Mining Industry Fails to Deliver Jobs to Local Communities Despite R72 Billion Profits
New data reveals a stark contrast between mining profits and local employment opportunities, with unemployment rates exceeding 65% in mining communities.
Mining Companies Neglect Social Labour Plan Commitments
Recent statistics from Mining Affected Communities United in Action (Macua) show mining firms are failing to fulfill their Social Labour Plan (SLP) obligations to create local jobs. Unemployment in communities near major mining operations consistently exceeds 65%, with some areas reaching 82%.
Record Profits, Minimal Community Investment
Macua spokesperson Magnificent Mndebele stated: “With record profits of over R72 billion from just 11 audited mining companies, communities have seen less than 0.13% reinvested in their development. Our audits uncovered R284 million in missing SLP funds across 11 sites.”
Experts Call for Economic Transformation
Mining expert David van Wyk supports Macua’s findings, advocating for a shift to a post-mining economy: “We need to retain strategic minerals for manufacturing and attract investment to build a manufacturing base, moving away from our low-wage economy.”
Potential Solutions for Mining Communities
Van Wyk proposes repurposing mining towns for renewable energy production and developing community-based industries like jewelry manufacturing. Meanwhile, artisanal mining representatives highlight the lack of skills development in mining communities.
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