INVESTIGATION OF THE EFFICACY

AN INVESTIGATION OF THE EFFICACY OF THE STAKEHOLDER RELATIONSHIP
STRATEGY OF A PLATINUM MINE IN A TRADITIONAL RURAL AREA:
BACK ROUND AND MOTIVATION
The well-documented history of the mining industry in South Africa started ostensibly
with the first, accidental, discovery of diamonds in 1881, by an aspiring European
elephant hunter on his way from the then Cape Colony into the sparsely populated,
largely agrarian, northerninterior of South Africa and the countries north of South Africa.
When this gentleman reached the shallow crossing point in the Gariep River, then
known as the Orange River, near a small settlement serving the local farming
community and travelers on their way to the north, which laterdeveloped into the presentday town called Hope Town in the present-day Northern Cape Province, he
encountered children playing a game with pebbles collected from the river banks, a few
of which sparkled in the bright sunlight. The few pebbles which the man begged from
the children, were later identified by a geologist in Cape Town as being alluvial
diamonds. This discovery triggered the subsequent discovery of the vast of mineral wealth
of South Africa.
This discovery initiated a frantic rush into the Northern Cape Province by local and
foreign fortune seekers, to search for the wealth that the discovery of diamonds
suggested. Most of these fortune seekers were either from abroad or from what is today
the Western Province of South Africa, as the Dutch settlers who moved from the
present day Western Cape region to escape British rule were congregated in the Graaf
Reinett area of the Karoo and the 1820 British settlers were congregated in the present
day Eastern Cape province. This influx of fortune seekers triggered the next episode
in the history ofthe mining industry in South Africa, when a deposit of volcanic diamonds
was discovered in 1882 on a small hill called the Otter’s Kopjé, on the farm of a Mr.
Joubert about six kilometres west of the present-day town of Kimberley. This in turn led
to the discovery of similar deposits of volcanic diamonds in the centre of the presentday town of Kimberley where the myriad of diamondclaims was eventually developed
into what was to become known the ‘Open mine’, often referred to as the largest manmade open cast mine in the world, and later at asite on the eastern edge of Kimberley
that was to become the present-day Weselton Mine.

It is common knowledge that the discovery of diamonds was followed in 1986, by the
discovery of gold in what is today called the Witwatersrand or recently Egoli. This
was followed by the discovery of deposits of manganese and iron ore in the Northern
Cape Province near the present day town of Kathu and even later depositsof Platinum
and other metal deposits in the area around the present day Rustenburg. These
discoveriesestablished South Africa as a country with enormous mineral wealth and
gave birth toa mining industry that has formed the backbone of the South African
economy up to the present time.
Until the middle of the 1970s and into the early 1980s, the exploitation of the various
mineral deposits discovered in South Africa was characterised by the fact that the
mining and the related mining support or secondary industrial activities were, without
exception, established in very sparsely populated rural areas where there were
virtually no communities of indigenous people who had lived there for any length of
time or who claimed ownership of the land, except of course for the few European
settlers, mostly of either Dutch or German origin, who claimed ownership of the
farmland that they had settled on and for which they claimed ownership on the basis
of occupation or land grants issued by the then colonial governments, firstly that of
the Dutch and thereafter of the British.
In this context the mining and support industrial developments were also
characterisedby the establishment of new towns, which later grew into substantial
cities, to accommodate the people who migrated to these areas to participate in the
exploitationof the diamond and gold deposits. These mineral exploitation and related
industrial activities developed therefore, almost without exception, where there were
no pre-existing towns or cities and neitherwere there any significant communities of
indigenous people living in these areas, and perhaps only a very small number of
settlers who were almost exclusively involved in agriculture.
All of those who migrated to the early diamond and gold mines and the related tertiary
industries, did so in search of work as a means of survival and possibly a means of
wealth creation by way of the acquisition of property in the formof residential houses
and personal savings. It is also a trite comment that neither the European immigrants
who had settled in the interior to the farm after fleeing from the socio-political

