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Thursday, 5 June 2008

Malawi, South African, Zambian mines face responsibility challenges

Lusaka, Zambia - Mining companies in Malawi, South Africa and Zambia have a "long way to go" before being recognised as responsible corporate organisatio n s, a study by Bench Marks Foundation, says.

While there are differences between mining in South Africa, Malawi and Zambia, e ach of these countries faces similar challenges in meeting all the requirements o f Corporate Social Responsibility (CSR) and the report suggests that CSR and Cor p orate Social Investment (CSI) be prioritised and practised.

The study, entitled "Policy Gap 2", provides indepth research on the CSR status of platinum mining in Limpopo, gold and uranium mining in the North West and Gau t eng provinces of South Africa, as well as coal mining in Mpumalanga, and mining i n Zambia and Malawi.

Proper regulation has, however, not stopped bad environmental management and pra ctices in Zambia which run like "golden threads" through the mining industry in t hat country.

The study said the privatisation process of mines in Zambia resulted in major de trimental socio-economic impacts such as loss of jobs, increasing levels of pove r ty and others, while the small-scale mining industry is surrounded by immense co n troversy, mainly due to the concealed nature of gemstone mining.

Poor practices have resulted in serious health problems such as Tuberculosis, silicosis, Wilson's Disease and HIV/Aids, while safety is a huge issue and challenge in Zambian mines.

Labour issues also need revisiting, as is evident from all the strikes and labour unrest, said the study.

In Malawi, the study expressed concern at the high percentage of diseases in com munities in close proximity to mining operations.

Malawi faces a different set of challenges, according to "Policy Gap 2", includi ng a need to urgently review its outdated mining and associated legislation and r egulatory regime.

The report said civil society structures needed to be strengthened to provide an alternative point of reference for communities "in the face of rampant mining e x ploration and development in ecologically sensitive areas."

Also urgently needed is an organised labour force in the mining sector to addres s extremely low wages and appalling working conditions.

The research suggests that pressure be put on institutions such as Standard Bank , which finances the Paladin Kayelekera Project, to ensure socially and environm e ntally sound investment.

In South Africa, the main challenges centre around concerns that the various ass essment processes in which mines engage are "merely formalistic" since prospective licencees do not have to secure community consent or agreement in order for mi n ing licences to be obtained.

They merely have to demonstrate that they have consulted such communities. There are also perceptions that the South African Police Services are not impartial and fair, and that the Department of Minerals and Energy is "prostituting" itself t o accommodate the mining industry, the report stated.

The phenomenon of "junior mining companies" in the South African mining industry has resulted in "opportunism" by what the study describes as "treasure hunters" and, in some cases, "get-rich-quick" schemes.

"The phenomenon has led to the corruption of government officials, to flagrant c onflicts of interest and to often extremely divided communities," the research adds.

Bench Marks Foundation is an independent verification agency monitoring corporat e performance in the field of CSR.

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