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National mineral policies and stakeholder participation for broad-based development in the Southern African development community (SADC)



This paper explains how the well-accepted concept of improved stakeholder participation during mineral policy development leads to a national mineral policy that accommodates the diverging views and interests that allows wide acceptance of decisions, enhancing the success of implementation and, ultimately, national benefits. This process is based on lessons learnt during the South African experience and has been successfully applied in the development of the Namibian and Malawian national minerals policies. An effective policy in the SADC will engineer the delicate balance between poverty reduction and an internationally competitive minerals sector. This balance enhances the possibility of long-term economic growth and development in the SADC region. The overriding advantage of this strategy is that it generates ‘home-grown’ policy instruments and implementation of mineral law with which stakeholders can identify. This process presents a new challenge to traditional policy formulation strategies in emerging economies and the bottom-up approach, linked to wide political support, allows the potential realisation of national objectives.
Resources Policy 31 (2006) 231–238
National minerals policies and stakeholder participation for
broad-based development in the southern African development
community (SADC)
H.D. Mtegha, F.T. Cawood, R.C.A. Minnitt
School of Mining Engineering, University of the Witwatersrand, Private Bag 3, WITS 2050, South Africa
Received 9 March 2006; received in revised form 7 August 2006; accepted 1 March 2007
This paper explains how the well-accepted concept of improved stakeholder participation during mineral policy development leads to a
national mineral policy that accommodates the diverging views and interests that allows wide acceptance of decisions, enhancing the
success of implementation and, ultimately, national benefits. This process is based on lessons learnt during the South African experience
and has been successfully applied in the development of the Namibian and Malawian national minerals policies. An effective policy in the
SADC will engineer the delicate balance between poverty reduction and an internationally competitive minerals sector. This balance
enhances the possibility of long-term economic growth and development in the SADC region. The overriding advantage of this strategy
is that it generates ‘home-grown’ policy instruments and implementation of mineral law with which stakeholders can identify. This
process presents a new challenge to traditional policy formulation strategies in emerging economies and the bottom-up approach, linked
to wide political support, allows the potential realisation of national objectives.
r2007 Elsevier Ltd. All rights reserved.
Keywords: Community; Economy; Empowerment; Environment; Government; Investment; Malawi; Mineral development; Minerals policy; Namibia;
NGO; Participation; Policy implementation; Policy harmonisation; Policy-making process; Policy workshops; Poverty; R&D; Regional integration;
SADC; Small-scale mining; Social; South Africa; Stakeholder; Sustainable development; Training; Value-addition
The minerals sector is a basis of reconstruction and
development in many Southern African Development
Community (SADC) countries (MEPC, 2001a, b;ANC,
2005). Traditionally governments have developed minerals
policies mostly with the aim of attracting foreign direct
investment (Mate, 2001). Unfortunately, the public percep-
tion has been that mineral rents only benefited govern-
ments and private companies (Clark, 2001)while the local
people who are more exposed to the negative aspects of
mining, e.g. environmental effects, have felt exploited. In
severe cases natural resource endowments may even be
viewed as a curse, rather than a blessing (World Bank,
Democracy calls for equal participation of all affected
citizens in the identification of issues, problems, solutions
and action plans together with their implementation
(World Bank, 2001). Improved stakeholder participation
in mining processes will impose diverging views or interests
at an early stage and hopefully reduce conflicts. It enables
stakeholders to buy-in or take ownership of decisions,
enhancing the success of implementation and, ultimately,
national benefits.
Participation attempts to address the needs of all
stakeholders, hence a wider spread of benefits. Govern-
ments are major beneficiaries because they will get wide
support of their citizens. If all countries within a region
have a national minerals policy, a regional policy can be
constructed through a harmonisation process. Regional
organisations and the international community assisting
governments and regional blocks would then benefit.
Regional alliances based on similar values are more likely
0301-4207/$ - see front matter r2007 Elsevier Ltd. All rights reserved.
Corresponding author. Tel.: +27 11 717 7403; fax: +27 11 339 8295.
E-mail address: (R.C.A. Minnitt).
to secure international trade without compromising na-
tional objectives and supporting strategies.
The minerals policy construction process illustrated in
this paper has been based on lessons learnt by the MEPC,
academia and the Department of Minerals and Energy
during the South African experience from 1994 to 1998.
The process was successfully applied in the development of
the Namibian and Malawian national minerals policies.
This process may be extended to the rest of the SADC
States and ultimately used for the compilation of a regional
minerals policy.
Review of policy formulation strategies
Policy may be defined as a vision, aspiration and
statement of intent or strategic plan (Leonard and Thomas,
1995), that provides a basis for ensuring predictable
decisions and actions. The purpose is to improve the
quality of life of the populous with available resources
which are usually limited (Rabah, 2005). Policy becomes a
basis for planned work, accountability and evaluation of
progress. Its development is multi-disciplined, with many
stakeholders at different levels (Bourk, 2005). Issues will be
political, social, environmental, economic, scientific or
technological. The various stakeholders will be interested
in, for example, effectiveness, transparency, economic
efficiency, benefits, minimisation of costs and maintenance
of cultural values. This therefore defines stakeholders being
those groups or individuals that either affect or are affected
by the minerals sector (Epps and Brett, 2000).
There are several strategies of developing mineral
policies. Each strategy will result in a different form of
policy document, for example varying from a step-wise
approach attending to specific issues, to fully articulated
policies. The policies take the form of statements by
government officials, positions derived from many pieces of
legislation or stand alone documents (Otto, 1997). All of
these aim to meet national objectives. Broad national goals
in developing countries are similar (Radetzki, 1980). In the
case of the SADC, these are reflected in the Treaty (SADC,
2005a) and the SADC Mining Protocol (SADC, 2005b). A
standardised process would be beneficial to the SADC
countries and the region, since only four
countries have
fully articulated policies. This is despite the mining sector
in the SADC playing significant role in member States’
economies (MEPC, 2001a, b). It is therefore, important to
focus on the minerals sector in order to achieve broad-
based empowerment of the nation.
