socio-economic impact assessment report jeanette

Socio-Economic Impact Assessment Report

Jeanette Goldmine, Free State

January 2016

Harmony Gold. File photo; Image by: Reuben Goldberg

PREPARED BY:

An Kritzinger (Economic specialist) (Contact: +27 (0) 82 335 4126)

Johan Oosthuizen (Social specialist) (Contact: +27 (0) 82 557 3947)

For SLR Consulting on behalf of Taung Gold (Free State) (Pty) Ltd

http://www.slrconsulting.com/

http://www.taunggold.com/

TABLE OF CONTENTS

LIST OF ABBREVIATIONS .......................................................................................................4

DETAILS OF SPECIALISTS.......................................................................................................5

DECLARATION OF INDEPENDENCE ....................................................................................5

0. NEMA CHECKLIST ......................................................................................................6

1. INTRODUCTION ...........................................................................................................7

1.1. PROJECT BACKGROUND ..........................................................................................7

1.2. LEGAL FRAMEWORK FOR SOCIO-ECONOMIC IMPACT

ASSESSMENTS IN THE MINING SECTOR ..............................................................8

1.3. SCOPE OF WORK .......................................................................................................10

1.4. METHODOLOGY AND SOURCES ...........................................................................10

1.5. LIMITATIONS AND ASSUMPTIONS ......................................................................11

2. SOCIO-ECONOMIC BASELINE OF THE LOCAL AREA ....................................11

3. THE POTENTIAL SOCIO-ECONOMIC IMPACTS OF THE PROJECT

AND PROPOSED MANAGEMENT MEASURES ....................................................41

3.1. POTENTIAL IMPACTS DURING THE CONSTRUCTION PHASE ....................41

3.2. POTENTIAL IMPACTS DURING THE OPERATIONAL PHASE .......................54

3.2.17. POTENTIAL SOCIO-ECONOMIC IMPACTS DURING THE

DECOMMISSIONING AND CLOSURE PHASE .....................................................67

3.4. POTENTIAL CUMULATIVE IMPACTS ..................................................................68

4. SOCIO-ECONOMIC IMPACT AND RISK ASSESSMENT

METHODOLOGY ........................................................................................................70

5. SOCIO-ECONOMIC IMPACT AND RISK ASSESSMENT ....................................73

6. POTENTIAL LOCAL SOCIO-ECONOMIC DEVELOPMENT

PROJECTS ....................................................................................................................82

7. RECOMMENDATIONS FOR MANAGING RELATIONSHIPS WITH

COMMUNITIES AND INTEREST GROUPS ...........................................................83

8. SUMMARY AND CONCLUSION ..............................................................................84

9. RESPONSES TO SOCIO-ECONOMIC ISSUES HIGHLIGHTED BY

INTERESTED AND AFFECTED PARTIES .............................................................86

10. REFERENCES ..............................................................................................................87

ANNEXURE 1: LIST OF STAKEHOLDER INTERVIEWS ..................................................90

ANNEXURE 2: CURRICULUM VITAE OF SPECIALISTS .................................................91

4

LIST OF ABBREVIATIONS

Abbreviation Description

AMCU Association of Mineworkers and Construction Union

ANC African National Congress

bn billion

COCTA Department of Co-operative Governance

DEA Department of Environmental Affairs

DMR Department of Mineral Resources

DTI Department of Trade and Industry

EIA Environmental Impact Assessment

EMIS Department of Basic Education

FGF Free State Goldfields Development Centre

GUBICO The Gold and Uranium Belt Impact Censoring Organisation

Ha Hectare

HSRC Human Sciences Research Council

I&AP Interested and Affected Parties

IAIA International Association for Impact Assessment

ICT Information and Communication Technology

IDP Integrated Development Plan

Km2 Square kilometre

LED Local Economic Development

MPRDA The Mineral And Petroleum Resources Development Act

n.a. not available

NDRDLR National Department of Rural Development & Land Reform

NEMA National Environment Management Act

NGO Non-governmental Organisations

nr Number

NUM National Union of Mineworkers

p.a. per annum

SEDA Small Enterprise Development Agency

SEIA Social and Economic Impact Assessment

SMME Small, medium and micro enterprises

UASA United Association of South Africa

5

DETAILS OF SPECIALISTS

An Kritzinger (Masters Economics) has been working as consultant in the economic

development field for the past sixteen years. She has extensive experience in the

economic profiling and economic development plans for local authorities and districts

in South Africa and has designed and implemented a training project for the monitoring

of sustainable local economic development for municipalities throughout South Africa

in collaboration with the Development Bank of Southern Africa. Her work has also

focussed on applied economic modelling in South Africa, Namibia, Botswana and

Mozambique including economic impact analysis, economic cost benefit analysis,

social incidence studies and macroeconomic forecast modelling.

Johan Oosthuizen holds Psychology and Project Management degrees from the

University of Pretoria and is a social specialist with approximately 4 years’ experience

in social impact assessments, including baseline data gathering, sensitivity mapping,

primary and secondary social research to determine the effect (impact) of project

changes on the existing social environment, and detailing mitigation and/or

enhancement measures. Johan works in close coordination with senior specialists as

part of an integrated team of social and environmental specialists.

DECLARATION OF INDEPENDENCE

This report has been prepared as per the requirements of Section 32 of Government

Notice No. R542 dated 18 June 2010 (Environmental Impact Assessment Regulations)

under sections 24(5), 24M and 44 of the National Environmental Management Act,

1998 (Act 107 of 1998). We, Anna Sophia Kritzinger and Johan Oosthuizen declare

that this report has been prepared independently of any influence or prejudice as may be

specified by the Department of Environmental Affairs (DEA).

Anna Sophia Kritzinger Johan Oosthuizen

Signatures of the specialists:

Southern Economic Development

Name of group (trading name):

January 2016

Date:

6

0. NEMA CHECKLIST

NEMA Regulations (2014) Relevant section in report

Details of the specialist who prepared the report Page 5 and Annexure 2

The expertise of that person to compile a specialist report

including a curriculum vitae Page 5 and Annexure 2

A declaration that the person is independent in a form as

may be specified by the competent authority Page 5

An indication of the scope of, and the purpose for which,

the report was prepared Section 1.3

The date and season of the site investigation and the

relevance of the season to the outcome of the assessment Section 1.4 (season not relevant)

A description of the methodology adopted in preparing

the report or carrying out the specialised process Section 1.4

The specific identified sensitivity of the site related to the activity and its associated structures and infrastructure Not applicable

An identification of any areas to be avoided, including buffers Not applicable

A map superimposing the activity including the associated structures and infrastructure on the

environmental sensitivities of the site including areas to

be avoided, including buffers; Not applicable

A description of any assumptions made and any

uncertainties or gaps in knowledge; Section 1.5

A description of the findings and potential implications

of such findings on the impact of the proposed activity,

including identified alternatives, on the environment Section 8

Any mitigation measures for inclusion in the EMPr

Any conditions for inclusion in the environmental authorisation Not applicable

Any monitoring requirements for inclusion in the EMPr or environmental authorisation Section 3

A reasoned opinion as to whether the proposed activity or portions thereof should be authorised and Section 8

If the opinion is that the proposed activity or portions

thereof should be authorised, any avoidance,

management and mitigation measures that should be

included in the EMPr, and where applicable, the closure

plan Section 8

A description of any consultation process that was

undertaken during the course of carrying out the study Section 1.4 and Annexure 1

A summary and copies if any comments that were

received during any consultation process Not applicable

Any other information requested by the competent

authority. Not applicable

7

1. INTRODUCTION

1.1. PROJECT BACKGROUND

Taung Gold (Pty) Ltd (Taung) proposes to revive the historical Jeanette Gold Mine that

was formerly owned by AngloGold Ashanti and at a later stage by Harmony Gold. It is

an underground gold mine situated approximately 20 km north-west of Welkom in the

Matjhabeng Local Municipality of the Free State. Matjhabeng Local Municipality is

situated in the Lejweleputswa District Municipality in north-eastern Free State about

250 km south of Johannesburg and 160 km north of Bloemfontein. It is bound by the

Nala Local Municipality to the North, Masilonyana Local Municipality to the South,

Tswelopele Local Municipality to the East and Moqhaka Local Municipality to the

West. Matjhabeng represents the hub of mining activity in the Free State province.

Figure 1: Jeanette Mine Location

Source: Taung Gold

The historical Jeanette Gold Mine ceased operations in 1955 when underground

infrastructure to the extent of 3,556 m of development was completed. The historical

mine occupied an area of 5 700 ha (57 km2). A large part of the existing mining

infrastructure was constructed during the 1950s including two vertical shafts and some

underground horizontal access. Above-ground infrastructure is also quite well

established including roads, railway lines, and water and power reticulation. The

8

Jeanette deposit was never fully developed because the prevailing state of the gold

market and high overhead costs made the Jeanette mine uneconomic and its owner at

the time, Anglo American, switched its focus to the higher-grade area closer to

Welkom.

Jeanette was acquired by Taung Gold (Free State) Pty Ltd in 2008. The Hong Kong

listed Taung Gold International owns 69% in the South African operation while a black

economic empowerment company, Sephaku Gold Holdings, has an effective 26% of the

South African projects, making the company fully compliant with mining licence

conditions. Taung Gold is a junior gold operator, founded and incorporated in South

Africa in 2004.

Due to a more complex geology at the Jeanette mine, a highly mechanised method of

gold extraction is the more feasible option for mining production at the mine, in turn,

requiring a skilled labour force. The total labour force for the Project is estimated to

peak at around 1113 employees (including management and all other fixed labour), i.e.

about half of the labour force required for a more labour-intensive gold mining

operation of similar size.

The proposed project will be constructed on land previously used for mining, with an

estimated prospecting right area/proposed mining right area of 9,121ha, an estimated

underground mine area of ~ 5,701ha, and a surface area of disturbance of 250ha.

Proposed surface infrastructure will consist of the following: A single main shaft

complex, a processing plant, a tailings storage facility and a waste rock dump. For

purposes of the SEIA, the Jeanette life of mine is estimated to be between 24 to 29

years.

1.2. LEGAL FRAMEWORK FOR SOCIO-ECONOMIC IMPACT

ASSESSMENTS IN THE MINING SECTOR

Two sets of legislation are relevant for the socio-economic assessment of mining

projects in South Africa:

THE NATIONAL ENVIRONMENTAL MANAGEMENT ACT (NEMA), No. 107

of 1998 and ENVIRONMENTAL IMPACT ASSESSMENT REGULATIONS (GN

No. R. 1159 of 10 December 2010)] provides a suite of principles and tools to guide

South Africa on a path to sustainable development. “Environment’ is defined in holistic

terms and includes biophysical, social and economic components, as well as the

connections within and between these components. While the act does not prescribe a

specific methodology in terms of socio economic impact assessment the following

stipulations highlights the necessity to include socio economic issues in environmental

impact assessments.

The following general principles apply to all identified impacts:

Responsibility for the impact should apply throughout its life cycle.

9

The participation of all interested and affected parties in environmental governance

must be promoted

Decisions must take into account the interests, needs and values of all interested

parties

The costs of remedying pollution, environmental degradation, consequent adverse

health effects and of preventing, controlling or mitigating further pollution,

environmental damage or adverse health effects must be paid for by those

responsible for harming the environment, i.e. the so-called polluter-pay principle.

The regulations also makes provision for cumulative effects assessment identifying and

evaluating the significance of effects from multiple actions representing potential

causes of impacts.

THE MINERAL AND PETROLEUM RESOURCES DEVELOPMENT ACT 28

OF 2002 (MPRDA, No. 28 of 2002). The objectives of the Act are to:

promote equitable access to the nation’s mineral and petroleum resources to all the

people of South Africa;

substantially and meaningfully expand opportunities for historically disadvantaged

persons, including women, to enter the mineral and petroleum industries and to

benefit from the exploitation of the nation’s mineral and petroleum resources;

promote economic growth and mineral and petroleum resources development in the

Republic;

promote employment and advance the social and economic welfare of all South

Africans;

ensure that holders of mining and production rights contribute towards the socio-

economic development of the areas in which they are operating.

In order to fulfil the objectives, chapter 4 of the Act stipulates that any prospecting or

mining operation must be conducted in accordance with generally accepted principles

of sustainable development by integrating social, economic and environmental factors

into the planning and implementation of prospecting and mining projects in order to

ensure that exploitation of mineral resources serves present and future generations. To

this end an applicant has to:

establish baseline information concerning the affected environment to determine

protection, remedial measures and environmental management objectives;

investigate, assess and evaluate the impact of his or her proposed prospecting or

mining operations on the environment and the socio-economic conditions of any

person who might be directly affected by the prospecting or mining operation

The MINERAL AND PETROLEUM RESOURCES DEVELOPMENT

REGULATIONS OF April 2004 (Amended October 2004, November 2006 and April

2011) provide more detail on the implementation of the MPRDA:

10

REGULATION 50 (c): The regulation sets out the requirement for the assessment and

evaluation of the proposed mining operation on the economic conditions of directly

affected persons during the construction, operational, decommissioning phases. This

includes:

The listing of all potential socio-economic impacts

Quantification of the loss of value of property or infrastructural assets due to the

mining activity

Quantification of the net present value of commercial, economic or business

activity that will be impacted on as a result of the mining activity

Identification of cumulative impacts

An impact rating in terms of the listed impacts in terms of its nature, extent,

duration, probability and significance.

REGULATION 50 (e): This regulation requires the applicant to determine the

appropriate mitigation and management measures for each significant impact of the

proposed mining operation.

1.3. SCOPE OF WORK

The scope of work of the socio-economic impact assessment include the following

deliverables:

A socio-economic baseline description of the local area and scoping of potential

impacts

Description of socio-economic impacts during construction, operational,

decommissioning and post-closure

Propose mitigation and management measures to enhance positive social benefits

and reduce negative impacts including:

o The identification of potential opportunities for implementing / assisting

with the implementation of socio-economic development projects

o Recommendations for managing relationships with local groups

1.4. METHODOLOGY AND SOURCES

The economic impact assessment is based on primary as well as secondary resources

including:

Interviews with specialists responsible for different EIA work streams including

groundwater , air quality , social, traffic, biodiversity and visual assessments

Review of specialist reports where available

Interviews with the project developer

Interviews with sector specialists

11

Interviews with key parties that are likely to experience economic impacts related to

the project

International and national literature on the external costs of goldmine activities

Financial information supplied by the developer that is subject to change

The list of references is provided in section 10 of the Report. A list of stakeholders

interviewed is provided in the Annexure to this report.

Economic modeling Input-Output (I/O) modelling is used to assess the project’s

potential impact on employment and output. The I/O analyses is based on i) direct

impacts (income and employment created due to employment by the project itself) ii)

indirect impacts (backward linkages to local suppliers) and iii) induced impacts due

to the overall increase in income levels and increased spending on goods and services

which could lead to a further increase in production and employment in the local area.

The socio- economic team undertook a visit to the site in June 2015 and undertook

personal interviews with local community members. The aim of the site visit was for

the socio- economic specialists to familiarise themselves with the site and the socio-

economic areas surrounding the sites.

1.5. LIMITATIONS AND ASSUMPTIONS

The following assumptions and limitations apply to the socio-economic impact

assessment:

It is assumed that the developer will adhere to legally required and current industry

management principles

The financial information for the mine is obtained from the Pre-Feasibility Study

(PFS) of the mine that still needs to be updated by the Feasibility Study for the mine

The potential external costs associated with the project was based on information

supplied by sub-specialists for the Environmental Impact Assessment of the project

The economic impact model was based on information supplied by the developer

Economic multipliers, average salaries and wages and value added as a percentage

of total income were based on provincial and national averages.

2. SOCIO-ECONOMIC BASELINE OF THE LOCAL AREA

2.1. DEFINING THE LOCAL AREA

The Jeanette mine is situated in the Matjhabeng municipal area close to the national

R30 in the goldfields of the central Free State, north of Bloemfontein and south of

Kroonstad. The mine is surrounded by farming communities as discussed in section 2.3.

below. The closest settlements/towns are Odendaalsrus (about 7km to the south);

Allanridge (about 8km to the north) and Nyakkalong, almost 2km west of the site.

http://en.wikipedia.org/wiki/Free_State_(province)

http://en.wikipedia.org/wiki/Bloemfontein

http://en.wikipedia.org/wiki/Kroonstad

12

For purposes the socio-economic baseline the local communities that are profiled

include the whole of the Matjhabeng municipality. The Matjhabeng municipal area,

previously known as the Free State Goldfields, consists of the following:

Welkom/Thabong/Bronville

Allanridge/Nyakallong

Odendaalsrus/Kutlwanong

Hennenman/Phomolong

Ventersburg/Mmamahabane

Virginia/Meloding

Where data is available, the socio-economic baseline will focus in on the specific wards

where the mine is situated and wards adjacent to the proposed mining area. These

include:

Allanridge (ward 36)

Eerstegeluk rural area to the east (ward 10)

Odendaalsrus to the south (ward 35)

Nyakkalong to the west (ward 19)

Kutlwanong to the south east (wards 18, 20, 21 and 22)

2.2. DEMOGRAPHIC PROFILE OF THE LOCAL AREA

Population and household size and growth:

Matjhaneng is the second largest city in the Free State with a population of 406 000

recorded in the census of 2011. Table 1 below illustrates the negative population growth

in the Matjhabeng municipal area of -1.1% per annum between 1996 and 2011

compared to the positive average annual growth rates of 1.6% and 0.3% of the National

and Free State populations respectively (Stats SA Census 2006 and 2011).

Table 1: Population and household trends, 1996 -2011

Geographic

area

Population (nr) Households (nr) Population

growth

(average

p.a.)

Household

growth

(average

p.a.)

1996 2011 1996 2011 1996-2011 1996-2011

South Africa 40 583 574 51 770 559 9 059 571 14 450 163 1.6% 3.2%

Free State 2 633 505 2 745 591 625 011 823 317 0.3% 1.9%

Matjhabeng 476 745 406 446 110 220 123 195 -1.1% 0.7%

Allanridge 19 887 11 667 3 891 4 011 -3.5% 0.2%

Eerstegeluk rural

7 692 11 937 2 091 3 288 3.0% 3.1%

Odendaals-rus

8 901 11 694 3 336 3 228 1.8% -0.2%

Nyakkalong 13 692 14 259 2 823 2 754 0.3% -0.2%

Kutlwanong 56 181 46 067 14 097 13 413 -1.3% -0.3%

Source: Stats SA (Census 1996 and 2011)

13

Low to negative population growth was recorded in Allanridge and Kutlwanong and

Nyakalong. In Odendaalsrus the population grew at a rate close to the national growth

rate while the high population growth rates in Eerstegeluk rural area suggest some in-

migration at the fringes of the municipal area.

There are signs that the population growth rate of Matjhabeng municipality might be

increasing again after a low point in 2007 - an annual rate close to 1% per annum are

recorded between 2007 and 2013 (IHS Global Insight, 2015). This could be ascribed to

the stabilization of migration rates out of the municipal area also as job opportunities

outside the municipal area become scarcer.

