Mining and local economic development: a case study of the Rustenburg local municipality

Mining is an economic activity that has the potential to develop a region that is impactedby its operations. The extractive industry also impacts negatively on the surroundingcommunities as it may introduce certain undesired practices which may effect theenvironment, disturb existing social practices, and promote gender inequality and theunequal distribution of economic benefits. The end of mining activities can become theend of a community’s economic existence resulting in misery emanating from economichardship or migration to another region that offers economic opportunities.The majority of mining jurisdictions in the developing world still lack appropriateregulatory and management mechanisms that will enable their extractive industry tocontribute to the economic well being of the region. The extractive industry has to beregulated in a sustainable manner that will ensure that its negative effects are wellmanaged and reduced. This requires proactive solutions by all those who are affected bymining operations to co-operate in developing strategies aimed at steering the extractiveindustry to contribute towards sustainable Local Economic Development (LED).This research report investigates mining and sustainable (LED). It also pays attention tointernational and local approaches in achieving sustainable LED in mining regions. Acase study of the Rustenburg Local Municipality (RLM) has been conducted in order toascertain the role of mining in contributing towards sustainable LED. The RLM is amunicipal area which has mining as a dominant economic activity. The municipal area iscurrently experiencing an increase in economic activity as a result of its mining sector,mainly the mining of Platinum Group Metals (PGM). The municipality is struggling todevelop an appropriate mining and LED strategy for its jurisdiction as a result ofinadequate co-operation with stakeholders in the mining sector and insufficient capacityin the municipality. Owing to inadequate cooperation stakeholders in the mining sectorare developing their own community development programs with limited consultationswith one another.iiiThe research report found that the development of sustainable LED strategies shouldinvolve all stakeholders; this process should ideally be headed by local authorities as theirresponsible with managing and administering development projects in their jurisdiction.The RLM municipality has the potential to develop sustainable LED strategies aligned toits mining sector. This requires the strengthening of cooperation between stakeholdersand capacity building in the municipality. The development and implementation ofsustainable LED does not only depend on being spearheaded by the public sector as theresearch reports findings reveals that private sector driven sustainable LED strategies arepossible.