Structural adjustment programmes
have necessitated
that governments put emphasis on export-led mineral
development and create an economic climate that will
attract foreign investors (Mate, 2001). This cycle of
investment and mineral development has the potential to
generate revenues to governments, which can be used for
broader economic development. Distribution of benefits
between governments and investors can be acrimonious at
times, but some authors have suggested how this can be
equitably shared (Otto et al., 1997;Cawood, 1999).
Globalisation has led to fierce competition for foreign
investment amongst countries that compete with one
another (Otto, 1992). even though they have dissimilar
geological endowments. For foreign direct mineral invest-
ment to take place in Africa, several recommendations
have been made to governments (Maponga and Maxwell,
2001;Aylward, 1995;Matshediso, 2002).
Traditional mineral policy is aimed at attracting foreign
private investment such that public taxes can be used for
social investment and economic development. The tradi-
tional strategy of mineral policy development and im-
plementation has been used over the past three decades
(Buck and Elver, 1970). The process may remain a desk
study exercise to deliver a high-level policy for government,
based on science and sound economics. It is also realised
that policy-making requires special skills (Leman and
Nelson, 1981). To implement policy, conflict with industry
is normally managed through either mineral development
agreements (Salmasi et al., Undated;Brower, 1987). or
separate legislation. Most of the SADC States’ mineral
policies have been constructed through this traditional
process and in some cases policy has been derived from
several pieces of legislation and pronouncements from
government officials.
The policy-making process cannot ignore political
history, as illustrated in the relationship between mining
and political economy (Machado and Figueiroa, 2001), in
Brazil, a country with the largest economy in Latin
America and enormous mineral potential. Initially, invest-
ment and production were meant to benefit only the
Portuguese. Promotion of mineral development was made
through piecemeal changes in legislation and decrees, with
rewards going mainly to discoverers of mineral deposits.
Recent provisions in the constitution together with
subsequent changes in mining legislation and other codes
(Diagem, 2005), have meant that the mineral law frame-
work is better able to support the principles of sustainable
Canada’s declining share of global exploration expendi-
tures in the 1990s compared to the 1980s, which was
attributed by industry to the public not supporting the
sector (MEPC, 2001a, b), resulted in that country provid-
ing a new concept of minerals policy development. The
Whitehorse Mining Initiative brought together major
stakeholders to discuss issues that were important to
industry competitiveness. As a result of this initiative,
companies started paying greater attention to communities
around mining projects, and the recommendations also
formed the basis of the Minerals and Metals Policy.
Developing a minerals policy in South Africa was a
unique experience due to the historical private ownership
South Africa, Namibia, Malawi and Tanzania.
Wide-ranging policy changes, e.g. liberalisation, diversification and
management of public sector expenditure as introduced by the World
Bank in the 1980s.
H.D. Mtegha et al. / Resources Policy 31 (2006) 231–238232
of mineral rights and subsequent apartheid system, which
denied the majority black people the opportunity to fully
participate in the economic activities. To change from the
prevailing practices at the time to be in line with
democratic ideals while ensuring that the sector remained
competitive and without disruption, required negotiations
of positions on relevant issues (Dale, 1997). The major
stakeholders were government of national unity, the
industry and labour. Several issues were identified and
policy positions were agreed upon, eventually forming a
Minerals and Mining policy for South Africa.
Alternative strategy
Full participation of stakeholders takes into account
several factors that have occurred globally. These factors
include (Pring, 2001), the concept of sustainable develop-
ment; environmental movements; international financial
institutions’ requirements; human rights regimes; indigen-
ous peoples’ organisations and local communities; and
information technologies. In addition, democracy has
given citizens freedom of choice and participation in the
political and economic affairs of their countries. At the
same time, there are problems including poverty, corrup-
tion (Bray, 1999), and HIV/AIDS that must be addressed
by wider participative groups. Unfortunately roles of local
communities in governance are often ignored and state
employees have difficulties in conceding that they are less
knowledgeable than the locals who live surrounded by their
natural resources (Taylor, 1998). In some cases economic-
ally correct state-of-the art solutions have not produced the
desired results because local communities had not been
included in the decision-making processes (Lawrence et al.,
The sustainable development framework in mining
should also be articulated by the decision-making processes
it promotes (MMSD, 2002). The involvement of relevant
stakeholders, who include Non-Governmental Organisa-
tions, communities, academia and labour, should reflect
their preferred decisions about the distribution of benefits
and costs associated with mineral development. The special
significance for the involvement of a range of relevant and
appropriate stakeholders lies in the unique nature of the
mineral sector. Firstly, the extractive nature of mining
results in environmental degradation. Secondly, benefits
can only be extracted during the life of the mine while costs
may continue long after mine closure. Thirdly, the mineral
sector must be integrated with and support the broader
economy if the benefits are to be sustainable. Thus
stakeholder engagement will ensure wider inputs, promote
community development, and enhance stable, enduring
partnerships among stakeholders.
Policy-making in developing countries is rather different
from that in developed countries (Moharir, 1991). The
difference emanates, firstly, from fewer resources in
developing countries that are available for allocations to
various sectors. Secondly, NGO’s in developing countries
play smaller roles in advocacy and are less influential.
Thirdly, criteria for policy-making may be based on
different factors, which require different challenges and
innovative approaches. For example, South Africa’s
unique national minerals policy and supporting legislation
are the outcomes of balancing diverse positions on key
mineral development issues.
The evolution of minerals policies since the Second
World War showed the following trend in the developing
The demise of colonialism caused policies to favour
states and political leaders (1945 to 71960);
The demise of communism caused policies in favour of
the foreign investor and states (71960 to 71978); and
The rise of democracy caused increased attention on
poverty and disease in resource-rich developing nations
Therefore new approaches are needed.
The proposed strategy
The participatory stakeholder process that is proposed
here builds on the traditional strategy (World Bank, 2005).
