The socio-economic impacts of mine closure on local communities: evidence from Mpumalanga Province in South Africa.

Abstract

This paper investigates the socio-economic impacts and coping strategies adopted by the local community of Pilgrim’s Rest in Mpumalanga following the closure of the gold mine. A questionnaire-based survey, administered through face-to-face interaction with the local community and the stakeholders, was the main instrument used to obtain the data. The study recorded both negative and positive impacts of mine closure and the coping strategies. The negative socio-economic impacts of mine closure include: rise in poverty, deterioration of living standards, increase in outward migration, emergence of crime and diseases, decline in the provision of services, reduction in employment opportunities in the mine and second-order employment, loss of foreign exchange, limited money circulation, reduction of buying power and in the payment of rates by the community. The positive impacts of mine closure include: an increase in government initiatives aimed at helping the community, strong social cohesion of the local people and a focus on agriculture in the area. The coping strategies of the host community following the mine closure comprise of dependence on severance packages, support from relatives, finding jobs elsewhere, practising agriculture, and engagement in the informal sector. The study’s significance lies in highlighting the need for proper planning, in order to ease the diverse socio-economic impacts following the closure of the mines.

This paper investigates the socio-economic impacts and coping strategies adopted by the local community of Pilgrim’s Rest in Mpumalanga following the closure of the gold mine. A questionnaire-based survey, administered through face-to-face interaction with the local community and the stakeholders, was the main instrument used to obtain the data. The study recorded both negative and positive impacts of mine closure and the coping strategies. The negative socio-economic impacts of mine closure include: rise in poverty, deterioration of living standards, increase in outward migration, emergence of crime and diseases, decline in the provision of services, reduction in employment opportunities in the mine and second-order employment, loss of foreign exchange, limited money circulation, reduction of buying power and in the payment of rates by the community. The positive impacts of mine closure include: an increase in government initiatives aimed at helping the community, strong social cohesion of the local people and a focus on agriculture in the area. The coping strategies of the host community following the mine closure comprise of dependence on severance packages, support from relatives, finding jobs elsewhere, practising agriculture, and engagement in the informal sector. The study’s significance lies in highlighting the need for proper planning, in order to ease the diverse socio-economic impacts following the closure of the mines.

This paper investigates the socio-economic impacts and coping strategies adopted by the local community of Pilgrim’s Rest in Mpumalanga following the closure of the gold mine. A questionnaire-based survey, administered through face-to-face interaction with the local community and the stakeholders, was the main instrument used to obtain the data. The study recorded both negative and positive impacts of mine closure and the coping strategies. The negative socio-economic impacts of mine closure include: rise in poverty, deterioration of living standards, increase in outward migration, emergence of crime and diseases, decline in the provision of services, reduction in employment opportunities in the mine and second-order employment, loss of foreign exchange, limited money circulation, reduction of buying power and in the payment of rates by the community. The positive impacts of mine closure include: an increase in government initiatives aimed at helping the community, strong social cohesion of the local people and a focus on agriculture in the area. The coping strategies of the host community following the mine closure comprise of dependence on severance packages, support from relatives, finding jobs elsewhere, practising agriculture, and engagement in the informal sector. The study’s significance lies in highlighting the need for proper planning, in order to ease the diverse socio-economic impacts following the closure of the mines.