Gender and age distribution:

In 2011, 51% of the national population was 25 years and younger as opposed to 49%

in Mathjabeng municipality. In both cases the population could be described as young.

While the percentage of the young population declined somewhat on a national level

(from 56% in 1996 to 51% in 2011), the portion of the young population in Mathjabeng

increased from 43% in 1996 to 49% in 2011.Considering the negative average

population growth of the municipality this could to a higher birth rate in the area as well

as to older people moving away from the area (based on data from IHS Global Insight,

2015 and Stats SA Census 2006 and 2011).

The male: female ratio for the municipality is above the national average for most of the

period from 1996, with the exception of 2007. These dominant high male:female ratios

indicate a large percentage of single (male) family migrants residing in the area. While

this ratio declined between 2001 and 2007, it increased towards 2011 and is showing

signs of increasing again towards 2013. This confirms the analyses above that

population growth in the area is showing signs of increasing, This could indicate to the

stabilisation of net migration from the municipal area with younger migrants coming

into the area possibly off-setting older migrants moving out of the area (Ibid).

The Eerstegeluk rural area recorded the youngest population (57% in 2011) of the

wards surrounding the mining area. These characteristics, coupled with the high

recorded population growth rates between 1996 and 2011 could signify net migration

into the ward area. The male:female ratio for this area is not significantly above the

national average which could indicate to younger families moving into the ward (Ibid).

Kutlwanong recorded the second youngest population (53% in 2011). The area also

recorded male:female ratios on par with average ratios in South Africa. Coupled with

the negative population growth in the area it could suggest net migration of families

from the area possibly coupled with a high mortality rate of the local population

incidence due to HIV/AIDS or other illnesses.

14

Allanridge recorded the third youngest population (51% in 2011) of the wards

surrounding the mining area. Coupled with the high negative population growth rates

from the area, it could be argued that it is mostly older migrants leaving the area. The

male:female ratio is significantly above the national average since 1996 but it is also

declining, confirming the out-migration of probably older single (male) households

from the ward (Ibid).

The population of Odendaalsrus is older than the populations of the other wards with

only 33% belonging to the age-group 25 years and younger as opposed to 39% in 1996.

This ward showed above-average population growth as well as increasing male:female

ratios since 1996 – well above the national average. This could indicate to the net in-

migration of older single (male households) into the ward, either from inside the

municipality (e.g. Allanridge) or from outside the municipal area (Ibid).

The Nyakkalong ward recorded the oldest population in 1996 with only 34% of its

population being 25 years and younger. But while the population in Odendaalsrus

became older, the Nyakkalong population became younger with 41% being 25 years

and younger in 2011. The male:female ratio also shifted from below the national

average (indicating net out-migration from the area in 1996) on par with the national

average in 2011.

Heads of household:

With relatively high male:female ratios and migrants in the local area it can be expected

that the prevalence of child and female-headed households in the area will be below the

national average.

In Mathjabeng as a whole, 0.2% of household heads are younger than 16 years

compared to 0.3% nationally. In the Allanridge, Kutlwanong andf Eerstegeluk areas

the average was 0.1% in 2011, while negligible in in Odendaalsrus. In Nyakkalong the

percentage of child-headed households is on par (0.3%) with the national average

(based on Stats SA Census 2011). It is estimated that there could have been in the

region of 40 child-headed households in the wards surrounding the mine area in 2011,

the majority residing in Nyakkalong and Kutlwanong.

An estimated 40% of households in Mathjabeng are headed by females compared to

41% nationally. The prevalence is much lower in Allanridge (29%); Odendaalsrus

(29%) and Eerstegeluk rural area ((38%) but higher in Nyakkalong and Kutlwanong

(43%) (Ibid).

Household sizes:

As illustrated in table 2 below, the average household size for Mathjabeng is slightly

below the national average in 2011. The average households sizes for the wards within

the vicinity of the proposed mine differs substantially from 2.9 persons per household in

Allanridge to 5.2 persons per household in Nyakkalong.

15

Table 2: Average households sizes

Area 1996 2011

National 4.5 3.6

Mathjabeng 4.3 3.3

Allanridge 5.1 2.9

Eerstegeluk 3.7 3.6

Odendaalsrus 2.7 3.6

Nyakkalong 4.9 5.2

Kutlwanong 4.0 3.4


2.3. LAND-USE PATTERNS

Mathjabeng municipality is mostly covered by non-arable, moderate potential grazing

land as well as marginal potential arable land. There are approximately 2 500 farms in

the municipal area (Mathjabeng Local Municipality, 2013).

The land usage patterns for the municipality are illustrated in table 3 below:

Table 3: Land uses within Mathjabeng Municipality, 2010

Land cover % of municipal

area

Thicket, Bushland, Bush Clumps & High Fynbos 0.6%

Grassland 56.4%

Forest Plantations (Eucalyptus spp) 0.1%

Waterbodies 0.5%

Wetlands 3.8%

Natural surface 0.2%

Erosion 0.1%

Degraded land 0.2%

Cultivated land 34.8%

Urban / Built-up : residential 1.7%

Urban / Built-up : commercial 0.1%

Urban / Built-up : industrial / transport 0.1%

Mines and quarries 1.5%

Source: Housing Development Agency,-2014

Mining activities in the area cover a small portion of the total land area (1.5%) but

makes the largest contribution towards the local economy. The mining areas are

however close to high density settlements and farm communities which presents the

potential for environmental, social and economic impacts. Figure 2 below shows

Harmony and Sibanye mines in the Mathjabeng area in relation to the proposed Jeanette

mine.

16

Figure 2: Jeanette Mine Location in Relation to Other Mining Operations

Source: Taung Gold

The population density (number of people per square kilometre), although still

relatively low, is higher for Mathjabeng municipality (79) than in the province (21) or

nationally (42). The population density is higher than average for all the wards

surrounding the mining area, especially in Nyakkolong (3 565 people per square

kilometre), Allanridge (417) and Odendaalsrus (377) (based on data from Stats SA

Census 2006 and 2011).

While the mine is surrounded by these relatively high density settlements, the land-use

in the mining area itself is mainly agricultural. The properties on the mining area

include in the region of 20 private farms, a farmers trust, a couple of properties owned

by the provincial government and properties owned by public utility companies Telkom

and Transnet.

2.4. CULTURAL HISTORY AND CHARACTERISTICS OF THE LOCAL

AREA

As is the case with the rest of South Africa, the population of Mathjabeng consists of

people from diverse cultural backgrounds, suggested by the meaning of Mathjibeng as

“where nations meet” (Matjhabeng Local Municipality, 2013). The rich cultural

diversity of the area is mainly a result of in-migration from people elsewhere in South

Africa (particularly from the adjacent Eastern Cape) and the rest of Africa (mainly

Lesotho, Malawi and Mozambique) searching for job opportunities in the mining sector

http://en.wikipedia.org/wiki/Lesotho

http://en.wikipedia.org/wiki/Malawi

http://en.wikipedia.org/wiki/Mozambique

17

– a sector that played a major role in the social life and economy of the Mathjabeng

area since the early twentieth century (Ibid).

In Mathjabeng the cultural profile is similar to the Free State provincial profile with the

Sesotho speaking group currently makes the largest contribution (62%) towards the

municipal population followed by the Afrikaans-speaking group (12%) and the

IsiXhosa-speaking group (12%) (StatsSA 2011).

The early history of the area is associated with the Khoisan hunter-gatherers and Khoi

herders between 2000 -20 000 years ago. Between 150 and 400 years ago that Bantu-

speaking agro pastoralists moved into the region. The Basotho nation is a result of the

diplomacy of King Moshoeshoe I who gathered disparate clans of Sotho-Tswana origin

that had dispersed across Southern Africa in the early 1800s after the political turmoil

that most historians associate with the wars started by Shaka Zulu. In the 1830’s settlers

mainly from Dutch origin (Voortrekkers or Boers) moved away from Cape British

colonial rule to settle in the Free State. On 23 February 1854, the Orange Free State

officially became a republic for the Voortrekkers. Various wars and conflicts took place

between the British, Boers and Basotho in the middle and late 19th century. The

Voortrekkers and Basothos fought two wars that ended in 1868 (Free State Provincial

Government, 2005).

A period of relative peace and steady progress followed until the outbreak of the second

Boer War (Anglo-Boer War) in 1899. The Free State played an important role in the

Anglo-Boer War (1899-1902). Defeated by the British, the Free State ceased to exist

as an independent Boer republic in 1902 and joined the Union of South Africa in

1910 which in turn became the Republic of South Africa in 1961 (Free State

Provincial Government,2005).

The history of the area took a new turn when the first gold was discovered in the early

1940s as part of the broader gold rush in the region of the larger Witwatersrand basin.

The district became predominantly known as the Free State Goldfields. Odendaalsrus

was the first town to be established in the Goldfields in 1912. The town transformed

from a small farming community with only 40 houses and three shops to a major town

after the discovery of the richest gold reef in the world in 1946 (Matjhabeng Local

Municipality, 2013).

Welkom was specifically designed as a major centre for the gold mining community

(planned by Sir Ernest Oppenheimer, Anglo American Chairman at the time) and

development of the city started in 1947. The adjacent mining towns of Allanridge and

Virginia were established soon after as more gold deposits were discovered and mines

opened up. By 1992, some 20 mines were operational in these mining towns (Ibid).

The history of the other two towns (Ventersburg and Hennenman) that presently form

part of the greater Mathjibeng municipality is not as closely related to the gold industry.

18

Ventersburg’s early history (1857) is associated with the history of the Dutch Reformed

Church and the Anglo-Boer War while Hennenman’s history is associated with a

railway station. The growth in both towns after 1950 could be directly attributed to the

discovery of gold in the area (Matjhabeng Local Municipality, 2013).

Following the policy of town development under the apartheids regime of Afrikaner

dominated National Party (since 1948) segregated development resulted in ‘coloured’

townships developing near the centres of the ‘white’ towns. The dominant white towns

with their annexed townships include:

Odendaalsrus (Kutlwanong)

Welkom (Thabong)

Allanridge (Nyakallong)

Virginia (Meloding)

Ventersburg (Mamahabane)

Hennenman (Phomolong emerged from the forcefully removed old location to an

area 6km from the town)

As in other mining towns in South Africa, hostels were used by many mining houses in

the area to accommodate single migrant families. The hostel-system also played an

important part in the role that labour played in the struggle against apartheid. In the

1970s and 1980s Welkom became a major centre in the struggle against apartheid. One

of the most violent labour conflicts occurred near Welkom when least 80 miners were

killed in clashes between strikers and non-strikers initiated by the National Union of

Mineworkers, who aggressively pursued its workers interests and opposed apartheid

(Botes et.al, 2007).

While the ‘white’ towns became more integrated after the end of the apartheid regime

in 1994, the townships are mainly still dominated by Sesotho and IsiXhosa-speaking

groups. In Allanridge, the main groups are the Sesotho (43%) and Afrikaans-speaking

groups (34%) while the Sesotho-speaking group contribute 76% towards the

Nyakkalong population in 2011. In Odendaalsrus the contribution of Afrikaans-

speaking groups’ declined from 57% to 37% between 1996 and 2011 while the share of

Sesotho speakers increased from 28% to 42% in the same period. In Kutlwanong the

share of Sesotho speakers remained close to 80% of the population between 1996 and

2011 (StatsSA 2011).

Since the middle 1990’s the gold boom in Welkom came to an end with the closure of

several mines in the area (discussed in more detail under the discussion of the local

economy below). A media article in 2013 refers to Welkom as “the old oom of the gold

boom” (Steyn, 2013). The once magnificent Ernest Oppenheimer theatre in the middle

of the town stands empty after a devastating fire in 2011 while the once prosperous

municipality “can't afford to pay its electricity bills, let alone restore a theatre.” It is the

19

opinion of many community members that the municipal area is marked by high crimes

and a zero-sum game in the fight for jobs (Ibid).

Since the mid-2000s, amidst declining economic opportunities especially for the youth,

Mathjibeng is characterised as an increasingly fragmented community. For example,

different regions (towns) pitch against each other as is the case with Phomolong and

Virginia that perceived being excluded from economic development initiatives in

Welkom. A number of xenophobic attacks are recorded as part of civil protests against

government as well as mining companies with target groups mainly being Indian and

Bangladeshi businesses. Frustration is also voiced that ‘Lesotho’ people and people

from the Eastern Cape are favoured in recruitment by mining companies at the expense

of ‘locals’ (Botes et.al, 2007, De Wet, 2013, Mokati, 2012, Action Voices, 2012

Gubico, 2015).

Of all the areas close to the proposed mine, Odendaalrus recorded the highest

percentage of foreigners (35%) and people that was born outside the Free State (52%)

in 2011. In Allanridge, 7% of the inhabitants were born outside South Africa and 30%

outside the Free State. In former townships of Nyakkalong and Kutlwanong the

percentage of people that were born outside South Africa was in the region of 3% in

2011 while only 10% were born outside the Free State. In the rural area of Eerstegeluk

the percentages of the population with foreign citizenship was only 2% while 13% was

born outside the Free State (StatsSA, Census 2011). The statistics suggest that

Odendaalsrus and to a lesser extent Allanridge are the most popular host destinations

within the adjacent wards for people moving into the area. Despite the lower

percentage of foreigners present in Nyakkalong, Kutlwanong and Eerstegeluk, the high

unemployment rates in these areas (discussed below) could still indicate a potential for

xenophobic conflict in these areas.

2.5. HEALTH

The morbidity and mortality rates of the Free State Province, as in South Africa, are

dominated by HIV/AIDS. In 2013 the HIV prevalence and AIDS deaths among the

general population in the Free State is higher (12.6%) than the national average

(11.1%). The rate is even higher in Mathjabeng Municipality, i.e. 13% in 2013

compared to 9.6% in 2000 (IHS Global Insight, 2015).

The shortage of skilled health professionals in the public health sector presents a serious

Free State province challenge to attract and retain scarce skills. In 2010, 48.7% of

professional health worker posts in the Free State were vacant compared to 42.5%

nationally. There are particularly acute shortages of doctors (medical practitioners) and

nurses. There were only 24.1 medical practitioners per 100 000 uninsured population in

2010 compared with 27.3 doctors per 100 000 uninsured population nationally

(NDRDLR and Free State Department of COCTA, 2013).

MARCH 2013

20

According to the Matjhabeng IDP (Matjhabeng Local Municipality, 2013) the

objectives of the healthcare system are:

Improvement in environmental health conditions;

Within a broader disaster management response capacity, maintenance of ability to

respond to any and all public health threats;

Massive reduction in HIV/AIDS prevalence or incidence rates and reduced impact

of HIV/AIDS on communities; and

Universal access to a comprehensive basket of health services, especially primary

health care

In the greater Welkom area the following health care facilities are available:

Bongani Regional Hospital (Public)

Ernest Oppenheimer Hospital (Semi-private)

Goudveld Regional Hospital

Mediclinic Welkom (Private)

St Helena Hospital (Private)

Various primary care clinics exist in the former townships.

2.6. EDUCATION

In Mathjabeng, the educational profile improved significantly the past two decades.

Functional literacy (the population 15 years plus with 7 years schooling and higher) has

increased from 69% in 2000 to approximately 85% in 2013 compared to a national

average of 82% in 2013 (IHS Global Insight, 2015). Furthermore the population (aged

20 +) without schooling declined from 11% in 2000 to 6% in 2013.

Notwithstanding these improvements, as illustrated in table 4 below, only 27% of the

Mathjabeng population (aged 20+) matriculated while only 9% continued further with

tertiary education in 2013 compared to 12% nationally.

Table 4: Educational attainment of the adult population (20 years +)

Level of education 2000 2013

National Mathjabeng National Mathjabeng

No schooling 16% 11% 7% 6%

Grade 0-2 2% 2% 2% 3%

Grade 3-6 15% 20% 10% 12%

Grade 7-9 22% 27% 18% 20%

Grade 10-11 17% 18% 22% 22%

Certificate / diploma without matric

1% 1% 1% 1%

Matric only 19% 16% 28% 27%

Matric & certificate / diploma

5% 4% 6% 5%

Matric & Bachelors degree 2% 1% 4% 3%

Matric & Postgrad degree 1% 0% 2% 1%

Total 100% 100% 100% 100%

Source: IHS Global Insight, 2015

21

As is the case in the Free State Province in general, there are concerns regarding

support for early childhood development. Although there has been an increase of 40%

in the number of Grade R classes in the Free State between 2004 and 2010, only 58% of

potential Grade R learners at the age of 5 years were enrolled in school in 2010. In

2010 only 50% of the Grade 3 learners achieved a satisfactory level of competency

(NDRDLR and Free State Department of COCTA, 2013). The result is that

approximately 50% of the Free State pupils leave secondary school before

matriculating. While the Grade 12 pass rate for the Free State has increased from 56%

in 1994 to 71% in 2010. However the percentages of learners who complete

matriculation with university exemption, mathematics and physical science remain low

and only 35% of Grade 12’s that pass their exams continue with tertiary education

(Ibid). Table 5 below shows the number education facilities available in Matjhabeng

municipality.

Table 5: Educational facilities

Type of education Nr of facilities

Primary education 54

Secondary education 31

Tertiary education 5

Special needs education 3

Source: Mathjabeng Local Municipality (2013)

Tertiary educational institutions include Oxford Academy, Intec College, Goldfield

FET College, Boston City Campus and the Central University of Technology Free State

Campus – a merger between the former Vista University and Technikon Free State that

occurred in 2004.

In addition to the educational facilities listed above, Welkom has 15 Adult Basic

Education Training (ABET) Centres. They are located in Odendaalsrus/Kutlwanong

(3), Allanridge (1), Welkom (7), Virginia (2; including one at Harmony mine), and in

Hennenman (2) (EMIS,2004).

2.7. PUBLIC SERVICES

Provision of basic municipal services:

Sedibeng Water mainly supplies the Goldfields region and the mines with water from

the Vaal River, Bulkfontein near Bothaville and to a lesser extent from the Sand River.

The main reservoirs and pump stations are located close to Allanridge, Welkom and

Virginia. The water purification plant is located in Virginia. Other water infrastructure

resources (constructed by the Department of Water Affairs) include dams in

Allemanskraal and canals serving the Sand-Vet irrigation scheme (Mathjabeng Local


As illustrated in table 6 below, the municipality (albeit starting from higher than

national levels) made progress towards delivering basic services since 1996. Even while

22

population growth was negative, the service area of the municipality expanded

significantly since 1996, signifying a noteworthy accomplishment. The progress is

especially noted in the historically under-serviced wards as is the case with Eerstegeluk

within close vicinity of the proposed mine.

