Participation and paradoxes: community control of mineral wealth in South Africa's Royal Bafokeng and Bakgatla Ba Kgafela communities
- Authors: Mnwana, Sonwabile Comfords
- Date: 2012
- Subjects: Political participation -- South Africa , Natural resources -- Co-management -- South Africa , Rural development -- South Africa , Mining corporations -- South Africa , Platinum mines and mining -- South Africa , Sustainable development -- South Africa
- Language: English
- Type: Thesis , Doctoral , PhD (Social Sciences)
- Identifier: vital:11952 , http://hdl.handle.net/10353/526 , Political participation -- South Africa , Natural resources -- Co-management -- South Africa , Rural development -- South Africa , Mining corporations -- South Africa , Platinum mines and mining -- South Africa , Sustainable development -- South Africa
- Description: Resource control as a form of community participation in the mineral economy has gained much recognition. One prevailing argument is that direct control of natural resources by local communities is an important precondition for equitable utilisation of the natural resource wealth, peaceful co-existence between mining corporations and indigenous communities, and congenial relations between local communities and the state. Studies have also shown that the absence of direct community control of mineral wealth remains a major factor in the communal resistance and socio-political conflict witnessed in the natural resource-endowed regions of countries such as Nigeria, Ecuador, Sierra Leone and the Democratic Republic of the Congo. However, little is known about mineral resource control at the community level. Does community control necessarily translate to equity? How does local involvement in the mobilisation of mining royalties benefit different segments of the community? Indeed, how do different segments of the community “control” the wealth? What is the specific model adopted to engender broad-based community participation in the utilisation of mineral wealth – and does it matter? These theoretical and practical questions were the impetus for undertaking this study in the Royal Bafokeng and Bakgatla Ba Kgafela – two platinum-rich ‘traditional’ communities in South Africa’s North West Province that have significant control over platinum resources in their territories. Utilising ethnographic data collected in the two study communities in 2008 and 2009, the thesis examines the character of community participation in platinum wealth utilisation; specifically, the conditions under which community participation promotes or hinders sustainable community development. The analysis uses a “three-dimensional participation ladder” conceptual scheme, based in part on Sherry Arnstein’s (1969) “ladder of citizen participation” and subsequent typologies of participation. Among the key findings of the thesis are that despite observed benefits, the interface of resource wealth and community development is fraught with tokenistic participation, elite-targeted grassroots anger, and local tensions – all linked to the contradictory nature of participation. The thesis further reveals that in some instances the challenge of platinum wealth-engendered community development tends to undermine existing customary and democratic spaces for participation, and that this is exacerbated by community-level issues such as poverty and inequality. The findings of the study compel a shift of analytical focus from conflict as an epiphenomenon of collective community exclusion and deprivation (as in the case of many natural-rich countries in Sub-Saharan Africa and elsewhere), to conflict as also resulting from collective community inclusion (in natural resource utilisation). At the policy level, the study generates insights that will, hopefully, assist mineral resource-endowed countries, such as South Africa, in dealing with the challenge of developing appropriate policy frameworks for regulating business and social partnerships between local communities and mining corporations, and within resource-rich communities themselves.
- Full Text:
- Date Issued: 2012
- Authors: Mnwana, Sonwabile Comfords
- Date: 2012
- Subjects: Political participation -- South Africa , Natural resources -- Co-management -- South Africa , Rural development -- South Africa , Mining corporations -- South Africa , Platinum mines and mining -- South Africa , Sustainable development -- South Africa
- Language: English
- Type: Thesis , Doctoral , PhD (Social Sciences)
- Identifier: vital:11952 , http://hdl.handle.net/10353/526 , Political participation -- South Africa , Natural resources -- Co-management -- South Africa , Rural development -- South Africa , Mining corporations -- South Africa , Platinum mines and mining -- South Africa , Sustainable development -- South Africa
- Description: Resource control as a form of community participation in the mineral economy has gained much recognition. One prevailing argument is that direct control of natural resources by local communities is an important precondition for equitable utilisation of the natural resource wealth, peaceful co-existence between mining corporations and indigenous communities, and congenial relations between local communities and the state. Studies have also shown that the absence of direct community control of mineral wealth remains a major factor in the communal resistance and socio-political conflict witnessed in the natural resource-endowed regions of countries such as Nigeria, Ecuador, Sierra Leone and the Democratic Republic of the Congo. However, little is known about mineral resource control at the community level. Does community control necessarily translate to equity? How does local involvement in the mobilisation of mining royalties benefit different segments of the community? Indeed, how do different segments of the community “control” the wealth? What is the specific model adopted to engender broad-based community participation in the utilisation of mineral wealth – and does it matter? These theoretical and practical questions were the impetus for undertaking this study in the Royal Bafokeng and Bakgatla Ba Kgafela – two platinum-rich ‘traditional’ communities in South Africa’s North West Province that have significant control over platinum resources in their territories. Utilising ethnographic data collected in the two study communities in 2008 and 2009, the thesis examines the character of community participation in platinum wealth utilisation; specifically, the conditions under which community participation promotes or hinders sustainable community development. The analysis uses a “three-dimensional participation ladder” conceptual scheme, based in part on Sherry Arnstein’s (1969) “ladder of citizen participation” and subsequent typologies of participation. Among the key findings of the thesis are that despite observed benefits, the interface of resource wealth and community development is fraught with tokenistic participation, elite-targeted grassroots anger, and local tensions – all linked to the contradictory nature of participation. The thesis further reveals that in some instances the challenge of platinum wealth-engendered community development tends to undermine existing customary and democratic spaces for participation, and that this is exacerbated by community-level issues such as poverty and inequality. The findings of the study compel a shift of analytical focus from conflict as an epiphenomenon of collective community exclusion and deprivation (as in the case of many natural-rich countries in Sub-Saharan Africa and elsewhere), to conflict as also resulting from collective community inclusion (in natural resource utilisation). At the policy level, the study generates insights that will, hopefully, assist mineral resource-endowed countries, such as South Africa, in dealing with the challenge of developing appropriate policy frameworks for regulating business and social partnerships between local communities and mining corporations, and within resource-rich communities themselves.
