Socio-economic impact assessment of De Beers Namaqualand Mines closure in 2002
Master Thesis
1992
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University of Cape Town
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Abstract
This summary contains three sections. Firstly a review of the Baseline Information Report followed by a presentation of the findings of this assessment report. The findings are the impacts of closure. Finally mitigatory measures are recommended. The Baseline Information Report, 5/92/87, was produced by the Environmental Evaluation Unit (EEU) with the assistance of the 1 992 Masters students of the department of Environmental and Geographical Science. Its primary aims were to introduce the NM 2005 study, describe methods used and present results. A brief description of its contents follows : De Beers Namaqualand Mines (DBNM) commissioned the EEU to undertake a study, seeped to assessment ofthe socio-economic effects of mine closure and recommendations for mitigation. The effects or impacts; vary in their magnitude and significance further more they effect a wide range of people and organisations. To establish the magnitudes and significance of the socio-economic effects, the environments of Namaqualand and the Transkei region, in which the impacts are to occur, needed definition. The defined environments acted as a baseline for changes brought about through DBNM closure. Firstly, the history of the Namaqualand people and their socio-economic activity trends was established and issues were put in context. History indicates Namaqualand went through a land-grabbing phase, during which the Khoi Khoi people were dispossessed of their land to make way for trekboer farming and copper and diamond mining (Fig, 1991). The latter industries continue to dominate the region today, providing labour opportunities for Namaqualand's coloured majority and 58 %of the region's gross geographic product in 1991. The agricultural and fishing industries are marginal and are expected to remain that way (Dunne, 1988). Secondly, the Transkeian environment, its history and trends were established using the Herschel District as microcosm for study. The results indicated a history of forced removals. The present subsistence community are struggling with poor infrastructure and are heavily dependant on pensions and money sent home from migrant labourers. Having established some background the report continues by describing the social effects which could be felt by the DBNM employees, their dependants, their communities and other interested and affected parties. The social effects were gauged through surveys, meetings, written and telephonic correspondence. The employees were divided into three groups; Namaqualand, Transkei and mine town, based on the regions the employees called "home". The survey results showed that the three groups were distinctly different. Indicating that group members along with their dependants and communities, could be effected by DBNM closure to different levels of significance. Their concerns with closure, revolved primarily around; unemployment and the lack of opportunities, education, quality of life and the regional economy. The groups also suggested mitigation such as the establishment of a development aid fund, returning DBNM land to the Rural Coloured Areas and DBNM involvement in local projects. The economic effects will be felt by businesses who deal with DBNM and its employees. The businesses in the Namaqualand region are likely to experience the most significant effects. While the national and international communities are likely to be influenced to a lesser extent. Economic effects were established through the examination of macro-fiscal flows, input-output analysis and a business survey in Namaqualand. The macro scale study was covered by the input-output analysis which found South Africa, outside of development region A, is likely to experience the largest financial loss, greater than that of the local region and the international community. In particular, the services and machines sectors were predicted to experience the greatest loss due to closure. On a micro scale, the survey of Namaqualand businesses indicates that 17 % of the regions turnover emanates from dealings with DBNM and its employees. DBNM closure would result in business closures (3 % in Springbok and 5 % elsewhere in Namaqualand) and retrenchments (a predicated 250 or 4. 7 % of business employees) primarily in Springbok, Steinkopf and Komaggas.
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BIbliography: pages 73-75.
Reference:
McCulloch, G. 1992. Socio-economic impact assessment of De Beers Namaqualand Mines closure in 2002. University of Cape Town.