Table 6: Percentage of households with access to basic municipal services Year 1996 2011

Area access to piped water inside dwelling/ in yard

flush/ chemical toilet

refuse removal once a week

access to piped water inside dwelling/ in yard

flush/ chemical toilet

refuse removal once a week

National 60% 50% 51% 73% 63% 62%

Mathjabeng 86% 67% 83% 91% 82% 86%

Allanridge 92% 86% 84% 89% 94% 87%

Eerstegeluk 64% 40% 34% 94% 84% 81%

Odendaalsrus 98% 84% 81% 89% 88% 90%

Nyakkalong 90% 87% 88% 98% 98% 96%

Kutlwanong 77% 51% 76% 87% 87% 86%


As is the case with other towns in the Free State, Mathjabeng municipality faces various

challenges in terms of its water supply network (Ibid). These challenges include:

Capacity constraints related to the management of the water supply network. The

municipality currently does not have a Water Services Development Plan (WSDP)

Timeous provision of infrastructure to meet developmental growth needs

A rapid aging and decaying water network infrastructure

The rehabilitation and upgrading all substandard waste water treatment plants is a

priority. There are 12 treatment plants and all of them require major upgrade and

refurbishment. The backlog amount to close to R1bn

Maintenance of water supply and sewer infrastructure

Limited financial and human resources

Water quality in the Vaal River is of also of serious concern because of high salinity

and nutrient content, mainly resulting from urban and industrial return flows as well as

mining activities in the Upper Vaal Water Management Area (WMA). The closure of

mines may have further implications for water quality in the area. Irrigation for

agricultural purposes, urban and industrial use have resulted in a high utilisation of the

water resources, both surface and groundwater ground water (NDRDLR and Free State

Department of COCTA, 2013).

Amidst these challenges, Matjhabeng Local Municipality managed to improve its water

quality and increased its Blue Drop score from the Department of Water and Sanitation

to 94.7% in 2012 (up from 47.3 % in 2010). It received a reward as best performing

municipality in terms of water quality management in the Free State in 2012 (Ibid).

23

Energy:

As illustrated in table 7 below, electricity has become increasingly available to

households in the municipal area since 1996, following the national roll-out plan of the

national energy utility Eskom. A larger percentage of households in the municipality

have access to electricity for all purposes than for households nationally. Nyakkalong

and Kutlwanong are still under-serviced relative to other wards close to mining area.

Table 7: Percentage of households with access to electricity Year 1996 1996 1996 2011 2011 2011

Area electricity for cooking

electricity for heating

electricity for lightning

electricity for cooking

electricity for heating

electricity for lightning

National 47% 44% 58% 74% 59% 85%

Mathjabeng 57% 54% 73% 88% 66% 91%

Allanridge 80% 77% 88% 90% 70% 95%

Eerstegeluk 46% 41% 52% 92% 64% 95%

Odendaalsrus 82% 82% 83% 86% 66% 90%

Nyakkalong 21% 14% 66% 85% 55% 98%

Kutlwanong 39% 38% 65% 84% 53% 87%


Eskom serves all mines and all townships in the municipal area and there is sufficient

bulk infrastructure available to serve the municipal area. The main challenges in energy

provision are the aging infrastructure and a change in cost recovery and subsidization

policy that has made it very expensive to electrify the rural areas, including some farms

and farming communities (Mathjabeng Local Municipality, 2013).

The Municipality acknowledges its over-reliance on coal energy resources and plans to

develop an Energy resource Plan to address energy needs while at the same decreasing

its carbon footprint (Mathjabeng Local Municipality, 2013). There are already a number

of alternative energy initiatives in the Free State Province (NDRDLR and Free State

Department of COCTA, 2013). For example:

An investigation of some mining companies to convert the methane gas produced in

their mining processes to produce electricity

A number of solar projects are rolled out in the Province as part of the national

government’s Renewable Energy Independent Power Producer Procurement

Programme (Letsatsi and Boshoff Solar Parks in Bloemfontein and the western Free

State respectively)

The early development (between 1970 and 1980) of two hydro-energy projects

(Gariep dam and Drakensberg Pumped storage scheme) and two later development

(Bethlehem and Merino)

Sasol is building a 140 MW gas-fired plant in Sasolburg

Free State is considered South Africa's leader in the production of biofuels, or fuel

from agricultural crops, with a number of ethanol plants under construction in the

grain-producing western region

24

A number of municipalities in the Free State face the threat of being cut-off from

electricity supply because of outstanding Eskom bills. Matjhabeng is one of the

municipalities that had an outstanding electricity bill of more than R 300m in 2014.

According to representatives of the Matjhabeng Ratepayers Association, “the

municipality simply don't know how to handle money”. Eleven businesses have already

closed their doors and “people and businesses are leaving Matjhabeng in droves”

(Moore, 2014).

Road and transport infrastructure:

Of the 3 305 km of main roads that falls under the jurisdiction of Free State Province

less than 50% has been evaluated as being in a fair, good or very good condition. A

total of 1731 km (52%) has been evaluated to be in a poor to very poor condition. The

maintenance and repair cost associated with these roads have been estimated by the

Department of Police, Roads and Transport to be in the order of R11.4 billion. At the

2005 rate of resealing in the Province, resealing will only occur every 40 years, way

below the international norm of resealing roads every 12 years. The state of the Free

State’s road network has resulted in an increase in road accidents (NDRDLR and Free

State Department of COCTA, 2013).

While Mathjabeng municipality has a well-established road and transportation

infrastructure, the main challenge for over the years has been maintenance of such

infrastructure. Due to the large backlogs for the province as a whole, there is

insufficient financial support from the Provincial Departments to eradicate these

backlogs. In 2012 the roads and storm water maintenance backlog for the municipality

is estimated close to be close to R4 billion and new roads backlog at approximately R2

billion. The municipality has a total length of 1 618km of roads of which 40% is gravel

and 60% is surfaced (Mathjabeng Local Municipality,2013).

The public transport system of Matjhabeng mainly consists of privately owned taxis.

Apart from dedicated transport for mine workers, there is no local bus service operating

in Matjhabeng. The rail network passing through Hennenman, and Virginia mainly

services mines (Ibid).

2.8. SAFETY AND SECURITY

Crime:

The level of crime within Mathjabeng municipality is of concern. Close to 177 violent

crimes per 100 000 people were recorded in the municipal area in 2013 compared to 99

nationally and 142 provincially. While violent crimes decreased by 39% nationally

since 2000, it only decreased by 9% in Mathjabeng. In 2013, the property crime index

was also much higher at 263 crimes per 100 000 people compared to the national and

provincial averages of 221 and 245 crimes respectively (IHS Global Insight data, 2015).

25

A number of high profile crimes occurred in the area the last 5 years (Allan, 2011).

Welkom also recently made news headlines in March 2014 when 10 people on separate

incidents were brutally slayed in less than a week (De Klerk, 2014). Farm murders are

reportedly higher in the Free State than in the rest of the country with 42 per 100 000

population recorded in 2014 as opposed to 31 per 100 000 nationally. Dominantly an

urban area in terms of population, the ratio is much lower in Mathjabeng, since it only

presented 7% of the farm murders in the Free State since 2000 compared to its

population contribution of 18% of towards the Free State population (based on data

from Bridges, 2014).

There is a general opinion in the media that the closure of mines and the consequent

economic decline could be one of the reasons behind what is perceived as an escalation

of violent crimes in the area.

Various challenges were identified related to the effective combating of crime within

the municipal area (Mathjabeng Local Municipality, 2013). These include:

Lack of resources within the police service (transport, manpower).

Ineffective functioning of neighbourhood watch organization and community police

forums.

Lack of visible policing.

Lack of accessibility to police stations

According to the latest Integrated Development Plan (IDP) of Mathjabeng more

facilities such as mobile police stations, available transport and accessible

communication systems are required to improve crime prevention and emergency

response (Mathjabeng Local Municipality, 2013).

Civil unrest:

As was discussed under the cultural profile of the area above, there were a couple of

violent civil unrests in the area since 2005 that also involved xenophobic attacks. While

alleged municipal corruption and service delivery were given as main reasons behind

these actions, mounting economic frustration especially among the youth in the area

also play an important role. Table 8 includes high profile protests in Mathjabeng since

2005:

Table 8: Main protests in Mathjabeng 2005-2013

Area Year Issues Intensity Phomolong, Hennenman

2005 Bucket system, alleged municipal corruption, economic frustration in general

Included xenophobic attacks on Indian businesses

Kutlwanong

2008 March against local government and Harmony mines to protest against perceived negligence of the mine of its social responsibility and to demand jobs.

Vandalisation of foreign business properties

Odendaalsrus and Thabong

2012 Favouring of Eastern Cape workers over local labour formed a focus point during the riots

Xenophobic violence occurred in when Bangladeshi nationals were attacked

Allanridge and Nyakkalong

2013 600 unemployed youths demanded jobs from the gold mines.

A murder and robbery case was

opened after the riot

Source: Botes et.al, 2007, De Wet, 2013, Mokati, 2012, Action Voices, 2012 Gubico, 2015

26

Service delivery protests and xenophobia in general are on the rise in South Africa with

a record number of protests (174) recorded in the country in 2014 (Municipal IQ, 2014).

Hygiene/ sanitation issues and alleged corruption charges against government officials

in many cases play a catalytic role in service delivery protests. The root cases are

mainly to be found in limited economic opportunities, especially for the youth (Botes

et.al., 2007). Inadequate sewage systems are recorded in many cases in Mathjabeng

townships including sections of Kutlwanong, Thabong and Meloding (Action Voices,

2012). The frustrated economic aspirations of the youth are furthermore well recorded

in Mathjibeng. Against this background it could be expected that civil unrest will most

likely intensify in future.

Labour unrest:

Even as the gold mining sector is declining in Mathjibeng, it is still subject to labour

unrest. Increased labour unrest not only threatens the safety and security of the

labourers but also the safety of the public. In November 2012 Harmony Gold recorded

public violence in Kusasalethu mine near Carletonville (Harmony, 2012). The events

that occurred in Lonmin’s Marikana mine (Rustenburg) in 2012 are considered a

reflection of the growing tensions within the mining sector. The rivalry between the

well-established government-affiliated union the National Union of Mineworkers

(NUM) and AMCU result in each group trying to get the best and most competitive

wage deals for its members. Over the past few years, unprotected strike action in many

cases has escalated into an uncontrolled, violent and unlawful landscape. Analysts

predict that the platinum and gold sectors will be exposed to the risk of high levels of

labour unrest over the next few years (Mavuso, 2013).

Safety aspects related to illegal mining:

Illegal gold mining is a growing concern in the area, as is the case in the West Rand.

Welkom made headlines in 2009 when the bodies of at least 82 illegal miners (zama

zamas) died from inhalation of poisonous gasses created by a fire in the Eland

mineshaft of Harmony Gold near Welkom. Many desperate and unemployed people

venture into illegal gold mining even amidst the danger of the enterprise. A local law

enforcement officer of the area estimates that about 3000 illegal miners work in the

underground mines in Matjhabeng and fears that there may be hundreds more bodies of

"illegals" that could still be left in these mines (Macharia, 2009).

2.9. LOCAL GOVERNMENT STRUCTURE AND CAPACITY

Governance:

Matjhabeng Municipality is a category “B” municipality with a mayoral executive

system combined with a ward participatory system. The ANC has a 72% majority in the

municipal council (Mathjabeng Local Municipality, 2013b).

Poor communication and accountability relationships with communities as well as high

levels of corruption and fraud have been among the focus areas of the Department of

27

Cooperative Government and Traditional Affairs (COGTA) in municipalities in South

Africa since 2009 (Ibid).

The municipality make use of a number of communication channels including a

functional website, notice boards, a monthly community newspaper (Matjhabeng News)

as well as community radio station, The Rock (Mathjabeng Local Municipality,

2013b).

In 2011 Mathjibeng municipality made headlines due to unaccounted spending to the

amount of R2bn. There exists a perception among community members of wasteful

spending and ‘massive’ corruption at municipal level (Africa and Hofstatter, 2011).

Basic service delivery:

As was mentioned under the provision of basic services above, the municipality

managed to extend basic service delivery to a large percentage of households within its

jurisdiction since 1996. It managed to do so despite having to serve a much rather

jurisdiction and while experiencing a declining number of rate-payers and a declining

economy. The municipality followed a pro-poor approach in its focus on basic service

delivery that left little funds available for maintaining infrastructure (e.g. water

infrastructure and roads) needed to support economic growth (Madibeng Local


Despite the strong focus on basic service delivery, the municipality experienced at least

one recorded violent protest in Phomolong in 2005 (discussed above) that was related to

basic service delivery issues. As is the case with other service delivery protest in South

Africa, dissatisfaction with the lack of basic services related to sanitation (mainly the

bucket system) proved to be the major complaint in the case of the Phomolong unrest.

Issues related to the local clinic also featured among the complaints although health

falls under provincial jurisdiction. Deeper investigation into main drivers behind the

protest however revealed major drivers as the lack of economic opportunities especially

among the youth and perceptions of corruption in the local municipality. While the

municipality bore the brunt of the civil action, protestors also provided the lack of local

jobs created by the mines and preferential appointment of Lesotho people as reasons for

the protest of 2005 (Botes et.al, 2007).

Financial management:

Matjhabeng Local Municipality received a disclaimer audit opinion for the past

financials years. The report of the Auditor-General for the year ended 2013 gave the

following reasons for their audit decision (in Mathjabeng Local Municipality, 2013b):

Fruitless and wasteful expenditure of R 76m due to interest on late payment of

accounts

Irregular expenditure of R 160m due to inadequate procurement processes followed

Insufficient alignment between the Integrated Development Plan and the Municipal

Budget

28

Inadequate performance monitoring of development priorities and objectives against

key indicators

Irregular staff appointments

Lack of signed performance contracts of the municipal manager and senior

management

Lack of stability in senior management positions including the position of the chief

financial officer whose position has been vacant for more than 2 years

Long term development planning:

For an economy that faced severe decline the past decades, long term development

planning is crucial in support of diversification away from the declining mining sector.

The Executive Mayor heads the Integrated Development Plan (IDP) Representative

Forum which consists of the ward committees, sector departments and the business. The

IDP forum improved inter-government collaboration as well as relationships with the

private sector. There is however insufficient alignment between the IDP and the

municipal budget. This could be ascribed to the limited funding to implement

programmes beyond the basic service delivery mandate of the municipality. Local

Economic Programmes in particular face funding constraints although funding from

other spheres became available in recent years. In 2013 no new jobs were created by

LED programmes. A number of short term jobs were however created through the

national-driven Expanded Public Works Programme (Mathjabeng Local Municipality,

2013b). It is also argued that LED has a limited impact on the region’s economic

performance also due to a lack of coordination between municipal initiatives and the

Social and Labour Plans of mines in the area (Nel, 2002).

There appear to be relative consistency in personnel in the planning department with

low staff turnover rates of 6% recorded in 2013 compared to the accepted norm of 15%.

While there are no vacancies on higher management levels in the planning and Local

Economic Development Offices vacancies rates of between 40% -50% at the junior

support level (Ibid).

2.10. LOCAL SOCIAL NETWORKS

Civil society plays an important role in support of vulnerable groups in society and

ideally provides a structured voice to marginalised groups within a local area. More

than 300 non-governmental organisations (NGOs) were recorded in Mathjabeng in

2011. As is the case with in the Free State in general civic society is still under-

represented in Matjhabeng contributing only 0.4% towards the total NGOs operational

in South Africa compared to its 0.8% contribution towards the South African

population (Centre for Development Support, 2013).

Social focus areas:

The majority of NGOs in Mathjabeng focuses on social services including family-

related matters (48%); development issues (18%); health including forums such as the

29

HIV /AIDS Consortium (12%), religion including the Matjhabeng Christian Leaders

Forum (10%) and education (6%).

Environmental and developmental focus areas:

Since 2011 there has been a stronger focus on environmental and developmental issues

of civic organisations in the area, especially behind the background of the declining

mining sector and the long-term economic and environmental impacts of mining on

Mathjabeng. There is also a stronger focus on mobilising the youth of Mathjabeng

around these environmental, economic and human rights related to the mining industry

in the areas.

The most vocal of these groups are the Gold and Uranium Belt Impact Censoring

Organisation (GUBICO) established by a group of young people in Mathjabeng

(GUBICO) in 2011. The organisation utilise community monitors mainly in the former

townships of Meloding, Nyakkalong, Thabong and Masilo that provide regular

feedback to the local communities to issues related to the environment, labour

conditions, safety issues related to mines in the area as well as to municipal service

delivery. The group supports the principles of non-violence, inclusivity, gender parity,

cultural diversity, non-racialism and Anti-Xenophobia. Their communication strategy

includes a regularly updated blog web-site www.goldanduraniumbelt.blogspot.com.

The group is closely associated with the Bench Marks Foundation launched by

Archbishop Desmond Tutu in 2001 as an independent organisation mandated by

churches to monitor the practices of multi-national corporations “to ensure that those

most negatively impacted upon are heard, protected and accommodated within the

business plans of the corporations” (Action Voices, 2012).

Economic focus areas:

Employer organisations: As early as the 1990s, the FGF (Free State Goldfields

Development Centre) was established with the objective to find alternatives to the

declining mining industry in the areas and to drive local economic development (LED)

in the local area. The FGF managed to encourage new reasonably good working

relationships between the municipality and the business sector (HSRC, 2003). The

FGF also works closely with the Free State Goldfields Chamber of Business in

brainstorming ways to promote economic activities in the area that do not depend on the

mines. The Matjhabeng Ratepayers Association (RPA) in turn focuses on tranforming

Matjhabeng into a prosperous business centre.

Labour organisations: The major trade unions operational in the mining industry is

also found in Mathjabeng. These include the ANC-allied National Union of

Mineworkers (NUM), the Association of Mineworkers and Construction Union

(AMCU), the United Association of South Africa (UASA) and Solidarity. NUM still

appear to be the majority union in the area although AMCU is showing fast growth in

the mining sector due to the gains won for its members in platinum negotiations in 2014

(News24, 2015). AMCU was formed in 1998 as an allegedly ‘a-political’ breakaway

http://www.goldanduraniumbelt.blogspot.com/

30

from NUM and as discussed above is in fierce competition with NUM to recruit

members in the mining industry. UASA and Solidarity are older unions with more

stable membership mainly among medium to higher skilled workers.

Recently a number of forums were established to represent the growing number of

youth that is unemployed in the area, for example the Matjhabeng Mining

Unemployment Community. Development forums in Nyakallong and Kutlwanong

regard themselves as voices of the unemployed in their communities. These

organisations has been associated with unrest in their local areas, inter alia demanding

jobs from the gold mines and protesting over recruitment of outsiders at the expense of

local labour (Action Voices, 2012).

2.11. THE LOCAL ECONOMY

Output and employment growth:

As illustrated in graph 1 below, the output and formal employment growth of

Mathjabeng municipality fell way below the national growth rates between 2000 and

2013.

