Economic Sustainability of Small Mining Towns: A Case Study in South Africa

Abstract

Small mining towns are often single-industry towns that turn to ghost towns or face negative socio-economic impacts upon mine closure. This study qualitatively explores the roles that mining companies and other key stakeholders (should) play in the development of local economies of the small mining communities to bring about economic sustainability, employing a constant comparative analysis. A small mining town in South Africa is the case study. Legislative and policy frameworks were scrutinized for their effectiveness in promoting economic sustainability. In-depth interviews with key stakeholders were carried out. Key factors limiting the effective implementation of developmental strategies were also explored. The study finds that weak community involvement, lack of trust, poor collaboration, poor municipal capacity, and legislation and policy flaws impact economic sustainability. Sustainable local economic development efforts are reported though. However, such efforts are insufficient because of the legislation and policy frameworks that are promoting short-term growth. Also, the town’s overdependence on the mining company, local government not optimally fulfilling their roles and responsibilities, and minimal community members’ participation on local economic development are other hindrances. However, the fact that the mining company and local municipality do acknowledge the shortcomings in their efforts towards promoting economic sustainability is a promise in minimizing the socio-economic effects of mine closures.