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.
Similar content being viewed by others
References
Andrews-Speed, P., Ma, G., Shao, B., & Liao, C. (2005). Economic responses to the closure of small-scale coal mines in Chongqing, China. Resources Policy, 30(1), 39–54.
Banchirigah, S. M. (2008). Challenges with eradicating illegal mining in Ghana: A perspective from the grassroots. Resources Policy, 33(1), 29–38.
Block, A., & Owusu, G. (2012). Linkages in gold mining industry: Challenging the enclave thesis. Resources Policy, 37(4), 407–442.
Botha, N. A., McFaul, S., & Xavier, A. (2014). Economic diversification of the mine closure: An analysis of Misima Mine case. In Proceedings of closure solutions, 26–30 April 2014, Ouro Petro Minas, Brazil.
Bryceson, D., & MacKinnon, D. (2013). Eureka and beyond: Mining’s impact on African urbanisation. The Journal of Contemporary African Studies, 30(4), 513–537.
Bryman, A. (2012). Social research methods. New York: Oxford University Press.
Carring, K., & Hogg, R. (2011). The resource boom’s underbelly: Criminological impact of mining development: Australia and New Zealand. Journal of Criminology, 44(31), 445–453.
Chaudhry, K., & Karl, T. (2001). Booms and busts: Theorising institutional formation and change in oil states. Review of International Political Economy, 8(1), 163–180.
Costa, S. S. D. S. (2016). Mining tourism and geotourism: An alternative solution to mine closure and completion. https://www.researchgate.net/publication/314142184.
Ennis, G., Tofa, M., & Finlayson, M. (2014). Open for business but at what cost? Housing issues in boom town, Darwin. Australian Geographer, 45(4), 447–464.
Ford Foundation. (2004). Building assets to reduce poverty and injustice. New York: Ford Foundation.
Hirschman, A. O. (1981). A general linkage approach to development with reference to staples. Essays in trespassing: Economics to politics and beyond. London: Cambridge University Press.
Krause, R. D., & Synman, L. G. (2014) Rehabilitation and mine closure liability: An assessment of accountability of the systems to communities. Paper presented in the 9th International Conference of Mine Closure, 1–3 October, 2014, Sandston, Johannesburg.
Laurence, D. (2006). Optimisation of the mine closure process. Journal of Cleaner Production, 14(3–4), 285–298.
Lawrie, M., Tonts, M., & Plummer, P. (2011). Boomtown, resource dependence and socio-economic wellbeing. Australian Geographer, 42(2), 139–164.
Mackintosh, W. A. (1923). Economic Factors in Canadian History. Canadian Historical Review, 4(1), 12–25.
Marais, L. (2013). The Impact of mine downscaling on the Free State Goldfields. Urban Forum, 24(4), 503–521.
Marais, L., Nel, E., Van Rooyen, D., & Lenka, M. (2015). Mine closure, the resource curse and Marikana flu: Responses to mine downscaling in Matlosana and Matjhabeng. Economics of regions learning networks (ERLN). In Conference-economies of regions: Economic development at the sub-national level, 14–16 October 2015, Pretoria.
McDonald, P., Mayes, R., & Pini, B. (2012). Mining work, family and community: A spatially-oriented approach to the impact of the Ravensthorpe Nickel Mine closure in remote Australia. Journal of Industrial Relations, 54(1), 22–40.
Mengwe, M. S. (2010). Towards social impact assessment of copper-nickel mining in Botswana. Ph.D. Thesis, Nelson Mandela University, Port Elizabeth.
Moser, C. N. O. (2006). Asset-based approaches to poverty reduction in a globalized context: An introduction to asset accumulation policy and summary of workshop findings. Brookings global economy and development, Working paper 01.
Murray, R., Baldwin, J., Ridgway, K., & Winder, B. (2005). Socio-economic decline and adaptation: South Yorkshire’s former coalfields. Local Economy, 20(4), 344–359.
Ntema, J., Marais, L., Cloete, J., & Lenka, M. (2017). Social disruption, mine closure and housing policy: evidence from the Free State Goldfields, South Africa. Natural Resources Forum, 41(1), 30–41.
O’Faircheallaigh, C. (2013). Extractive industries and indigenous people: A changing dynamics? Rural Studies, 30, 20–30.
Perry, M., & Rowe, T. E. (2015). Fly in fly out, drive in drive out: The Australian mining boom and its impact on local economy. Local Economy, 30(11), 139–148.
Petrova, V., Lockie, S., Rolfie, J., & Ivanova, G. (2009). Mining development and social impacts on communities: Between two case studies. Rural Society, 19(3), 211–228.
Rawashdeh, R. A., Campbell, G., & Titi, A. (2016). The socio-economic impacts of mining on local communities: The case of Jordan. The Extractive Industries and Society, 3(2), 494–507.
Rixen, A., & Blangy, S. (2016). Life after Meadowbank: Exploring gold mine closure scenarios with the residents of Qamini’tuaq (Baker Lake), Nunavut. The Extractive Industries and Society, 3(2), 297–312.
Robinson, I. (1962). New industrial towns on Canada’s resource frontier. Chicago: University of Chicago.
Statistics South Africa. (2011). Statistics South Africa, 2011. Pretoria.
Watkins, M. (1963). A staples theory of economic growth. Canadian Journal of Economics and Political Science, 29(2), 141–158.
Yin, R. K. (1994). Case study research: Design and methods (2nd ed.). Thousand Oaks, CA: Sage.
Acknowledgements
This paper is funded by the University of Mpumalanga (UMP), South Africa. The authors are grateful for the support given by UMP.
Note
Alphabetical letters have been used for the respondents to ensure their anonymity, as follows:
Respondent A
Respondent B
Respondent C
Respondent D
Respondent E
Respondent F
Respondent G
Respondent H
Respondent I
Respondent K
Respondent L
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Siyongwana, P.Q., Shabalala, A. The socio-economic impacts of mine closure on local communities: evidence from Mpumalanga Province in South Africa. GeoJournal 84, 367–380 (2019). https://doi.org/10.1007/s10708-018-9864-5
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10708-018-9864-5