Assessing the Socio-Economic Impacts of Mining: Case Study of the Landau Colliery, South Africa

Abstract

This chapter analyses the socio-economic impacts of the Landau Colliery in South Africa, an operation of Anglo Coal. The aim is to contribute to an understanding of how large-scale mining activities in low and middle income countries can enhance socio-economic development, and what the components of “success” are. The project was undertaken by Anglo American and follows largely the methodology of the International Council on Mining and Metals’ Resource Endowment Initiative. The study firstly assesses the extent to which a South African mine contributes towards achieving the Millennium Development Goals, and secondly investigates the nature and components of “success”, including the key elements that help to bring it about, and the steps needed to advance it further. The study shows that within a context of transformation and required social and infrastructural development, the mine has achieved positive contributions in terms of procurement, employment, human capital development, social, business and community development, and economic contributions (contributions to government revenue, GDP and exports, and the host economy). Positive contributions have particularly benefitted local communities and previously disadvantaged South Africans. Furthermore, efforts have been made to contribute towards creating sustainable communities post closure in 2025. Additionally, the study highlights weaknesses that have restricted achievement of the full potential benefit of the mine. These are largely the result of a lack of collaboration between the communities, the mine, government, NGOs, and other players in the private sector. The study concludes with recommendations for improving the mine’s socio-economic contribution, most of which require the urgent need for more coordinated efforts.