In South Africa, reform of mining legislation must take into account not only legal certainty for investors, but also the rights and interests of communities directly affected by the operation of mines and quarries. This position was expressed by the author of a column for Daily Maverick devoted to critical minerals and the energy transition.
The author agrees that stable rules, transparent licensing and capable state institutions are needed for the development of the extractive industry. At the same time, he raises the question of who such certainty is created for, under what conditions and at what cost. In his view, residents of areas near deposits should also receive guarantees of safe water, protection of land rights, meaningful consultations and fulfillment of rehabilitation obligations after mines close.
Social and environmental costs
The column states that traditional financial reporting by mining companies includes capital expenditure, wages, electricity, transport, taxes, royalties and payments to shareholders, but often does not cover the broader social and environmental consequences of extraction. Among the possible consequences, the author names contamination of aquifers, loss of agricultural livelihoods, respiratory illnesses caused by dust, damage to homes from blasting, and the danger posed by abandoned tailings facilities.
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According to the author, costs not reflected in company reports may be shifted onto households, municipalities, workers, communities, the state budget and the environment. He also mentions a petition by Mining Affected Communities United in Action and other organizations to parliament concerning a “100-year debt” to South African residents and the environment.
Reform of the mineral resources law
The author attaches particular importance to reform of South Africa’s Mineral and Petroleum Resources Development Act, known as the MPRDA. In his view, the success of the changes should not be assessed solely by the speed of granting mining rights. The reform, he believes, must ensure that communities have access to information before decisions are made, protect informal land rights, ensure that consultations have a real impact, secure implementation of social and labour plans, and provide adequate financial security for rehabilitation.
The author also refers to case law in the Bengwenyama, Maledu, Baleni and Sustaining the Wild Coast cases, which, in his assessment, increasingly clearly recognizes communities as rights holders rather than an obstacle to investors. He stresses that mining lithium, manganese, cobalt, copper, rare earth elements and other resources for the energy transition can bring benefits only if the model for distributing benefits and responsibility for consequences changes.
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