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'Mining facing a crisis of legitimacy'

Mining in South Africa is facing a crisis of legitimacy as support from local communities and the broader society is waning‚ said Chairperson of the Bench Marks Foundation Bishop Jo Seoka.

Speaking at the annual meeting of the watchdog NGO in Johannesburg on Monday‚ Bishop Seoka said never before in the industry’s history had mining faced so many community protests‚ strikes and negative reports of various issues.

“Throughout our ten years of research and thirteen published studies on the corporate social responsibility of the industry‚ we have always found that companies fall short with regard to the accuracy of their reporting and lack of real sustainable action on the part of the mines with regard to water contamination‚ air quality‚ and human health issues‚” said the bishop.

“There are winners and losers in mining‚ and unfortunately those that are on the losing side are always the communities surrounding the mines.

“Besides the obvious effects of mining‚ like those of the environment and health‚ communities suffer land contestation issues‚ land use‚ land loss and loss of livelihoods‚” said Seoka.

The most important issue‚ he said‚ was that communities were not treated with dignity. He also pointed to the disparities in wealth in the industry‚ and said mining activity destroyed health and well-being for most people while generating profits for those far removed from the workers.

He said workers wanted a living wage and decent work that allows for savings‚ family and child care needs‚ and decent family accommodation.

 “Workers are no fools‚ they know they extract the minerals at a huge human cost to themselves‚ but see a disproportionate amount of what they produce in Rands and Cents going to the CEOs and managers’ salaries as well as dividends to shareholders.

“This of course will create instability and social unrest which manifests itself in never-ending strikes.

“My call is for mining companies to operate transparently and honestly and to act responsibly. They need to create a situation where they are prepared to share the proceeds of production in a way that promotes the common good.”

Investors should not give mines the legitimacy they seek until they “brought honesty into the equation”. “Mines must fully disclose the impacts of their mines and what communities can expect‚ and how they will deal with it all.”