Additional health care and community development

  • Only larger mining corporations provide some level of health, social welfare, education and infrastructure to surrounding communities. Family members residing in more distant areas, however, do not have the same level of access to health and treatment infrastructure. This has led to the development of informal settlements in proximity to the mines as well as group conflicts.

Corporate governance case studies - Sasol

The South African Coal, Oil and Gas Corporation (Sasol) was established in 1950 as part of the process of industrialisation that the apartheid government considered essential for its economic development and autonomy. Sasol Limited was formed in 1979 to hold the assets of the South African Coal, Oil and Gas Corporation (Sasol) and its subsidiaries.


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Villagers involved in the conflict sit outside of a circle of members and watch their roles being played by other members who are inside the circle. Those sitting in the circle will discuss possible solutions and ways forward. 



Mine development

The Chibuluma Mine Development Agreement specified the development areas as Chibuluma West and Chibuluma South. Chibuluma West was acquired with full knowledge that within 3-4 years it would be out of production.

The Development Agreement specified that it was going to remain in production using the methods applicable  then,  but  placing  emphasis  on  maximum  recovery  of  known  ore resources.


Civil society organisation: beyond legal compliance?

While the mining corporations in South Africa rightly argue that they are contribut- ing to socio-economic development in South Africa (and especially in host communities where they operate) through millions of  dollars spent on various corporate social investment projects, civil society organisations and affected communities are sceptical about this contribution and the effect of the companies


Community Exercise

1. Does this article make any mention of the affected community? (Discuss). 

2. Is there any indication of a political conflict of interest? (Discuss). 

3. What has your com-munity‟s experience been of „trusts‟? 


4. What do you under-stand by the phrase „historically disadvan-taged South African companies and trusts? (Discuss). 



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