oppression in their countries of origin, nor the very few indigenous people who lived
in the relevant rural areas, were initially involved in the exploitation of the mineral
wealth of the country that was to give rise to the South African mining industry.
The converse is true however of the mines that were established to exploit the
platinum and other mineral deposits that were discovered and developed during the
late 1970s and early 1980s, especially those in the so-called ‘Bushveld Basin’ of the
Limpopo Province, previously called the Transvaal, which stretches from Rustenburg
in the west to Burgersfort in the east, north of the N4 highway running from west to
east into todays’ Mpumalanga province. These mineral deposits were discovered and
the mines established to exploit them, were developed in areas where specific,
ethnically and culturally diverse, groups and communities of indigenous people had
lived for hundreds of years, at least according to their own history passed on by word
of mouth from generation to generation as none these indigenous people had a
written record of their own histories.
In the areas where the majority of these mines were established, the pre-existing
indigenous communities were quite substantial in terms of the number of people who
traditionally lived there. The rural settlements or villages where these indigenous
people were congregated were, and still are today, characterised as ‘Kraals’. These
kraals spread over large geographic areas. These largely agrarian communities
consisted for the most part of smaller, extended family-based settlements, without the
benefit of a properly developed infrastructure such as roads, transport services,
electricity, sewage disposal and, at best, served by small,individually owned shops,
often today referred to as ‘spaza shops’. These traditional, rural communities
maintained largely an exchange economy and a traditional socio-political
dispensation based on their culture, governed by ‘Traditional Leaders’, ‘Headmen’,
and ‘Tribal chiefs’.
In many, if not most of these cases, the areas where these mineral deposits were
found and mines developed, were in what was referred to after 1948 as the
‘homelands’, being the traditional residential areas of the said indigenous peoples
and communities recognised by the colonial government at that time, where traditional

leaders ‘..ruled..” in terms of traditional economic, legal or socio-political systems,
which included the concept of the collective ownership of the land under the
jurisdiction ofthe traditional leaders.
Because of the socio-political, socio-economic, and cultural dynamics that existed in
thesetraditional areas, these communities and their traditional leadership accepted,
and generally still accept today, that they owned,
inter alia, the minerals that were
discovered in their areas and that they therefore, had the right to grant exploration
and mining rights forthe exploitation of “…their…” minerals and more importantly, that
they should benefitdirectly from the exploitation of the said minerals.
The disparity between the Western, capitalistic economic framework and the sociopolitical dispensation on which the present day South Africa s predicated and which
evolved out of the Western-styled colonial socio-political dispensation that prevailed
that the time when the mineral wealth of South Africa was discovered, which vested
all mineral rights as well as the related exploration and exploitation rights in central ,
without consultation with local community leaders or the communities themselves,
and the traditional leadership and land ownership dispensation existing in the
abovementioned rural areas where these mines were developed, of necessity,
resulted in an inherently adversarial relationship between the various stakeholders.
The said stakeholders are of course the government of the day, the mining companies
whichhad obtained mineral exploitation from the governments of the day and the local
communities and their traditional leadership whose perception was and still is, even if
only by default, that they were and still are the rightful ownersof the land as well as
everything on or in it. It is obvious that this adversarial relationship which originated
at the inception of the mining of the Platinum and other metal deposits, contained the
seeds of inherent conflict, which was manifest almost from the moment of the
discovery of the said mineral deposits and the envisaged exploitation of the
entrenched mineral wealthby mining, was made public.

QUESTION
WRITE A RESEARCH DESIGN AND METHODOLOGY AS PER THIS
DISERTATION TOPIC AND BACKROUND GIVEN .FOLLOW THE STAGES
BELOW.
INTRODUCTION
3.2 INTRODUCTION (1 PAGE)
3.2 RESEARCH POPULATION (1 PAGE)
3.3 SAMPLING AND THE RESEARCH SAMPLE (4 PAGES)
3.4 THE RESEARCH INSTRUMENT ( 2 PAGES)
3.6. DATA ANALYSIS (4 PAGES)
3.7 DATA VALIDITY AND RELIABILITY (1 PAGE)
3.8 ETHICAL CONSIDERATION (1PAGE )
3.9 SUMMARY (2 PAGES)