Graph 1: The average annual growth rate in formal employment and output, 2000- 2013


While the national economy experienced positive growth in output and formal

employment opportunities of 3.3% and 1.5% on average per annum since 2000, the

Matjhabeng economy declined at an average of -0.6% per annum in terms of output and

-2.7% in terms of employment. While the broader Free State economy experienced low

real output growth of 2.2%, employment opportunities in the Province also declined at a

lower average annual rate of -1.2% per annum since 2000.

Formal employment opportunities contracted at an average annual rate of 2.7% per

annum since 2000 while the economy experienced negative population growth of 0.4%

per annum during the same period as illustrated in table 9 below. The stronger decline

in the economically active population force suggest net-out migration from the area as

3.3%

-0.6%

1.5%

-2.7%

-4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0%

South Africa

Mathjabeng employment output

31

well as an increase in discouraged job-seekers in response to declining economic

activities.

Table 9: The average annual growth in population, economically active population and labour

force, 2000 - 2013

Area Population Economically active population (15-64 years)

Labour force

Labour force participation rate 2000

Labour force participation rate 2010

South Africa 1.3% 1.4% 1.4% 55.0% 55.2%

Mathjabeng -0.4% -0.7% -1.0% 67.8% 65.3%


The composition of the labour force:

Despite the decline in the Mathjabeng’s economically active population and labour

force, the local unemployment (narrow or official) rate increased from 26% in 2000 to

36% in 2013 as illustrated in graph 2 below. This rate is also higher than the overall

unemployment rate of 32% of Free State Province. Due to the decline in formal job

opportunities, only 55% of the Mathjibeng labour force was absorbed into the formal

economy in 2013 compared to 63% nationally.

Graph 2: The composition of the labour force of Mathjabeng and South Africa, 2000 and 2013


Table 10 below shows the expanded unemployment rate (including discouraged job

seekers but excluding informal employment) for the different Matjhabeng wards close

to the proposed mining area. The table below shows the sharp increase in

unemployment across all wards. While the unemployment rate in the mining

communities of Allanridge and Odendaalsrus are below the national and municipal

averages, both communities experienced sharp increases in unemployment from single

digits in 1996 to over 20% in 2011. The exceptionally high unemployment rates in

especially Nyakkalong and Kutlwanong of 63% and 57% respectively are also worth

noting (Stats SA, Census 2011). .

62% 63% 69% 55%

11% 12% 6%

9%

28% 25% 26% 36%

0%

20%

40%

60%

80%

100%

2000 2013 2000 2013

national mathabeng

formal informal unemployment

32

Table 10: The expanded unemployment rate in selected areas of Mathjabeng , 1996 and 2011

Year/Area Matjhabeng Eerstegeluk Nyakkalong Odendaalsrus Allanridge Kutlwanong

1996 27.8% 20.0% 51.9% 4.9% 8.6% 54.8%

2011 44.8% 48.1% 62.7% 23.3% 28.2% 56.9%


Skills profile of the labour force:

Section 2.7 illustrates that the educational profile of the Mathjabeng population

significantly improved the past two decades. Functional literacy has increased and the

population (aged 20 +) without schooling declined. However, only a small portion of

the Mathjabeng population could be considered skilled. Table 11 below shows that

only 9% of the Mathjabeng labour force could be considered skilled in 2013 compared

to the national average of 12%. The semi-skilled portion of the labour force has

increased since 2000 but is still slightly below the national average of 51%.

Table 11: Skills levels of the labour force, 2000 and 2013

Skills levels

2000 2013

National Mathjabeng National Mathjabeng

Unskilled (below grade 10) 55% 60% 37% 41%

Semi-skilled (grade 10 - matric) 37% 35% 51% 50%

Skilled (matric plus) 8% 5% 12% 9%

Total 100% 100% 100% 100%


The table below shows the low levels of skills in the wards adjacent to the proposed

mining area, especially Nyakkalong, Eerstegeluk and Kutlwanong. The labour force of

the mining towns of Odendaalsrus and Allanridge has a relatively higher skills profile

than the other wards.

Table 12: Skills levels of the labour force in selected Mathjabeng wards, 2011

Skill levels Eerstegeluk Nyakkalong Odendaalsrus Allanridge Kutlwanong

unskilled 44% 49% 26% 29% 39%

semi-skilled 52% 50% 57% 61% 57%

Skilled 4% 1% 18% 11% 4%


Local purchasing power:

Comparing household expenditure with retail sales within the Mathjabeng economy

indicates that a large percentage of local household retail purchasing is done within the

local (Mathjabeng) area, i.e. 85% compared to the 86% in the national economy. There

33

is therefore no indication of significant spending leaks in the local economy – i.e. local

wages are mainly spent on local goods (based on IHS Global Insight data, 2015).

Sector composition of the local economy:

As is the case with the Free State Province in general, the Mathjabeng economy has

experienced profound changes in the mining and agriculture sector economy since

2000. The lowest real growth rates were recorded in these sectors between 2000 and

2013 as illustrated in table 13 below.

Welkom region forms part of the Maize Triangle, the agricultural sector however plays

a minor and declining role in job creation. Apart from maize the sector also produces

sunflowers, poultry and beef cattle.

The economy of the Matjhabeng Municipality area centered on mining activities

located in and around Allanridge, Odendaalsrus, Welkom and Virginia. Manufacturing

aimed at the mining sector exists to a limited extent in the above towns.

Table 13: Sector composition and growth in Mathjabeng economy, 2000- 2013 SECTOR Employment

(% contribution) Output

(% contribution) Employment growth (average % per annum)

Real output growth (average % per annum)

2000 2013 2000 2013 2000-2013 2000-2013

Agriculture, fishing, forestry 7% 3% 1% 1% -8.5% -1.2%

Mining 31% 23% 57% 45% -5.0% -2.4%

Manufacturing 7% 6% 2% 1% -3.9% -4.6%

Electricity, water, gas 0% 0% 1% 1% -0.5% -2.7%

Construction 3% 5% 1% 2% 1.2% 2.4%

Trade 15% 16% 13% 15% -2.5% 0.7%

Transport 2% 3% 5% 6% -0.6% 1.0%

Finance 9% 9% 9% 11% -2.7% 0.6%

Public services 14% 21% 9% 15% 0.1% 3.3%

Other services 11% 14% 2% 3% -0.7% 1.2%

Total 100% 100% 100% 100% -2.7% -0.6%


Due to the declining financial viability of gold mines in the area, the mining sector has

been in a process of restructuring for some years and is still retrenching staff

particularly affecting the mining towns of Welkom, Virginia, Odendaalsrus and

Allanridge. (Lejweleputswa District Municipality, Final Reviewed IDP for 2011/12).

34

The mining of gold and uranium ore still dominates the Mathjabeng mining, producing

almost 96% of output in 2013. However, real economic output has steadily declined

from R14bn in 2000 to R10bn in 2013, while employment in the sector has almost

halved from 42 000 in 2000 to 22 000 in 2013. The media highlights Welkom as an

“unraveling gold mining city that once employed more than 170 000 people. It also

highlights the high incidence of unemployment under the youth.Those who are

educated, once skilled, go outside [the city] to look for work" (Steyn, 2013). .

The majority of the remaining mining workforce of 22 000 is currently employed by

Harmony Gold and Sibanye Gold. Harmony took over a number of mines that were

going to be closed by AngloGold and Gold Fields in the late 70s up to the early 90s –

thereby extending the sustainability of areas such as Welkom, Virginia and

Odendaalsrus (Ibid). Apart from providing employment for the majority of the mining

workforce, Harmony is also involved in local economic development projects some in

association with the Department of Trade and Industry (DTI). The major projects

include:

A jewelry school as an incubation centre for design and manufacture of precious

metal jewellery (Seccombe, 2014)

A poultry project entailing a co-operatives of small farmers where Harmony would

be the base customer, buying chickens to feed employees living in hostels

A business development project that will include a business incubation and

mentoring programme to foster small black-owned companies. Harmony wants the

incubator programme, which will receive R10m from the DTI over three years, to

include any business that can supply the company with goods and services “ranging

from foodstuffs to welding” (Ibid)

A biofuel project that envisages generating methane from sugar beet grown on rehabilitated mine land (Ibid).

According to table 13 above all sectors (except the construction and public services

sectors) of Mathjabeng experienced decline in terms of employment since 2000. The

low growth in the trade, manufacturing and transport sectors could be directly ascribed

to links with the declining mining sector.

The labour-intensive tourism sector is upheld as a potential growth sector for the

Province and the local economy. Mine tours are offered at Virginia, Welkom,

Allanridge and Odendaalrus which showcase some of the deepest mines in the world.

As is the case in the Free State economy in general, tourism plays a relatively small role

in the Mathjabeng economy contributing around 2% towards total formal employment

in 2013. The sector did experience positive employment growth since 2000 with

employment almost doubling from 1400 in 2000 to 2000 in 2013. However, real output

for the sector also declined by -1% per annum since 2000 (IHS Global Insight, 2015).

35

Poverty:

As was discussed in section 2.8 above, basic service delivery (water, energy, sanitation)

to households in the Mathjabeng increased substantially since 1996 and access to these

services are currently above the national average.

In terms of shelter, formal dwelling are the main type of shelter in the wards close to the

proposed mining area and informal and traditional housing has decreased in most

wards, except in Eerstegeluk. This correlates with earlier observations of in-migration

into the Eerstegeluk area. Judging by the composition of the population, it could be that

the source of in-migration to the area is mainly from farms in the adjacent areas

probably due to the labour rationalisation process in the agricultural sector. As

illustrated in table 14 below, traditional housing makes a small contribution to housing

in all the wards while informal housing still plays an important part in the wards of

Eerstegeluk and Kutlwanong.

Table 14: The percentage of households in informal and traditional houses, 2011

Housing Eerstegeluk Nyakkalong Odendaalsrus Allanridge Kutlwanong

traditional 1% 0% 0.3% 0.4% 0.1%

informal 23% 9% 2% 5% 27%


As illustrated in graph 3 below, the income poverty rates for Mathjabeng, were on

average lower than the national average in 2000 and 2013. Despite increasing

unemployment rates in the area, poverty rates decreased from 2000 to 2013. People

below the food poverty income line (i.e. earning less than R 335 per capita per month)

declined from 31% in 2000 to 22% in 2013. People below the upper poverty income

line (i.e. earning less than R779 per capita per month) decreased from 59% in 2000 to

45% in 2013. This could be attributed to social grants and rebates increasingly reaching

the poorest of the poor. The upper bound poverty rate of 45% still signifies very low

levels of income in the area in general, i.e. close to the national average of 46% in 2013.

Graph 3: Poverty rates in the Mathjabeng and national economy, 2000 and 2013


38%

64%

31%

59%

23%

46%

22%

45%

0%

10%

20%

30%

40%

50%

60%

70%

National (foodpoverty line)

National (upperpoverty line)

Mathjabeng (foodpoverty line)

Mathjabeng(upper poverty

line)

2000 2013

36

In 2013, all of the qualifying indigent households (earning less than R 1100 a month)

received free basic services including water, sanitation, refuse removal and electricity.

The number of indigent households were close 20 700 households or 16% of the

households recorded in 2013 (Mathjabeng Local Municipality, 2013b).

Table 14 below shows the percentage of households close to the proposed mining area

that earned R 1600 and less in 2011. This poverty rate roughly equates to the upper

bound poverty income line of R779 per capita in 2011. The table shows that the

Eerstegeluk, Nyakkalong and Kutlwanong areas have poverty rates almost double the

size of the mining towns of Allanridge and Odendaalsrus. The poverty rates below are

closely related to the unemployment rates in table 10 above.

Table 15: Percentage of households earning less than R1600 per month in 2011 Area % of households

Eerstegeluk 49%

Nyakkalong 56%

Odendaalsrus 26%

Allanridge 28%

Kutlwanong 52%

Source: Stats SA (Census 2011)

Inequality:

The Gini-coefficient measures the level of income inequality in an economy with a

coefficient closer to 1 signifying a less equal society; a coefficient closer to 0 a more

equal society.

The Gini coefficient for Mathjabeng was slightly lower (albeit still at a high level) than

the national average of 0.64 at 0.60 in 2013. As is the case in the national economy,

income distribution became slightly less skew since 2000. The Gini coefficient is

however still higher in 2013 than levels recorded in 1996. This is the case for both the

national and local economy that in 1996 recorded Gini coefficients of 0.56 and 0.60

respectively.

Economic stability and sustainability:

The Mathjibeng economy has a relatively high tress index of 66 in 2013 compared to

the national average of 39. This indicates a relatively undiversified economy, mainly

because of the large contribution made by the mining sector. The gold mining sector in

particular is subject to external factors such as the global financial climate. This renders

the local economy vulnerable to fluctuations and the potential down-sizing of one

particular sector, as is evident from the decline in the economy the past 13 years.

The mining sector is furthermore an energy and water intensive sector as illustrated in

the graph below. According to the graph, the value of production per unit energy and

water consumed of the mining sector is low compared to for instance the trade and

services and the construction sectors.

37

Graph 4: Sector energy and water efficiency in South Africa 2000

Source: Stats SA: Natural Resource Accounts: Water and Energy Accounts for South Africa,2000

2.12. IDENTIFICATION OF LOCAL COMMUNITY PRIORITIES

Community priorities are officially expressed through official documents including the

provincial growth and development strategy and spatial development framework

documents as well as municipal integrated development planning documents that

including spatial and local economic development (LED) plans. These documents are

supposed to be informed by broad stakeholder involvement with the local communities:

The Free State Growth and Development Strategy (Free State Provincial

Government, 2005) highlights the following provincial priorities:

Reduction of unemployment and economic growth. The strategic focus areas for

achieving these goals include innovation and technology, collaborative networks,

higher value added manufacturing, human capital formation through Further

Education and Higher Education Training, assistance to small businesses,

opportunities for self-employment and sustainable community livelihoods

Poverty alleviation through human and social development. The strategic focus

areas for this objective include the improvement of functional literacy, health care

that focuses on the reduction of HIV and AIDS ,TB, diabetes, malnutrition and

maternal deaths, a comprehensive social security system and land reform

A safe and secure environment including the prevention of violent crimes and road

accidents

Effective and efficient governance and administration

- 1 000 2 000 3 000 4 000 5 000

power generation

manufacturing

transport

agriculture

mining

construction

trade and services

energy effIciency GDP(R1000)/TJ

water efficiency GDP/m3

38

While the Free State Growth and Development Strategy does not place a large emphasis

on environmental issues, the Provincial Spatial Development Framework (PSDF)

(NDRDLR and Free State Department of COCTA, 2013) makes more explicit reference

to environmental objectives. The following provincial environmental issues and

concerns are listed:

The development of proper municipal waste management plans

Renewable energy is regarded as key focus area for investment

Agricultural land is regarded as a vital resource that should be protected in

accordance with the applicable legislation and policy. However the PSDF also

recognizes the conflict between agriculture and the need for food security versus

biodiversity conservation

There is concern over the environmental and resource degradation caused by the

mining sector in the province. The following issues are highlighted:

o The high utilisation of surface and groundwater

o The impact on water quality in the Vaal River as a result of upstream

activities combined with the impacts of agricultural irrigation return flows

on salinity concentrations

o The insufficient methodologies that are applied for determining the long-

term impacts of mines during the EIA for new mines

o Inadequate strategies to ensure that mining and associated industries result in

a net benefit for both the affected people and the receiving environment

o Inadequate supervision over rehabilitation of closed mine sites

o Insufficient strategies to sustain local communities and economies that have

developed as a result of mining operations after closure of the operations.

The Matjhabeng Integrated Development Plan (Mathjabeng Local Municipality,

2013) highlights the following development priorities:

A diversified economy that is able to meet local needs in terms of job creations,

increased incomes, wealth distribution, and challenges of inequality

A well-governed and pro-poor municipality that maintains quality service delivery

A safe environment in terms of health and crime

Sustainable development and environmental justice

The integration and cohesion across professional circles

The following are some economic key areas that Matjhabeng highlights as potential

strategies to achieve its goals:

Attracting investment to the region as well as focusing on the retention of the

investment already within the area

Developing the infrastructure of the municipality to make it easier for businesses to

operate (i.e. houses, transport, roads, water and electricity etc.).

Creating strong links to the national, regional, and global economy

39

Building capacity and developing human capital including education and skills

development

SMMEs development including facilitation of access to business support services

(management, quality control, financing, technology, operational skills, quality

management, tender skills, legal, IT). The need is highlighted for entrepreneurs to

access opportunities through public and private sector procurement opportunities

SMME development through tourism, especially mine tourism and agricultural

tourism

Typical LED strategies that are in conceptualised for the municipal area include

developing markets for informal traders and the upgrading of taxi ranks, focusing on

emerging farmers and agro-processing opportunities (e.g. construction of a livestock

auction facility and auction centre for local farmers, poultry abattoir , livestock feed

milling), small scale mining projects and gold jewellery production. Some of the

projects are undertaken in collaboration with mining companies such as Harmony as

well as the Free State Goldfields Development Centre.

As mentioned above, environmental issues are also highlighted as one of the goals in

the Integrated Development Plan of Matjhabeng. The environmental focus areas

mainly include:

Sustainable Waste Management

Healthy River eco systems

Biodiversity

Sustainable energy

The reduction of land, air, water noise and light pollution

Outside the formal channels of the IDP and LED, local communities that are

highlighted in the media and via civic organisations such as GUBICO include the

following:

Mining companies should do more to develop job opportunities outside the mining

sector. Focus is also on appropriate opportunities. For example, the Phakisa

Raceway, a world-class racing venue less than 20km out of town was completed in

1999, cost a controversial R97-million, but the venue allegedly remains largely

unutilised for most of the year (Steyn, 2013)

Jobs for local people (Action Voices, 2012)

There are concerns about the large number of abandoned shafts and mining

buildings followed by mine closures. There is a perceived lack of communication

between the mines and the municipality to put these spaces to more constructive use

and secondly to manage the risks of illegal mining (Gubico, 2015)

Illegal mining increased substantially in the area in recent years and while there has

been strict police action against the illegal miners, some community groups such as

Gubico (a community-based body that monitors the impact of mining in the area)

believes that small mining could be development to provide local job opportunities

40

(Ibid.). This view is also expressed in the Integrated Development Plan of

Matjhabeng municipality as mentioned above

There are increased local concerns about the environmental impacts of the mines in

Welkom. The following local environmental concerns were highlighted during a

recent discussion during South Africa Mining Communities and Allies Dialogue

sponsored by International Alliance on Natural Resources in Africa (2013):

o The high level of air pollution in Welkom, high TB infection rates and the

high levels of people with silicosis

o Water pollution that is especially affecting farming sector

o Increased risks related to earthquakes

o The prevalence of high levels of uranium that is toxic to human beings and

animals

o The impact of Acid Mine Drainage

41

3. THE POTENTIAL SOCIO-ECONOMIC IMPACTS OF THE PROJECT

AND PROPOSED MANAGEMENT MEASURES

3.1. POTENTIAL IMPACTS DURING THE CONSTRUCTION PHASE

This section deals with socio-economic impacts that are expected to occur as a result of

construction activities.

