Broken Promises: Mining Companies in South Africa Fail to Deliver on Community Projects

South Africa’s mining giants have been exposed for failing to deliver on nearly R284 million worth of promised community projects — and the government has yet to act.

A scathing new report by Mining Affected Communities in Action (MACUA), titled “Looted Promises: the Crumbs Economy of Mining and the Myth of the Just Transition”, reveals that 11 mining companies collectively fulfilled less than a quarter of their legally binding Social and Labour Plans (SLPs).

Over a three-year audit period, MACUA found that just R92 million of the R376.25 million pledged by companies like South32, Glencore Waterval Mine, Seriti Resources, and Palabora Mining Company had actually been delivered. Meanwhile, these companies amassed R72 billion in profits during the same five-year cycle.

“This isn’t underperformance — it’s developmental theft,” MACUA stated in its report.

The audit spanned six provinces — Mpumalanga, North West, Limpopo, Free State, KwaZulu-Natal, and the Northern Cape — and highlighted a systemic failure not only by mining companies but also by the Department of Mineral and Petroleum Resources (DMPR) and Parliament’s mining portfolio committee, which have failed to hold anyone accountable.

Crumbs for Communities, Billions for Corporations

Under South African law, mining companies are obligated to submit and implement five-year SLPs that support local infrastructure, education, water access, and roads. These plans are critical for obtaining and maintaining mining rights.

But MACUA’s research shows:

• 77% of promised projects were never completed.

• Just 6 of 11 companies made their SLPs public.

• Only 2 provided plans in languages spoken by local communities.

• Several companies, including Glencore Waterval and Bushveld Vametco, refused direct requests for transparency.

In North West Province, Lentswe Tshipi Mine and Bushveld Vatmeco completed fewer than 10% of promised projects. In Ikemeleng, Glencore failed to deliver a pledged high school. And in Magojaneng, Northern Cape, United Manganese of Kalahari has yet to complete a R28-million road project promised back in 2018.

Shockingly, many affected residents reported they had never been consulted about the projects meant to uplift their communities.

“Decisions are made for us, not with us,” one resident told MACUA.

Ghost Projects and Government Silence

The report outlines a dangerous cycle where mining companies self-report their compliance to the DMPR without any independent oversight. MACUA’s findings suggest that if the under-delivery rate is representative of the sector, over R12.7 billion in development funding has gone unspent.

“We are witnessing a national developmental crisis,” the report warns.

Despite MACUA submitting its findings regularly to the DMPR, no investigations or penalties have been initiated. Parliament has also remained unresponsive.

The Bigger Picture

While the Minerals Council of South Africa reports that mining companies spent R4.9 billion on social investment in 2023, the ground-level reality paints a different picture. The infrastructure is missing, community projects are invisible, and trust between mining companies and communities is at an all-time low.

MACUA will officially launch the report on 15 May at The Forge, 87 De Korte Street, Braamfontein, from 10:00 to 14:00.

The time for silence is over. Communities are demanding accountability, transparency, and meaningful participation — not empty promises.

{Source: African Insider}

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