Although it is sensible that the facilitator (and perhaps
the coordinator) of the process is independent, it is in the
national interest that ownership should remain with the
national ministry. This process (Mtegha, 2005), provides
stakeholders with opportunities to bring on board issues
that are close to them and suggest solutions, thereby
obtaining consensus and responsibility at formulation
stage. As a consequence stakeholders take ownership and
obtain buy-in of the product at an early stage, which is
more likely to result in the acceptance of the policy and a
smoother implementation of instruments. For public or
stakeholder participation in the complexities of mineral
policy developments, aligning diverse interests requires
processes that are structured and the use of specialised
facilitation skills (ICMM and WB, 2003).
The process of mineral policy development employs a
combination of techniques such as workshops, community
forums, consultations, discussions and so on, thus invol-
ving the participation of a wide range of stakeholders in a
transparent and consultative manner. The strategic policy
planning model presented in Table 1, has the advantage of
building on rational political decision making, which is
inductive rather than deductive. Stakeholders take a stance
on issues, which by definition are highly divergent, but in
the course of participation in the workshops and discus-
sions, politically acceptable solutions emerge. In this way a
reasonable level of agreement among stakeholders is
taken as the consensus. This process endorses the emphasis
on issues through political decision-making and seeks,
through a process of feedback, to inform the formulation
of the policy.
H.D. Mtegha et al. / Resources Policy 31 (2006) 231–238 233
Stakeholders are identified at different levels. At the
higher levels of government and industry, this is normal
and easy to identify sectors that impact of are impacted by
mining, including defined government departments, indus-
try, labour, academia, NGO’s, development or donor
agencies, associations, among others. At a lower or village
level, stakeholders are concentrated in areas, regions or
zones where mining activities occur. In here cross-sections
of stakeholders are identified including chiefs, local
politicians, small-scale miners, households, associations
(e.g. womens’ groups), business people, farmers and others
that may be present.
Stakeholders differ in background, education, under-
standing of the sector and many other variables. For local
people in the villages, consultative workshops are structured
differently, where documents are not distributed in advance.
Verbal explanations are made and discussions ensue where
views are recorded. In addition, where necessary, focus
group discussions with fewer people are used, which
normally produced very detailed views from local people.
The use of specialised NGOs is conducting these rural
workshops is very useful. In principle, views are sought from
different stakeholders before a select number can attend the
national workshop down the line. Facilitation of a national
workshop with several different stakeholders also calls
special skills as one stakeholder group can easily dominate.
There are generally three primary phases in the process
of mineral policy development including, information
gathering, information analysis and strategic development;
these are summarised in Table 1. The international scan
provides information on social, environmental, economic,
and political issues that would enable a national mining
industry to be benchmarked against international trends
and challenges. The local mining scan provides a historical
and current context for the local mining sector, which
includes experiences of failure and success of previous
policies and actions. It is advisable to have a comprehen-
sive understanding of the local and international context
for mineral development in order to plan for the future
(Otto and Cordes, 2002). The local economy scan provides
an overview of the national economy, covering the
constitution, development policies, national objectives
and goals, strategies, performance of constituent sectors
and their relationship to the mineral sector, business
practices and the role of the mineral sector itself in the
Through a structured and facilitated workshop, stake-
holders rigorously analyse the background documents
to identify issues, challenges, opportunities and threats
facing the sector. In addition, scenarios are used to
examine future potential realities that might provide new
opportunities or challenges requiring new solutions (De-
partment of Arts, Culture, Science & Technology, 1997).
The use of scenarios improves the quality of strategic
thinking, generates new ideas about the future, and
anticipates and recognises change. The aim is to con-
solidate the issues and categorise solutions into themes,
and rank these in order of importance. The themes form
the foundation and provide strategic direction for the
development of a minerals policy document. At this stage a
preliminary draught is prepared for country-wide consulta-
tion, either through written submissions to the policy
developers or recordings of specific oral comments from
communities for example.
The second national workshop includes a wider stake-
holders’ participation than the first. The purpose of
this workshop is to discuss the various views and
concerns, and reach consensus in most key issues.
The output of this workshop is essentially a draught
policy document with fully articulated themes. The
document is then passed through a peer review group.
A key component of this process is a critical examination
of the policy statements to ensure that they address
each of the objectives of the mineral sector as well as
being congruent with the national objectives. It provides
the opportunity for the policy-makers to confirm
links between the mineral sector and the national goals.
The final product of the consultative process is thus
balanced by the perception and prerogative of government
on investment and the requests of other national
stakeholders. This is consistent with analysis of host
government positions in relation to foreign investment
(Barberis, 1998).
Table 1
Summary of policy process
Stage 1: Background documentation
International mining/mineral scan;
Local mining/mineral scan; and
National economy scan.
Stage 2: Issue identification
Through a structured national workshop of stakeholders and
knowledgeable people, identify issues and possible solutions. Typical
stakeholders are industry, government departments, labour, academia,
chiefs, local representatives, donor community, NGOs.
Stage 3: Issue evaluation
Carry out nationwide consultations through workshops and written
responses/comments. To communicate with local people structure village
workshops differently; use focus group meetings; record verbal views and
comments; take time and patience. Village stakeholders will include chiefs,
local politicians, small-scale miners, business people, traders, local
associations (e.g. women groups).
Stage 4: Reconciliation
Through a second national workshop of stakeholders, reconcile different
views and develop policy instruments. Cluster policy instruments into
themes. Combine representatives of all stakeholder groups; structured and
skilled facilitation to ensure balanced views from all stakeholders. The
outcome of this stage will result in a draft policy compiled under the
supervision of the coordinator.
Stage 5: Policy review
Review policy through a peer group of stakeholders (a small group of
selected members), to confirm that different interests are taken into
consideration and national objectives are addressed.
Stage 6: Policy implementation
Implement policy by developing an implementation plan, committing
resources and support policy with appropriate legislation.