The construction activities that will be considered relates to the proposed activities for

which the current environmental authorization applications are made. These activities

are associated with the Proposed Jeanette gold mine and include:

Site establishment of temporary infrastructure/facilities required to support the

construction phase

Clearing of vegetation in accordance with the relevant vegetation management

procedures;

Stripping and stockpiling of soil resources in areas designated for surface

infrastructure in line with a soil conservation procedure to be developed for the

project;

Sourcing of material for construction;

Digging, drilling and/or blasting foundations and trenches;

General construction activities for surface infrastructure;

Shaft dewatering; and

Shaft sinking/widening.

3.1.1. POTENTIAL POPULATION INFLUX

As part of the construction phase the following potential impacts are possible:

Informal Influx of People: Refers to people in the form of job seekers who enter the

area in search of employment. This group of people can consist of locals returning

home and/or people who are new comers to the area who enter the area with the sole

purpose of trying to secure a job. In general it is very difficult to determine what

impact this group will have on the natural growth rate of the area as it is not

possible to accurately predict the number of people (as opposed to the set number of

people who will form part of the construction team).

Formal Influx of People: Refers to those people who will be formally employed by

the project, i.e. the construction team. It is expected that this group of people will

enter and remain in the area for a specific time period (i.e. the duration of the

construction phase), after which they will be demobilised and leave the area.

The proposed Jeanette mine is a mechanised operation and will employ a maximum of

1 113 workers during the operational phase of the mine and 1 400 employees during the

construction phase of the mine, the majority skilled jobs (discussed further in section

3.1.8 below). This is not however how the general public might perceive the proposed

42

development. Additionally the situation might be exaggerated by the current labour

situation in the general Welkom area where other mining sectors, especially the gold

sector, have cut operations and inevitably personnel. Historical reliance on large mining

operations to provide job opportunities have resulted in unprecedented number of

unemployed workers in the Welkom and surrounding regions, thus any new

developments attracts a lot of attention from the local labour force in the hope of

securing a better standard of living.

As news regarding the proposed project spreads, expectations regarding possible

employment opportunities may also take root. Consequently, the surrounding areas will

experience a possible additional informal influx of job seekers. The magnitude of this

impact will be influenced by the severity of unemployment in the surrounding

communities. The regional profile also indicates that poverty and unemployment are

widespread problems throughout the Matjhabeng Municipality and the neighbouring

regions of the greater Free State Province. The influx of job-seekers and formal workers

is expected to have a variety of social consequences.

Figure 3: Community interest during community meeting for Jeanette Mine, June 2015

A population influx differs from the other identified impacts, in that it is not an impact

on its own, but rather generates impacts in other areas. The following impacts could be

generated by a change in the demographical competition associated with a population

influx:

Possible grievances and conflict situations;

Increase social pathologies;

Possible spike in crime rate; and

Stress on local infrastructure.

43

These potential impacts will be discussed in greater detail in the sections to follow.

3.1.2. GRIEVANCE AND CONFLICT

An influx of workers seeking employment in mining regions can create or increase

social tensions. Their arrival may cause higher pressure on health and other public

services in local communities.

In addition, if any outsiders instigate sexual relationships with wives, daughters or

girlfriends of locals, this would certainly exacerbate the social tensions. In several

instances it was also noted that construction workers are inclined to target high school

girls as their romantic interests (Mining, Minerals, and Sustainable Development

Project 2002).

An additional reason for such conflict would be the perception among locals that the

outsiders are taking up jobs that could have gone to unemployed members of the local

community.

Community conflict could be greatly exaggerated if the population influx contains

foreign nationals. With a history of xenophobia in the Welkom and the surrounding

areas (see section 2.9 above) this should be major point for consideration for Taung

Gold when introducing foreign nationals into the proposed project during all phases of

the project.

Social conflicts may arise also in spite of the economic benefits local communities

receive due to high or unmet expectations (realist or not). Unrealistic demands are

usually a result of a lack of information and communication between mining companies

and local communities. If local communities are not able to communicate their

concerns, then mining companies will not be able to satisfy their social demands

regardless of the amount of job creation or community development support.

Figure 4: Community unrest

44

Impacts Identified:

Possible conflict between locals and job seekers.

Possible catalyst situation for xenophobia.

Possible conflict between locals and Taung Gold.

Proposed mitigation measures:

Stakeholder meetings should be done beforehand to communicate the exact

implications of the proposed development on job creation.

Problem areas that are brought to the attention of Taung Gold should be

rectified immediately. This should be communicated to the effected parties

along with a plan on how and when the problem will be addressed. The parties

should be given regular feedback on the matter.

The recruitment policy used to employ people on the project must be fair and

transparent (i.e. communicated in clear terms to the local community).

Guidelines for the recruitment policy is discussed in more detail under section

3.18 below)

Ensure that the intention of giving preferential employment to locals is clearly

communicated, so as to discourage in influx of job-seekers from other areas.

Involve local community structures and forums to assist in communicating the

intention of Taung Gold to give preference to local labour, and also to assist by

developing a skills database and residents status for the labour pool in their

community

Optimise the benefits from the mine through enhancement strategies to increase

the impact on local employment, the S&L plan as well as through collaboration

with local economic forums in the area.

Develop a Grievances Register that is easily excisable and regularly monitored

for communities to voice any concerns they might have.

3.1.3. POTENTIAL HEALTH IMPACTS ON THE LOCAL COMMUNITY

The second possible impact arising from an influx of construction workers and job

seekers is that they bring with them changes to local communities, and often have a

negative impact on these communities. Young, poor, rural women who live in close

proximity to construction operations or mine camps are the most vulnerable group of

people as they can be lured into sex work, casual sexual relationships, and other forms

of relationships in the hope of securing financial stability. Compared to the local

communities, construction workers are well paid and often in cash, this makes

socializing and drinking much more prevalent and contributes to more casual sexual

encounters. Furthermore, the transport of building materials via roads is expected to

increase. Truck drivers are often associated with prostitution and this, together with the

45

influx of new work seekers, increases the risk that the prevalence of HIV/AIDS will

further more increase. The same factors apply to TB and other communicable diseases.

During the construction phase there is also a risk associated with hazardous excavations

and infrastructure include all structures into or off which third parties and animals can

fall and be harmed.

Impacts Identified:

Possible increase in sexually transmitted diseases.

Hazardous excavations and infrastructure include all structures into or off which

third parties and animals can fall and be harmed


Implement access control, barriers and warning signs at hazardous areas

In case of injury or death due to hazardous excavations, an emergency response

procedure must be implemented

Develop a Grievances Register that is easily excisable and regularly monitored

for communities to voice any concerns they might have.

3.1.4. POTENTIAL IMPACT ON COMMUNITY SAFETY

The influx of construction workers and job seekers might also be accompanied by an

increase in crime. Even if particular instances of crime are not as a result of the

newcomers, they may still be attributed to them by local communities. There is also the

perception that upgraded roads conditions could lead to easier access to farm properties

and in turn easier access to livestock, equipment and crops that would have been

sheltered by adverse road conditions, thus increasing the likelihood of agricultural

related theft.

In addition to the above mentioned, unauthorised movements of construction workers

and job seekers, during and after working hours could result in trespassing, damage to

local land (e.e. increased risk for fires) and property and create anger amongst local

residents.

Impacts Identified:

Possible increase in crime locally.

Jeanette Gold Mine seen as a possible target for crime.

Possible increase in agricultural related theft

Increase in fire risks

46


The developer should ensure that a contractor management plan is in place and

should monitor adherence to the plan on a regular basis.

Consult with the local police branch to establish standard operating procedures

for the control and/or removal of loiterers.

Liaison structures are to be established with local police to monitor social

changes during the construction and operation phase. Liaison should also be

established with existing crime control organisations

3.1.5. PRESSURE ON LOCAL PUBLIC INFRASTRUCTURE

A population influx will also place more pressure on local infrastructure and services,

such as water, sanitation, electricity, health care and education. The increase in migrants

may result in an increased demand for shelter and possibly exacerbate the existing

housing shortages and poor service delivery (refuse collection, road infrastructure,

sewage and water services, health) especially in Nyakallong and Kutlwanong.

Impact Identified:

Pressure on local infrastructure and services through population influx

Potential increase in informal settlements in the local area


Identify possible institutions that may be at risk of having insufficient

infrastructure before the influx of new members to the community. Working

with local municipalities and other role players in community development, cost

effective ways of upgrading and providing infrastructure.

Work with local authorities and the police to prevent informal settlement

development on private land.

Taung will evaluate the need to assist the community in fund raising to provide

the human resources where necessary.

Develop a Grievances Register that is easily excisable and regularly monitored.

3.1.6. DIRECT IMPACT ON LOCAL INCOME AND EMPLOYMENT

The initial construction phase of the mine is largely related to infrastructure and is

expected to last for six years before operations commence.

As illustrated in graph 5 below, high level estimates of labour requirement (based on

national skills ratios for the construction sector) during the construction phase are an

47

initial 68 workers (12 unskilled workers), gradually increasing towards around 1 400

workers in year 6 (252 unskilled workers). Total income to the labour force during the

construction phase is expected to be in the region of R 20m per annum (R 572 000 for

unskilled workers) in the first year increasing to R 420m in year 6 (R 12m for unskilled

workers)

Graph 5: The potential labour force of Jeanette mine during the construction phase

Source: Based on information supplied by the developer and Bhorat & Oosthuizen (2005)

Even if all the unskilled labour (grade 10 and lower without technical skills) is recruited

from the unemployed in the local area adjacent to the mine, it will have a minor impact

on unemployment levels in these areas. As illustrated in table 16 below, the maximum

number of 252 unskilled workers will have a very small impact on the unemployment

numbers of between 12 410 and 16 630 recorded in the adjacent areas in the 2011

census. Income from unskilled work is furthermore expected to contribute only a

maximum of R 12m towards household income in the area, i.e. about 3% of current

household income in the local area. If the project increases the influx of especially

unskilled job-seekers into the local area, it could potentially increase local

unemployment rates.

Table 16: Comparison between income and unemployment levels in selected areas, 2011

AREA nr of households

expanded unemployment

official unemployment

average income

total household income

inflation adjusted household income 2015

Allanridge 3 891 1 450 840 R 14 600 R 56 808 600 R 74 464 486

Odendaalsrus 3 228 940 510 R 29 400 R 94 903 200 R 124 398 736

Nyakkalong 2 754 3 640 2 560 R 14 600 R 40 208 400 R 52 705 010

Kutlwanong 13 413 10 600 8 500 R 10 850 R 145 531 050 R 190 761 520

Total 23 286 16 630 12 410 R 14 492 R 337 451 250 R 442 329 752

Source: Stats SA (Census 2011)

year 1 year 2 year 3 year 4 year 5 year 6

unskilled 12 25 84 175 212 252

semi-skilled 52 107 353 740 893 1 064

skilled 4 8 28 58 71 84

-

200

400

600

800

1 000

1 200

1 400

1 600

unskilled

semi-skilled

skilled

48

The 2011 census figures show an adequate number of semi-skilled labour (grades 10 to

12 with technical training including artisans, technicians etc.) and skilled labour (higher

than grade 12) available in the local area relative to the labour force requirement of the

mine during the construction phase. Whether recruitment of semi-skilled and skilled

labour from the local areas would have a net positive employment impact on the local

areas will largely depend on the unemployment level and employability of the local

semi-skilled and skilled labour force. If local semi-skilled and skilled labour who are

already employed are recruited, it would have no net impact on employment and

income levels in the local areas adjacent to the mine. If new positions for semi-skilled

and skilled labour are created for the local workforce during the construction phase it

could imply a significant inflow of income to the local area. Total income from semi-

skilled and skilled employment from construction activities represents between 4%

(year 1) to 70% (year 6) of current household income levels.

Impacts Identified:

Depending on the levels of influx of unskilled workers into the local area, a

marginal positive impact is foreseen on local unemployment and income levels

due to job opportunities for unskilled workers

Depending on the current unemployment rate of semi-skilled and skilled

workers in the local area as well as the relevant skills and employability of

unemployed semi-skilled and skilled local labour, there is potential for a

marginal increase in the employment of the local semi-skilled and skilled

workforce.

If additional jobs are created for the local semi-skilled and skilled labour force,

the income impact on the local area could be substantial

Proposed enhancement measures:

To deter influx of unskilled workers into the project area, a clear regional

communication strategy well in advance of the project inception is imperative.

The communication strategy should focus identifying the most effective

communication channels on a regional level (e.g. Free State Goldfields Chamber

of business, local economic development forums, newspapers, radio messages).

The basic information that needs to be conveyed include the message that:

o During the construction of the mine offers minimal opportunities for

unskilled workers

o Unskilled labour will be sourced from the local communities adjacent to

the mine where possible.

To manage the expectations of the large local number of unemployed people,

community forums and the recommended Multidirectional Communication

Platform of the S&L Plan for the mine should be used to convey figures related

49

to the limited number of job opportunities for unskilled people during the

construction phase

An employment recruitment strategy for the operator as well as sub-contractors

should be developed during the construction phase to optimize the local

economic impact of the project during its construction phase. This should

include:

o Recruitment of unskilled labour from the local area from the ranks of the

unemployed where possible

o Recruit unskilled labour proportionally from the local areas according to

objective criteria (e.g. the share of each community in total local

unemployment)

o The ranking of priority recruitment of semi-skilled and skilled workers.

According to priority this would be:

Suitably qualified people in Allanridge, Odendaalrus,

Nyakkalong or Kutlwanong who are currently not employed

Suitably qualified people in the larger Mathjibeng area who are

currently not employed

Suitably qualified people from outside Mathjibeng who are

willing to reside in local areas adjacent to the mine

Suitably qualified people within the local communities who

already have employed positions

Suitably qualified people from outside Mathjibeng who will not

reside in any of the local communities adjacent to the mine


intention to give preference to local labour, and also to assist by developing a

skills database and residents status for the labour pool in their community.

Verify through community networks that unskilled labour to be recruited

inhabited the local area for a specified number of years

Incentives could be provided for semi-skilled and skilled labour to locate in

local areas close to the mine to retain purchasing power within the local areas

close to the mine

Distribute a detailed list of potential positions and requirements related to these

positions available during the construction phase within the local communities

well in advance of the project in order to assist the local community to make

50

preparations (and possibly obtain relevant training) for job applications during

the construction phase

As per the current S&L Plan for the mine (Career build programme), prepare the

youth in the areas adjacent to the mine with the opportunity to take up semi-

skilled and skilled positions in mining construction activities

As per the current S&L Plan for the mine, up-skill unskilled workers during the

construction phase to enable them to find a similar job elsewhere after

construction or that would enable them to be employed in the operational phase

of the mine

Communicate the recruitment strategy of the mine during community meetings

Facilitate community workshops to counter intolerance towards labour recruited

outside the local area

As per the current S&L Plan for the mine, facilitate the roll-out of relevant

training programmes to enable the community to obtain the relevant skills to fill

positions during the construction phase. There are numerous NGOs involved in

training in Mathjibeng. The Free State Chamber of Business and the Black

Management Forum could potentially assist in the facilitation of roll-out of

training programmes

Compile a list of small contractors in the local area and provide them with

information about the tender procedures and other requirements for procurement

of services for construction services at the mine well in advance of the

commencement of construction activities

As per the current S&L Plan for the mine facilitate the roll-out of business

development services to local contractors through the aid of local business

chambers, the LED division of the local and district municipalities and SEDA

3.1.7. POTENTIAL NEGATIVE IMPACTS ON OTHER LOCAL SECTORS

The mine could recruit low skilled workers who already have some entry level skills

obtained from for instance in the agricultural sector (e.g. tractor drivers). This could

impose costs on the sector to recruit and train once again from the unskilled labour

force. Furthermore if the mining sector ‘draws down’ labour from the agriculture sector

there is a chance that the position within the agricultural sector might not be filled again

meaning that employment is only shifted from agriculture to mining with no additional

job created.

Impacts Identified:

51

Diversion/labour ‘draw down; of unskilled and semi-skilled labour of the

adjacent agricultural sector could lead to increased training costs for local

farmers or labour-shedding in the agricultural sector


Avoid recruiting unskilled labour that is already in employment, especially

labour in the adjacent agricultural sector

Minimise recruiting semi-skilled and skilled labour for the adjacent agricultural

sector

Taung will investigate the need to compensate farmers for re-training costs if

labour ‘draw down’ occurs

Meet on a regular basis with adjacent farmers to monitor impact on the local

labour force

3.1.8. INDIRECT AND INDUCED IMPACTS ON INCOME AND

EMPLOYMENT

Apart from direct employment by the operator and its main contractors during the

construction phase of the mine, spending on local suppliers also has the potential to

create local job opportunities. In the initial phases of construction about 10% is

expected to be sourced from the Matjhabeng area, scaling up towards 20% at later

phases. The increased spending on construction supplies within the local area could

potentially lead to between 20 (year 1) to 1 200 (year 6) additional jobs in the local

economy as illustrated in graph 5 below. This could increase local income within

between R10m (year 1) and R 663m (year 6) with a small fraction directed towards

income from unskilled labour , R 300 000 (year 1) and R 16m (year 6). While unskilled

labour income represents only 3% of current total household income (R 440m) in the

adjacent areas to the mine, income from semi-skilled and skilled labour represents a

significant portion of household income.

Graph 6: Potential local employment from local supply-links of construction activities

52

Source: Based on financial information of the PFS for Jeanette mine and Stats SA (2014)

The larger employment impacts related to supply links are expected to fall outside the

Mathjabeng area with an additional 30 (year 1) to 2000 additional jobs and R 1.6bn of

additional income that could potentially be created in the broader regional economy,

depending on where construction supplies will be sourced.

Increases in local (Mathjabeng) income due to direct employment in mining

construction activities and employment with suppliers would induce further

increaselocal income levels by increased spending. The extent of the induced impact

will depend on the increase in the levels of local income as well as the propensity of

workers to spend their income within the local area. It is estimated that an additional 10

(year 1) to 500 (year 6) local jobs could be created due to induced impacts with an

associated increase in local income of R6m and R 300m.

Impacts Identified:

Additional job creation from construction activities due to supply links and

increased spending in the local area


Give preference to construction suppliers that recruit labour from the areas

adjacent to the mine

As per the S&L plan, facilitate the roll-out of business development services for

suppliers of mining construction activities through the aid of local business


Facilitate the roll-out of LED programmes through the aid of local business

chambers, the LED division of the local and district municipalities that would

enhance retaining local purchasing power within the local area. The specific

LED strategy is known as ‘plugging-the-leaks’ and utilise the community to

year 1 year 2 year 3 year 4 year 5 year 6

unskilled 6 76 180 284 378 344

semi-skilled 9 124 296 466 620 565

skilled 5 66 157 247 328 299

-

200

400

600

800

1 000

1 200

1 400

53

identify local business opportunities within their area based on local spending

patterns

3.1.9. IMPACT ON PHYSICAL ASSETS IN THE LOCAL AREA

Impacts Identified:

No loss of physical structures /disinvestment is foreseen in the area that needs to

be cleared for the surface infrastructure of the mine.


