Underlying much of the uncertainty in SA’s mining sector created by the Marikana tragedy is an outdated and dysfunctional migrant labour system that few role-players want to confront, according to SRK Consulting chairman Roger Dixon. Attending the Mining Indaba in Cape Town, Dixon said the labour migrancy spawned by South Africa’s mining industry over a century ago has now become a millstone around the neck of this sector, and threatens the reputation of the country as a whole.

“A key element of the Marikana tragedy was an unworkable labour arrangement in which ‘migrants’ attempt to sustain two separate lives – one at his place of work and another at his traditional rural home – with only one income,” said Dixon. “It is clear to everyone that mining only has a sustainable future where it can establish its licence to operate – which is not just a matter of legal compliance but of social legitimacy within that community and country.” Such a licence can only be maintained into the future if the mining industry finds better ways to broaden its positive impact; the vestiges of SA’s migrancy system is undermining these efforts, he said. He said that mines have yet to demonstrate a sustainable model of spreading their benefits fairly to all role-players – both at a national and a local level.

 “The Mining Indaba has heard some valuable suggestions from speakers like Dr Mamphela Ramphele, who highlighted the need for the geographic clustering of the mining sector with agricultural and manufacturing activities,” he said. Government and industry need to get beyond talking shops and tackle the practicalities of inclusive development strategies in mining areas. He said that the casual use of terms like ‘labour-sending areas’ – by both industry and government – reflected an acceptance of migrancy, even though that system is in crisis.

 “What is not being effectively addressed in the current disagreements about policy, is ways of practically exploring alternatives to the essentially ‘extractive’ model that the mining industry is pursuing around Africa,” said Dixon. While investment in mining projects was a short-term imperative, it was also vital to ensure that minerals are not simply mined and exported. “Growth rates of over 5% in many African countries suggest that the continent is indeed rising,” he said, “but these levels of growth are unsustainable if proper infrastructure is not being put in place with the proceeds from mining activity. And I don’t just mean rail links between the mine and the nearest port. “We need to be seeing roads, power stations, electricity lines, water reticulation and communication networks being built, as well as sector diversification and development of educational institutions.”

 He said that Indaba reflected the large-scale entry of Chinese firms into Africa’s mining sector – now a well established trend and generally welcomed by the host countries. “Africa recognises China’s hunger for mineral commodities to feed its strong economic growth,” said Dixon. “But while some fear that this is a new wave of neo-colonialism, most accept the need for Chinese investment. The onus is on Africa to ensure that mineral investments – from wherever they come – need to be ploughed back into economic development strategies that promote long-term sustainability.”