H.D. Mtegha et al. / Resources Policy 31 (2006) 231–238234
Application of the proposed strategy
The general view of stakeholders during the policy
workshops was that their earlier inclusion in the decision-
making processes would have resulted in more appropriate
and tangible benefits for affected stakeholders. These
benefits from the minerals sector would have been achieved
through better management, control of activities, sharing
of benefits and partnerships (governments and other
stakeholders). In this paper, the resulting policy instru-
ments for each of the three countries, South Africa,
Namibia and Malawi, were clustered into the following
nine themes, which are characteristic of many issues that
were raised.
The themes include promoting the mineral
sector, social issues, small-scale mining, value-addition,
environment, training, research, development and technol-
ogy, governance and regional integration.
The results of an analysis of the themes in the three
countries showed similar areas of concern for all stake-
holders. Generally there were a greater number of policy
instruments for themes of greater importance, individually
or in aggregate for the three countries. See Appendix A. The
following order of importance was established: social issues
came first followed by small-scale mining, promoting the
sector and governance, environment issues, value-addition
and research and development (R&D), and finally regional
integration and training. Ranking in order of importance
was based on the number of issues in each theme. The more
issues in a theme the greater the concerns at the stakeholder
level. The approach taken of attributing a higher importance
to the number of policy instruments may be questioned
because a very important policy issue might be contained in
only one policy instrument. However, the process of
extensive stakeholder participation demands that all issues
should be visible in the policy instruments.
Social issues
Social issues are a top priority owing to inherent poverty,
particularly in rural communities that are more likely to
experience disruption of their life styles through mineral
development, and in locations where inhabitants see
mining operations as an opportunity for alleviating this
status. The social issues included, community participa-
tion, HIV/Aids, gender, preference to locals, health and
safety, benefit-sharing with communities, joint-ventures
with communities, compensation, rehabilitation of the
disabled, housing conditions, worker participation, bar-
gaining councils, managing job losses and final closure.
The majority of people living around or close to mineral
developments, most of whom are previously disadvan-
taged, now have an expectation of benefiting from the
activity taking place in their midst.
Extractive industries by nature require large inputs of
capital and in developing countries in particular, this has
more often than not been sourced from foreign direct
investment. Thus mining is perceived to be the somewhat
exclusive domain of large multinational companies. Be-
cause of the way in which agreements between multi-
national companies and local governments have been
structured in the past, very little in the way of obvious
benefits have been translated into the local communities.
However the move to sustainable development has ensured
that through local community involvement and appro-
priate governance structures, that the benefits of extraction
are more equitably shared. In short, the social issues are
closest to the hearts and minds of local communities
because, with the right administrative structures, tangible
benefits could be accessed by them within the immediate
Social issues touch the general well-being and upliftment
of citizens of a country and Governments, through the
responsible ministries, are therefore under more pressure to
deliver on this theme than others. Communities at all
levels, local, regional and national have become sensitised
to the way their natural resources are exploited by foreign
interest and multinationals now, must not only to be legally
compliant, but are also required to earn the social right-to-
mine through appropriate community engagement. The
sensitivity around social issues requires that government
intervention be proactive rather than simply allowing
extractive companies to negotiate this important aspect
of the social right-to-mine with local communities, entirely
on their own.
South Africa is a good example of the way in which
government can translate a comprehensive policy docu-
ment into a workable legislative framework. The legislation
is promulgated through the Minerals and Petroleum
Resources Development Act (MPRD, 2002),but it is also
supported and interpreted in the Charter,
and Score Card
(General Notice 1639 of 2004), which constitute guidelines
for appropriate implementation of the policy. The Charter
spells out the responsibility of industry in achieving the
goals and actions appropriate to their necessary social
obligations and the Score Card provides a checklist for
adherence to each of the targets.
Small-scale mining
Small-scale mining issues came next in line because the
sector provides opportunities for a vast majority of the
local populous to participate in mining. It normally has
lower barriers to entry with low capital requirements
amongst others. Small-scale mining provides opportunities
closer to home, and in many cases it also becomes part of
village activities with minimum disruption of the tradi-
tional fabric of life. In addition, it provides an alternative
to or complements other income generating activities, when
for instance rain-fed agriculture cannot provide adequate
Mining and mineral policies of South Africa, Namibia and Malawi.
Section 100 of the Mineral and Petroleum Resources Development
H.D. Mtegha et al. / Resources Policy 31 (2006) 231–238 235
food in times of drought. Small-scale mining provides
immediate alleviation of, and benefits to, the top-priority
social issue to local populations where minerals are located.
By the nature of the occupation, small-scale miners focus
on the day-to-day recovery of minerals for their survival,
and consequently tend to be less preoccupied with other
mineral-related issues.
Government responsibilities
The third most pressing issue was related to government
responsibilities, on which the stakeholders wished to see
delivery. These include expectations about government’s
responsibility to create an enabling environment that will
attract mining investment and to aspire to good govern-
ance. Again, democracy raises a lot of expectations from
governments by the electorate. People expect governments
to be effective, transparent and ensure that benefits flow to
the citizens.
Understandably environmental issues are less important
in the hierarchy than social issues. This is because hunger is
a condition that cannot be postponed and policy makers
are more preoccupied with addressing poverty than
preserving the environment. Unless environmental issues
can be incorporated into the need to alleviate immediate
poverty, it may not be possible to make stakeholders
environmentally responsible.
Value-addition and R&D
These themes are more remote from the public concern
about mineral policy and development. In fact these issues
are critical to ensuring greater benefits and competitiveness
for countries incorporated in the global economy and
should be encouraged and driven by state incentives
(examples are the auto-catalyst plants at Wadeville and
Port Elizabeth in South Africa) and their overall respon-
sibility for the sector and the nation at large.
Training and regional integration
Again, these are areas of government responsibility
requiring proactive initiative to promote national growth,
development and engagement in the global mineral
economy and trade. These issues are more remote from
the general public, especially the vast majority of peoples
whose livelihoods are threatened by rampant poverty.