- Full Text:
- Date Issued: 2012
A critical analysis of the distintion between mining and manufacturing for South African income tax purposes
- Authors: Cloete, Loriaan
- Date: 2010
- Subjects: Mining corporations -- South Africa , Income tax -- South Africa , Income tax -- Law and legislation -- South Africa , Mining law -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8948 , http://hdl.handle.net/10948/1344 , Mining corporations -- South Africa , Income tax -- South Africa , Income tax -- Law and legislation -- South Africa , Mining law -- South Africa
- Description: "Mining operations" and "mining" are defined in s 1 of the Income Tax Act (ITA). A concept that is of great significance to this definition is the matter of when a mineral is won and the related question of when does the mining process end and the process of manufacture commences. Case law has not established a definitive point that can be used by the mining taxpayer to determine where the mining process ends for income tax purposes. The Supreme Court of Appeal was presented with the perfect opportunity in the Foskor1 case to clearly define the boundaries between these processes. Unfortunately, the court did not seize this opportunity to provide legal certainty. The significance of the distinction lies in the fact that a mining taxpayer is allowed to claim accelerated capital allowances. The objective of these allowances is to provide tax relief to the mining taxpayer taking the immense risk of investing billions of rands in capital expenditure. The capital expenditure incurred will also result in direct foreign investment. This in turn will result in economic growth and job creation. Currently, there is no legal certainty as to which processes will qualify as mining operations for income tax purposes. This may result in mining taxpayers being hesitant to incur capital expenditure as the risk relating to a project would have increased. The accelerated capital allowances may therefore not serve their intended purpose. The gross domestic product (GDP) contribution from gold mining has been decreasing in the last number of years, but this decrease has to a large extent been offset by an increase in the downstream or beneficiated minerals industry. This industry has also been identified by Government as a growth sector. The downstream or beneficiated mineral industry may not be catered for in the current definition of "mining operations" and "mining" and may therefore not qualify for beneficial tax allowances. It is therefore proposed that the term "won" as used in the definition of "mining operations" and "mining" should be defined in s 1 of the ITA as follows: A mineral is "won" when all the requisite and necessary processes, including, amongst other things, refinement, beneficiation, smelting, separation, have been undertaken to the mineral to render it saleable in an open and general market. This extension will provide legal certainty to a mining taxpayer and will ensure that South Africa obtains direct foreign investment and maximum value for its minerals. This will contribute to economic growth for South Africa's developing economy and result in job creation.
- Full Text:
- Date Issued: 2010
- Authors: Cloete, Loriaan
- Date: 2010
- Subjects: Mining corporations -- South Africa , Income tax -- South Africa , Income tax -- Law and legislation -- South Africa , Mining law -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8948 , http://hdl.handle.net/10948/1344 , Mining corporations -- South Africa , Income tax -- South Africa , Income tax -- Law and legislation -- South Africa , Mining law -- South Africa
- Description: "Mining operations" and "mining" are defined in s 1 of the Income Tax Act (ITA). A concept that is of great significance to this definition is the matter of when a mineral is won and the related question of when does the mining process end and the process of manufacture commences. Case law has not established a definitive point that can be used by the mining taxpayer to determine where the mining process ends for income tax purposes. The Supreme Court of Appeal was presented with the perfect opportunity in the Foskor1 case to clearly define the boundaries between these processes. Unfortunately, the court did not seize this opportunity to provide legal certainty. The significance of the distinction lies in the fact that a mining taxpayer is allowed to claim accelerated capital allowances. The objective of these allowances is to provide tax relief to the mining taxpayer taking the immense risk of investing billions of rands in capital expenditure. The capital expenditure incurred will also result in direct foreign investment. This in turn will result in economic growth and job creation. Currently, there is no legal certainty as to which processes will qualify as mining operations for income tax purposes. This may result in mining taxpayers being hesitant to incur capital expenditure as the risk relating to a project would have increased. The accelerated capital allowances may therefore not serve their intended purpose. The gross domestic product (GDP) contribution from gold mining has been decreasing in the last number of years, but this decrease has to a large extent been offset by an increase in the downstream or beneficiated minerals industry. This industry has also been identified by Government as a growth sector. The downstream or beneficiated mineral industry may not be catered for in the current definition of "mining operations" and "mining" and may therefore not qualify for beneficial tax allowances. It is therefore proposed that the term "won" as used in the definition of "mining operations" and "mining" should be defined in s 1 of the ITA as follows: A mineral is "won" when all the requisite and necessary processes, including, amongst other things, refinement, beneficiation, smelting, separation, have been undertaken to the mineral to render it saleable in an open and general market. This extension will provide legal certainty to a mining taxpayer and will ensure that South Africa obtains direct foreign investment and maximum value for its minerals. This will contribute to economic growth for South Africa's developing economy and result in job creation.
- Full Text:
- Date Issued: 2010
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