Public Finances, Service Delivery, and Mine Closure in Koffiefontein (Free
Total Page：16
File Type：pdf, Size：1020Kb
Scientific articles • Wetenskaplike artikels Public finances, service delivery, 1. INTRODUCTION ince the mid-1800s, South Africa and mine closure in Koffiefontein has been primarily dependent Son mineral and energy (Free State, South Africa): rFm production and export (Nel 2002). With the drop of the gold price, stepping stone to stumbling block1 increased mechanization, and the exhaustion of mineral resources in certain areas, the mining industry has experienced a decline in the L. Marais2, A. Pelser3, L. Botes4, number of operating mines. For example, in the coal-mining sector, N. Redelinghuys5 & A. Benseler6 "the number of operating coal mines ... has declined by more than half, from 112 in 1986, to 53 at the end Submitted to Town a n d Regional Planning, June 2005; of 2000” (Limpitlaw 2004:1). This has revised 12 Septem ber 2005. had a severe affect on the socio economic structure of areas reliant Abstract on the m ining industry. Towns that This article examines the interrelationship between mining activities, the depend on mining as a mono local municipality, and public finance in Koffiefontein (Letsemeng Local industry are hit the hardest because, Municipality). The international literature suggests that, all over the world, m ine upon the closure of the mine, the closure has had a severe negative influence on m unicipal and public economic bases of such towns are finances. Furthermore, addressing the influence of mine closure reQuires the erased (Laurence 2002). Thus, the involvement of all spheres of government. After being historically dependent decline of this industry, m ainly as a on the m ining industry, the beginning of the 1990s saw a major downscaling of result of resource depletion and, this industry. The existing symbiosis benefits the m unicipality to a large degree; recently, also as a result of an but in view of possible m ine closure, a high level of dependence has been unfavourable rand/dollar exchange created in Koffiefontein. It is argued in the article that mine closure will rate, has created challenges of influence negatively m unicipal revenue and service delivery and will increase economic diversification in many the num ber of indigent households. In order to address these problems, mining environments of South Africa. specific planning should be con du cte d for m ine closure. The contribution of Economic diversification has been various spheres of governm ent is also needed, since such planning cannot be effectuated fairly easily in Gauteng, m anaged by the Local Municipality alone. but is far more difficult to achieve in other areas. S T A A T S F IN A N S IE S , D lE N S L E W E R IN G EN M Y N S L U IT IN G IN Internationally mine closures and K O F F IE F O N T E IN (VRYSTAAT, S U ID -A F R IK A ): VAN post-mining economic challenges G ELEEN THEID TOT STRUIKELBLOK have received a fair amount of Hierdie artikel ondersoek die onderlinge verband tussen mynbouaktiwiteite, die attention (Keyes 1992; AcQuah & plaaslike munisipaliteit en openbare finansiering in Koffiefontein (Letsemeng Boateng 2000; Cronje 2000; isher (dated 2012.) Plaaslike Munisipaliteit). Die internasionale literatuur suggereer dat die sluit van Strongman 2000; Jackson 2002; myne wereldwyd 'n ernstige negatiewe impak op munisipale en openbare Laurence 2002; World Bank 2002; finansies het. Verder is dit nodig dat alle sfere van die regering betrokke is Haney & Shkaratan 2003). Although wanneer die im pak van mynsluiting aangespreek word. Suid-Afrika is histories van there has been a specific increase die mynbou-industrie afhanklik, m aar het sedert die 1990's 'n groot afskaling in in research in the South African hierdie industrie beleef. Die bestaande simbiose bevoordeel Koffiefontein se context, the amount of munisipaliteit tot ’n groot mate. Die moontlike sluiting van die myn het egter academically related work that has onthul dat Koffiefontein te afhanklik van die m ynbou geword het. Hierdie artikel been carried out in this regard argumenteer d a t die sluiting van die myn negatief op die munisipale inkomste remains small. Specific examples en dienslewering sal inwerk' en die aantal nooddruftige huishoudings sal include research conducted in the vermeerder. Ten einde hierdte problem e dan te spreek, behoort die sluiting van Free State Goldfields (Seidman 1993; die myn spesifiek beplan te/ word. Die insette van verskillende vlakke van die Binns & Nel 2001), and research regering word ook benodig aangesien sodanige beplanning nie alleen deur die related to the decline of the coal plaaslike munisipaliteit gedoen kan word nie. mining industry in Kwazulu-Natal (Binns & Nel 2003; Nel e t al. 2003). 