In summary, the majority of stakeholders preferred
greater attention to the issues clustered as social, small-
scale mining, mining promotion and governance imple-
mented as the results demonstrated.
Approaches to mineral policy formulation that involve
the participation of a diverse group of stakeholders, lead to
policies that incorporate broad national, social, and
economic development objectives. The interactive nature
of the policy formulation process is such that almost all
social and economic development aspects are raised and
addressed during the proceedings. In addition it is clear
that participants give preference to issues about which their
constituencies have the greatest concern, notably those that
affect their daily lives. In the past these issues have not
normally been thought of as priorities by multinational
investors, but the tenets of sustainable development are
increasingly forcing companies to engage with the areas
where previous market failures benefited investors.
The large-scale buy-in to sustainable development, by
extractive companies generate unanimity on the impor-
tance of engaging the interests and issues of all stake-
holders in a meaningful and appropriate manner. Since
mineral policies should be all inclusive, it is imperative that
they are swiftly and decisively implemented in order that
national goals and objectives can be met and promoted.
Implementation of the policy must be accompanied by
articulation of the policy instruments into mineral laws,
subsidiary legislation and other structures with the appro-
priate human skills and capacity to administer such a
policy. Mineral legislation that incorporates social, envir-
onmental, economic and governance issues is preferred by
a majority of companies (Matshediso and Cawood, 2005).
A regional minerals policy
A carefully compiled minerals policy that is able to
accommodate the differences between states could be
applied at a regional level and could lead to harmonisation
(UNECA, 2004), in the sector. Benefits of harmonisation
include provision of an environment that has larger
markets; higher capacities; larger technical and managerial
skills; and increased ability to respond to environmental
and sustainable development challenges. This would lead
to minimisation of competition between the countries in
the region, save for country-specific issues like sovereignty,
geological prospectivity, mineral commodities being
sought; and the level of economic development.
To advance a possible regional minerals policy, common
elements and synergies in each theme from individual
countries are identified. Care should be taken to exclude
country specific issues from the policy for fear of
prejudicing or favouring one country over another. The
issues or concerns for each theme are summarised to form
the background situation in each case. Acceptance of the
mineral policy at a regional level should then be followed
by the implementation of policy instruments in each theme.
These policy instruments serve as an indication of the
thrust of the policy in a region and should result in the
alignment of policies, laws, regulations, guidelines, and
codes in all themes or focus areas. Policy instruments could
apply to almost all member countries in a region and may
be used as a benchmark against which other country
policies may be compared, especially where there are wide
variations. Furthermore, one regional mining law could be
H.D. Mtegha et al. / Resources Policy 31 (2006) 231–238236
developed if these policy instruments are translated into a
legal framework.
Developing a mineral policy or strategy does not
guarantee successful policy implementation because the
two are different. While policy planning and development
is an intellectual process, policy implementation is opera-
tional in nature. A good policy needs to be followed up
with an implementation plan; otherwise it is as bad as
having no policy at all. If these policy instruments are
implemented through the development of laws, activities,
resource allocation, responsibility allocation and appro-
priate time frames, they should produce a delicate
balancing of:
poverty and disease reduction among the majority of the
poor in a region, with;
a competitive regional minerals sector.
This balance will enhance the possibility of long-term
economic growth and development in the region. The
overriding advantage of this strategy is that it generates
‘home-grown’ policy instruments and therefore mineral law
for implementation, to which stakeholders can identify
The emphasis of the traditional strategy of developing
policy was concentrating on taxation flows to central
governments, for them to attend to the broader economy.
This paper has suggested that since the Second World War
the beneficiaries of this strategy were states, heads of
governments and foreign investors. Poverty, disease pre-
valence, and in some cases political instability in mineral-
rich areas, exposed the shortcomings of the traditional
The consultative and participatory processes involving
interested and affected parties with diverse agendas within
a democratic setting, ensures that human rights are
respected and that transparency is entrenched. The seeking
out of consensus among stakeholders means that mutually
acceptable policies can be introduced and consolidated.
The strategy also ensures that stakeholders not only
understand, but take ownership, of the policy that is being
A mineral policy generated from consultative and
participatory processes should address issues for the
country, while at the same time taking note of and
accommodating the concerns or needs of the investor.
The issues that are covered include those that are consistent
with sustainable development and in line with global
A useful mineral policy requires the implementation of
the relevant policy instruments to meet national objectives.
Since this strategy results in policies that are clearly
articulated in detail, and in some cases include operational
detail, the conversion of policy into law
should enable the
sector to contribute to the broad national economy.
Appendix A
Table A1 shows the analysis of themes by number of
Table A1
Analysis of themes by number of issues
Country Namibia Malawi South Africa Total for three countries
Policy themes No. of policy
per total for
country (%)
No. of policy
per total for
country (%)
No. of policy
per total for
country (%)
Total number
of policy
Total policy
for the three
countries (%)
Social issues 8 17.02 10 18.18 12 20.0 30 18.58
6 12.77 10 18.18 11 18.33 27 16.66
Promoting the
6 12.77 8 14.55 7 11.67 21 12.96
Governance 5 10.64 7 12.73 8 13.33 20 12.35
Environment 5 10.64 6 10.91 7 11.67 18 11.11
Value-addition 5 10.64 5 09.09 4 06.67 14 08.64
R & D 4 08.51 5 09.09 5 08.33 14 08.64
5 10.64 2 05.45 3 05.00 10 06.17
Training 3 06.38 2 05.45 3 05.00 8 04.94
Total 47 100 55 100 60 100 162 100
The people-centred strategy proposed here will result in some policy
instruments too unique for implementation through law. This will require
special structures sufficiently resourced for this purpose.