None

54

3.2. POTENTIAL IMPACTS DURING THE OPERATIONAL PHASE

This section deals with socio-economic impacts that are expected to occur during the

operational phase. The operation of the proposed Jeanette Gold Mine is likely to give

rise to numerous socio-economic impacts. The following was assessed to determine

possible impacts:

The Mining Method; and

Surface infrastructure including:

o Vertical shafts and headgear (main shaft, ventilation shaft and fans, and

rock shaft);

o Waste rock dump (WRD);

o Tailings storage facility (TSF);

o ROM stockpile;

o Refrigeration plant;

o Mineral processing plant;

o Access and haul roads;

o Sewerage and waste water treatment plant;

o Generators;

o Proposed consumer sub-stations and generators;

o Change houses;

o Fire detection and fighting facilities;

o Water storage facilities and surface water control measures;

o Lighting and communication infrastructure;

o Fuel storage facilities;

o Waste handling station;

o First aid facility;

o Mine offices;

o Control rooms and mass meeting hall/canteen;

o Bus/taxi rank;

o Parking areas;

o Security access and checkpoints;

o Engineering workshops and stores;

o Winder houses;

o Conveyors from shaft to plant or WRD;

o Possible railway siding;

o Proto room;

o Timber bay (including lay down areas and stock yard); and

o Lamp rooms; and

o Mineral processing plant

55

3.2.1. PERCEPTIONS OF WATER CONTAMINATION AND AVAILABILITY

Perceptions of water quality result from a complex interaction of diverse factors

including water flavour, risk perception, attitudes towards water chemicals, contextual

cues provided by the supply system, familiarity with specific water properties, trust in

suppliers, past problems attributed to water quality and information provided by the

mass media and interpersonal sources.

The perception of water quality and quantity for agricultural use is also of concern

especially in areas directly neighbouring the proposed project site, with comments and

concerns lodged by the community.

Impacts Identified

Negative perceptions by the community of the quality and quantity of their

water for consumption being affected by mining construction and operations.

Negative perceptions regarding the quality and quantity of water being released

back into the environment effecting sensitive ecosystems.

Mitigation measures

Community meetings should be held to educate the local people in the area of

what the mines impact will be. It has shown before that if persons know what to

expect the impact comes as much less of a shock. These meetings should take

place before construction starts.

3.2.2. POTENTIAL INCREASE IN CRIME

As is the case during the construction phase, the movement of job seekers and the

greater access via upgraded roads could lead to increase in crime, trespassing, damage

to local land and property in the areas adjacent to the mine.

Impacts Identified:

Possible increase in crime locally.

Jeanette Gold Mine seen as a possible target for crime.

Possible increase in agricultural related theft.


Mine workers should be clearly identifiable by wearing proper uniforms and

identification tags displaying the logo of the company.

The operator should establish clear rules and regulations for access to the mine

site and offices to control loitering. Consult with the local police branch to

establish standard operating procedures for the control and/or removal of

loiterers.

56

Liaison structures are to be established with local police to monitor social

changes during the construction and operation phase. Liaison should also be

established with existing crime control organisations.

Develop a single transport system for construction workers to avoid numerous

minibuses entering the area

3.2.3. GRIEVANCE AND CONFLICT

As is the case in the construction phase, the influx of workers seeking employment in

mining regions can create or increase social tensions. Community conflict could be

greatly exaggerated if the population influx contains foreign nationals.

Social conflicts may arise also in spite of the economic benefits local communities

receive due to high or unmet expectations (realist or not). Unrealistic demands are

usually a result of a lack of information and communication between mining companies

and local communities. If local communities are not able to communicate their

concerns, then mining companies will not be able to mitigate unrealistic expectations

regardless of the amount of job creation or community development support.

Impacts Identified:


Possible catalyst situation for xenophobia.

Possible conflict between locals and Taung Gold.


Stakeholder meetings should be done beforehand to communicate the exact

implications of the proposed development on job creation.

Problem areas that are brought under the attention Taung Gold should be

rectified immediately. This should be communicated to the effected parties

along with a plan on how and when the problem will be addressed. The parties

should be given regular feedback on the matter.

The recruitment policy used to employ people on the project must be fair and

transparent.

The adoption of a ‘locals first’ policy (discussed in more detail below), which

gives employment preference to people that have been residing in the local areas

adjacent to the mine for more than a year, could act as a deterrent for accelerated

in-migration of work seekers and xenophobia

Facilitate community workshops to counter intolerance towards people

migrating into the local area

57

3.2.4. DIRECT IMPACT ON LOCAL INCOME AND EMPLOYMENT

The operational phase of the mine is expected to last for about 22 years with around

1100 jobs created during peak production, approximately 5 years after the start of

production.

As illustrated in graph 6 below, high level estimates of labour requirement (based on

national skills ratios for the mining sector) during the operational phase are an initial

639 workers (70 unskilled workers), gradually peaking at 1 113 workers in 2028 (122

unskilled workers). Total income to the labour force during the operational phase is

expected to be in the region of R 266m per annum (R 5m for unskilled workers) in the

first year increasing to R 460m peak production in 2028 (R 8.5m for unskilled workers).

Graph 6: The potential labour force of Jeanette mine during the operational phase

Source: Based on information supplied by the developer and Bhorat & Oosthuizen (2005)

As is the case with the construction phase, even if all the unskilled labour (grade 10 and

lower without technical skills) is recruited from the unemployed in the local area

adjacent to the mine, it will have a minor impact on the recorded unemployment levels

of between 12 410 and 16 630 recorded in the adjacent areas in 2011. The income for

unskilled wages at peak production represents a fraction (2%) of current household

income in the local areas adjacent to the mine (see table 16 above).

The 2011 census figures show an adequate number of semi-skilled labour (grades 10 to

12 with technical training including artisans, technicians etc.) and skilled labour (higher

than grade 12) available in the local area relative to the labour force requirement of the

mine during the operational phase. Whether recruitment of semi-skilled and skilled

labour from the local areas would have a net positive employment impact on the local

areas will largely depend on the unemployment level and the employability of the local

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042

unskilled 70 83 93 109 117 119 121 122 119 119 114 111 105 104 101 96 87 80 73 60 41 3

semi-skilled 524 616 695 816 869 889 904 908 891 886 853 826 785 773 754 713 650 593 544 448 304 22

skilled 45 53 59 70 74 76 77 77 76 76 73 70 67 66 64 61 56 51 46 38 26 2

0

200

400

600

800

1000

1200

unskilled

semi-skilled

skilled

58

semi-skilled and skilled labour force. If local semi-skilled and skilled labour who are

already employed are recruited, it would have no net impact on employment and

income levels in the local areas adjacent to the mine. If new positions for semi-skilled

and skilled labour are created for the local workforce during the operational phase it

could imply a significant inflow of income to the local area. Total income from semi-

skilled and skilled employment from operational activities represents between 58%

(year 1) to 100% (peak production) of current household income generated in the local

areas adjacent to the mine.

Impacts Identified:

Depending on the levels of influx of unskilled workers into the local area, a

marginal positive impact is foreseen on local unemployment and income levels

due to job opportunities for unskilled workers

Depending on the current unemployment rate of semi-skilled and skilled

workers in the local area as well as the relevant skills and employability of the

unemployed semi-skilled and skilled local labour, there is potential for a relative

small increase in the employment of the local semi-skilled and skilled

workforce.

If additional jobs are created for the local semi-skilled and skilled labour force,

the income impact on the local area could be substantial


To deter influx of unskilled workers into the project area, a clear regional

communication strategy well in advance of the project inception is imperative.

The communication strategy should focus identifying the most effective

communication channels on a regional level (e.g. Free State Goldfields Chamber

of business, local economic development forums, newspapers, radio messages).

The basic information that needs to be conveyed include the message that:

o During the operational phase, the mine offers minimal opportunities for

unskilled workers

o Unskilled labour will be sourced from the local communities adjacent to

the mine as far as possible.

To manage the expectations of the large local number of unemployed people,

community forums and the recommended Multidirectional Communication

Platform of the S&L Plan for the mine should be used to convey figures related

to the limited number of job opportunities for unskilled people during the

operational phase

59

An employment recruitment strategy for the operator should be developed

during the operational phase to optimize the local economic impact of the

project during its construction phase. This should include:

o Recruitment of unskilled labour from the local area from the ranks of the

unemployed as far as possible

o Recruit unskilled labour proportionally from the local areas according to

objective criteria (e.g. the share of each community in total local

unemployment)

o The ranking of priority recruitment of semi-skilled and skilled workers.

According to priority this would be:

Suitably qualified people in Allanridge, Odendaalrus,

Nyakkalong or Kutlwanong who are currently not employed

Suitably qualified people in the larger Mathjibeng area who are

currently not employed

Suitably qualified people from outside Mathjibeng who are

willing to reside in local areas adjacent to the mine

Suitably qualified people within the local communities who

already have employed positions

Suitably qualified people from outside Mathjibeng who will not

reside in any of the local communities adjacent to the mine


intention of relevant companies to give preference to local labour, and also to

assist by developing a skills database and residents status for the labour pool in

their community

Verify through community networks that unskilled labour to be recruited

inhabited the local area for a specified number of years

Incentives could be provided for semi-skilled and skilled labour to locate in

local areas close to the mine to retain purchasing power within the local areas

close to the mine

Distribute a detailed list of potential positions and requirements related to these

positions available during the operational phase within the local communities

well in advance of the project in order to assist the local community to make

preparations (and possibly obtain relevant training) for job applications during

the operational phase

As per the current S&L Plan for the mine (Career build programme), prepare the

youth in the areas adjacent to the mine with the opportunity to take up semi-

skilled and skilled positions in mining operational activities

60

As per the current S&L Plan for the mine, up-skill unskilled workers during the

operational phase

Communicate the recruitment strategy of the mine during community meetings

Facilitate community workshops to counter intolerance towards labour recruited

outside the local area

As per the current S&L Plan for the mine, facilitate the roll-out of relevant

training programmes to enable the community to obtain the relevant skills to fill

positions during the operational. There are numerous NGOs involved in training

in Mathjibeng. The Free State Chamber of Business and the Black Management

Forum could potentially assist in the facilitation of roll-out of training

programmes

3.2.5. POTENTIAL NEGATIVE IMPACTS ON OTHER LOCAL SECTORS

The mine could recruit low skilled workers who already have some entry level skills

obtained from for instance in the agricultural sector (e.g. tractor drivers). This could

impose costs on the sector to recruit and train once again from the unskilled labour

force. Furthermore if the mining sector ‘draws down’ labour from the agriculture sector

there is a chance that the position within the agricultural sector might not be filled again

meaning that employment is only shifted from agriculture to mining with no additional

job created.

Impacts identified:

Diversion/labour ‘draw down; of unskilled and semi-skilled labour of the

adjacent agricultural sector could lead to increased training costs for local

farmers or labour-shedding in the agricultural sector


Avoid recruiting unskilled labour that is already in employment, especially

labour in the adjacent agricultural sector

Minimise recruiting semi-skilled and skilled labour for the adjacent agricultural

sector

Compensate farmers for re-training costs if labour ‘draw down’ occurs

Meet on a regular basis with adjacent farmers to monitor impact on the local

labour force

3.2.6. INDIRECT AND INDUCED IMPACT ON INCOME AND

EMPLOYMENT

Apart from direct employment during the operational of the mine, spending on local

suppliers also has the potential to create local job opportunities. If an estimated 20%

61

inputs are procured from Mathjabeng, the increased income of suppliers to the mine

could, on average create an additional 120 jobs (34 unskilled) in the local economy over

the lifetime of the mine, varying from 300 jobs early in production to less than 100 at

the final production stages, with R 60m additional income (R 1.6m from unskilled

labour) generated in the local economy. Potential local jobs associated with supply-

links are illustrated in graph 7 below. The same principles applies as with the direct

impact namely that the more semi-skilled and skilled labour (as well as entrepreneurs)

are sourced from the areas adjacent to the mine, the larger the income impact of the

supply –links will be. The total employment impact, though will still be relative small

compared to the total unemployment figure (between 12 000 and 14 000) in the area.

Graph 7: Potential local employment from local supply-links during the operational phase of the

mine

Source: Based on financial information of the PFS for Jeanette mine and Stats SA (2014)

The larger employment impacts related to supply links are expected to fall outside the

Mathjabeng area with an average 234 additional jobs (R260m additional income) that

could potentially be created in the broader regional economy during the lifetime of the

project, depending on where mining supplies during the operational phase will be

sourced.

Increases in local income due to direct employment in the operational phase of the mine

and employment with suppliers would induce further increases in local income levels

by increased spending. The extent of the induced impact will depend on the increase in

the levels of local income as well as the propensity of workers to spend their income

within the local area. It is estimated that an additional 150 additional jobs on average (R

87m additional income) could be created in the larger Mathibeng area due to induced

impacts.

Impacts Identified:

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042

unskilled 90 51 31 31 41 21 25 21 22 42 41 39 39 38 38 39 36 33 27 22 12 0

semi-skilled 148 84 50 50 67 35 41 35 36 68 68 65 64 63 62 63 59 55 44 36 20 0

skilled 78 45 27 27 35 19 22 18 19 36 36 34 34 33 33 34 31 29 23 19 11 0

-

50

100

150

200

250

300

350

62

Additional job creation from operational activities due to supply links and

increased spending in the local area


Give preference to suppliers that recruit labour from the areas adjacent to the

mine

As per the S&L Plan, develop a database of potential non-core mining activities

(e.g. catering, accommodation etc.) that could be procured from suppliers in the

areas adjacent to the mine

As per the S&L Plan, facilitate the roll-out of business development services for

suppliers of mining construction activities through the aid of local business


Facilitate the roll-out of LED programmes through the aid of local business

chambers, the LED division of the local and district municipalities that would

enhance retaining local purchasing power within the local area. The specific

LED strategy is known as ‘plugging-the-leaks’ and utilise the community to

identify local business opportunities within their area based on local spending

patterns

3.2.7. INCREASE IN LABOUR UNREST

As was mentioned above, the events that occurred in Lonmin’s Marikana mine

(Rustenburg) in 2012 are considered a reflection of the growing tensions within the

mining sector. The rivalry between the well-established government-affiliated union the

National Union of Mineworkers (NUM) and AMCU result in each group trying to get

the best and most competitive wage deals for its members. Over the past few years,

unprotected strike action in many cases has escalated into an uncontrolled, violent and

unlawful landscape. Analysts predict that the platinum and gold sectors will be exposed

to the risk of high levels of labour unrest over the next few years (Mavuso, 2013).

Impacts Identified

Possible labour unrest.

Mitigation measures

Stakeholder meetings should be held on a regular basis to help identify the

possible grievances and mitigation measures.

Ensure that the Jeanette Gold Mine’s Social and Labour Plan is updated

regularly and accommodate employee growth and advancement strategies

Ensure that the basic living conditions (housing and nutrition) of employees are

being addressed according to the current S&L Plan

63

Facilitate the formation of stakeholder forum (including other gold mining

companies in the area, trade unions and local government) to monitor the risk

and identify potential mitigation measures for cases of violent labour unrest in

the larger Mathjabeng area

3.2.8. PRESSURE ON LOCAL PUBLIC INFRASTRUCTURE

In addition to population influx, the mine itself will place pressure on local

infrastructure such as water supply, waste management, roads and energy infrastructure.

Due to capacity constraints at the local sewage treatment plant, the mine will implement

its own sewage management system. The upgrading of access roads to the mine will

also be funded by the project. Outside the mining area provincial funds will need to be

allocated for the maintenance of roads. There already exist financial constraints and

serious backlogs on the maintenance of road infrastructure in the Mathjabeng area.

It could be argued that mining companies as tax payers are entitled to their fair share of

public services, in practice however the major part of the mining sector tax contribution

flows to central government from where it is distributed according to national priorities

and hence does not necessarily flow back to the local area where their impact on public

infrastructure is experienced.

Impacts Identified:

Diversion of scarce public funds for the infrastructure needs of the mine, mainly

energy, water supply and the maintenance of roads used by the mine that falls

outside the mining area


Develop an action plan for the reduction and optimisation of natural resources

(water, energy use, waste management) by the mine. Disclose and discuss the

plan with potentially-affected parties

3.2.9. POTENTIAL IMPACT ON PROPERTY VALUES

Based on interviews with property developers in the area, the mine is not expected to

have a significant impact on the property values of adjacent farms. The perceived water

impacts of mining on water quality and availability are already discounted in current

farm values in the area due the long-term presence of mining activities in the area.

The mine, on the other hand, could have a slight positive impact on middle and higher

income house properties in the local areas close to the mine as well as selected areas in

Welkom, depending on the number of semi-skilled and skilled labour that will be

recruited from areas outside Mathjabeng.

64

Impacts Identified

A potential increase in middle and higher income residential properties in the

local areas close to the mine as well as selected areas in Welkom with a positive

wealth impact on local property owners in these areas

Speculation based on unrealistic expectations of the employment impacts of the

mine could result in an over-valuation of middle- high income residential

properties in the local area

Enhancement measures

Keep local property agents informed through the EIA and related stakeholder

processes of the potential impacts of the mine in terms of the potential for non-local

semi-skilled and skilled labour that could be recruited by the mine

3.2.10. POTENTIAL IMPACT ON POVERTY

The census 2011 figure recorded close to 11 000 below the income poverty line in the

areas adjacent to the mine, the majority (67%) resided in the the Kutlwanong area,

followed by Nyakkalong (15%), Allanridge (10%) and Odendaalsrus (5%).

The mine could potentially have a positive impact on poverty rates in the local areas

through three main channels:

Job creation for low income groups: Being a highly mechanised project the project

will utilise a relatively low number of unskilled workers. During the operational phase

of the mine the total number of unskilled jobs could be on average 93 per annum from

mining operations, 34 from supply-links and 44 from induced impacts. The mine is

expected to create a limited number of unskilled jobs. Even if all the unskilled labour is

recruited from the unemployed in the local area, it will still have a minor impact on

local poverty levels.

Increase in other social funds: The project will set aside social development funds

according to the specifications of the Social and Labour Plan. Apart from workforce

development programmes, the basic approach of the S&L plan towards addressing

poverty in the local area is to provide business training and provide training support for

household food security programme to empower the local community to help

themselves. The mine alone cannot be held responsible for addressing the vast poverty

problem in the adjacent areas to the mine, yet could face unrealistic expectations in

terms of its impact on local poverty. There is a risk that unfilled expectations could

result in civil unrest.

Increase in public funds due to company taxes and royalties as well as increased

taxation from employment: Due to net positive spin-offs on employment and income

65

levels, it is expected that tax revenue to provincial and central government will

increase. The main part of the tax income will be allocated to central government with

no direct impact on local poverty levels.