1 Since this article was accepted for publication, De Beers Consolidated Mines indicated that the Koffiefontein Mine will close permanently in 2006. 2 Lochner Marais, Senior Researcher, Centre for Development Support (IB 100), University of the Free State, PO Box 339, Bloemfontein, 9300. E-mail: < [email protected]>. 3 Andre Pelser, Department of Sociology and Research Associate, Centre for Development Support (IB 100), University of the Free State, PO Box 339, Bloemfontein, 9300. 4 Lucius Botes, Director, Centre for Development Support (IB 100), University of the Free State, PO Box 339, Bloemfontein, 9300. 5 Nola Redelinghuys, Department of Sociology, University of the Free State, PO Box 339, Bloemfontein, 9300. 6 Anja Benseler, Research Associate, Centre for Development Support (IB 100), University of the Free State, PO Box 339, Bloemfontein, 9300. 5 Reproduced by Sabinet Gateway under licence granted the Publ 6 SSB/TRP/MDM 2005(48) SSB/TRP/MDM ) . 2 1 0 2 d e t a d ( r e h s i l b u P e h t y b d e t n a r g e c n e c i l r e d n u y a w e t a O to G t e n i b a S Figure 1: Location of Koffiefontein and Letsemeng in the Free State, 2005 y b d e c u d o r p e R Marais, Pelser, Botes, Redelinghuys & Benseler • Public finances, service delivery & mine closure in Koffiefontein MATLOLE A SECHABA, PHANO YA DITSHEBELETSO LE HO KWALWA analysed, together with the possible HA MERAFO HO LA KOFFIFONTEIN (FREE STATE, SOUTH AFRICA): influences in the event of mine closure. HO TLOHA NTLHENG YA TSWELOPELE HO YA HO TSHITA Finally, a number of concluding comments are made. Tokomane ena e hlahloba dikamano tse kopaneng pakeng tsa diketsahalo tsa maeneng, puso ya lehae hammoho le matlole a sechaba ho la 2. MINE CLOSURE AND Koffifontein(Letsemeng local Municipality). Dingolwa tsa mafatsheng a kantle, di MUNICIPAL/PUBLIC SECTOR sisinya hore ho kwala ha dimaene ho bile le kgatlamelo e sa lokang Masepaleng FINANCE: AN OVERVIEW OF AN hammoho le matloleng a sechaba lefatshe ka bophara. Ho feta moo, tharollo INTERTWINED RELATIONSHIP kgatlamelong ya ho kwalwa ha dimaene ho hloka boiketlaetso le tshebedisano mmoho ya karolo tsohle tsa mmuso. Ka mora ho e tshetleha haholo kgwebong 2.1 BACKGROUND INFORMATION ya tsa merafo, ho ile ha bonahala ho theoha ho hoholo kgwebong Qalong ya Mine closure is a phenomenon that dilemo tsa bo 1990. Tshebedisano mmoho e teng ha jwale e bontsha bo has affected both the developed masepala ba una molemo o moholo, empa ho kwala ha dimaene ho tlisa and the developing world. With the boitshetleho bo boholo masepaleng wa Koffifontein. Tokomane ena e bontsha Industrial Revolution, coal mining haholo hore ho kwala ha dimaene ho tlisa kgatlamelo e mpe lekenong la tsa became one of the main economic ditjhelete tsa masepala le phanong ya ditshebeletso mme e tla eketsa bofuma activities in the western world. In the bo boholo.Hore ho tlo lokiswe mathata ana, metjha e lokileng e tlameha hore e 1960s, however, resource depletion, latelwe ho e tsa meralo ya ho kwalwa ha dimaene. Dihlahiso le ditshitsinyo tsa poor scale-economies, increasing mafapha le meralo e fapaneng ya mmuso e ya hlokahala, hobane lekgotla labour costs and conflict, price la metse ha le kgone ho iketsetsa meralo e napahetseng. fluctuations, the use of alternative fuel sources, and the increasing One particular aspect of mine [more specifically the Letsemeng necessity of importing cheaper coal closure that has received limited Local Municipality (Letsemeng) and from Third-World producers led to a attention is the reciprocal the Xhariep District Municipality] in decrease in mining with job losses relationship between municipal/ the south-western Free State' (see amounting to over one million in the public sector finance and service Figure -7). It mainly draws on the western world between 1955 and 1968 delivery, on the one hand, and findings of a social influence (Nel, Hill, Aitchinson, & Buthelezi 2003). mining activities, on the other hand. assessment c o n d u cte d for De Beers Following from this, the a ffe ct of Koffiefontein Mine as part of the Not only the coal mining industry, but mine closure (or the decline of a mine's application for a new mining also other mining industries were single dominant economic sector) right (CDS 2004). Essentially, the a ffected by this trend. With the on public sector finance and article argues that, in the case of decline of mining in the western services has also not received Koffiefontein, a symbiosis developed world, mining activities dramatically ) adeQuate attention. This influence is increased in developing countries . between the Koffiefontein (De Beers- 2 usually closely linked to the ability of owned) diamond mine and with a surge in mining investments in 1 0 the area to develop a diversified Letsemeng. The purpose is to provide the 1960s, 1970s, and 1980s. Many 2 econom y in a post-m ining era.