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... Participatory or multi-stakeholder involvement principles support governments through a deliberative process of collecting and generating knowledge to successfully address societal challenges [45] and guarantee greater commitment, follow up implementation, and acceptance for state-designed intervention [55]. This is particularly important in the context of the multi-dimensional and multi-stakeholder challenges inherent in the sustainable mineral supply through NMS [11,[56][57][58][59][60][61][62][63][64]: Issues concerning the social licence to operate (e.g., Prno and Slocombe [64]), mining impacts on ecosystems (e.g., Bridge [56]), long-term business investment decisions for exploration and extraction, etc., all involve a large number of diverse stakeholders that are directly or indirectly impacted or involved. These factors are crucial to facilitate legitimacy of policy options and steering in this multi-stakeholder and multi-issue setting of mineral supply. ...
... Since primary extraction challenges necessitate such multi-actor approaches (see also [4,5,64]), these policy strategies, on the one hand, contribute to increased legitimacy for steering, and, on the other hand, facilitate implementation of individual actions. More specifically, as outlined by several authors [11,57,60], establishing more inclusive participation can positively impact, for example, on public perception of mining or the social license to operate. Conversely, while the Greek NMS identifies conflicts with local communities for on-going and future mining projects as one of the major drivers for its inception, Non-GO involvement during both design and implementation remained limited. ...
... (ii) increased legitimacy for steering; (iii) design and implementation of policy instruments (e.g., land use planning tools or licensing procedures considering civil society interests); or (iv) translating these efforts or attitudes into a local context, where social license to operate is particularly relevant. Creating this arena and culture for participatory decision-making in NMS potentially facilitates trust and cooperation among actors in sustainable mining projects on the ground [5,60,64]. Conversely, in Greece, where, according to Menegaki and Kaliampakos [8] (p. 1437), "reactions against mining remain intense", efforts on participatory policy-making are marginal compared to other EU MS NMS and, thus, may cause less favourable framework conditions. ...
Full-text available
The achievement of sustainable development (SD) in the supply of minerals poses significant challenges for governments and public administrations on all levels, because ensuring a sustainable supply constitutes a “wicked” problem that has no clear set of alternative solutions due to its social, institutional and scientific complexities. This paper explores how this problem is addressed through “governance for SD” principles (horizontal policy integration and participation; long-term vision/short-term action; and reflexivity and learning) in the design and delivery of national mineral policy strategies (NMS) in five EU Member States (Austria, Finland, Greece, Portugal and Sweden). Following a grounded theory approach on data collected through document analysis and complementary qualitative interviews, the author identified several analytical categories for the selected governance for SD’ principles. Although no “one-size-fits-all” recipe for best practice on governance for SD exists in the five NMS, Finland, Portugal and Sweden meet high standards: These NMS display practical examples of governance for SD integration and, thus, lay the foundations for achieving policy outcomes in the sectoral policy strategies of the mineral supply.
... Given this situation, research developed to establish strategies in ASM that allow for achieving sustainable development [234] through an analysis of social, political, economic, environmental, and health aspects [235][236][237]. Some examples of this type of action are: (i) the implementation of design thinking and multi-criteria decision analysis of ASM [238], (ii) national minerals policies and stakeholder participation in planning decisions [239], (iii) collaboration between the LSM and ASM, for the benefit of the communities [240], and (iv) integration of scientific and local knowledge in the planning of the remediation of contamination by ASM [214,241]. ...
... These studies lay the groundwork for issues that must be mitigated and eliminated. The analysed database reflects that, over time, studies developed that focus on solutions to problems generated by ASM (e.g., [238,239,241,253,256,268,278,294,318,319]). However, despite the worldwide importance and impact of research aimed at ASM solutions, it is still scarce (less than 20% of the analysed database). ...
Full-text available
Mineral resource exploitation is one of the activities that contribute to economic growth and the development of society. Artisanal and small-scale mining (ASM) is one of these activities. Unfortunately, there is no clear consensus to define ASM. However, its importance is relevant in that it represents, in some cases, the only employment alternative for millions of people, although it also significantly impacts the environment. This work aims to investigate the scientific information related to ASM through a bibliometric analysis and, in addition, to define the new lines that are tending to this field. The study comprises three phases of work: (i) data collection, (ii) data processing and software selection, and (iii) data interpretation. The results reflect that the study on ASM developed intensively from 2010 to the present. In general terms, the research addressed focuses on four interrelated lines: (i) social conditioning factors of ASM, (ii) environmental impacts generated by ASM, (iii) mercury contamination and its implication on health and the environment, and (iv) ASM as a livelihood. The work also defines that geotourism in artisanal mining areas is a significant trend of the last decade, explicitly focusing on the conservation and use of the geological and mining heritage and, in addition, the promotion of sustainable development of ASM.
... However, despite the various benefits accruing from mining in the Southern African region, local residents (those residing near mining areas and classified as previously disadvantaged people in the SADC region) are of the opinion that mining benefits only the government and the owners of the mines, while communities close to the mines are left to deal with the negative legacies that remain after the closure of the mine. The sentiments of the local residents can be attributed to many factors, including the high expectations of poverty reduction in their midst, which never appear to be realised, and the disruption of their daily activities, brought on as the mining operation displaces them from their original locations (Mtegha et al., 2007). For example, the recent complaints made by some villagers around Mogalakwena Mine in Limpopo, South Africa, against Anglo Platinum, concerning their relocation to a newly-built township (Khuzwayo, 2010). ...
... The issue of monitoring and evaluation is a challenge even in developed economies with strong regulation and international reputation (Chandler, 2014). Bice (2013) makes reference to the plight of communities most affected by resource development and thus most likely to benefit from the social licence, but who are often forgotten, frequently misunderstood and comparatively less researched, and whose roles in governance, are ignored (Mtegha, Cawood, & Minnitt, 2006). The social effects of development also receive far less attention than the biophysical impacts (Franks & Vanclay, 2013). ...
