Mines are often the dynamos of their local economies, but with this reliance comes dependence. More can be done to diversify the local economy and make it resilient, according to SRK Consulting.
The last two versions of the Mining Charter have placed greater focus on enterprise and supplier development. as well as local procurement. according to Lisl Fair, principal consultant (social sciences) at SRK Consulting.
"This has encouraged many mines to incorporate local suppliers into their supply chains, which is a good start to supporting the local economy," says Fair. "However. it is easy to create over dependence, where many smaller suppliers would not be able to survive the inevitable closure of the mine."
In developing and operating mines, it is important to ring-fence certain products and services for local businesses. If local suppliers cannot be found, mines could create local enterprises in collaboration with local business chambers or entrepreneurial groups or facilitate the formation of joint ventures to ensure that ring- fenced services are delivered by local businesses. As a mine continues to progress through its life cycle these enterprise development initiatives must be re-evaluated to assess their ability to survive post mine closure.
