A Revitalisation Strategy for Dying Mining Towns within Mpumalanga Phases One to Five Chapters 1 to 6 July 2007 For: The Mpumalanga Department of Economic Development and Planning The Development Bank of Southern Africa – Development Fund EXECUTIVE SUMMARY BACKGROUND AND OBJECTIVE Mpumalanga, as a province rich in mineral resources, has a number of small towns which were designed to provide housing, social infrastructure and recreation facilities for mine employees and managed by the mine companies. Once the mine closes, economic activities around these towns deteriorate causing unemployment and severe stress for mine communities. These towns also possess well developed and expensive infrastructure that falls into disuse once the mine closes. Measures taken by the mines to ameliorate the impact of closure on mine communities are mostly inadequate. There is, therefore, a real need for a strategy to revitalise mining towns where mine closure occurred and to manage future closing scenarios. Laduma, The African Planning Partnership was commissioned by the Mpumalanga Department of Economic Development and Planning to investigate the phenomenon of dying mining towns in the province and to develop a strategy aimed at ensuring continued economic development in such towns. The study brief defined the districts of Volksrust, Steynsdorp, Rietspruit, Pilgrim’s Rest and Piet Retief for a scoping analysis to finalise the study area. The main objective of the study is to develop a strategy to ensure continued economic development and sustaining of infrastructure in mining towns after mine closure. An additional objective is to provide guidelines for future closure scenarios. STRUCTURE AND SCOPE OF THE REPORT The first phase of the study involves a literature study of the way that closed mines have approached the problem of former mine communities and infrastructure as well as a scoping analysis to identify the former mining towns which should be included in the study. The literature study revealed that measures taken by the mines to ameliorate the social and economic impact of mine closure on mine communities often vary and are mostly inadequate. The most significant of these measures are: • Voluntary retrenchment of employees • Re-employment of former employees at other mines of the same company • Replacing contractors with former mine employees • Setting up co-operatives and micro-enterprises for their communities • Skills training programmes for self-employment 2 • Demolition of all fixed infrastructure • Abandonment of infrastructure • Proclamation of former mine villages into townships governed by the local municipality • Sale of housing units to former employees and other private individuals • Donation of recreational facilities to the community • Transfer of schools, hospitals, etc. to the appropriate government departments • Rehabilitation of the environment disturbed by mining operations Problems experienced are: • Training offered for self-employment is not always contextually applicable • Only a number of former employees can be re-employed • Failure of the majority of job creating projects as a result of a combination of the following reasons: − inadequate expertise to discern sustainable projects; − lack of or inadequate consultation between the mine, community and consultants contracted to carry out implementation; − lack of integrated planning; − inadequate funding, training, supervision and governance strategy and capacity by community forums; − lack of management, marketing and entrepreneurship capacity; in the community; − projects are too small to provide an adequate income; − lack of commitment from community members; − failure to establish extended markets - local markets are relatively small and are constrained by the lack of purchasing power. • Job creating projects are too small to replace the jobs lost through mine closure • Illegal occupation of houses because of inability or unwillingness to pay for them • Vandalism of recreational facilities and other infrastructure during the transitional period The scoping analysis revealed that the following towns correspond with the description of dying mining towns and should be included in the study: • Bergvliet mine near Majuba Power Station (Pixley Ka Seme Municipal Area) • Msauli mining village (Albert Luthuli Municipal Area) • Rietspruit (Emalahleni Municipal Area) • Pilgrim’s Rest (Thaba Chweu Municipal Area) 3 Piet Retief district was excluded from the study as all the former mining villages were demolished. Phase two of the study is a situation assessment of the closed mining operations and infrastructure in the identified mining towns. In addition, natural resources and socio- economic factors likely to impact on sustainable development opportunities were also investigated. Information gathering was by means of desktop research, workshop sessions, questionnaire surveys and interviews with stakeholders. Phase three of the study involves the determination of potentially viable activities and projects in the mining towns. Phase four of the study analyse the viability of potential programmes and projects in terms of comparative advantage, sustainability, costs and benefits, market accessibility and potential linkages. As a result project priorities are outlined. Phase five is the culmination of the study and involves the determination of development portfolios for the mining towns under study and guidelines for future closure scenarios. OVERVIEW OF THE RESULTS Bergvliet mining complex Bervliet mine was established to provide coal for the nearby Majuba Power Station, but could not be utilised because of dykes in the coal deposits and excessive gasses. There is a well developed infrastructure and a diverse range of structures associated with the mines. The latter include offices, large workshops, a human resource centre, 4 hostel/apartment blocks, mess, kitchen, changing rooms and laundry. All services are available plus a sewerage plant. There is sufficient bulk water supply from Zaaihoek Dam (capacity 193 ML), electricity from Escom and land for further extension. Escom has offered toe complex to the local municipality and province. Berbvliet is centrally located within the Municipal Area with short distances to the surrounding towns. The N11 and R35 are the major road connections with Mpumalanga, Gauteng and KwaZulu-Natal. Bergvliet has a strategic location with regard to these provinces. The area has comparative advantages in agriculture and agri-industries with major markets in Mpumalanga, Gauteng and KwaZulu-Natal. The majority of the industries want to extend, but there is a lack of industrial land in the Municipal Area. 4 The investigation revealed high unemployment (50.7%), a shortage of large economic development and of technically trained people and a total lack of technical training institutions in the Municipal Area. In this light an industrial complex/park (with emphasis on agri-industries, service industries and storage and distribution depots) and a complimentary technical training facility was determined as the most beneficial and viable use of the mine infrastructure. Apart from many jobs and valuable training, such a development will also stimulate SMME development for the provision of many goods and services. The project has been captured in the municipal IDP and LED strategy. Msauli mining village Msauli, the last of South Africa’s Chrysotile asbestos mines closed in 2002 and was totally rehabilitated under the guidance of Eko Rehab of North West University. The mining town of msauli is situated within the Songimvelo Game Reserve near the Swaziland border. The town has been put under management of the Mpumalanga Tourism and Parks Agency awaiting a land claim resolution. The old mining town with its charming architecture has been well preserved. There is a well developed infrastructure and a diverse range of structures and amenities including 94 houses, guest house, recreation club, workshops, school, hall, church, offices, library, shops, post office, golf course and clubhouse, tennis courts, squash court, swimming pool, bowling green, tennis/bowling ablution and children’s play park. The natural attributes of the town (mountains, Komati River, flora and fauna) are exceptional. Following the mine closure, unemployment in the area has reached a high of 71.5%. Apart from tourism, economic development in the area is limited and offers no solution for the high unemployment. Msauli is accessible by road and is within easy reach of two gateways, namely Kruger Mpumalanga International Airport (110 km by road) and Matsapa International Airport in Swaziland (67 km by road). It is also less than 4 hours drive from OR Tambo International Airport (320 km by road). The town has a Pilgrim’s Rest feel to it and present a unique opportunity to be developed into an end ‘destination family resort’ and ‘spring board destination’ feeding the greater 5 Songimvelo-Malolotja TFCA. This is the sole and most beneficial option identified for the town. The Mpumalanga Tourism and Parks Agency and the Songimvelo-Malolotja TFCA initiative also subscribe the above option. A resort at Msauli will be well suited to stimulate economic development in the area. Many spin-offs will be created for the provision of goods and services. Employment opportunities for the local population will be ample at all levels. Linkages with other attractions in the area will create more jobs. There is much in the area with strong tourism appeal. For maximum benefits for all concerned, the proposed