Full-text available
Discussions about the significance of the social license phenomenon have been increasing over the last two decades, yet the trend has been to approach it from a company perspective. Over the same period, there have been increasing challenges in mine-community relations, and company interventions have not led to the desired outcomes. A credible process for achieving a social licence within a complex and historically sensitive context is currently not in place, which has perpetuated the feelings of dissatisfaction and has led to serious conflict between mining communities and companies. The literature revealed a lack of clarity on the role of the community in the process, necessitating an interrogation of the phenomenon from a community perspective. Legitimacy theory was used as the basis of the study. The multi-dimensional and dynamic nature of the study necessitated the use of qualitative methods and an inductive approach, based upon a case study within two South African mining communities. The results of the study demonstrated that communities are limited in influencing the social licence, and this highlighted the need to incorporate community specific legitimacy, which more closely reflects the reality within communities (their diversity, informality, broad representation, and dynamic nature). The lack of agreement (emanating from communities, government and industry) on legitimate community leadership significantly also impacts on the social licence process. Communities are unable to articulate their expectations to mining companies, and the requirements for a social licence are not being satisfied. The study also highlighted the deep and complex nature of discourse transition, and that mining companies must concentrate on understanding context and produce context-specific interventions. This research contributes by extending the theorisation of legitimacy, as it relates to the social licence, by adding the concept of community legitimacy and proposes a community leadership framework, to incorporate this aspect. A conceptual model, which integrates the context-specific nuances, is therefore proposed for sectors which are dependent upon achieving accord with stakeholders via a social contract, and are experiencing increasing complexity and social tensions relating to their operations. Such a framework would facilitate engagement through representative structures and result in a more robust social licence outcome.
... Stakeholder engagement has become increasingly important in the mining industry, and is now being recognised by mining managers as critical to being able to operate their mines (Togolo et al. 2001;Boutilier and Thomson 2003;Guerin 2006a, b, c;Mtegha et al. 2007). The types of stakeholders relevant to mining operations include local, state, and federal governments, communities, landowners, suppliers, and customers. ...
This chapter describes case studies of community engagement and eco-efficiency across the Australian mining and minerals industry. Eco-efficiency includes new processes, systems, and initiatives for improving air quality, energy, and materials efficiency, waste minimisation, improved waste water management, and increased water use efficiencies across several sectors of the mining and minerals processing industry. Specific findings were as follows: (1) environmental and social improvements at operations and within communities in which they operate can realise economic benefits and will not always incur a major financial cost; (2) local communities provide the means by which a mining or minerals processing operation can realise its full potential in contributing to a region's economic and social well-being; (3) improvements to waste management practises and waste prevention can lead to cost reductions or even increased revenues; (4) water efficiency improvements will be needed by any mining company planning to remain viable in the future, particularly in Australia; (5) at the operations level, there needs to be clear commitment from senior management to make the case for change to a more sustainable mining or minerals processing operation; and (6) mining companies need to work closely with businesses and suppliers to identify new processes that enhance the sustainability of their businesses.
... Owing to the lack of success of traditional government strategies that were beneficial for foreign TNCs and some host country governments, mineral policies in developing countries recently changed to also incorporate the interests of groups other than the Government (e.g. local communities, artisanal and smallscale miners, environmentalists) (Mtegha et al., 2006). National and transnational NGOs often support such groups and are increasingly gaining bargaining positions as third party players that are able to aid host governments but also work with TNCs wishing to improve their track record. ...
The literature on the nature, shape and logic of internationalization of extractive industry TNCs is rather fragmented and poorly developed. This is a mounting problem since extractive industries are not only becoming increasingly important, but their operations have also become increasingly controversial. This article takes stock of three types of approaches towards internationalization. First traditional intrinsic motives, which represent an 'international management' angle and focuses on the resource-seeking, efficiency-seeking and strategic asset-seeking nature of extractive TNCs. Secondly, traditional extrinsic motives, which represents a more political economic angle towards extractive industries, and which builds on a bargaining perspective of internationalization. Thirdly, a modern extension of extrinsic motives to internationalization will be added, which considers the increasing role of Non-Governmental Organizations as factor in shaping the internationalization trajectories of extractive industries. This approach represents a 'stakeholder' approach to firm strategies. It considers the societal position of firms and considers the 'license to operate' or the normative position of transnational corporations. A correct understanding of the dynamics of internationalization of extractive industry TNCs requires an integrative approach of extrinsic as well as intrinsic motives. This article delineates the most important ingredients of such an approach.
... Efforts to implement sustainable development practices by mining companies have achieved varying levels of success and impact; scale and corporate motives and commitment often play a part in defining ultimate outcomes. While CSR is frequently a part of national discussion of resource extraction practices in developed countries like Canada [8] and Australia [9], the concept of CSR is gaining traction in developing countries across Africa [10] and South America [11] as well. Past or ongoing examples are available from all corners of the globe, with deliberate corporate interventions ranging from small infrastructure projects, to environmental improvement and management efforts [12], to specific high-priority community health-related projects [13,14], to full-scale community development [15,16] or even attempts toward conflict resolution in war-torn nations such as Angola [17]. ...
Full-text available
Due to the finite nature of non-renewable mineral and energy resources such as coal, resource extraction is inherently unsustainable; however, mining and related activities can contribute to sustainable development. Indeed, the principles of corporate social responsibility (CSR) require that mine operators design and conduct their activities in ways that provide for net positive impacts on surrounding communities and environments. In Central Appalachia, there appears to be a particularly ripe opportunity for the coal industry to put CSR to work: participation in sustainable solutions to the long-standing problem of inadequately treated wastewater discharges—which not only represent a potential human health hazard, but also contribute to the relatively high incidence of bacterial impairments in surface waters in the region. In this paper, we outline the underlying factors of this problem and the advantages of industry-aided solutions in a region where limited economic and technical resources are not always aligned with social and environmental needs. We also suggest a framework for problem-solving, which necessarily involves all interested stakeholders, and identify the primary challenges that must be overcome in pursuit of sustainable solutions.
... In an attempt to answer how a company determines the responsibilities of stakeholders, Cragg et al. (1995) claims that all mining companies require good cooperation with various stakeholder groups such as individuals, organisations, institutions, employees, investors, governments and government departments. The participation of stakeholders in mining processes is considered as a very important factor in reducing conflict between them and the company (Mtegha et al., 2006). Although the dialogue between mining companies and stakeholders may encompass either groups with strong voices (e.g. ...