Impacts Identified

A relatively small impact on local poverty levels is anticipated through the

creation of unskilled jobs. The impact will be enhanced through the poverty

programme of the current S&L plan of the mine. There is a still a risk that

unfilled expectations could result in civil unrest


Maximise employment impacts on the local economy through a detailed

recruitment plan as discussed under the enhancement measures for direct

employment, supply-links and induced impacts discussed above.

Up-skill unskilled labour and fill vacant positions once again with unskilled

from the ranks of the unemployed

Make provisions for community investment in the Social and Labour Plan of the

proposed Jeanette Gold Mine expansion and revisit the provisions on a yearly

basis to ensure that they are still relevant and maximise the reach of the

proposed investment as far as reasonable

Effectively communicate to the community that the mine alone is not

responsible for eradicating local poverty

Facilitation of local economic development forums and business organisations

in the local area that draw together the regional business councils, local,

government, other private companies including mining companies in the local

area, NGOs and local community members (discussed in more detail under

section 6 below)

3.2.11. POTENTIAL IMPACT ON INCOME EQUALITY IN THE LOCAL

AREA

Impacts Identified:

The project could improve the income distribution levels in the local area

depending on the extent to which the project up-skill the local workforce and

recruit workers among the unemployed

Enhancement measures:

Up-skill the locally recruited workforce

Recruit workers among the unemployed

66

3.2.12. IMPACT ON THE DIVERSITY OF THE LOCAL ECONOMY

Impacts Identified:

Another mine will increase the concentration of economic activities in the

mining sector and could restrict the local adjustment process towards a post-

mining economy.

Mitigation measures:

As per the current S&L Plan for the mine, focus on the support of non-mining

related activities in community development programmes and business support

programmes

Focus the local procurement programme on non-core mining inputs (e.g.

catering, accommodation)

3.2.13. IMPACT ON NATURAL RESOURCE INTENSITY OF THE LOCAL

ECONOMY

Impact Identified:

The energy and water use of gold mines are high compared to their economic

output. The mine will intensify water and energy consumption in the local area

Mitigation measures:

Develop an action plan for the reduction and optimisation of natural resources

(water, energy use, waste management) by the mine

67

3.2.14. POTENTIAL SOCIO-ECONOMIC IMPACTS DURING THE

DECOMMISSIONING AND CLOSURE PHASE

During the decommissioning and closure phase of the proposed Jeanette Gold Mine the

communities are expected to experience several impacts or they will perceive certain

impacts as originating from the decommissioning and closure of the Jeanette Gold

Mine. As part of the decommissioning and closure phase the following possible

impacts have been deemed applicable only the Socio-economic processes:

3.2.15. LOSS OF DIRECT AND INDIRECT JOBS DUE TO CLOSURE

During the operational phase of the mine it will gradually scale down direct

employment in its operations from around 1 100 jobs during peak production to around

500 jobs in the last three years of production before finally closing down. Additional

jobs created by supply links would gradually decrease from around 400 jobs (150 local

jobs) during peak production to about 130 (60 local) jobs just before closure.

Impacts Identified

Loss of direct and indirect jobs due to mining closure

Mitigation measures

As per the S&L Plan develop mechanisms to assist employees, prior to

retrenchment date in the transition phase after mine closure including portable

skilled development programmes during the operational phase of the mine,

providing assistance in accessing available and suitable jobs with other local mines

or companies etc.

Focus on non-core related local supply links during the operational phases of the

mine to facilitate easier transitioning of local suppliers to other industries

3.2.16. DECREASE/TERMINATION OF COMMUNITY INVESTMENT

FUNDING

The proponent’s regulatory commitment with regards to social and economic

development is expected to decrease during the decommissioning and closure of the

Jeanette Gold Mine. The risk exist that projects are dependent on the funding that

they receive from the proponent and that projects will fail due to the decrease in

funding.

Develop a community investment strategy in conjunction with the local

communities.

Develop and implement community investment projects in participation with

beneficiaries.

Plan projects with an exit strategy of which beneficiaries are aware of.

68

3.3. POTENTIAL IMPACT DESCRIPTIONS DURING POST-CLOSURE

3.3.1. POTENTIAL IMPACT ON COMMUNITY HEALTH AND SAFETY

The primary change that is of importance to socio-economic change in the post closure

phase is the withdrawal of the proponent and its operating employment force and the

communities’ improved access to the site. This could lead to a risk of community

members could be injured while moving around the remaining infrastructure.

Illegal miners or Zama Zama’s are miners who operate outside the regulated system of

gold mining and operate mostly in abandoned mines where they spend weeks in dark

and dangerous tunnels removing gold bearing ore that then gets refined and finds its

way onto the formal and informal markets. Given the high levels of unemployment and

poverty and the history of this practice in the Welkom area, there should be some

measures put in place to discourage potential Zama Zama’s as seeing the site as a

possible target.

Impacts Identified

Risk of injury of community members due to remaining infrastructure

Mitigation measures

Fence in potentially dangerous areas

Raise awareness amongst communities regarding the dangers of the closed site

Develop an alternative land-use plan well in advance of the closure of the mine

3.4. POTENTIAL CUMULATIVE IMPACTS

Potential negative socio-economic cumulative impacts:

Although the current community health in the wider area is already compromised by

various mining activities, the additional sources may result in negative cumulative

impacts on the third party receptors closest to the mining activities.

Increased mining activity in the local area also increases the risk for the local

community in terms of the industry-wide labour unrest.

Potential positive socio-economic cumulative impacts:

The entry of a new mine in the predominantly mining area increase positive economic

externalities for service providers to the mining sector in the area. This could facilitate

or extend the life of the current hub of mining –supply business activities in the local

area.

A number of industrial parks are planned for townships in the vicinity of the mine by

the Mathjabeng LED division within the local municipality. Together with the planned

69

industrial parks, the mining project could act as a potential catalyst for industrial

development within the townships (Nyakkalong and Kwutlanong) adjacent to the mine.

Impacts Identified

Potential negative cumulative impacts related to health and labour unrest

Potential positive economic cumulative impacts related to planned industrial

parks in the local area

Mitigation measures

Facilitate the formation of stakeholder forum (including other gold mining

companies in the area, trade unions and local government) to monitor the risk

and identify potential mitigation measures for cases of violent labour unrest in

the larger Mathjabeng area


Work in close collaboration with local business chambers and the LED

departments of the local and district municipality to enhance business

development in the local area

70


METHODOLOGY

The proposed method for the assessment of the socio-economic impacts described

above is set out in Table 17 below. This assessment methodology enables the

assessment of socio-economic issues including: cumulative impacts, the severity of

impacts (including the nature of impacts and the degree to which impacts may cause

irreplaceable loss of resources), the extent of the impacts, the duration and reversibility

of impacts, the probability of the impact occurring, and the degree to which the impacts

can be mitigated.

Table 17: Impact assessment methodology applied in scoping

Note: Part A provides the definition for determining impact consequence (combining intensity, spatial scale and duration) and impact significance (the overall rating of the impact). Impact consequence and significance are determined from Part B and C. The interpretation of the impact significance is given in Part D.

PART A: DEFINITION AND CRITERIA*

Definition of SIGNIFICANCE Significance = consequence x probability

Definition of CONSEQUENCE Consequence is a function of intensity, spatial extent and duration

Criteria for ranking of the INTENSITY of environmental impacts

VH Severe change, disturbance or degradation. Associated with severe consequences. May result in severe illness, injury or death. Targets, limits and thresholds of concern continually exceeded. Substantial intervention will be required. Vigorous/widespread community mobilization against project can be expected. May result in legal action if impact occurs.

H Prominent change, disturbance or degradation. Associated with real and substantial consequences. May result in illness or injury. Targets, limits and thresholds of concern regularly exceeded. Will definitely require intervention. Threats of community action. Regular complaints can be expected when the impact takes place.

M Moderate change, disturbance or discomfort. Associated with real but not substantial consequences. Targets, limits and thresholds of concern may occasionally be exceeded. Likely to require some intervention. Occasional complaints can be expected.

L Minor (Slight) change, disturbance or nuisance. Associated with minor consequences or deterioration. Targets, limits and thresholds of concern rarely exceeded. Require only minor interventions or clean-up actions. Sporadic complaints could be expected.

VL Negligible change, disturbance or nuisance. Associated with very minor consequences or deterioration. Targets, limits and thresholds of concern never exceeded. No interventions or clean-up actions required. No complaints anticipated.

VL+ Negligible change or improvement. Almost no benefits. Change not measurable/will remain in the current range.

L+ Minor change or improvement. Minor benefits. Change not measurable/will remain in the current range. Few people will experience benefits.

71

M+ Moderate change or improvement. Real but not substantial benefits. Will be within or marginally better than the current conditions. Small number of people will experience benefits.

H+ Prominent change or improvement. Real and substantial benefits. Will be

better than current conditions. Many people will experience benefits. General

community support.

VH+ Substantial, large-scale change or improvement. Considerable and

widespread benefit. Will be much better than the current conditions.

Favourable publicity and/or widespread support expected.

Criteria for ranking the DURATION of impacts

VL Very short, always less than a year.

L Short-term, occurs for more than 1 but less than 5 years.

M Medium-term, 5 to 10 years.

H Long term, between 10 and 20 years. (Likely to cease at the end of the operational life of the activity)

VH Very long, permanent, +20 years (Irreversible. Beyond closure)

Criteria for ranking the EXTENT of impacts

VL A portion of the site.

L Whole site.

M Beyond the site boundary, affecting immediate neighbours

H Local area, extending far beyond site boundary.

VH Regional/National

PART B: DETERMINING CONSEQUENCE

SEVERITY = VL

DURATION Very long VH Medium Medium Medium High High

Long term H Low Medium Medium Medium High

Medium term M Low Low Medium Medium Medium

Short term L Very low Low Low Medium Medium

Very short VL Very low Low Low Low Medium

SEVERITY = L

DURATION Very long VH Medium Medium High High High

Long term H Medium Medium Medium High High

Medium term M Low Medium Medium Medium High

Short term L Low Low Medium Medium Medium

Very short VL Very low Low Low Medium Medium

SEVERITY = M

DURATION Very long VH Medium High High High Very High

Long term H Medium Medium High High High

Medium term M Medium Medium Medium High High

Short term L Low Medium Medium Medium High

Very short VL Very low Low Medium Medium Medium

SEVERITY = H

DURATION Very long VH High High High Very High Very High

Long term H Medium High High High Very High

Medium term M Medium Medium High High High

72

Short term L Medium Medium Medium High High

Very short VL Low Medium Medium Medium High

SEVERITY = VH

DURATION Very long VH High High Very High Very High Very High

Long term H High High High Very High Very High

Medium term M Medium High High High Very High

Short term L Medium Medium High High High

Very short VL Low Medium Medium High High

VL L M H VH

A portion of the site

Whole site Beyond the site

boundary, affecting

immediate neighbours

Local area, extending far beyond

site boundary.

Regional/ National

EXTENT

PART C: DETERMINING SIGNIFICANCE

PROBABILITY

(of exposure to impacts)

Definite/ Continuous

VH Medium High High Very High Very High

Probable H Medium Medium High High Very High

Possible/ frequent

M Low Medium Medium High High

Conceivable L Low Low Medium Medium High

Unlikely/ improbable

VL Very low Low Low Medium Medium

VL L M H VVH

CONSEQUENCE

PART D: INTERPRETATION OF SIGNIFICANCE

Significance Decision guideline

Very High Potential fatal flaw unless mitigated to lower significance.

High It must have an influence on the decision. Substantial mitigation will be required.

Medium It should have an influence on the decision. Mitigation will be required.

Low Unlikely that it will have a real influence on the decision. Limited mitigation is likely to be required.

Very Low It will not have an influence on the decision. Does not require any mitigation

*VH = very high, H = high, M= medium, L= low and VL= very low and + denotes a positive impact.

73


Assessment Area Mitigation Severity Duration Extent Consequence Probability Significance

CONSTRUCTION PHASE

Possible conflict between

locals and job seekers.

Pre VH L M High M High

Post VH L M High L Medium

Possible catalyst situation

for Xenophobia.

Pre VH L H High H High

Post VH L H High M Medium


locals and Taung Gold.

Pre H L M Medium M Medium

Post M L M Medium L Medium

Possible increase in

sexually transmitted

diseases.

Pre L L M Medium M Medium

Post VL L M Low L Low

Hazardous excavations

and infrastructure that

could injure third parties

Pre VH H M High M High

Post VH H M High VL Medium

Possible increase in crime Pre L L M Medium M Medium

74


locally. Post L L M Medium L Medium

Mine seen as a possible

target for crime.

Pre L L L Low M Medium

Post VL VL L Low L Low


agricultural related theft.

Pre L L M Medium H High

Post L L M Medium M Medium

Possible increase in fire

risks

Pre L L L Low M Medium

Post L L L Medium L Low

Pressure on local

infrastructure and

services.

Pre M L H Medium M Medium

Post L L H Medium L Medium

Potential for increase in

informal settlements

Pre M L H Medium M Medium

Post L L H Medium L Medium

Direct employment from Pre L L M Medium H High +

75


mining construction Post L L M Medium H High +

Increase in local income

from direct employment

at the mine

Pre L L M Medium H High +

Post M L M Medium H High +

Labour ‘draw-down’

from the agriculture

sector

Pre VL L M Low H Medium

Post VL L M Low L Low

Employment and income

from supply-links and

induced impacts

Pre L L M Medium H High +

Post M L M Medium H High +

76


OPERATIONAL PHASE

Negative perceptions by

the community of the

quality and quantity of

their water for

consumption being

affected by mining

construction and

operations

Pre M VL M High H High

Post VL VL M Medium M Medium

Post L H M Medium L Medium

Mine seen as a possible

target for crime.

Pre L H L Medium M Medium

Post VL H L Low L Low


agricultural related theft.

Pre L H M Medium H High

Post L H M Medium M Medium


locals and job seekers.


Post VH M M High L Medium

Possible catalyst situation Pre VH H H High H High

77


for Xenophobia. Post VH M H High L Medium


locals and Taung Gold.


Post H M M High L Medium

Direct employment from

mining construction

Pre L H M Medium H High +

Post L H M Medium H High +

Increase in local income

from direct employment

at the mine


Post M H M Medium H High +

Labour ‘draw-down’

from the agriculture

sector

Pre VL H M Medium M Medium

Post VL M M Medium VL Low

Employment from

supply-links and induced

impacts


Post M H M Medium H High +

Possible labour unrest. Pre H H H High M High

78


Post M H H High L Medium

Diversion of public funds

for increased road

maintenance and other

mine –related public

infrastructure

Pre L M M Medium M Medium

Post L M M Medium L Medium

Change in property prices

of middle-high income

residential property

Pre VL S H Medium M Medium +/-

Post VL S H Medium M Medium+/-

Improvement of income

inequality in the local

area

Pre VL H M Medium M Medium +

Post VL H M Medium M Medium +

Increase vulnerability of

local economy due to

higher concentration of

mining activities

Pre VL H H Medium M Medium

Post VL M H Medium M Medium

Increase in natural

resource intensity

(energy, water) of the

local economy

Pre L H L Medium H High

Post VL H L Low H Medium

79


DECOMMISSIONING AND CLOSURE PHASE

Increase in noise levels

impacts on people's sense

of wellbeing (irritant

factor).

Pre L VL M Low M Medium

Post VL VL M Low L Low

Loss of direct and supply-

linked jobs due to

termination of production

Pre L VL H High H High

Post VL M H Medium H Medium

Community investment

projects experience a

decline in funding and

projects fail.

Pre L VL M Medium H High

Post L VL M Medium L Medium

80


POST-CLOSURE

Risk of injury of

community members due

to remaining

infrastructure

Pre VH VH M Very High L High

Post VL VH M Medium VL Low

Risk of safety due to

potential illegal mining

activities

Pre VH VH M Very High L High

Post VL VH M Medium VL Low

81


CUMULATIVE IMPACTS

Potential negative

cumulative impacts

related to labour unrest

Pre VL H H Medium M Medium

Post VL H H Medium L Medium

Potential positive

economic cumulative

impacts related to

planned industrial parks

in the local area

Pre L H H High VL Medium+

Post M H H High L Medium+

82

6. POTENTIAL LOCAL SOCIO-ECONOMIC DEVELOPMENT PROJECTS

The most pressing needs in the communities adjacent the mining area are employment

and business opportunities coupled with appropriate skills development for the labour

market. The community is isolated in terms of initiatives in the broader Mathjabeng

municipality. There also appear to be distrust among the local communities towards the

local municipality who are perceived to by-pass their needs in favour of the Welkom

area.

Within this scenario there is a real risk that community needs in terms of social

infrastructure and job creation could be exclusively directed towards the new mine. It is

therefore important to develop social networks within the community that emphasise

the shared responsibility for local economic development between the community

themselves, the private sector (including mines operational in the area) as well as local

government (including both the local and district municipality).

As a first step towards local economic development projects in the area it is therefore

recommended that initiatives should focus on the establishment of LED forums within

the Odendaalsrus/Kwutlanong and Allanridge/Nyakkalong areas that could consist of:

The private business sector (including the Free State Chamber of Business; the

Black Management Forum and other businesses operational in the local area)

NGOs active in training, health and education, community development

Training organisations

Community members

Local government including the LED divisions of Lejweleputswa District

Municipality and Mathjabeng municipalities, SEDA, the DTI

Local economic development projects have a better chance to succeed if it the local

community take ownership of the initiatives. A LED forum provides the opportunity

for the local community to engage in the formulation of development strategies. While

a new mine in the area could act as catalyst for development, a forum decreases the

social risk for the mine related to unrealistic expectations.

LED strategies that are relevant to the local area include:

business development that focus on non-mining activities for sustainable after

mine-closures

the building of social networks and community trust , e.g. through the LED

forum itself and the establishment of local business chambers

structured ‘plugging-the-leaks’ LED strategies that focuses on developing

business opportunities around local spending power

youth skills development (e.g. science and maths programme)

83

7. RECOMMENDATIONS FOR MANAGING RELATIONSHIPS WITH

COMMUNITIES AND INTEREST GROUPS

The following recommendations are made in terms of the mine’s management of

relationships with the adjacent communities and other interest groups:

Quarterly meetings between the mine and local community at large to

communicate employment and business opportunities and address general issues

from the community

Quarterly meetings between the mine and the adjacent farming community to

assess the impact of the mine on the agricultural sector

To mitigate against influx of unskilled workers into the local area a

communication strategy is needed to inform the broader region of the lack of

unskilled job opportunities at the mine well in advance of the project inception.

