Mining Weekly

The local mining industry needs to commit to achieving the transformation objectives of the country, says law firm ENSafrica natural resources and environment director Ntsiki Adonisi-Kgame.

“Although the transformation of the mining industry continues to progress, the pace at which the industry has transformed has not resulted in meaningful economic participation by historically disadvantaged persons as envisaged in the 2010 Mining Charter,” she puts forward.

Mining Charter III, which was published in the Government Gazette in September last year, confirms this in its preamble by noting that the overall transformation of the mining industry remains unacceptably low, the spirit of the Mining Charter was not fully embraced and compliance was generally thought of as means of protecting the social licence to operate, she points out.

“If mining companies are serious about transformation, they will fully embrace the Mining Charter and meet not only the minimum legal requirements to protect their social licence to operate.”

Effective collaboration between government and mining companies will assist in accelerating the progress of transformation in the industry, Adonisi-Kgame notes.

Moreover, transformation of the mining industry requires the empowerment of communities and employees, and mining companies should ensure that meaningful engagement with communities occurs, she tells Mining Weekly.

Mining companies should build authentic relationships with community members and leaders by effectively engaging them and managing their needs and expectations, she states, adding that miners should focus on community projects that truly have an impact on the development and upliftment of communities.

Further, under Mining Charter III, mining companies have an opportunity to procure services from local communities to fulfil procurement targets, and provide local communities with opportunities to develop entrepreneurial skills and resources that will result in long-term benefits.

Adonisi-Kgame advances that the recent Maledu judgment – where the Constitutional Court confirmed that the Interim Protection of Land Rights Act (IPILRA) of 1996 must be complied with where a company seeks to operate on land owned informally – will have an important impact on the transformation of the mining industry.

The IPILRA provides for the temporary protection of certain rights and interests otherwise not adequately protected by law pertaining to land, and for matters connected therewith.

“What can be taken from the judgment, is that mining companies will need to be meticulous when conducting social-impact assessments and consulting with communities during the application stage,” she explains.

A challenge mining companies usually face when engaging communities is that they are unsure whether they are dealing with the relevant community authority. Notwithstanding that this is a practical challenge that is difficult to resolve, especially where communities are embroiled in internal power struggles, it may be an opportunity for mining companies to augment their approach and not be satisfied with engaging one person, she adds.

“For a community to be empowered, all its members should be given the necessary information to exercise agency,” she emphasises.

ENSafrica will attend the Investing in African Mining Indaba to reaffirm its continued support to the mining industry in South Africa and on the continent. Adonisi-Kgame says the mining sector remains a strategically important sector for the firm.

The company hopes to constructively engage with clients and stakeholders, including regulators, financiers, community leaders and employees at the company’s annual lunch on the second day of the Mining Indaba.

“We are also looking forward to listen to Minister Gwede Mantashe’s opening address, as well as to the President of Ghana Nana Akufo-Addo about developments in that jurisdiction.”

The Mining Indaba will be held at the Cape Town International Convention Centre from February 4 to 7.