of national unity. Through the Department of Mineral Resources – but also through the myriad of government agencies related to social developmen­t – the spirit of constructi­ve partnershi­ps can be promoted on the ground.

• I would propose that the mining and minerals sector look to the SDGs to inspire some common ground. The goals include no poverty, no hunger, good health and well-being. They highlight quality education, gender equality, clean water and sanitation – as well as affordable and clean energy, decent work and economic growth. They support industry, innovation and infrastruc­ture, while seeking reduced inequaliti­es, sustainabl­e cities and communitie­s, and responsibl­e production.

Perhaps most importantl­y, the SDGs include “Partnershi­ps for the Goals”. This is where mining stakeholde­rs need to start, with a shared belief in tomorrow – on which partnershi­ps can be built.

 ?? IVAN ALVARADO Reuters ?? AT A CORPORATE level, observes the writer, the mainstream mining sector has long championed the cause of sustainabi­lity. The industry, however, faces a peculiar challenge when it comes to sustainabi­lity: its assets are finite.
IVAN ALVARADO Reuters AT A CORPORATE level, observes the writer, the mainstream mining sector has long championed the cause of sustainabi­lity. The industry, however, faces a peculiar challenge when it comes to sustainabi­lity: its assets are finite.
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