The strategy could involve the media (local newspapers and radio stations) and

regional business chambers (e.g. Free State Chamber of Business)

As discussed above, facilitate the formation of local LED forums in order to

manage the relationship with the community in terms unrealistic expectations of

the mine role in local economic development

Quarterly meetings with other gold mines in the local area (Harmony and

Sibanye Gold) to monitor industry-related issues such as trade union activity

Join the local community police forum as a member to assess and address safety

issues in the area, specifically related to mining activities

84

8. SUMMARY AND CONCLUSION

The project is expected to have a net positive impact on the local communities close to

the mine due to jobs created by the mine itself, links to local suppliers and social

spending through its S&L plan and taxes and royalties paid by the mine. The extent of

the benefit will largely depend on the level of in-migration of unskilled workers from

outside the local area, the degree to which local labour is up-skilled to fill semi-skilled

and skilled positions at the mine as well as the extent to which the mine source

unskilled employment among the ranks of unemployed.

There are also a number of negative socio-economic impacts that the mine needs to

mitigate also to lessen its own social risks to operate within the local area. Paramount

among the recommended mitigation strategies are:

An effective communication strategy that could convey the message to the

regional community that there are a limited number of unskilled jobs at the mine

to mitigate the influx of unskilled workers into the local area

An effective communication strategy to mitigate against unrealistic expectations

of the local community in terms of the number of local jobs that the mine will

create and its sole responsibility for economic development within the local area

Collaboration with a broader LED network within the local area to illustrate

shared but not sole responsibility of economic development in the local area

Up-skilling of local labour force to enable them to fill semi-skilled and skilled

positions at the mine

Sourcing unskilled labour from the ranks of the unemployed

Participation towards building greater local tolerance for groups outside the

local area

Socio-economic risks that could impose high impacts on the local community during

the different phases for the project and require focused attention in terms of mitigation

include:

Construction Phase:


Possible catalyst situation for Xenophobia.

Hazardous excavations and infrastructure that could injure third parties


Operational Phase:

85

Negative perceptions by the community of the quality and quantity of their

water for consumption being affected by mining construction and operations


Possible catalyst situation for Xenophobia.

Possible conflict between locals and Taung Gold


Increased potential for labour unrest

Increase in natural resource intensity (energy, water) of the local economy

Decommissioning and Closure Phase:

Loss of direct and supply-linked jobs due to termination of production

A decrease in social welfare due to declining funds for community investment

projects or project failure

Post-closure Phase:

Risk of injury of community members due to remaining infrastructure

Risk of safety due to potential illegal mining activities

Permanent loss of income from land that was replaced by mining infrastructure

86

9. RESPONSES TO SOCIO-ECONOMIC ISSUES HIGHLIGHTED BY

INTERESTED AND AFFECTED PARTIES

ISSUE REGISTERED Page of SEIA

1. There are a lot of people walking where they want to and thus cause

security issues. Won’t this be worsened by the mine?

pp. 45, 55, 68

2. Will the work force be sourced from the local communities? What

can we expect from this project in terms of employment prospects?

Nyakallong has a very high unemployment rate, what employment

prospects will the project bring?

pp. 32, 47-49, 52-

53, 57-59, 61-62,

67

3. The people of the area won’t be educated enough for the remaining

job opportunities

pp. 32, 47-49, 52-

53, 57-59, 61-62

4. Please provide us with a breakdown of the kind of jobs you are

offering? The presentation only showed a number

pp. 47-49, 52-53,

57-59, 61-62, 67

5. Do you have a recruitment plan? We saw some Allanridge residents

getting forms from you some time ago. Does this mean that they

will be getting hired before we do?

pp. 47-49, 52-53,

57-59, 61-62, 67

6. You have only mentioned job opportunities, what about other

opportunities such as internships, training, projects from your social

corporate investments?

p 64

7. Our economy is dependent on mining, what else are you going to

do to sustain our local economy?

p.66

8. What sort of benefits will the communities get in the project? pp. 47-49, 52-53,

57-59, 61-62, 64,

67

9. In terms of the qualified people, are you going to source the people

from the surrounding areas for employment? I’m a geologist; these

types of positions can be filled here from our local people The

specialist jobs for the mining itself, will they use people from

outside or use the local people who have the necessary experience?

pp. 47-49, 52-53,

57-59, 61-62, 67

10. Are they going to use experienced workers only or are they going to

use less experienced workers as well?

pp. 47-49, 52-53,

57-59, 61-62, 67

11. Why haven’t you looked into renewable resources to power the

facility?

p.66

87

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International Association for Impact Assessment (2003).Social Impact Assessment:

International Principles Special Publication Series, Fargo

Investissement-Québec (2001) Economic Impact Assessment Method Revised edition –

2001 Commission de la Santé et de la Sécurité du travail (CSST), Bibliothèque Nationale du

Québec, Montreal

Luckow, P., Stanton, E., Biewald, B., Fields, S., Jacksom, S., Fisher, J. and Ackerman,

F. (2014). CO2 Price Report, Spring 2014, Synapse Energy Economists, Massachusetts

Macharia, J. (2009). More Than 60 Illegal Miners Killed at SA Gold Mine

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Mathjabeng Local Municipality (2013). Integrated Development Plan 2014-2015,

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Municipality, Welkom

Mavuso, Z. (2013). Labour Unrest Impacts Negatively on South African Gold Miners.

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McCrae, M.A. (2015). The Stunning Collapse of Gold Production in South Africa.

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Mudd, G. (2008). Gold mining and sustainability: A critical reflection. Retrieved from

http://www.eoearth.org/view/article/153053

Municipal IQ (2014). Municipal IQ Hotspots Monitor.

http://mg.co.za/article/2009-06-02-more-than-60-illegal-miners-killed-at-sa-gold-mine

http://www.miningweekly.com/article/labour-unrest-impacts-negatively-on-sa-gold-miners-2013-06-28

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ANNEXURE 1: LIST OF STAKEHOLDER INTERVIEWS

Name Organization Date

1. Hethen Hira Sibanye Gold 9 July 2015

2. Reon Yssel Free State Goldfields Chamber of

Business

9 July 2015

3. Lucas Twasele Nyakkalong Business organisation 9 July 2015

4. Hilton Thorne Barbour and Thorne properties 9 July 2015

5. Rathepe Molupe Ward councillor Kutlwanong

Community

9 July 2015

6. Mr Motswele

Mtahabeng LED manager 9 July 2015

7. Marie Vermeulen Rossouw Vennote Partners estate

agency

9 July 2015

8. Aron Mbambo Councillor Nyakallong Community 9 July 2015

9. Rudi Jansen Van

Vuuren

Farmer 9 July 2015

10. Theresa de Villiers Allandridge ward councillor 9 July 2015

91

ANNEXURE 2: CURRICULUM VITAE OF SPECIALISTS

ANNA SOPHIA KRITZINGER

1. Family name: Kritzinger

2. First names: Anna Sophia

3. Date of birth: 17 March 1964

4. Nationality: South African

5. Education:

Institution

[ Date ] Degree(s) or Diploma(s) obtained:

University of Stellenbosch, South Africa (1990-1992) M.Admin (Economics)

University of Pretoria, South Africa (1982-1985) B.Admin (Hons) (Economics)

Language skills: Indicate competence on a scale of 1 to 5 (1 – excellent; 5 – basic)

Language Reading Speaking Writing

English 1 1 1

Afrikaans 1 1 1

Dutch 2 3 3

German 3 3 4

French 4 4 4

6. Membership of professional bodies: -

7. Other skills: (e.g. Computer literacy, etc.) Computer literacy –MS Office, Accredited training

Assessor, Social Accounting Matrix (SAM) literacy

8. Publications: Kritzinger, A. S. (2011) Towards a Conceptual Framework for LED Strategies. Skills @ Work, Volume 4:

67- 79.

Kritzinger, A. S. and Baur P. (2012) Structuring Local Data to Determine LED Strategy Priorities: An

Economic Development Perspective. Skills @ Work, Volume 5: (forthcoming)

9. Present position: Director of Southern Economic Development Services (SED) and freelance-

associate of South African management consultancy Futurelead

10. Years with the firm: 16

11. Areas of specialisation

Economic impact assessments

Applied economics (macro-economic and social impact analysis; economic cost benefit

analysis, economic incidence analysis, scenario planning)

Skills development in development profiling and strategies

Economic databases & economic reviews

Local social and economic development strategies

Industry and market analysis

Analyses of higher education systems in Africa (analyses of demand and supply factors)

Working as a freelance consultant I have developed a strong network with organizations in South

Africa – including my involvement as associate of management consulting firm Futurelead as well

as an extensive network of development and economic consulting groups such as the Development

Bank of Southern Africa, the economic and financial firm Global Insight and Deloitte (Namibia,

92

South Africa and Botswana) the University of Johannesburg (Centre for Local Economic

Development) and the Bureau of Economic Research (University of Stellenbosch).

12. Professional experience:

Date from – Date

to

Company

(position)

Description of activities

(country; year of assignment)

1998 – current Consulting Examples of assignments include:

Economic impact analyses:

Developed economic criteria for the evaluation of projects for the

Strategic Infrastructure Programme (SIP) for the Western Cape

Province( 2005)

Study lead for revenue management study, entailing the identification of

mitigation strategies related to project –related revenues (employment and public revenues) for a large-scale gas project for Anadarko

petroleum in Mozambique (2012-2014)

Socio-economic impact assessment for Jeanette mine, Free State (2015)

Economic study for a waste disposal site in Tshwane, Gauteng (2014)

Economic impact assessment as part of Social Impact Assessment (SIA)

of a Glencore/Xtrata chrome mine in Rustenburg, Mpumalanga (2014)


for the extension of a mining right application for Boschmanspoort coal

mine in Mpumalanga (2014)


for a casino/retail project in Delmas, Mpumalanga (2014)

Economic study for a private regional landfill in the Ga-Rankuwa area

of City of Tshwane (2014)

Economic impact assessment as part of SIA for a CFB coal plant in

Delmas area, Mpumalanga, South Africa (2013)

Economic impact assessment as part of SIA of a coal mine in

Chrissiesmeer, Mpumalanga, South Africa (2013)

Economic impact assessment as part of SIA for selected wind farms and

solar plants in the Northern Cape (2012)

Economic impact assessment as part of SIA for an existing vanadium

mine in the Brits area (2012)

Economic impact assessment as part of SIA for a diamond mine in

Alexander Bay area, West Coast, South Africa (2012)

Measured the impact of the global financial crisis on the mining industry

of 8 SADC countries including South Africa (SADC countries; 2009);

Conducted an analysis of the economic contribution of state owned

enterprises to the Namibian economy (Namibia; 1999 and 2009).

Conducted a socio economic impact analysis for the development of an

Africa centre and sustainable housing development project in the

Western Cape (South Africa; 2007); (Namibia, South Africa, Botswana;

2005- );

Part of an economic evaluation team for strategic infrastructure projects

(SIP) in the Western Cape (South Africa; (2005);

Conducted the economic evaluation of an infrastructure project in the

Mosselbay area (South Africa;2001);

Economic impact assessment for horse-mackerel industry (Namibia

2003)

Local Economic Development- related work:

Managed and conducted a research project pertaining to Business

Retention and Attraction Strategies to inform strategic inputs to improve

programmes on behalf of Deloitte Nambia for the Local Economic

Development Association (LEDA) of Namibia (Namibia, 2013)

Designed and implemented a training project for capacity training in

sustainable local economic development (including the “green

economy”) monitoring for district municipalities throughout South

Africa. The project was developed in collaboration with Inwent and the

Development Bank of Southern Africa (South Africa; 2008 – 2011). The project has been developed further as one of the courses that forms part

of the University of Johannesburg’s Centre of Local Economic

93

Date from – Date

to

Company

(position)



Development degree programme;

Evaluated local economic development projects in the Western and

Eastern Cape. These studies involved the evaluation of existing

economic development projects and the identification of LED projects that the NGO-client could potentially get involved in (South Africa,

2002);

Managed a team in conducting a business survey and Local Economic

Development action plan for the eastern parts of Cape Town, including

township areas such as Mfuleni and parts of Macasser. The project included extensive consultation sessions with community organisations

(South Africa; 2007);

Compiled various socio economic development profiles for various

South African local authorities including profiles for George

municipality; Drakenstein municipality, the Overberg region and Oudtshoorn municipality that were used to inform the Local

Development for the towns and district. The profiles and identification

of relevant projects involved community facilitation work (South

Africa;1998-2008);

Developed a socio economic database for the Cape Metropolitan Area.

The study was updated to an extensive economic analysis of the city and

some indicators were extended to include all the different regions of the

Western Cape (South Africa;1998, 2001);

Industry profiles and market analysis:

Conducted research and compiled the synthesis report for geothermal

potential in the African rift valley (2011)

Conducted various research reports on global sectors e.g. the global oil

and gas industry and ship building and repairs (Global, Africa, South Africa; 2003-2007)

Managed the compilation of an “invest in Cape Town report” for

Wesgro (2011)

Managed a sector survey and profile for the Cape Town Boat building

industry (South Africa, 2008);

Compiled an industry profile for the City of Johannesburg. The study

involved a survey of numerous companies and informed the city about the relative importance of the sector for the City of Johannesburg on the

hand of various development criteria (South Africa; 2003).

Higher education analyses in Africa:

Conducted a demand and supply review of the higher education system

of Namibia including a gap analyses of current and forecasted labour

demand and supply of higher education qualifications (Namibia; 2012

and 2014)

Managed a situational analysis and done a market analysis as well as

economic cost benefit analysis for Botswana Export Development Agency with Deloitte SA to investigate the feasibility of a tertiary

education hub to diversify the Botswana economy (Botswana; 2009).

Economic cost benefit analysis:

Conducted a high level economic cost benefit analyses for a regional

landfill project in Ga-Rankuwa, City of Tshwane as extension for an

economic impact assessment (South Africa, 2014)

Conducted an economic cost benefit analyses for a coal mine near

Chrissiesmeer, Mpumalanga as part of alternative land-use study for a mining application study (South Africa, 2013)

Conducted an economic cost benefit analysis for an agricultural

irrigation project in the Pandamatenga area (Botswana, 2010);

Conducted an economic cost benefit analysis for Botswana Export

Development Agency with Deloitte SA to investigate the feasibility of a

tertiary education hub to diversify the Botswana economy (Botswana; 2009)

Other macro-economic modeling:

94

Date from – Date

to

Company

(position)



Developed an economic forecast model for the City of Cape Town and

the Western Cape economy (City of Cape Town; 2005 updated in 2011,

extended to Western Cape in 2014);

Conducted research to establish the economic contribution of

agricultural research in South Africa to assist the motivation of increased public grants to the main agricultural research body (South

Africa; 2011)

Conducted a comparative economic incidence analysis between fuel

levies and motor vehicle licence fees for the Western Cape (South

Africa; 2007 updated in 2011)

References:

Herman Marais (Strategy Partners Agricultural Venture Capital Fund)

+27 83 377 6234; [email protected]; Johan Hayes, (AECOM: Africa Practice Lead: Impact Assessments; +27

+27 (0) 82 859 1932 [email protected]

1994-1998 Freelance Freelance work in UK, travelling through Europe

1989 -1994 University of Stellenbosch

(lecturer)

Tasks included:

Lecturing first to third year

Marking of papers and assignments

Leading tutorial classes

References:

Professor Phillip Black (University of Stellenbosch) tel: +27 (021)

808-2478; [email protected]

1987-1988

Development

Bank of Southern Africa

(Researcher)

Tasks included:

Profiling of selected development areas in South Africa

Analyses and database development pertaining to key economic indicators.

References:

David Viljoen (Development Bank of Southern Africa) tel: +27 (0) 11 313 3043/3303 ; [email protected]

mailto:[email protected]




95

PIETER JOHANNES OOSTHUIZEN

1. Family name: Oosthuizen

2. First names: Pieter Johannes

3. Date of birth: 04 December 1987

4. Nationality: South African

5. Education:

Institution

[ Date ]

Degree(s) or Diploma(s) obtained:

University of Pretoria, South Africa (2006-2010) B.A (Industrial Psychology)

University of Pretoria, South Africa (2010-2012) NQF Level 6 Project Management

6. Language skills: Indicate competence on a scale of 1 to 5 (1 – excellent; 5 – basic)

Language Reading Speaking Writing

English 1 1 1

Afrikaans 1 1 1

7. Membership of professional bodies: - International Association of Impact Assessors, South African

branch (Membership number: 34499)

Project Management Institute, South African branch

8. Other skills: (e.g. Computer literacy, etc.) GIS, MS projects and full computer literacy, Provincial

cricket

9. Publications:

-

10. Present position: Director of Triad Project Solutions and freelance-associate of Southern

Economic Development Services (SED).

11. Years with the firm: 2

12. Areas of specialisation

Leading and supervising fieldwork, resettlement and logistics teams

Collection and processing of raw data

Resettlement action plans

Research for Social Impact Assessments

Writing Social Impact Assessments

Project Management

Social and Labour plans

Human Rights Impact Assessments

Analyses of higher education systems in Africa (analyses of demand and supply factors)

I have been involved and managed numerous projects over the past 6 years. I have accumulated

critical international project experience in the oil and gas as well as the mining sector. I have also

been actively involved in a number of Social and Human Rights Impact Assessments at Digby Wells

Environmental and Continuum (formerly Roos Social Risk Solutions).

96

13. Professional experience:

Date from –

Date to

Company

(position)



2010 – current Consulting Roos Social Risk Management for Anadarko Mozambique

LNG ESHIA (2012 – 2013)

ESMP Logistics Field Supply Coordinator

Responsible for:

Support Operational Needs.

Enable the ESMP/RAP teams with logistical planning.

Planning systems to incorporate into daily functions.

Day to day project management.

Roos Social Risk Management for Anadarko Mozambique

LNG ESHIA (2013 – 2014)

Human Rights Researcher

Responsible for:

Planning and execution of research activities.

Human Rights Impact Assessment report writing.

Aurecon and Digby Wells Environmental, Social and

resettlement Action Plan for the proposed Olifants River Water

Resources Project (2010 -2011)

Social Scientist

Responsible for:

Planning and execution of social and resettlement research

activities.

Leading fieldwork teams.


LIMARCO FIFTEEN, SEIA for proposed Groot Derm

Diamond Mine (2012)

Responsible for:

Social Impact Assessment report writing.

Planning and execution of research activities.

Managing administrative task associated with the project life

cycle.


JMA Consulting for BLACK GOLD COAL, SIA for proposed

opencast Lusthof Colliery (2013)

Project Manager and Lead Social Impact Assessment

Responsible for:

Social Impact Assessment report research and writing.

Planning and leading of research teams.


cycle.


Jones & Wagener for XSTRATA SOUTH AFRICA, SEIA for

proposed Boschmanspoort underground mining expansion

(2013)

Lead Social Impact Assessment

Responsible for:



97

Date from –

Date to

Company

(position)




cycle.


JMA Consulting for XSTRATA/MERAFE, SEIA for proposed

Boshoek Ferro-Chrome expansion (2013)


Responsible for:




cycle.


Sivest for TSOGO SUN, SEIA for proposed East Side Junction

Casino (2014)


Responsible for:




cycle.


socio-economic impact assessment report jeanette

Documents