While several decades ago, discussions regarding corporate social responsibility (CSR) were limited to a small group of academics and parts of the business sector; in the recent past, it has grown to become a complex concept with multiple effects and aspects. It is considered to be heavily influential in the decision making of multinational companies. Regarding extractive multinationals, the need for new areas for extraction of natural resources has predictably caused disputes between corporations and local communities, as well as a plethora of environmental considerations. This article contributes to this debate by addressing the issue of whether the CSR of extractive multinationals really contributes to the sustainable development of developing countries. In addition, reasons for CSR not attaining its potential regarding sustainable development are set out and evaluated. Copyright © 2012 John Wiley & Sons, Ltd.
We investigate whether effective corporate governance mechanisms help improve firm-level community engagement activities, using a sample of Australian mining companies for the period 2005–2013. We firstly document that effective board structure and functionality positively contribute to mining companies׳ community engagement. Secondly, we analyze the components of community engagement and examine each of them individually with governance mechanisms. The results show that the effects on engagement with indigenous people and indirect economic are mostly significant and profound. Thirdly, we hypothesize that firm performance proxied by dividend yield can moderate the relationship between governance mechanisms and community engagement. Our empirical results support this hypothesis, suggesting that dividend yield mitigates the negative effects of the largest shareholders ownership and strengthens the positive effects of board size, board meeting and the presence of CSR committee on community engagement level.
Full-text available
The Katanga province is well known for its copper and cobalt reserves. During the early 2000s a boom of mining projects in Katanga brought again hope for better future to Congolese people. The paper aims to evaluate the impact of recent production recovery on economy and environment. We collected primary and secondary sources on copper industry for economic analysis. We use results of laboratory analysis conducted at the Congolese Office of Control by provincial division of environment for toxicological analysis. The comparison of heavy metal concentration to standards shows that mining industry is the main source of environmental pollution in Katanga. Copper industry generates income for economic growth of the region.
Conference Paper
Full-text available
The SADC Region is well endowed with mineral resources. Geological studies have revealed that the SADC region has one of the richest geological prospects. Many good mineral development opportunities exist in the SADC region. However, over the past few years new exploration and mining development has lagged behind that of other regions with similar mineral endowments. SADC has failed to attract exploration funding for its mineral sector commensurate with its mineral potential. The recovery of SADC's mining sector will require provision of a suitable mineral investment environment including a shift in member states' role from participatory to regulatory. The shift of roles will be best achieved through policy changes on the SADC mining industry's regulation and promotion to enable the private sector to take the lead in mineral development. This paper explores some of the changes necessary to enhance the mining investment potential of the region.
Since 1985, over 90 nations have introduced, or are now working on, new or major revisions to legislation pertinent to the mining industry. In many of these nations, including developed, developing and transition economy nations, efforts to reform mineral regulatory systems have been slow to proceed. The author argues that to facilitate such regulatory reform, it can be useful to undertake changes within the framework of a comprehensive, consensually derived and articulated national mineral policy. To illustrate the types of subject matter that might be addressed in such a policy, a list of possible policy issues are presented in a tabular form. The author does not attempt to prioritise or recommend any particular policy goals and objectives, rather he concludes that a national mineral policy must be tailored to reflect the individual requirements of each nation.
After a general decline in foreign investment in minerals development between the 1960s and the late 1980s, many African nations experienced a resurgence in exploration and mine development activities during the 1990s. This has come as many African nations relaxed investment regulations for overseas investors, and worked to develop new mineral policy regimes more generally. Having considered the decline of the mineral industry in the 1960s, 1970s and 1980s, the paper investigates some of the causes of the recent resurgence. Consideration is then given to the future of minerals and energy in Africa and the potential contribution they might make in assisting further economic development.
The author discusses the proper roles of states and local communities (or user groups) and hybrids thereof ("comanagement") in the governance of common property natural resources, with reference to some recently published works on this theme, notably the important new book by Jean‐Marie Baland and Jean‐Philippe Platteau, Halting Degradation of Natural Resources.
This paper identifies political stability as the most important challenge for improving the flow of mineral‐sector investment into the Southern African Development Community (SADC). This challenge was singled out through constructive analysis of responses to a questionnaire on investor opinion. What is required in SADC before investors will risk their resources is to institute true democracy – a prerequisite for political stability − followed by appropriate policies. Member states must unite in pursuing this simple, but difficult to achieve, strategy. The reason why SADC has not developed commensurately with its mineral potential can best be explained by the fact that the region could not sustain political stability for a sufficiently long period of time. Political stability is the most important SADC requirement for instituting policies that make meaningful differences in the lives of ordinary people. It is imperative that SADC member states all get it right at the same time for a sufficiently long period. Conflict in one state affects the flow of investment to the rest of the region.
Mining is a significant economic activity in many African and Latin American countries and accounts for a substantial part of their fiscal and foreign revenues. The mining sector has undergone a major expansion over the last two decades as part of a process of export-led recovery under Structural Adjustment programmes undertaken in response to the problems of debt and economic under-performance. While the environmental impact of mining has largely been addressed by new mining legislation and the requirements of financial institutions, little attention has been paid to mining's socio-economic impact. The prevalence of surface mining has led to an increased loss of land, a critical resource in many rural communities, as well as the absence of social infrastructure and employment opportunities that mining communities previously benefited from. This has generated community protests and demands for direct benefits from mining. State capacity-building is required for improved governance and for state reform. It is also required in the policy areas relevant to sustainable mining to ensure a better use of mining revenues for sustainable development. There is a further need for effective networking of policies and institutions relevant to mining as well as for guidelines on mining community development. Community empowerment and capacity-building are required to ensure effective community participation in decision-making relevant to mining while mining companies will have to internalise the demands of corporate social responsibility in order to improve community relations and their capacity for community development.