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vol.113 issue1Considerations for the resource nationalism debate: a plausible way forward for mining taxation in South Africa author indexsubject indexarticles search
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Journal of the Southern African Institute of Mining and Metallurgy

On-line version ISSN 2411-9717
Print version ISSN 0038-223X


COOK, S.E.. Community management of mineral resources: the case of the Royal Bafokeng Nation. J. S. Afr. Inst. Min. Metall. [online]. 2013, vol.113, n.1, pp.61-66. ISSN 2411-9717.

This article uses the case of the Royal Bafokeng Nation to argue that royalties and dividends from mineral resources, if managed well, can provide direct benefits to the surrounding community even while the state collects its share of mining revenues through taxation. The key to this model is the effective management of the resource income flowing into community coffers. Where some of this income may fund urgent interventions in the community, a portion of the income can also be used to establish an intergenerational wealth fund to meet the needs of future generations. As a depleting resource, minerals like gold and platinum are not a sustainable source of income, and must be replaced over time by more regenerative income streams. These strategies and dynamics are manifest in the Royal Bafokeng Nation's status as both community and quasi-municipality, a labour hosting and a labour sending community, a mine operator and a mine owner. The Royal Bafokeng Nation also owns one of South Africa's largest community-based investment companies, which channels revenue derived from platinum deposits into a broad investment portfolio that in turn funds an aggressive social development program for 150,000 people living in twenty-nine rural villages.

Keywords : nationalization; mine-community relations.

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